Student Loans
Personally, I think student debt should be viewed as a last resort - a necessary evil if you will. Tuition costs are rising at record rates and scholarships, grants, and financial aid might not be enough to cover everything from room & board to books, computers or laptops, and transportation.The student loan industry has been a topic of interest to the Congress in the recent session, and legislative changes as well as the sub-prime loan disaster are having an effect on the cost and availability of loans. I worked as an analyst briefly evaluating the business climate following the legislative changes, but the company I was with ultimately decided its business model had been made obsolete by law. So they shut down and sold the loans - and perhaps just in time, as last year student loan securities dropped to an all-time low. No analysis could show a profitable model without seriously raising rates on students - sometimes into the double-digits.
If there was ever a bad time to get loans, this is probably it. Unfortunately, its also the time they might be most needed. Investors want a premium on risky loans & bonds, and students are some of the riskiest involved. Many factors are contributing to the cost of education, but at the end of the day the fact remains that prices are going up rapidly.
Credit cards should also be avoided but they can also have their place. On the one hand, they can be used to cover unexpected expenses, to build up credit history, or if paid off immediately, used to get free stuff through rewards programs or frequent flight miles.
In this section, I'll give you plenty of reasons to stay away from student loans, and a little advice on how to find the right ones or if you qualify for various programs like Stafford, PLUS, etc...
Title: The Impact of Student Loan Debt on Your Financial Future Introduction:Are you a recent graduate with a hefty amount of student loan debt? Or perhaps you are contemplating going to college but worried about the financial burden of loans? You are not alone. According to the Federal Reserve, Americans collectively owe over $1.5 trillion […]
Introduction Paying for college can be an expensive endeavor, and many students rely on student loans to finance their education. However, sometimes life can throw unexpected challenges our way, and we may struggle to keep up with loan payments. So what happens if you can’t repay your student loans? In this blog post, we will […]
The rising cost of higher education has left many students struggling with the burden of student loans. According to the Institute for College Access and Success (TICAS), over 44 million Americans currently have student loan debt, with an average balance of over $37,000. With such a large amount of debt, it’s no wonder that many […]
Student loans can be a significant financial burden for many individuals, but there is a silver lining for those who are struggling to make payments. The interest paid on federal and private student loans can be tax-deductible, potentially saving borrowers hundreds or even thousands of dollars each year. This deduction is often overlooked, but it […]
The Truth About Student Loan Consolidation Student loan debt is a growing concern in the United States, with the average borrower owing over $30,000. As a result, many people turn to student loan consolidation as a way to manage their debts and make payments more manageable. However, there is a lot of misinformation and confusion […]
How to Handle Defaulted Student Loans Defaulting on student loans can have serious consequences, including damage to your credit score and wage garnishment. But if you find yourself in this difficult situation, there are steps you can take to handle your defaulted student loans. Assess your situation The first step in handling defaulted student loans […]
Introduction When it comes to financing higher education, federal student loans are often the first option for students and their families. These loans are offered by the government and can come with more affordable interest rates and flexible repayment options as compared to private loans. However, not all federal student loans are created equal. There […]
Title: The Benefits of Federal Student Loan Forgiveness Programs IntroductionWith the rising cost of higher education, many students are burdened with a substantial amount of student loans. According to the Federal Reserve, the total student loan debt in the United States has reached $1.71 trillion as of March 2021. This huge debt not only affects […]
Introduction to Income-Driven Repayment Plans As student loan debt continues to rise in the United States, many borrowers are looking for ways to manage their payments and make them more affordable. Income-driven repayment plans (IDR) have become increasingly popular options for those struggling to make ends meet while repaying their student loans. These plans, offered […]
Introduction Student loans can be a major burden for many individuals, with high interest rates and lengthy payment terms. However, with the rising cost of education, it has become increasingly important to find ways to reduce the financial strain of student loans. One option that has gained popularity in recent years is refinancing student loans. […]
What to Do if You Can’t Afford Your Student Loan Payments Student loans can be a necessary evil when it comes to paying for higher education. While they often allow students to attend college and pursue their dreams, they can also lead to financial strain and stress after graduation. If you find yourself struggling to […]
TITLE: HOW TO MANAGE YOUR STUDENT LOAN DEBT AFTER GRADUATION Student loans are a necessary part of achieving higher education for many individuals. According to the Federal Reserve, total student loan debt in the United States is over $1.7 trillion, with the average borrower graduating with around $30,000 in debt. With such a large amount […]
The Pros and Cons of Taking Out Private Student Loans Private student loans can be a valuable tool in financing your education, but they also come with their own set of advantages and disadvantages. These loans are offered by private lenders, such as banks or credit unions, and are meant to supplement the federal aid […]
Student loans are a crucial part of financing higher education for many students. However, navigating the world of student loans can be a daunting task, and it can be easy to make mistakes that can have a significant impact on your finances. In this blog post, we will discuss the most common student loan mistakes […]
The Impact of Interest Rates on Student Loan Repayment In recent years, there has been a significant increase in the number of students taking out loans to finance their higher education. According to the Federal Reserve, the total amount of outstanding student loan debt in the United States reached a staggering $1.6 trillion in 2020. […]
Federal vs. Private Student Loans: What’s the Difference? Student loan debt has become a hot topic in today’s society. With the rising cost of college tuition, many students and their families turn to loans to help cover the expenses. According to a report by the Federal Reserve, Americans currently owe over $1.5 trillion in student […]
The Basics of Student Loans Introduction Student loans are a type of financial aid that is borrowed by students to help cover the costs of higher education. These loans can come from the federal government, private lenders, or through the school itself. They are a vital resource for many students who may not be able […]
Understanding the FAFSA and its Role in Student Loan Eligibility: An In-Depth Analysis The Free Application for Federal Student Aid (FAFSA) is a crucial component of the financial aid process for college students in the United States. It is a form that is used to determine a student’s eligibility for federal financial aid, including grants, […]
Student loan debt has become a major financial burden for millions of borrowers in the United States. According to the Federal Reserve, the total student loan debt surpassed $1.5 trillion in 2018, making it the second-largest category of consumer debt after mortgages. As the cost of higher education continues to rise, more and more people […]
The cost of higher education in the United States has skyrocketed in recent years, leading to many students relying on student loans to finance their education. According to a report by the Federal Reserve, student loan debt surpassed $1.5 trillion in 2021, making it the second largest source of consumer debt in the country, after […]
As the costs of higher education continue to rise, many parents are looking for ways to finance their child’s undergraduate education. One potential option is the Parent PLUS Loan, a federal loan program that allows parents to borrow money to cover the cost of their child’s education. While this can be a helpful option for […]
Student loan debt has become a major financial burden for many college graduates and their families, surpassing credit card and auto loan debt in the United States. According to the Federal Reserve, the total student loan debt in the country has reached over $1.5 trillion in 2020, with an average student loan debt of $32,731 […]
Higher education is often an expensive investment, and many students turn to loans to finance their education. When it comes to student loans, there are two main types: federal and private. Both types of loans provide students with funds to cover the cost of tuition, room and board, and other educational expenses. However, there are […]
As tuition costs continue to rise, a college education is becoming increasingly unaffordable for many students. In this scenario, scholarships serve as a crucial resource for students seeking to finance their education. However, the scholarship application process can be overwhelming, with numerous forms, essays, and requirements. The Free Application for Federal Student Aid (FAFSA) is […]
Introduction Student loans have become a ubiquitous aspect of higher education, with over 44 million Americans carrying some form of student debt, amounting to a staggering $1.7 trillion in total. This growing burden has placed considerable financial strain on students and graduates, impacting their future prospects and the overall economy. As such, the future of […]
Obama’s education administration has announced a plan to help some students manage their school debt burdens, but it does very little to address the growing problem of college debt.
Deflation in Wall Street finance hasn’t found its way to the college campus yet – and it probably won’t any time soon, for better or worse. Learn why student loans don’t deflate like other financed products such as cars and mortgages.
The number of students borrowing money for college is up over recent years, but the good news in this is that more students are receiving these funds from cheaper government loans.
Is higher education a bubble sector? Probably not, education itself is more valuable than ever. The way we pay for college, however, may indeed add to its costs with providing extra value.
A major news outlet actually suggests that college is worse than prison – and this is incredibly wrong on sooooo many levels.
This week, Obama held a press conference to announce his intention toward reforming the public subsidy of student loans. Carrying on momentum begun in 2006 and in the midst of credit market disruptions, Obama’s plan would virtually eliminate the middle-man of private banking from the publicly backed part of the student loan market.
College students relying on private student loans should probably take inventory of income expectations and try to calculate a plan to stay enrolled if those loans suddenly vanish.
Sorry about the delay between posts, loyal readers! I am not immune to the weak economy and I’ve been working double-time on my more commercially driven websites. Colleges, students, and even student loan companies haven’t been quite able to escape the consequences of a lockup in global financial and credit markets. In fact, 180 students […]
The credit crunch strikes higher education funding yet again as the Massachusetts Educational Financing Authority (MEFA) is forced to suspend student loans
As credit risks continue to compound, student loan companies have found yet another way to minimize risks. In some cases, individual students might suffer the consequences simply for attending the wrong school.
Forget the last post, the Federal Reserve has stepped in and settled the debate that was brewing between the White House & Congress. I referred to this in the last article – basically, the student loan companies need someone to buy some loans so they can have enough reserve cash to offer more loans in […]
“Credit Crunch” is one common way to describe America’s current economic situation. This basically means that the financial sector of our economy is struggling from a lack of funds from which they can offer credit to consumers, students, and businesses. The problem appears to be spiraling, as a lack of business credit is leading to […]
More and more student loan companies are opting out of private and public financing of college debt. Looking forward, times could be tough for younger Americans.
Should recent graduates invest or pay back student loans? A lot of personal variables have to be considered: Here they are.
The College Opportunity and Affordability Act, now in Congress, proposes to increase federal subsidized loan caps and increase grant aid for students.
As more banks cut off the supply of loans due to insufficient reserves and defaulted sub-prime mortgage accounts, the price of student loans has been rising even though the official interest rates are down.
Various scandals in the student loan industry, as well as other forms of government financial aid, have contributed to the inflation in runaway tuition costs.
Advantages and disadvantages of student credit cards and loans – debt should be avoided if possible, but when needed it should be used responsibly.
Reduce your student loan debt with small and measured payments – don’t avoid paying down principle just because you can’t afford to pay it off all at once