Student Loans
Student Credit Cards
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...
Massachusetts Educational Financing Authority Suspends Student Loans
The credit crunch strikes higher education funding yet again as the Massachusetts Educational Financing Authority (MEFA) is forced to suspend student loans
Student Loan Companies Rating and Dropping Schools
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.
Federal Reserve Answers Student Loan Liquidity Question
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 [...]
Department of Education might buy Student Loans
“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 [...]
Student Loan Crunch Getting Tighter
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.
Pay off student loans, or invest?
Should recent graduates invest or pay back student loans? A lot of personal variables have to be considered: Here they are.
College Opportunity and Affordability Act of 2008: Loans and Grants
The College Opportunity and Affordability Act, now in Congress, proposes to increase federal subsidized loan caps and increase grant aid for students.
Credit Crunch Affecting Student Loan Rates
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.
Student Loan Scandal and the Rise of Tuition
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.
Student Credit Cards and Loans
Advantages and disadvantages of student credit cards and loans - debt should be avoided if possible, but when needed it should be used responsibly.
Reducing Student Loan Debt Bit by Bit
The Finance Web Log has a great summary of some things you can do to reduce the amount of money you need to borrow in student loans. Even if you aren’t able to pay for all of your education up front, its a good idea to get financial assistance for every bit you can. [...]