Posts Tagged college

student loans
Record Number of College Graduates Defaulting on Student Loans

Article by Jeff Mictabor

As college costs continue to rise, so does the number of students taking out student loans: Nearly two-thirds of students attending four-year schools now graduate with debt from student loans. Over the past decade, student debt levels have shot up by 108 percent.

While these numbers are significant on their own, the number of borrowers who are defaulting on their student loans has also skyrocketed to the highest level in over a decade. Preliminary data from the Department of Education shows that federal student loan default rates are coming close to topping 7 percent, compared to 4.6 percent just two years earlier, an increase that’s raising alarms about borrowers’ ability to pay off their student loan debt in the current economy.

“The volume of people in trouble is definitely increasing,” said Deanne Loonin, a staff attorney for the Boston-based National Consumer Law Center and consultant for low-income student loan borrowers.

Unstable Job Market Leading to More Student Loan DefaultsEducation Department officials warn that while these default numbers are high, they may be just the tip of the iceberg.

This most recent federal student loan default rate is for the fiscal year 2007 and only accounts for students who started repaying their federal college loans between Oct. 1, 2006, and Sept. 30, 2007, and who had defaulted by the end of September 2008. The data doesn’t include borrowers who, unable to repay their federal student loans, have gone into deferment or forbearance or borrowers who have defaulted on non-federal private student loans.

The student loan default rate is poised to climb even higher as the 1.8 million students graduating college next month who are saddled with student loan debt face one of the toughest job markets in over a quarter-century. The national unemployment rate has already broken the 10-percent mark, with regional unemployment ballooning even higher in certain states.

“It’s scary thinking I could have spent ,000 a year for the last four years and still go back to working at Wegmans, but it’s a reality,” Catherine Mendola, a senior at Colgate University, told The Associated Press (“College Grads Face Worst Job Market in Years,” USA Today, April 3, 2009).

Debt From Private Student Loans Particularly TroublingTo make matters worse, an increasing number of these soon-to-be graduates will be leaving school with debt from private student loans, which typically carry higher interest rates than federal student loans, along with less-flexible repayment options.

The percentage of undergraduates who took out private student loans in the 2007-08 academic year jumped to 14 percent, up from 5 percent in 2003-04, according to the Project on Student Debt.

Private student loans aren’t required to offer the same deferment, forbearance, or income-based repayment options as federal loans, making it generally more difficult for struggling private loan borrowers to obtain a reprieve from their student loan payments and avoid defaulting.

“Unfortunately, private loan borrowers remain at the mercy of their lenders if they are having trouble making payments in these tough times,” said Lauren Asher, acting president of the Institute for College Access & Success, which runs the Project on Student Debt.

And lenders say they’re already seeing signs of trouble.

Sallie Mae, in 2008, wrote off 3.4 percent of its private student loans that were considered “troubled,” more than double the figure in 2006. Citigroup’s Student Loan Corp. wrote off 2.3 percent of its troubled private loans in 2008, up from 1.5 percent a year earlier (“Student Loans: Default Rates Are Soaring,” The Wall Street Journal, April 21, 2009).

Sarah Kostecki, who graduated from DePaul University in New York two years ago, is doing everything she can to make her 5-a-month payments on her ,000 student loan debt, but she’s already tapping her lenders for alternate repayment options.

So far, the only assistance her private student loan lenders have offered is temporary interest-only payments, which, although allowing her to pay less each month now, would increase her payments by 0 a month after two years.

“I don’t want that,” Kostecki said. “It feels like I’m being punished for having gone to school.”

federal student loan default rate, college loans, Project on Student Debt

About the Author

Jeff Mictabor is a freelance author with 20 years of expierence in the student loan industry.

Wisconsin Republican Congressman Paul Ryan was asked why he wants to cut Pell grants by a college student struggling with tuition. His response was basically that students should simply work more and take out loans. Occupy Wall Street movement. Ana Kasparian and former prosecutor Steve Oh discuss on The Young Turks. Watch more TYT college stories here: www.youtube.com The Young Turks on Current TV: current.com The Largest Online New Show in the World. Google+: www.gplus.to Facebook: www.facebook.com Twitter: twitter.com Support TYT for FREE: bit.ly

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Federal Student Loans For Those Starting College

Article by Devora Witts

You know that the government finances peoples college education in many cases and that a considerable amount of money is destined every year for this purpose, you just would like to know how to get a share of that and avoid having to resort to private lenders that charge higher interest rates. Within this article you may find some answers to these and other questions.

Federal Student Payday loans are not the only source of finance for college, there are also other government agencies offering loans for students and private lenders willing to provide financial assistance to those undertaking college studies. However, there is no doubt that federal student loans are the largest source of funds for students and the first choice of any student with financial needs.

However, before applying for a federal student loan you need to understand fully the implications in borrowing money from the government and what benefits and drawbacks you will need to ponder in order to decide whether a federal student loan is the right loan for you or not.

Eligibility

In order to be eligible for a federal loan you need to be a U.S. citizen, some non U.S. citizens are also eligible but you need to check with the department of education for details on how to qualify. You need to have a high school degree or proof of advance education. And most importantly, you will need to show that you have no criminal records (especially records on drug abuse) and that you are truly in need of financial assistance.

These kinds of loans are awarded in consideration of the applicant’s needs. Underprivileged students are more likely to get a federal loan than those who can resort to other sources of finance or can get further aid from their family. As regards to this last factor, the EFC (Expected Family Contribution) reflects your family’s ability to contribute to paying for college and will determine how much money you can request.

Procedure

Applying for a federal personal loan is rather simple. You need to fill the corresponding form (FAFSA) that can be found at the department of education site or at many other online sites which also provide additional information on how to get approved for a federal student loan.

The government agency will evaluate your eligibility and you will probably be required to submit documentation backing up your statements. Of course, the documents you may be required to submit depend on the type of loan you choose. With the exception of unsubsidized loans, you will surely need to show proof of being in need of finance.

As a final note, beware of online sites that claim to show you how to get approved for federal loans even if you can get finance from other sources and you are not so in need of assistance. They can either be just a scam waiting to rip you off or worst, they may want you to submit false information to the government agency which constitutes fraud and implies that you can be legally prosecuted.

About the Author

Devora Witts is a certified loan consultant who instructs people regarding Fast Unsecured Loans and Government Grants. To get aid with your financial situation you can visit her at http://www.badcreditloanservices.com

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Using A College Federal Student Loan To Fund Your Education

Article by John Mailer

It is possible to pay for college with a federal student loan. This is usually referred to as post-secondary financing option.

Applying for a Federal Student Loan for College is quite simple providing you follow the instructions on the application form.

The federal student loan program helps college students and their parents meet the cost of pursuing higher education. The first thing a student (or prospective student) needs to do is to fill out a FAFSA (Free Application for Federal Student Aid) form. It is available online or from the Financial Aid Office at post-secondary institutions.

The application is free and a student will not qualify for a federal student loan for college unless this application has been submitted. Within 30 days after submitting the FAFSA application, the student will receive a Student Aid Report (SAR) in the mail. A copy of the SAR is sent to the school the student is planning on attending.

Within two weeks after the SAR is received, the student will receive a letter from the Financial Aid Office of the school he or she is planning on attending. This letter will state how much financial aid the student will receive and how this financial assistance will be structured.

The award letter will indicate whether or not the student has been awarded the Stafford Federal Student Loan for college. If the Stafford Loan has been awarded, the student must fill out an application form in order to get the required promissory note. The student then signs the promissory note in order to receive the loan proceeds.

Once the promissory note is signed, it must be mailed to the office listed on the application form. It is a good idea to keep a copy of the promissory note for your own records. Stafford Loan recipients need to keep in mind that the funding offered is for one year only. A new FAFSA and loan application must be submitted each year.

If a student was not awarded a Stafford Student Loan, alternative sources of financing for college are available. It is possible to get financing for post-secondary studies from private sources. In the case of a person who gets approval for a Federal Student Loan for college but the amount of the loan is short of the amount of funding needed, this is a viable option. A private student loan center will be able to provide assistance to those people looking for alternate sources of financing for post-secondary education.

About the Author

John Mailer’s articles look at students financial problems and the best student loans consolidation ideas using private student loans. His other site is about the thrills of whitewater rafting

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Student’s College Education Overpriced and Not Showing a High Return on Investment

Article by Mathew Owens

The student loan market relentlessly makes it way to and past the trillion mark, having outstripped credit card debt, estimated at around 0 billion. According to the U.S. Department of Education, the national student loan cohort default rate increased from 7.0 percent in the fiscal year 2008 to 8.8 percent in 2009-the rate for for-profit institutions was up to 15 percent from 11.6 percent. Tuition costs as compared to other general, healthcare, and even housing indices have also been on a steady rise, up 23% since 2000, while real earnings for post-graduates-namely, the lucky few who are able to find jobs to remunerate the debt incurred while learning non-marketable skills in higher education institutions-have declined.

From dot.coms to mortgages, it would appear that student loans are the flavor of the week as for-profit schools have created a subprime education market by luring Americans into a system which provides little economic gain for students while aggrandizing and enriching the companies on Wall Street. In fact, three of the top ten holders of FFELP loans are Citibank/Student Loan Corporation, Wells Fargo/Wachovia, and JPMorgan Chase Bank, the same players responsible for the toxic mortgage lending that received trillions in taxpayer dollars as bailouts. Education has become another discredited commodity, marketed as a necessity, and gambled upon by the government and Wall Street.

Private institutions are likewise responsible for strapping students with large amounts of debt. At the University of Southern California, total tuition and fees including room and board have increased by nearly 40% in the last ten years. College officials claim that increases in tuition are being offset by increases in financial aid offers though the average paid percentage of fees only went up from 67 to 68 percent. At any rate, it makes little sense to pay for or invest in anything that is not seeing a growing rate of return. A recent article in the Huffington Post recounts that last spring, PayPal founder and investor Peter Thiel awarded 0,000 each to two young entrepreneurs to not attend college, supplementing his belief in a definite student loan bubble. The vast majority of young Americans will not be so lucky, however. Minimum wage paying jobs will await those who do graduate and default rates will continue to soar until this bubble, like all the rest before, eventually pops. We can more likely expect a slow deflate in this case, as a student education bubble poses much less of a threat to the overall economy than housing debt, but individual borrowers will doubtless face difficulties. So it would seem, invariably, that Peter Thiel has the right of it.The education system is flawed in itself as financial education is not taught in schools. Many graduates come out of college brain washed, thinking they are entitled to a job just because they received their degree. To their disbelief they are getting a rude awakening finding that the real world job market does not have a place for inexperienced graduates within cash strapped businesses in the current economy. Companies would rather skip the initial investment of training a recent college grad versus finding someone that already has been trained for the same wage. This is even more of a reason to start thinking like an Entrepreneur and start to take control of your own financial future. There are over a million ways to make money being self-employed. If you learn the skillset of how to make money on your own without a J.O.B. (Just Over Broke), you will forever be financially stable.

About the Author

Owens Consulting Group founder Mathew Owens is a California licensed CPA and a full time real estate investor. Mathew has 8 years of experience working as a CPA, auditor and business advisor, and he has completed over 100 transactions in the past three years, representing approximately million in real estate, most of which has been sold to cash flow investors. Read more of his blogs at http://ocgproperties.com

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Select College Student Credit Cards Wisely

Article by Robert Alan

College student credit cards allow you to find the most benefit in funding your education, your expenses and even a little fun (just a little) while you are away at school. There are a variety of credit card companies that offering multiple college credit card products targeted for students. If you are interested in these opportunities, you should first commit to investing the time to thoroughly research the landscape of credit cards for college students. These cards can provide the following benefits:

* Fund your expenses at school

* Vehicle that provides an opportunity to manage your finances more effectively

* Begin building your credit score for future use, providing opportunity to obtain lower APR’s and higher credit limits

* Provide a credit history foundation for home loans, car loans and other big purchase ticket items requiring credit

How To Choose College Student Credit Cards

While on the lookout for college student credit cards, there are many things to consider. The opportunities are not hard to find as there is a wide selection offered by the likes of Discover, Chase, Citibank and American Express. Yet, there is more to finding the best college credit cards than just these things. Doing your homework is critical or you could end up wasting a lot of money.

Here are some additional things to consider:

* What is the APR? This is the single most important aspect of any credit card. It is the price tag, so to speak, that the card will charge you for effectively renting their money. Find the lowest APR that you can. The higher the APR the more you will pay if you carry a monthly balance so be wary of those high APR’s.

* Are there any fees? Often times, there are annual membership and cash advance fees on college student credit cards. Yet, at this point, you need to insure that you get the card offering the least expensive APR’s and associated costs possible from the very beginning.

* Does the card require a co-signer? As a young student, you might be brand new to the credit game. As such, you may have to have a parent or another individual (also known as a “co-borrower”) with good credit sign the application. This effectively reduces the risk to the card issuer of default on your account. You may also be able to get a lower interest rate if you go this route.

* A good choice for parents? Parents can often use college student credit cards to help fund their child’s expense requirements while at school. They can even help the parents carefully monitor where the card is being used.

College student credit cards give students and young people the ability a credit vehicle for purchase activities but also offer a significant opportunity to build credit. College credit cards allow you to fund your education while simultaneously providing a solid credit foundation. Yet, it is extremely important for you to invest some time looking at the many varied offers. This way, you can feel confident in getting the overall best product for your needs. At a bare minimum, be sure to compare at least 3 to 4 college student credit cards to determine what each of them can offer you.

About the Author

Robert Alan recommends that you visit CreditCardAssist.com for more information on how to differentiate between college student credit cards.

Bailouts And The Foreclosure Crisis: Report Of The Special Inspector General For The Troubled Asset – House Oversight Committee – 2011-01-26 – Witnesses: The Honorable Neil Barofsky, Special Inspector General, Troubled Asset Relief Program and Tim Massad, Acting Assistant Secretary for Financial Stability, Department of Treasury. Video provided by the US House of Representatives.
Video Rating: 3 / 5

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The Key Uses Of Citi Platinum Select Card for College Students

Article by Richard Gilliland

I am a very resourceful person & love sharing information to help others…I found A Non-Profit Organization called NACA . They offer free Loan Modification(Restructures). NACA is a advocacy & they are against the lenders. Lenders have been taking advantage of us for far too long & they must be stopped. Everyone qualifies bad credit, no job, no equity, equity in your property, etc. Only way you will not qualify if you own more than one property,and if your lender does not participate in the NACA program. They work with Major Big Lenders like Saxon, BOFA, Chase, Wells Fargo, CountryWide,Wamu, Wachovia, ASC,Citi Mortgage, GMAC & a host of others. This is absoutely free…free…free….free….free….Please go to their website www.naca.com & see if they will be in your state. If not you can submit your loan modification through their website click on Home Save Program at the bottom & go step by step…Please send me any questions any comments, and also any testimonies….Please tell your family, friends, neighbors, churces, co-workers……Please spread the word. Naca helped me save 50% on my mortgage.. I was not behind in my mortgage.. They gave me a 30 Year Fixed, & a 2% and it took 3 weeks to get my loan modification done. I also know 10 people that I told about NACA and they went to Las Vegas & Phoenix, from California and they all received Loan Modifications for FREE FREE FREE. And also told a couple of people to come down to the LA Convention Center & they received …

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Finding Student Loans To Fund Your College Education

Article by Martin Haworth

A student who is awarded one of the direct student loans needs to be attending a school that participates in the Direct Loan Program.

That student must first complete a FAFSA, and then he or she must sign a master promissory note (MPN). If the loan recipient then needs to talk with a counselor about the loan, those services can be obtained at the Direct Loan Servicing Site.

Services Available to Holders of the Direct Student Loans

At the Direct Servicing site, the holder of a direct loan can set-up an account. Using that account the holder of a direct student loan can view the record of his or her payments.

That site also contains records on the balance owing for each of the many student loans.

Anyone who has been awarded one of the direct student loans can use the Service Center to request use of electronic correspondence for the sending of bills and other information. Loan payments can be made free of charge from the Service Site.

Payments for any of the student loans can be scheduled as much as 6 months ahead of time.

The Various Types of Direct Student Loans

Some students with a direct loan have a subsidized Stafford Loan. The subsidized loan has an interest subsidy. All students awarded those direct loans can count on the government to cover their interest payments while they are still in school..

Not all Stafford Loans are student loans, and not all direct student loans are subsidized. Where students do not show tremendous need, the government might award an unsubsidized Stafford Loan.

Such unsubsidized loans do not come with an interest subsidy.

PLUS Loans represent a third type of direct student loan. PLUS loans are low interest loans for graduate students and parents. As with the other student loans, the application for the PLUS Loans entails submission of a FAFSA and a MPN.

Factors That Determine the Size of the Direct Student Loans

Not every student who receives one of the direct student loans gets the same amount of money. The amount of money awarded to the recipient of a student loan depends on three different factors.

The school costs will dictate to a large extent the size of the student loan. The government will also adjust its loan amount to account for any other aid that a student might expect to receive.

Finally, the distribution of funds for the direct student loans depends on the expected contributions from each student’s family.

After the Department of Education has examined those three factors, then it will provide a needy student with funds that should adequately cover his or her tuition costs.

Most students can get-by with loans of ,000; they then obtain added money from additional on and off-campus sources.

About the Author

(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth’s website for all you need at http://www.Best-Student-Loan-Guide.com

college student loans
Avoid College Student Loan Debt using what you know!

Article by Steve Katz

Having just finished a MBA through a distance learning course I became very aware of college student loan debt and the massive problems that young people are getting into through making their way into a better life after college.

Many young people finish college having amounted a massive debt during their time when they could have avoided it by using what they know and what they are learning to make extra money from the internet. If you are a parent you should be telling your kids about this if you are the student then you should be telling your folks about it.

Lets look at it logically you as a student are writing for probably 50% of your time, listening the other 50% of your time (this is the time spent learning not the time out enjoying being a student!) So you write a five thousand word paper on the importance of being young and staying young.

The first place you stop off to find information is the internet! Yes you are here reading this because you are looking for a way to avoid college student loan debt. So you searched on the internet for it. Well here is the thing, next year the year after and even the year after that people will be researching the same thing that you have spent hours looking for information on.

No you don’t want them ripping off your work so you put a disclaimer on it but you can give them half of it for free and half of it for say . Start a discussion forum about the subjects you are studying on a blog that is also about the subject. This is your niche you know more about this than you do anything else so by creating a blog and a forum and charging for extra information you can create an income.

You can put Adwords on your forum (as it is always being updated it will be up to date content and this is much sort after by the search engines where your traffic will come from)that way any related content will show adverts and any clicks on those adverts get you income.

OK a top tip which will get you a massive amount of traffic and respect with regards the content of your website is to get a link from you college site this will get you a fantastic reputation with the search engines. Remember these things are easy to promote to class mates and freshmen at your college.

It is possible for you to build up a fantastic web community using these methods a community that will not only help pay to get you through college but will also help you avoid college student loan debt.

About the Author

Steve Katz is an internet marketer who looks into all sides of making money online.Who Loves Money

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Direct Student Loan: The Best For College Goals

Article by Trenton Pace

A direct student loan can help you achieve your college goals. College is very expensive. There used to be a time when you did not have to go to college to have a good job, but that time has passed. In order to get a decent job that pays good money, you must have training. In order to get the training you need, you need college. However, many people cannot simply hand over the high tuition rates that come with college.

This is where financial aid comes in handy. There are many forms of financial aid. There are scholarships that come from your school directly or from private citizens in your community. You can get scholarships for sports, for certain classes you took in high school, or because a parent served in a war for our country. This is definitely something you should look into if you are going to college soon, or even if you are already in college. Check your financial aid office for more information.

Other types of financial aid include Federal and state grants. Again, for this information, please contact your college’s financial aid office.

Many people cannot afford college tuition and fees on grants and scholarships alone. They need student loans. There are different types of loans and you should be aware of all of them. Direct student loans are primarily Federal student loans and other loans through the school. With these types of loans, you borrow directly from the federal government and repay through them, even if you have more than one direct student loan. They offer great repayment options at low interest rates.

Below, you will find information on some of the direct student loans available.

Federal Direct Student Loan – This type of loan is a government loan that gives low-interest loans. The lender of these loans is the U.S. Department of Education. You can contact your college’s financial aid office in order to receive these loans.

Direct Stafford Loans – This type of direct student loan is for people who can prove they need assistance paying for college. This loan is given through the FAFSA (Free Application For Federal Student Aid) form. It is granted by the U.S. government and are available for undergraduate and graduate students both. In order to use this loan, you need to fill out the FAFSA form–this can be found online or your schools’ financial aid office.

Benefits of a Direct Stafford Loan – The biggest benefit of this type of loan is the fact that it is a fixed rate and it includes low interest. The amount you are required to pay each month will not increase due to economy. As long as you make minimum payments on time based on the stipulations of your loan, the interest rate will stay the same. This is a big benefit because with other types of loans, you are given a specific rate plus Prime. This means you are paying back a certain amount, plus whatever the prime annual percentage rate (APR) is currently. The prime rate fluctuates and can raise your minimum payment.

There are two different types of Stafford loan: subsidized and unsubsidized.

Direct Subsidized Undergraduate Stafford Loan – These usually have a lower interest rate than unsubsidized. New loans are currently around 4.5% fixed for this school year. The interest does not accrue while you are still attending school, and there is a grace period after you finish school so you can have a fighting chance of finding work in your new field. Interest does not start to build up until 6 months after you finish school.

Direct Unsubsidized Stafford Loan – These typically have a higher interest rate than the subsidized loans. They are currently at 6.8% fixed. The interest does accrue while you are in school and after you graduate. There is no grace period at all for this loan type. The moment the loan goes through and you receive the money, you start owing interest.

You can choose either of these types of loans, but the best one is the Subsidized loan. However, sometimes people are not eligible for that loan because of low credit scores or other reasons.

Perkins Loans – These loans are available for graduate and undergraduate students. They have a slightly higher interest rate than Stafford loans and they are only given to the people who are in the highest need possible for financial assistance. They are federally funded like a Stafford loan. The biggest difference with the Perkins loan and other direct student loans is Perkins loans have other lenders than the federal government and come directly from your college. You typically get ,000 (,000 for graduate students) broken up into two equal payments each semester. Remember, not everyone is qualified for this loan; however, it is a good idea to check because you do not know until you try.

Direct PLUS Loan – This is a loan option that is also through the federal government. It does carry a higher interest rate than the Stafford and Perkins loan, but this loan covers up to the student’s full cost of attendance, minus other aid. They take all scholarships and other loans you have received and give you a loan to cover the rest. This type of loan does require a credit check in order to be approved, where the other loans do not.

There are two types of PLUS loans: a Parent PLUS loan and a Direct Graduate PLUS loan. The Parent PLUS is only offered to the parents of undergrad students. A student cannot receive this loan by him or herself. The Direct Graduate PLUS loan is offered to graduate students trying to attain an advanced degree. However, this one is offered to the students directly.

These types of loans start accruing interest the moment the money is received and they do have a slightly higher fixed rate at 7.8%. With this type of loan, you are allowed to postpone payments for up to six months after graduation.

Please keep in mind that not every school can participate in the Direct Loan Program. If your school does not offer these types of loans, they will offer something similar if possible.

About the Author

This is a big step and you definitely need to do some research and learn as much as you can about a direct student loan.

Also, there is so much to know when you apply for financial aid. It’s good to have a website you can get a lot of information all in one place.

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College Student Loans: Financial Support For Students

Article by Julia Russell

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