Here are the best articles from around the web this week talking about student loans…
For the week ending Friday December 27, 2013
Student Loan News:
1. You Can Still Save for Retirement When You Have Student Loans:
If you have student loans, you already know they can be overwhelming. But as any responsible spender knows, they aren’t the only demand on your budget.
Along with rent or a mortgage, the day-to-day business of living and any credit card debt you have, there’s also saving for retirement, that period of 20 years—or far longer—during which you may need to live almost completely off the money you’ve saved. The thing about retirement savings is that there’s no substitute for starting early—and it can be incredibly difficult to make up for lost time.
If you’re wondering how on earth you’re supposed to put money in your IRA or 401(k) when your student loans have already laid claim to your budget, you’re not alone. Read this post here: http://www.foxbusiness.com/personal-finance/2013/12/23/can-still-save-for-retirement-when-have-student-loans/
2. Student Loan Default Protection May be Near:
If your heart involuntarily jumps whenever you see “student loans” trending in the news with the hopes that well— maybe they’re finally ruling them away somehow…
Democratic senators Dick Durbin, Jack Reed, Elizabeth Warren and Barbara Boxer may soon become your new best friends.
By this time, everyone knows about America’s trouble with student loan debt. If you are not of the group of people who has that looming over your head, it is a high probability that your spouse or kids may be dealing with it. The original source: http://www.webpronews.com/student-loan-default-protection-may-be-near-2013-12
3. What to consider before taking out private student loans:
Tiffany Heikel believes she could've cut her undergraduate student loan debt in half if she had just done what she's planning to do for grad school: land scholarships, pay out of pocket and avoid private student loans.
“Education is not a bad thing to invest in,” said Heikel, who graduated from Pennsylvania State University in 2012 with a bachelor's degree in psychology and is currently applying to grad schools. “I just wish I didn't invest so much money into it…I took out more than I needed for tuition.”
According to Heikel, she owes several hundred dollars a month in repayment toward what are mostly private student loans. She regrets how she went about the entire thing. Published here: http://www.thv11.com/news/article/292039/288/What-to-consider-before-taking-out-private-student-loans
Student Loan Blog Posts:
1.The Journey to Getting out of Student Loan Debt:
The headlines says it all, “Student Loan Debt Hits $1 Trillion.” As a bankruptcy lawyer, I get to talk about a subject that’s rarely discussed — debt. What’s missing from the headlines are discussions on ways to practically manage debt.
For many law school graduates, the reality is that this loan balance will increase due to deferment and/or forbearance from needing time off to study for the bar, waiting for bar results and the job search.
If you’re in this situation, I feel your pain. Even though I've been out of law school for 10 years, the truth is that I didn’t aggressively start attacking my student loan debt until a few years ago. Learn more here: http://studentloanslegalhelp.com/why-everyone-keeps-talking-about-student-loans/
2. Why Everyone Keeps Talking About Student Loans:
In short, student loan debt is now the largest single consumer debt class outside of mortgages. Larger than credit cards, larger than auto loans, outstanding balances on loans to pay for college dwarf everything else.
The Federal Reserve Bank of New York said in November that through the third quarter of 2013, outstanding student loan balances stood at $1.026 trillion. It’s the first time the New York Fed, in its fantastic quarterly Household Debt and Credit Report, has reported a total above $1 trillion. But others have done so before. Over at this website: http://studentloanslegalhelp.com/why-everyone-keeps-talking-about-student-loans/
3. When you’re in over your head in student loans:
Are you (or is someone you know) in trouble with student loans? A difficult job market colliding with a mountain of student debt means you’re not alone.
My loan payments will be starting soon, but I can’t afford them. What should I do?
First thing to do is make a list of all of your loans — the lender, interest rate, balance due, monthly payment and whether it’s a private loan or a federal loan. If you don’t remember, you can search for a list of your federal loans at the National Student Loan Data System (click Financial Aid Review). You can also check your credit report (free at annualcreditreport.com) to look for other lenders if you have private loans, too. Once you’ve identified all of your loans, you can evaluate your options. Additional hints: http://www.purposefulmoney.com/college/when-youre-in-over-your-head-in-student-loans/