Here are the best articles from around the web this week talking about student loans…
For the week ending Friday Feb 22, 2013
Student Loan News:
1. Wealthiest US colleges suing students over default loans:
Graduate student borrowers are defaulting on almost US$1 billion in federal loans that were given out to the poor. US colleges such as Yale, Penn State and George Washington are coming after them in the courts, suing for nonpayment.
All three colleges have pursued lawsuits against students who defaulted on their Perkins loans. The exact number of lawsuits is not known, but just last year alone the University of Pennsylvania filed at least a dozen lawsuits over the Federal Perkins Loan, Bloomberg reported.
Colleges are suing to collect unpaid Perkins Loans, given out by individual colleges to students who demonstrate extreme financial hardship. Visit: http://rt.com/usa/news/us-colleges-suing-students-539/
2. Study Assesses Effects of Financial Aid on College Student Success:
Equal Justice Works® is a national nonprofit organization working to provide public interest opportunities for law students and lawyers and to reduce the financial barriers preventing many from pursuing and remaining in public service careers. It advocates for legislation to reduce the educational debt burden for all students and professionals and provides detailed information on educational debt relief programs to prospective and current students, graduates, schools, and employers. Visit: http://www.usnews.com/education/blogs/student-loan-ranger/2013/01/30/study-assesses-effects-of-financial-aid-on-college-student-success
3. How Much Student Loan Debt Is Too Much:
“So, my student loan payments are more than my monthly rent?” exclaimed my sister-in-law, Kari. “More than a mortgage payment, to be honest,” I replied.
Kari is finishing up her junior year of college in May and was curious about what life after college would like . She brought her student loan balances and I brought my financial calculator. Within minutes I had drawn up a mock budget, the results of which were sobering. Student loan payments represented her biggest monthly expense, and certainly would create a strain on her finances should she move out on her own. More : http://money.usnews.com/money/blogs/my-money/2013/01/30/how-much-student-loan-debt-is-too-much
Student Loan Blog Posts:
1. Student Loan Six Month Grace Period Removed:
Student loans have lost their six month grace period in an effort to keep the student loan rate at 3.4 percent. Grace periods give college and university students a finite amount of time, generally six months, after graduation before they must begin repaying their student loans. The decision came in the summer of 2012 while students petitioned the state to maintain current student loan rates. Though the rate was secured at 3.4 percent for the year, a tax on transportation as well as the removal of the grace period was used to guarantee enough support for the proposal. Visit: http://thebottomline.as.ucsb.edu/2013/02/student-loan-six-month-grace-period-removed
2. Student Loans And Credit Cards Coming Under More Scrutiny:
Rising federal student loan debt and potential changes to how such loans are treated under bankruptcy could be a “train wreck” for U.S. taxpayers, Discover Financial Services President Roger Hochschild said.
The executive defended his company’s foray into the student lending market, stressing it adheres to high underwriting standards when approving loan applicants. Know more info: http://ctwatchdog.com/finance/student-loans-and-credit-cards-coming-under-more-scrutiny
3. Top 10 Student Loan Questions:
1. When should I apply for financial aid?
- You should apply for financial aid as soon as you can after January 1. You will need your tax returns to apply. If your parents claim you as a dependent, you will need their tax returns too.
2. How can I pay for college?
- You will first want to apply for scholarships and grants. Then make sure to maximize the federal loans by completing your FAFSA. If that doesn't cover the full cost, compare private student loan options for the remaining balance. Read more : http://blog.macu.com/student/top-10-student-loan-questions/
PayMyStudentLoans.com Around The Web: