Here are the best articles from around the web this week talking about student loans…
For the week ending Friday February 07, 2014
Student Loan News:
1. Student loan refinancing bill draws packed hearing, questions about its effectiveness:
A Democratic bill to help ease the budget crunch for three-quarters of a million student loan borrowers drew a packed house at a Wednesday legislative hearing, with a doctor and aspiring lawyer speaking in favor and some industry professionals saying the bill needs changes to reach its intended goals.
“Considering this bill is critical at this time,” said Jennifer Hussli, a family practice doctor in Janesville who said that her schooling caused her to rack up more than $300,000 in student loan debt. She and her husband, who’s in law enforcement, together put half their monthly pay into student loans, which last year cost them $20,000 in interest alone. Find out more: http://host.madison.com/wsj/news/local/education/university/student-loan-refinancing-bill-draws-packed-hearing-questions-about-its/article_f95d5e82-43e4-5669-9a9b-572c04496698.html
2. Intuit Helps Department of Education Promote Student Loan Repayment Options:
Most student loan borrowers are, because of their status as students, younger consumers with less experience in finances and repaying loans. As a result, many end up agreeing to large loan balances during their educational career, but don't necessarily have a plan for how they will pay those loans back.
In an effort to make the process easier to understand for Americans of any age, the Department of Education, the Treasury Department and Intuit Inc. have announced an new private-public collaboration that is intended to raise awareness about income-driven repayment plans and other repayment options that student loan borrowers have. Income-driven repayment plans give borrowers the chance to satisfy their student debt on a sliding scale that adjusts monthly payments based on factors such as changing income and growing families. Read post: http://www.cpapracticeadvisor.com/news/11305976/intuit-helps-department-of-education-promote-student-loan-repayment-options
3. Should you refinance your student loan?
In fact, I recently received an email from a borrower who was questioning an unsolicited offer to refinance his private student loan debt that he’d received from one of these institutions.
There’s certainly a need for the service. According to the most recent Federal Reserve Bank of New York quarterly report, nearly 12% of student loan balances were 90 days or more past due — more than any other type of household credit.
And the 90-day figure doesn't even take into account the fact that only about half of all student loans are actually in repayment mode. Nor is there any mention of the loans that have been forbearances and other accommodations, which leads me to believe that they’re no longer considered delinquent. Moreover, we’re only counting from 90 days past due instead of from the time the first payment was missed. All these things considered, troubled loans may constitute somewhere around 50% of the debts that are currently being repaid. Explore more: http://www.marketwatch.com/story/should-you-refinance-your-student-loan-2014-02-04
Student Loan Blog Posts:
1. The student loan sell-off is reviving the student movement:
By 2015, the coalition will have landed another right hook on the collective jawbone of students and graduates with the planned privatisation of student debt.
The controversial plans could see the loans taken out by students for their tuition packaged up and sold off to the highest bidder. It’s a privatisation that will further erode the concept of the university as a public service, reduce access to education and impact already struggling students and graduates.
The first tranche of loans (pre-1998) have already been auctioned off, and the rest will quickly follow – unless students make it clear that this is not acceptable. The original source: http://www.leftfootforward.org/2014/02/the-student-loan-sell-off-is-reviving-the-student-movement/
2. Lexington man plans to pay off student loans with lottery winnings:
A Lexington man says he plans to pay off student loans and buy a new car with his lottery winnings.
John Adegbenjo won a $264,015 prize by playing Carolina Cash 5.
Adegbenjo beat odds of 1 in 575,757 when his ticket matched all five numbers in the Jan. 24 drawing, claiming a third of that night’s $792,045 jackpot.
“I have won $2,000 before playing the lottery,” Adegbenjo said. “This was at least twice as surprising. I kept checking the ticket every four hours to make sure I didn’t dream it.” Go here: http://myfox8.com/2014/02/03/lexington-man-plans-to-pay-off-student-loans-with-lottery-winnings/
3. Student loans and bankruptcy current law and proposed changes:
The purpose of bankruptcy is to provide a fresh start to people who are buried so deeply in debt they are unable to dig themselves out without help. At the close of bankruptcy, the court issues an order that says that all debts that are dischargeable are discharged.
Many people do not realize that this general order does not wipe out their student loan debt. Student loans are not dischargeable in bankruptcy unless the Bankruptcy Court specifically finds that repaying them will create an “undue hardship.” The court order discharging the debts must specifically state that the student loan debt is discharged. Published here: http://www.topgunbankruptcylawyer.com/student-loans-and-bankruptcy-current-law-and-proposed-changes/