Here are the best articles from around the web this week talking about student loans…
For the week ending Friday July 5, 2013
Student Loan News:
1. Declare Independence From Your Student Loans:
When it comes to declaring independence from debt, a lot of us are under the thumb of the same dictator: student loans. In fact, according to a recent report from the Urban Institute, one in five adults over the age of 20 are carrying student loan debt — and more than half of them are worried about how they're going to pay it off.
Most advice on student loan debt focuses on how to avoid getting mired in it in the first place. For people in college, those tips can be very useful — after all, it's worthwhile to know that the road to riches isn't paved with psychology degrees, and that private loans are fiscal vampires that will suck the money from your wallet and the joy from your soul. But once you're out of college, the die has been cast, the debt has been accumulated, and the checks start coming due. Main site: http://www.dailyfinance.com/2013/07/03/declare-independence-student-loans/
2. What parents need to tell teens about student loans:
It has become something of an annual tradition, torrents of student loan “horror stories” flood the Internet just months after graduation, many written by students who say they never realized their debts would follow them for life.
Among other variables, parental support is a key indicator for post-college success, according to research by BYU professor Larry Nelson.
“It's hard for a young person trying to transition into adulthood without parental support,” he said. “Our research shows that the parent-child relationship is one of the strongest indicators of whether young people will flourish or flounder in the transition to adulthood.” Original article: http://www.deseretnews.com/article/865582640/What-parents-need-to-tell-teens-about-student-loans.html
3. How to get rid of your student loans without paying:
Students hoping to become public defenders, work in the health field, or hopeful veterinarians in the state of Kentucky specializing in large food animals — you're in luck.
You might be eligible for a number of programs that will help to repay your student loan debt. (Problem is, these programs aren't easy to find out about.)
“The information can be really buried within a website or can be fractured,” said Betsy Mayotte, director of regulatory compliance at the nonprofit organization American Student Assistance. “You kind of have to dig for the details.” Visit now: http://www.marketplace.org/topics/your-money/numbers/how-get-rid-your-student-loans-without-paying
Student Loan Blog Posts:
1. Student loans-Exploiting America’s young:
You may remember that Obamacare staggered over the legislative finish line in 2010 with $19 billion in profits from changes to the student loan program. The changes included nationalizing federal student lending and setting loan interest rates high enough to generate profits to cover the healthcare costs.
Monday, President Barack Obama and the Democratic-led Senate again put their political and legislative priorities ahead of students and allowed their loan interest rates to double. Visit main site: http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/
2. Student loan rates doubling on Monday:
Students preparing to take subsidized government loans will see their interest rates double to 6.8% from current levels, starting Monday, July 1.
But hope isn't lost yet. Lawmakers are working hard behind the scenes trying to strike a deal to save the 7 million college students who are slated to take the subsidized federal Stafford loans this year.
Senate Democratic leaders are throwing their weight behind a bill that would extend the 3.4% rates for another year, just as Congress did last year. Look official site: http://wqad.com/2013/06/30/student-loan-rates-doubling-on-monday/
3. Yes, Student Loan Rates Have Doubled But Everyone Is Missing The Bigger Issue Here:
Pundits and politicians alike have been arguing about whether or not Congress should prevent rates on subsidized federal student loans from doubling from 3.4 percent to 6.8 percent on July 1. But focusing solely on that rate, which will ultimately have little impact on students’ ability to make their payments after graduation, ignores the bigger issues of soaring tuition and record increases in the amount of financial assistance students are borrowing.
Americans currently owe a record $1.1 trillion in student loan debt—second only to mortgages in household debt, according to the Consumer Financial Protection Bureau. Discover full article: http://www.businessinsider.com/the-real-problem-with-student-loan-rates-2013-7