Here are the best articles from around the web this week talking about student loans…
For the week ending Friday June 14, 2013
Student Loan News:
1. Surviving Student Loan Default:
Rising student loan delinquencies have become worrisome, with banks writing off $3 billion in student loan debt during the first two months of this year alone. By February, about 850,000 students had defaulted on their loans in 2013, according to a March article on the Debt.org website.
The prevailing reason for defaulting on a student loan is that the individual could not find a job commensurate with his or her education and either is not working or has accepted a low-paying job that puts only food on the table and a roof over their heads.
Another reason is that college costs have increased by 1,120 percent since the 1980s, demanding that students go further and further into debt. Full article here: http://www.theepochtimes.com/n3/106226-surviving-student-loan-default/
2. Arne Duncan bullish on student loan deal:
Education Secretary Arne Duncan said Tuesday that he believes congressional leaders are moving toward a deal to prevent interest rates on college loans from automatically doubling on July 1.
But despite his optimism, a half-dozen Hill sources on Wednesday countered that Democrats and Republicans are still far apart on the contours of a permanent solution. They further maintain no serious negotiations about a temporary extension of the current rates are taking place. Privately, Senate Republicans say their plan is more in sync with the president’s and complain that the holdup is coming from Senate Democrats. Read more: http://www.politico.com/story/2013/06/student-loan-deal-arne-duncan-92672.html
3. Don't double the interest rate on my student loan:
Anderson's route to college wasn't typical. A high school dropout, he served in Iraq in 2003 and 2004.
After his tour ended, Anderson returned to the state of Washington, where he was stationed. He completed his high-school level skills with a GED, and enrolled at the local Bellevue College, where he served as student body president.
Last year, Anderson doubled down on his education and transferred to the prestigious Georgetown University, where he is now studying for a Bachelor's degree in sociology, with hopes of running for political office one day. More discuss: http://money.cnn.com/2013/06/12/pf/college/student-loan-rates/
Student Loan Blog Posts:
1. America’s Student Loan Racket- Stiffer Debt Bondage Coming:
For growing numbers of American youths, higher education is increasingly out of reach. High tuition and fees make it unaffordable. So does a disturbing government/corporate partnership.
Millions of students need financial aid. They’re exploited for profit. Providers are enriched. Higher education involves debt entrapment.
Students graduate tens of thousands of dollars in debt. Some post-graduates face burdens up to $100,000. If unpaid after 30 years, it’s multiples higher. If default or declare bankruptcy, it’s unforgiven. Bondage is permanent until repaid. Original article: http://www.dailycensored.com/americas-student-loan-racket-stiffer-debt-bondage-coming/
2. Blowing The Bubble On Student Loan Debt Crisis:
Following years of scrutiny directed primarily at for-profit, post-secondary institutions, the ever-expanding student loan debt crisis is now bringing all U.S. higher education into its growing bubble.
As widely reported, the amount of student loans awarded last year crossed $100 billion for the first time and total loans outstanding will exceed $1 trillion for the first time this year. Americans now owe more on student loans than credit cards. Click to continue: http://seekingalpha.com/article/1490902-blowing-the-bubble-on-student-loan-debt-crisis
3. 3 terrifying student loan horror stories:
Once you're in student loan debt, it's hard to avoid drowning in it. According to the Project on Student Debt, the average undergrad borrowed nearly $27,000 to make it through four years of college in 2011. For those who attend pricey institutions or law, graduate or medical school, the debt can spiral into six digits and quickly become unmanageable for those students who weren't prepared for it. Research from the American Institute of CPAs shows that less than 40 percent of all borrowers had a firm understanding of how hard student loans would be to pay back. Sixty percent of borrowers said they have some regret over their student loan decisions. Read full story: http://www.bankrate.com/finance/student-loans/student-loan-horror-stories-1.aspx