Here are the best articles from around the web this week talking about student loans…
For the week ending Friday March 14, 2014
Student Loan News:
1. Student Loan Borrowers Win As Education Department Reverses Course:
Borrowers with federal student loans may now access the U.S. government's latest rankings of loan specialists after the Department of Education on Tuesday abruptly reversed its temporary ban on providing customer service scores.
Among the department's four major loan servicers, SLM Corp., the nation's largest student loan company (better known as Sallie Mae), finished or tied for last in the three customer satisfaction surveys for the three-month period ending Sept. 30. Respondents to the surveys included school personnel, Education Department employees and borrowers. The company also placed last for the year ending June 30. Nelnet Inc., the Nebraska-based student loan specialist, recorded the fewest borrowers and loan amounts entering default. Find out more: http://www.huffingtonpost.com/2014/03/12/education-department-transparency_n_4950154.html
2. Student Loan Debt is Not Just an Economic Problem, It’s a Marriage Problem:
Senator Elizabeth Warren (D-MA), a potential 2016 presidential candidate, recently argued that Congress should hike taxes on families and small businesses making more than $1 million, then use the tax revenue to let debt-ridden students refinance their college loans.
As a progressive redistribution scheme it’s rather ingenious: It allows the government to take money from private individuals and businesses and give it to other businesses (i.e., college and universities), all while giving the impression of helping another group of private individuals (i.e., students who take indebt themselves by taking out college loans). Warren’s proposal is a brilliant blend of cronyism, special interest pandering, and “soak the rich” class envy – which is why it has a high likelihood of becoming law. Visit here: http://blog.acton.org/archives/66694-student-loan-debt-just-economic-problem-marriage-problem.html
3. College Prep: Student loan interest not always deductible
Picture this: You’re sitting at your kitchen table, you have your Bachelor’s degree, or maybe you went on to get your Masters , or even a J.D. or M.D. — you’re making money, and now as you are preparing to file your taxes or have already filed, you realize the interest on your student loans is no longer tax deductible. You scratch your head and think “how’s that possible?” Let me share.
The IRS says in Publication 970, that you can deduct the lesser of $2,500 or the amount of interest you actually paid for any of your qualified student loan interest. However, it also says the amount that you are able to deduct is phased out based on the income that you make. Published here: http://www.ajc.com/weblogs/atlanta-bargain-hunter/2014/mar/13/college-prep-student-loan-interest-no-longer-deduc/
Student Loan Blog Posts:
1. Student loan repayment program sought to lure psychiatrists, docs to state hospitals:
Idaho is considering a student loan repayment program to draw doctors, psychiatrists, nurse practitioners and physicians assistants to a pair of chronically understaffed rural state hospitals, the AP reports, State Hospital North in Orofino and its sister State Hospital South in Blackfoot. Senate-passed legislation to authorize the repayment program, SB 1362, cleared a House committee this morning, and the Joint Finance-Appropriations Committee today unanimously approved the funding, which would come from state endowment funds for the two mental hospitals. Click below for a full report from AP reporter Katie Terhune. Full article: http://www.spokesman.com/blogs/boise/2014/mar/11/student-loan-repayment-program-sought-lure-psychiatrists-docs-state-hospitals/
2. House approves zero interest student loan program, moves to Senate:
Cut backs in funding in Illinois and the rising cost of tuition is pushing college out of reach for many middle class and low income students. But a new proposal could have a profound effect on how students pay for their college education.
According to a study by the Federal Reserve, affordability and student debt reached crisis proportions last year.
“The national average debt for seniors has gone up to almost $29,000,” Director of Financial Aid at Western Illinois University Bob Anderson said.
Six out of every ten students at Western Illinois University are paying their way through school with help from student loans. Get more info: http://www.wgem.com/story/24917357/2014/03/07/pay-it-forward-college-plan-gets-house-approval
3. New Student Loan Forgiveness Programs Provide Opportunity for Borrowers:
The government has recently introduced new programs to provide student loan assistance. In the past, student loan assistance has been extremely limited, and the idea of student loan debt forgiveness was almost non-existent. It was something of an urban legend—everyone had heard that student loan forgiveness might be available for some people, but no one ever really had any information on how assistance could be provided.
The new student loan forgiveness program provides a variety of tangible assistance options. There is opportunity for reduction of student loan payments by up to 90%. In addition, it is possible to remove default with 4-6 weeks, stop tax and wage garnishment, and restore a damaged credit score. Loans can also be consolidated into one low monthly payment, and sometimes, if the borrower qualifies, the student loan balance can be forgiven. View original post: http://kraskerlaw.com/new-student-loan-forgiveness-programs-provide-opportunity-for-borrowers/
PayMyStudentLoans.com Around The Web: