Here are the best articles from around the web this week talking about student loans…
For the week ending Friday March 29, 2013
Student Loan News:
Student loans: attacking the debt and keeping cash in your pocket:
As America’s graduating class of 2013 anticipates the end of the semester, many will immediately be faced with real-world issues that include job searching, 40-hour workweeks, housing decisions or further education depending on the route that each individual decides to take. Regardless of any post-undergraduate pursuits, the majority of students will soon be faced with the challenge of repaying student loans.
The Chronicle of Higher Education reports that nearly 20 million Americans attend college each year and approximately 12 million of these students borrow in some way to help cover education costs. Many borrowers struggle to keep up on paying off their debt. Luckily there is plenty of advice on the steps to take to help pay off loans at a pace that works. Details here: http://www.leprovoc.com/student-loans-attacking-the-debt-and-keeping-cash-in-your-pocket
Student loan debt is biggest concern among the college-bound:
High school seniors are more worried about burdensome student-loan debt than about getting into the college of their dreams.
That’s the upshot from the annual “College Hopes and Worries” survey from the Princeton Review, a test-preparation and educational services company.
Thirty-eight percent of students surveyed listed “level of debt incurred to pay for the degree” as their primary concern. Main Site: http://www.latimes.com/business/money/la-fi-mo-student-loan-debt-20130322,0,4546194.story
Surging Student-Loan Debt Is Crushing the System:
Student-loan defaults surged in the first three months of 2013, while efforts to collect bad loans are faltering, according to credit analysts and government audits. It is the latest twist in a college debt crisis that is hanging over recent graduates and dragging on the broader economy.
Credit-rating firm Equifax said $3.5 billion in government and private student loans went bad in the first three months of 2013, the most since the company began keeping track. The U.S. Department of Education said 6.8 million federal student loan borrowers are now in default, representing $85 billion in debt. And the department's systems for collecting the bad loans are struggling to keep up. Visit now: http://www.cnbc.com/id/100598257
Student Loan Blog Posts:
Student loan repayment loophole closes:
Students eligible for a 10 per cent return on voluntary repayments on their student loans have only a couple of days to claim before the Government closes the loophole.
The change is one of several April 1 changes to the tax system, including lifting the minimum contribution amount for KiwiSaver.
The 10 per cent student loan “bonus” for repayments beyond the compulsory amount was aimed at speeding up slow payers and reducing the Crown's borrowing costs. Study more: http://www.stuff.co.nz/business/money/8479504/Student-loan-repayment-loophole-closes
Student loan repayment rises from 1 April:
The student loan repayment rate for borrowers living in New Zealand will rise to 12 per cent from next Monday, as announced in Budget 2012.
Tertiary Education, Skills and Employment Minister Steven Joyce says increasing the repayment rate from 10 cents to 12 cents for each dollar of income from 1 April means graduates and ex-students will pay their loans off more quickly.
“Increasing the repayment rate will increase the rate at which people pay of their loans and provides savings of $184.2 million over four years that the Government is investing into the next generation of students,” Mr Joyce says.
“Since we have been in Government we have reduced the cost of lending under the Student Loan Scheme from 48 cents in every dollar to 37 cents. We are looking to bring that cost down further over time. Find out more: http://www.beehive.govt.nz/release/student-loan-repayment-rises-1-april
Facing student loan debt and retirement:
Twenty-somethings are the poster children for student loan debt, but it's actually their grandparents who have the most cause for concern. Since 2005, debt levels have more than tripled among those ages 50 to 59 and more than quintupled for borrowers ages 60 and up. Currently, the average student loan balance for borrowers ages 50 to 59 is $23,183. Those ages 60 to 69 are only doing slightly better, with average loan balances of $19,225. According to the Federal Reserve Bank of New York, nearly 17 percent of outstanding student loan debt is held by borrowers age 50 or older.
Student loans are challenging for new college grads, but for borrowers who are ready to retire, they can be a serious financial detriment. Here's what you need to know about tackling federal student loan debt before retirement. Read more: http://www.bankrate.com/finance/student-loans/student-loan-debt-retirement.aspx