Here are the best articles from around the web this week talking about student loans…
For the week ending Friday May 3, 2013
Student Loan News:
1. How to Get Out of Student Loan Debt:
More and more student loans are becoming the most problematic debt anyone can own. At some point in the past couple of decades, student loans went from a leg up to financial slavery.
There is a lot of information out there about how to deal with troublesome student loan debt and payments. But I thought I'd put together the ultimate no-holds-barred guide on how to deal with student loan debt that becomes unaffordable.
After working with a number of people and answering questions about student loan debt I have come to the conclusion that if you can repay your student loans according to your original ten-year repayment plan that might be the best and most optimum way to repay them since it eliminates them quickly. But to do that you might need to eliminate your other debt to make room for the payments. Discover more: http://www.huffingtonpost.com/steve-rhode/get-out-of-student-loan-debt_b_3193926.html
2. Tips to Pay Back Student Loans:
College graduation is an exciting time, but higher education can build up financial fatigue. The panic of finding a job highlights the burden of student loans. When tackling the bill, experts say sticking to a budget just makes sense.
“Living within their means, is to me, the best key. If you can't buy it with cash, then you may want to leave it alone,” suggested Daymesha Reed, Financial Aid Assistant at Wallace Community College.
Some banks defer loans up to six months after graduation, giving students a grace period to find their footing and land a job. More Explanation: http://www.wtvy.com/news/4theconsumer/headlines/Tips-to-Pay-Back-Student-Loans-205670591.html
3. House Panel To Debate Student Loan Tax Credits:
A Michigan House panel is expected to debate a bill that would provide tax credits for student loan payments.
The Michigan Competitiveness House Committee plans to debate the bill Wednesday.
Michigan residents who graduated from one of the state’s public or private colleges or universities could claim an income tax credit equal to 50 percent of certain student loan payments made that year. The credit couldn't exceed 20 percent of public universities’ average yearly tuition or $2,150. More Details: http://detroit.cbslocal.com/2013/05/01/house-panel-to-debate-student-loan-tax-credits/
Student Loan Blog Posts:
1. Student Loans: Obama's Shady Bookkeeping:
Imagine a world where you could get a loan with flexible repayment periods, no credit check, no cosigner, and the possibility of loan forgiveness.
Well that world currently exists for students wishing to obtain a college degree. This is all made possible by taxpayers, of course, and bad federal policy. Congress will soon be weighing in on student loans yet again. Will they change course?
If they continue to use the same methods for evaluating the costs of student loans to American taxpayers, they will likely make the same mistake they’ve made before with regard to giving out too many student loans to individuals unlikely to repay them. Visit: http://heritageaction.com/2013/04/student-loans-obamas-shady-bookkeeping/
2. Think Tank Takes: Student loan program's costs are unknown:
The Congressional Budget Office has applied a risk-appropriate discount rate to student loans based on what private lenders would offer for a similar level of risk. In contrast to the government's current accounting practices, which show student loans making a “profit” for the government of 9 percent, the CBO's alternate — but more accurate — analysis found that between 2010 and 2020 the program would cost 12 percent more than it brought in.
A similar analysis conducted by the CBO, just for FY 2013, also shows a large difference between current accounting practices and the fair value approach. Interestingly, however, the CBO still found a small net budgetary gain in 2013 from student loans even with the fair value approach. Read Full Analysis: http://washingtonexaminer.com/think-tank-takes-student-loan-programs-costs-are-unknown/article/2528339
3. Sen. Reed Visits RWU to Warn of Student Loan Interest Hike:
U.S. Sen. Jack Reed (D-RI) is scheduled to speak at Roger Williams University this morning to call for Congressional action on student loan interest rates, which will double to 6.8 percent on July 1.
Reed will join students and faculty at a planned 11:30 a.m. speaking program at the Global Heritage Hall Atrium on Old Ferry Road.
According to a release provided by RWU, the average college graduate in 2007 carried about $17,000 in debt; in 2012, that number was $27,250 — a 58-percent increase. Understand more: http://portsmouth.patch.com/articles/sen-reed-visits-rwu-to-warn-of-student-loan-interest-hike-f194883d