Here are the best articles from around the web this week talking about student loans…
For the week ending Friday November 15, 2013
Student Loan News:
1. From Start To Finish, The Student Loan Industry Is In Need Of Massive Overhaul:
Student loan debt in the U.S. has passed the $1 trillion mark while the cost of an education continues to outpace inflation, meaning tomorrow’s students will need to take on even more debt than the millions of graduates who already owe money. A new report from our coworkers at Consumers Union shows just how screwed up and unbalanced the student loan system is at every step of the way.
CONFUSED FROM THE START
Since the dawn of financial aid, schools have often sent out misleading and mislabeled financial aid offer letters to potential students, lumping together various potential sources of aid or making inaccurate assumptions about parental contributions. Learn more: http://consumerist.com/2013/11/13/from-start-to-finish-the-student-loan-industry-is-in-need-of-massive-overhaul/
2. Private Student Loans No Better Than Using a Credit Card For College:
An analysis of the recent Consumer Financial Protection Bureau’s Student Loan Ombudsman report concluded that private student loans (PSL) are a risky and high-cost method to pay for a college education. PSLs comprised seven percent of student loans taken out last year and are 15 percent of the nation’s total outstanding student loan debt.
American consumers currently owe approximately $165 billion on PSLs.
“Choosing to pay for college through a private student loan is no better than paying for it on a credit card. Private student loans are generally more expensive and risky for consumers than more-common federal student loans, and dealing with private student lenders can be a tremendous hassle,” states the PIRG analysis. Discover more: http://washingtoninformer.com/news/2013/nov/11/private-student-loans-as-bad-credit-card-college/
3. Federal Programs Give Student Loan Relief to Service Members:
Military service members have reinforcements to protect them in the field. Training, weaponry, surveillance and logistic support all work together to help soldiers, sailors, airmen and Marines carry out their missions successfully.
But those same troops can feel abandoned when it comes to their student loans, despite a number of protections in place to help them manage college debt. Find out more: http://www.usnews.com/education/best-colleges/paying-for-college/articles/2013/11/11/federal-programs-give-student-loan-relief-to-service-members
Student Loan Blog Posts:
1. 4 Ways to Pay Your Student Loans When You Have No Money:
Does federal student loan debt have you doubting that you’ll ever be able to move out of your parent’s house, let alone buy your own house? Unfortunately, your situation isn't unique.
student loan debt According to the Federal Reserve Bank of New York, over 37 million people have outstanding student loans totaling over $870 billion. According to the Project on Student Debt, roughly two-thirds of the graduating class of 2011 took out some type of student loan to pay for their education, averaging about $26,600. Meanwhile, unemployment numbers for those fresh-out-of-college folks remains high. That combo is frightening to the many people with mounting student loan debt. And rightfully so. Original article: http://blogs.globeuniversity.edu/2013/11/12/4-ways-to-pay-your-student-loans-when-you-have-no-money/
2. After mortgages, student loans are the largest source of debt in the US:
Student debt is a form of debt that is owed by an attending, withdrawn or graduated student to a lending institution.
The lending is often of a student loan, but debts may be owed to the school if the student has dropped classes and withdrawn from the school.
Withdrawing from a school, especially if a low- or no-income student has withdrawn with a failing grade, could deprive the student of the ability of further attendance by disqualifying the student of necessary financial aid. Details here: http://www.omg-facts.com/Business/After-Mortgages-Student-Loans-Are-The-La/59358
3. Research Symposium at Suffolk Law on Student Loans:
Suffolk Law School and the National Consumer Law Center are convening a Research Symposium on Student Loans in Boston on April 10th and 11th. The goal of the Symposium, which is invitation-only, is to bring together the nation’s top experts, including academics, attorneys, industry representatives, consumer advocates, and government officials, to discuss research and policy related to student loans. We invite paper proposals that are empirical, qualitative, theoretical or policy-oriented. Look at more: http://www.creditslips.org/creditslips/2013/11/research-symposium-at-suffolk-law-on-student-loans.html