Here are the best articles from around the web this week talking about student loans…
For the week ending Friday November 22, 2013
Student Loan News:
1. How to Cope With a Change in Student Loan Servicers:
The federal government expects to issue more than 21.7 million student loans totaling nearly $109 billion between Oct. 1, 2013 and Sept. 30, 2014, according to reports.
Those loans will be in addition to the nearly $1 trillion in outstanding loans through the Federal Family Education Loan and direct loan programs.
The Department of Education issues the loans, but after the amount is paid out a loan servicer steps in to handle billing and payments.
2. Student loans: Lessons learned, choosing a major, and overcoming regrets:
In 2009, Kasey O. graduated college with a Bachelor’s of Fine Arts in Media Arts & Animation. With the support of her family, friends, school guidance counselors, and high school teachers, she had finally earned a college degree in a field that fulfilled her passion. Kasey was proud, hopeful, and ready to begin her dream career. But unfortunately for Kasey, things weren't exactly what they seemed.
What Kasey didn't know was that she had borrowed nearly $80,000 for her degree. She didn't realize that interest accrued while she was in school either, which came as quite as a surprise. Upon graduation, the interest on Kasey’s student loans capitalized, leaving her just under $100,000 in debt. And, even after making over $17,000 in payments over the last three years, Kasey still owes around $95,000. Find out more: http://www.deseretnews.com/article/865590948/Student-loans-Lessons-learned-choosing-a-major-and-overcoming-regrets.html
3. Private Student Loans No Better than Using Credit Card for College:
An analysis of the recent Consumer Financial Protection Bureau’s Student Loan Ombudsman report concluded that private student loans are a risky and high-cost method to pay for a college education. PSLs comprised 7 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. Study more: http://newpittsburghcourieronline.com/2013/11/15/private-student-loans-no-better-than-using-credit-card-for-college/
Student Loan Blog Posts:
1. Good News On Consumer Debt, Bad New On Student Loans:
“Americans stepped up consumer borrowing in the third quarter of 2013, the first increase since the end of last year. According to a report from the Federal Reserve Bank of New York yesterday, the $127 billion spike in borrowing was the biggest in five years while pre-financial crisis debt was being retired,” MainStreet.com reports. “‘This quarter, we observed an increase of household balances across essentially all types of debt,' said Donghoon Lee, senior research economist at the New York Fed. ‘With non-housing debt consistently increasing and the factors pushing down mortgage balances waning, it appears that households have crossed a turning point in the deleveraging cycle.' Look at more: http://www.nasfaa.org/Main/fa-news/natl/Good_News_On_Consumer_Debt,_Bad_New_On_Student_Loans.aspx
2. Everything You Need to Know About 7 Student Loan Repayment Plans:
In October, the Department of Education began contacting borrowers who were struggling to pay back their student loans to let them know about the various repayment options that are available to them. Although most borrowers choose to repay their loans on the standard 10-year plan, other options, like those based on income, can make repaying student loans easier on the wallet—and lower your risk of default. Click Here: http://lifehacker.com/everything-you-need-to-know-about-7-student-loan-repaym-1466213180
3. Time is up for recent college grads to pay back student loans:
Time is up for recent college graduates when it comes to paying back student loans. With some students facing thousands of dollars in debt, paying it all back is a lot easier said than done.
Once students walk off campus, they have six months to start paying off their debt. For students who graduated in May, that time is now.
Patti Foust, the Assistant Financial Aid Director for Culver Stockton College, says the most common mistake she sees students make when it comes to student loans is borrowing more than what they need. Foust says many students do that to give themselves extra spending money. Click to continue: http://www.wgem.com/story/23975382/2013/11/14/time-is-up-for-recent-college-grads-to-pay-back-student-loans