Here are the best articles from around the web this week talking about student loans…
For the week ending Friday September 27, 2013
Student Loan News:
1. U.S. to Contact Borrowers With New Options for Repaying Student Loans:
When President Obama last month announced proposals to make college more affordable, many critics focused on his plan to rate colleges based on measures like tuition, graduation rates, and the debt and earnings of graduates, and eventually to link financial aid to those ratings.
Arne Duncan, the education secretary, said more defaults could be prevented if people knew about their repayment options.
Largely overlooked was a more immediate change that could make a dent in the rising number of student-loan borrowers going into default. Starting next month, the Department of Education will contact borrowers who are struggling to repay their federal loans to make sure they know all the options available to them. Get more: http://www.nytimes.com/2013/09/25/education/us-to-contact-borrowers-with-new-options-for-repaying-student-loans.html
2. Top Dollar Degrees: Parents on Hook for Child's Student Loans
American student loan debt now tops $1 trillion, according to the Consumer Financial Protection Bureau. But what happens when students can't pay it off?
If a parent co-signed the loan, the burden shifts to them.
5 EYEWITNESS NEWS is highlighting the dangers in part three of our series, “Top Dollar Degrees: How To Pay For College Without Breaking the Bank.”
We spent months researching and spoke with several bankruptcy attorneys along the way. Each one told us they get calls from parents all the time who are simply stuck paying off their kids' student loans. Nothing — not even bankruptcy — can wipe that slate clean. Official site: http://kstp.com/article/stories/s3170896.shtml
3. Answering readers on Fed, mortgages, student loans:
Today I have answers to reader questions on what the Fed is doing, whether new mortgage rules apply to private lenders and loans for students attending college outside the United States.
Q: Victor T. writes, “I have been wondering where the Federal Reserve gets all that money to buy $80 billion worth of bonds. I'm getting hints that they're printing it, but if so, how are they keeping track of it?
“How will they deal with the inevitable, or will they not ever have to deal with a ‘day of reckoning'? I understand they got the authorization to do this in 2008, but I don't recall hearing anything concerning an event of such major significance.” Click here: http://www.sfgate.com/business/networth/article/Answering-readers-on-Fed-mortgages-student-loans-4843410.php
Student Loan Blog Posts:
1. New legislation on student loans will help stabilize interest rates:
Stony Brook students have dodged a huge financial bullet with the passage of the Bipartisan Student Loans Certainty Act. The bill was signed into law Aug. 9, 2013 for the purpose of reforming a part of the 1965 Higher Education Act.
Director of Stony Brook’s Office of Financial Aid and Scholarship Services Jacqueline Pascariello believes the change has come as a relief for parents.
“I don’t know about students, but amongst parents I think there is a lot of relief,” she said. Read more: http://sbstatesman.com/2013/09/20/new-legislation-on-student-loans-will-help-stabilize-interest-rates/
2. How to stay on top of your student loans:
For most people, student loans represent their first encounter with the world of credit and finance. They can open a world of opportunity to young people who might otherwise not be able to pay to continue their education. More than 60% of American students (that’s almost 12 million in total) will borrow money annually to help pay for college. It’s likely that this is where you’ll begin to build your credit score: a little number with huge consequences. It can be intimidating, but there’s really no reason to stress out. Staying in control of your student debt is easier than it sounds. More info: http://blog.creditkarma.com/debt/loans/how-to-stay-on-top-of-your-student-loans/
3. Money Monday: How to Take Advantage of Student Loan Forgiveness Programs
Americans are suffering under a combined $1 trillion in outstanding student loan debt. But, according to the Consumer Financial Protection Bureau (CFPB), nearly 33 million workers who qualify to have their student loans forgiven, fail to take advantage of their options.
In 2007, Congress passed the College Cost Reduction and Access Act which created a new loan forgiveness program for those employed in the public service sector. Under the program, any debt remaining after 10 years of full-time employment in public service will be forgiven. Full article: http://www.blackandmarriedwithkids.com/2013/09/money-monday-how-to-take-advantage-of-student-loan-forgiveness-programs/