Here are the best articles from around the web this week talking about student loans…
For the week ending Friday September 6, 2013
Student Loan News:
1. Parents face the student loan double whammy:
At age 51, Charlene Rose had hoped to be socking away money for retirement by now. But instead, she's still paying off her student loans, largely for a master's degree she got to advance her career. And now she's got three kids in college, each of whom is taking out student loans of their own to pay for higher education.
Together, Rose and her children owe as much as $136,000 in student loans. “I didn't think I would have this much debt,” Rose said. But she thinks it's important for her children to get college degrees, even though her student loan debt could affect her ability to retire. More details: http://www.usatoday.com/story/money/business/2013/09/02/parents-student-loan/2749233/
2. Graduates Keep Struggling With Private Student Loans:
Student loans have become an increasingly large portion of the debt burden that Americans face. During the past six years, consumers have paid down their outstanding balances on most forms of debt, including mortgages, credit cards and auto loans, according to the New York Federal Reserve.
But student loan balances have continued to increase. The Consumer Financial Protection Bureau noted earlier this year that outstanding student debt would shortly hit the $1.2 trillion mark. Discover more: http://www.dailyfinance.com/2013/09/01/students-still-struggle-private-loan-college-debt/
3. Is student loan debt the next housing crisis?
As we look back at five years since the financial and housing crisis began, we see another possible bubble forming: student loans. But can the two really be compared?
“Those are two different stories that are going to end in two different ways,” says Betsy Mayotte, director of regulatory compliance at the nonprofit American Student Assistance.
The biggest difference, Mayotte says, is that in the case of the mortgage crisis, there was a physical asset to walk away from — or for the bank to foreclose on. To acquire more information: http://www.marketplace.org/topics/your-money/education/student-loan-debt-next-housing-crisis
Student Loan Blog Posts:
1. Student Loan Forgiveness Program Available To Millions Who Aren't Utilizing It, CFPB Says:
More than 33 million workers qualify to have their student loans forgiven because they work in schools, hospitals or city halls, but too few take advantage of the options because the programs are overly complicated and often confusing, the government's consumer advocate said Wednesday.
Roughly a quarter of the U.S. workforce could take advantage of federal rules that give favorable loan repayment options to those in public service fields, including the military, according to the Consumer Financial Protection Bureau. The agency recommended Congress review the loan forgiveness programs and encouraged employers to make sure their workers know they are available. Main site: http://www.huffingtonpost.com/2013/08/28/student-loan-forgiveness-cfpb_n_3833832.html
2. Enjoy student loan rates this low while they last:
For the 2013-14 school year, undergraduates will be entitled to federal Stafford loans with 3.86 percent interest rates. But this is a one-time deal. If you have to borrow again for your education after this school year, the loans you take on will probably cost you more.
College students this year will get relief on federal student loans.
Interest charges will be lower than planned a few months ago, and lower than many students and their parents have been paying the last few years. Look at more: http://seattletimes.com/html/businesstechnology/2021652353_pfstudentloansxml.html
3. Satire piece about Obama forgiving student loans fools wishful thinkers:
President Obama announced a plan today to forgive 100 percent of all federal student loans in the country.
In a speech in Scranton, PA the president told an assembled crowd that it was unfair to hold college graduates to promises they made as students and outlined his vision for ending all student loan payments by the end of the year.
“Just because someone borrowed a bunch of money doesn't mean they have to pay it back,” he explained to a friendly crowd at Scranton University. “This isn't 19th century England. This is America. And in America we've always believed in second chances. Full article here: http://collegeinsurrection.com/2013/08/satire-piece-about-obama-forgiving-student-loans-fools-wishful-thinkers/