Student Loans Aren’t Rocket Science, They’re Worse*
by Heather Jarvis, originally posted October 4, 2011 as guest blogger on Binksty.com Our system of access to higher education is debt based. Want an education? Buy it. Don’t have enormous piles of money lying around? Borrow it. Trying to make good decisions about the best options for paying back that money you borrowed? Good luck! In order for a student to understand his or her options and make good decisions about how best to repay student loans, the first thing every borrower must do is understand exactly…
The Unpleasant Truth about the Effect of Losing the Interest Subsidy on Student Borrowers
Subsidized loans have historically been available to students with demonstrated financial need. Subsidized loans help students manage the cost of education, because in the case of subsidized loans, the government pays the interest that accrues on the loan while the student is in school. When students borrow unsubsidized loans, interest will begin to accrue immediately, and any unpaid interest will be capitalized, or added to the principal of the loan. Capitalization is bad, assuming you don’t want to pay interest on interest. …
What the Debt Ceiling Deal Means for Your Student Loans
Originally posted on Idealist.org The House and Senate passed the Budget Control Act of 2011 just ahead of the deadline, and President Obama has signed the act into law. Key student aid programs are largely intact, and I am relieved to report that the new law avoids some of the proposed cuts that would have hurt students the most. There are three main provisions in the debt ceiling deal related to higher education: Funding is provided for the Pell Grant program. The in-school loan interest subsidy for graduate and professional students is eliminated…
Relief for Student Debtors Editorial
Three cheers for the New York Times and its recognition that there is no reason to extend special protections to private lenders of student loans! The Times recently published an insightful editorial calling attention to problems associated with expensive private student loans and the "undeserved advantage" private student loan lenders currently enjoy over other issuers of unsecured credit. I support the pending bills sponsored by Senator Dick Durbin, Democrat of Illinois, and Representative Steve Cohen, Democrat of Tennessee, that would…
The Scoop on Student Loan Consolidation
Why would I consolidate? Heads up government and nonprofit workers: consolidation can get your federal loans into Federal Direct so that you can participate in Public Service Loan Forgiveness. · Only Federal Direct loans are eligible for Public Service Loan Forgiveness. That’s one very good reason to consolidate. · Consolidation allows you to group your loans together with one lender. · …
