Students Misled By Student Aid Award Letters
This post is written by Mark Kantrowitz and was originally published on September 13, 2011 on Higher Ed Watch (a blog of New America Foundation's Higher Ed Initiative). My sincere thanks to New America Foundation and Mark Kantowitz for their outstanding contributions to higher education finance. Mark Kantrowitz: The letters that colleges send students to alert them of their financial aid awards should be focused primarily on the needs of students and their families. Students and their families need and want clear, correct, complete,…
Consolidation Loan Interest Rates
Consolidating student loans is the right move for some folks, especially if you need to get your loans into Federal Direct to earn Public Service Loan Forgiveness. But how do you know what the interest rate will be on the consolidation loan? The interest rate on a Direct Consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%. More about consolidation loans and their interest rates is on Mark Kantrowitz's fabulous FinAid.org website. Click…
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. · …
