Federal Loans Now Up For Grabs by Debt Collectors

As the economy slowly builds back up, there is still an astonishing number of people in the U.S. who are struggling to make ends meet – which means student loan payments are getting pushed to the side. Now the government is taking action. In a New York Times article released this week it has emerged that the government is sending debt collectors after defaulted student loan borrowers. Between this and the fact that there is no statute of limitations on...

Student Loans: Ruining Students and Taxpayers

There is now $1.2 trillion of student loan debt in America, and that number just continues growing. The Class of 2014 was the most indebted class ever, with average debt of $33,000. Over the next few weeks, the Class of 2015 will likely have even more debt. There are many reasons we are drowning in debt. Budget cuts for state universities have resulted in dramatically higher tuition. Private universities have engaged in a destructive spending war,...

How to Turn a $10,000 Investment Into a $70,000 Salary

It seemed like a classic utopian vision. Free prestigious university classes delivered online, open to anyone, offering the potential to slay the college debt monster. Instead, so-called Massive Open Online Courses, or MOOCs, proved how little students often learn from online classes. Dropout rates as high as 90 percent were reported, and it seemed that traditional higher ed’s stranglehold as the gateway to higher-paying jobs was even tighter. But...

How the Debate Over Student Loan Interest Rates Affects You

Democrats (including President Obama) and Republicans have both argued for keeping these interest rates at their current level, but they’ve disagreed on how to pay for the extension of the low rates. So how will this debate affect you? Below we’ll describe the arguments on each side of this debate and how it may change (or not) your repayment of student loans. Which Loans Are Affected by This Student Loan Debate? The debate focuses on federal Stafford...

5 Easy Ways to Reduce Student Loan Costs

America’s higher education system is currently embroiled in a period of extreme flux, with budgetary concerns and an online education revolution fueling widespread change and uncertainty throughout the country. Perhaps the biggest issue facing students, institutions and government officials alike is what to do about the overbearing debt emanating from student loans. Total student debt now surpasses an astounding $1.2 trillion — roughly equal...

Can the Government Garnish Your Wages if You Don’t Pay Student Loans?

Can the government garnish your wages if you don’t pay your student loans? The short answer is yes, but only in some cases. Few students can make it through school without the help of student loans. Even if it is possible to get through the first four years without debt, many grad students find that they need to borrow in order to move further in education. While student loans can be a helpful way to get the education and skills you need, you do need to...

3 Problems With Clinton’s New Student Loan Plan

presidential hopeful Hillary Clinton unveiled her New College Compact, with the ambition of making public colleges debt-free for students. Her plan is estimated to cost $350 billion over 10 years, and focuses on three key areas. First, federal grants of $150 billion would be given to states to fund public colleges. These grants would only be given to states that agree to increase funding for education and commit to making debt-free study a reality. If...

What Happens If I Can’t Pay My Student Loans?

These days, it’s not uncommon for people to be worried about what you can do if you don’t pay your student loans. But if you’re in a position where you might not be able to make your student loan payments, your first step should be to get informed about your rights and learn what actions can help you navigate through this challenging situation. It’s always important to call your lender and attempt to work out an agreement with them, rather than simply...

Should You Refinance Your Student Loans?

Student loan debt has surpassed $1.2 trillion, ticking up several thousand dollars per second, according to FinAid.org. For recent graduates entering the workforce, the average loan for a bachelor’s degree amounts to more than $35,000. Failure to repay can lower credit scores and lead to garnished wages and legal action; this debt can’t be eliminated through bankruptcy. One way to make loans easier to manage, and potentially decrease the...

Student Loan Grace Periods are NOT Going Away

You may have recently heard a bit of false news: that there will be no more grace periods on student loans. Despite the fact that the Chicago Tribune ran a headline to that effect on Thursday of last week, it’s actually not true. The truth is that that interest will now begin accumulating on student loans sooner, but the “grace period” that postpones any required payments until 6 months after graduation has not been eliminated. The inaccurate story began...