This enlightening post from Common Sense Student Loans argues that the student loan debate going on in Congress right now is preventing us from dealing with the root “disease” of skyrocketing college costs. Student loan debt, author Craig Anderson argues, is a symptom of this much larger issue, and current government proposals are merely Band-Aids […]
While the millennial generation has been labeled as lazy, entitled, and narcissistic, many people neglect to realize that this generation has entered a world with shrinking employment opportunities and mobility. For young people, jobs (especially good ones) are hard to find, and many are saddled with tons of college debt. And for young adults who are […]
With federal subsidized student loan interest rates set to double from 3.4 percent to 6.8 percent on July 1 unless Congress acts, it’s crunch time for government officials to come to an agreement to prevent rates from rising. Sens. Jack Reed (D-RI), and Tom Harkin (D-Iowa) have co-sponsored a bill that would freeze interest rates […]
After college, it can be very stressful for young adults to figure out how to best allocate their money. One of the most common questions we receive is how quickly borrowers should pay off their student loans.
After graduation, young adults are often faced with a host of new responsibilities and expenses: rent, utilities, car payments, and of course, student loans. While they’re trying to pay their bills on an often-meager entry-level salary, they’re also being told to save for retirement and put aside money for emergencies. What should you do–pay off your student loans as quickly as possible, or make lower payments and put the rest toward savings, investments, or other expenses?
With federal student loan interest rates set to double from 3.4 to 6.8 percent on July 1, government officials have offered a flurry of proposals to prevent the rates from increasing and to help borrowers currently mired in debt. In the chart above, Mother Jones breaks down the long- and short-term fixes for the current student loan crisis from Senate Democrats, Senate Republicans, House Republicans, and President Obama himself.
This awesome op-ed by Sen. Elizabeth Warren and Rep. John Tierney lays out the case for lowering interest rates on all federal student loans. Sen. Warren and Rep. Tierney argue that if banks can get special treatment from the government and are able to borrow at low rates, there’s no reason why students cannot. Right […]
With the national student debt currently at more than $1 trillion and a new crop of recent graduates entering a less-than-stellar job market, keeping interest rates low is essential for reducing overall student loan debt and helping borrowers make their monthly payments. But the current fixed interest rates on subsidized federal Stafford loans are set to […]
Getting a forbearance on your student loans can be a good short-term option if you’re struggling with repayment. However, the interest can really add up, and you might end up paying thousands of dollars on top of the loan after just a few years of forbearance. Watch the video above for one student’s story about the long-term costs of forbearance.
According to a TransUnion study, student loan balances increased 75% from 2007 to 2012. The average debt per borrower increased by 30% to $23,829. In the wake of surging student debt, USA TODAY explains the best way to pay back your student loans, including deferment, “pay as you earn” plans, loan forgiveness, and more.
A new study from the Urban Institute shows that millennials have accumulated less wealth since entering the workforce than their parents did at the same age, even as the economy has grown and the average wealth of Americans has doubled.