Tag: student debt

Half of recent college graduates still rely on money from parents

Posted on June 24th, 2015

Most parents look forward to their children graduating from college, as it marks the time in their lives when they can start becoming real adults and taking care of themselves–moving out, finding a full time job, and potentially getting married, having kids, or buying a home.

But a recent study from the University of Arizona, as reported by CNN Money, has found that that’s not the case for more than half of recent college graduates, who report they still depend on their parents for money.

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Most college freshmen underestimate student debt

Posted on June 16th, 2015

"College students do not have a firm grasp on their financial positions, including both the price they are paying for matriculation and the debt they are accruing." -- Elizabeth Akers and Matthew Chingos

When most students enter college, student debt is a far thing from their minds. They’re more likely to be concerned with classes, making friends, and adjusting to a new place. Since most students enter college as young adults, it’s difficult for many to grasp how student loans work and the consequences of taking them out. But […]

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The 3 groups struggling the most with student debt

Posted on June 11th, 2015

It’s no secret that student debt is a big issue for millions of Americans. We’re constantly hearing scary statistics about the rising amount of student loan debt (currently over $1.2 trillion) and how many borrowers are struggling to repay their loans.

But a recent study, as described in U.S. News & World Report, showed that three types of borrowers are struggling the most and accounting for a large part of the high numbers we hear associated with student debt.

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For-profit college dropouts most likely to default on student loans

Posted on June 2nd, 2015

Dropping out of a college, in general, makes borrowers more likely to default on their student loans, because it makes it more difficult for them to find a good-paying job and afford their student loan payments.

But certain college dropouts have it worse than others–those who dropped out of a for-profit, less-than-four-year college.

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Student loan interest rates drop

Posted on May 28th, 2015

While college costs continue to rise, there’s some good news for students who will be enrolled in college this fall: lower student loan interest rates.

Interest rates on federal student loans for the 2015-16 school year will drop by more than one-third of a percentage point, according to Inside Higher Ed.

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Minorities and poor college students have the most student debt

Posted on May 22nd, 2015

"We have created a system in which more underrepresented students take on debt and drop out with debt, thereby saddling communities of color and those with modest means with substantial disadvantages as they enter the workforce." -- Mark Huelsman

Need-based financial aid, particularly in the form of Pell grants, is designed to make college more affordable for low-income students who may not otherwise be able to attend college. But a new study, as reported by the Washington Post, finds that the students who need financial aid the most are the ones who end up with the most […]

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Students with less debt default more often

Posted on May 1st, 2015

One would assume that graduating with a high level of student debt would put a borrower at greater risk of falling behind on their payments and defaulting on their student loans.

But a new report from the Federal Reserve Bank of New York found the exact opposite to be true.

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Student debt strike expands

Posted on April 30th, 2015

Over 100 students who attended the now-defunct for-profit Corinthian Colleges system are striking out against their former college and refusing to repay their student loans.

The students are attempting to pressure the government into forgiving their debt, alleging that the colleges didn’t hold up their end of the bargain–by providing a subpar education and not preparing them for a post-graduate career.

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Students face heartbreak over financial aid packages

Posted on April 8th, 2015

"Colleges should have a moral responsibility to offer sane packages that don’t saddle students with unimaginable debt to start their adult lives." -- Chris Lehmann

By now, most high school seniors have heard back from the colleges to which they’ve applied. And many, unfortunately, are likely disappointed with the financial aid package they’ve received from the schools of their choice. In many cases, students find themselves heartbroken over not being able to attend their top-choice college because their family can’t […]

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Pressure for prestige has made college admissions a circus

Posted on March 26th, 2015

Applying to and getting into college puts enormous pressure on students and families. Many students believe they need to get into the “best” (highest-ranked) college possible in order to have a chance at getting a good job after college.

Particularly among the wealthy, there’s often competition between parents as their children apply to the same prestigious colleges, Robert Reich writes in a recent piece for Slate.

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