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Archive for the ‘Federal Student Loans’ Category

New Grads Have More Debt, Less Opportunities

Graduating from college is supposed to be an exciting time, filled with hope about the future and its many possibilities. Unfortunately, that is not the case in general for today’s graduates. A new study by the Project on Student Debt and reported on CNN Money.com, says that student debt is rising and the number of grads finding jobs is shrinking. Students who graduated from college in 2009 from either public or not-for-profit private schools carried an average student loan debt load of $24,000, a 6 percent increase from the previous year. Perhaps that wouldn’t be a noteworthy change if this... more »

Government Employees Get Help in Paying Back Student Loans

According to an article in the Washington Post, Federal government employees with student loans benefited last year, as many of them had their student loans repaid for them. 36 different federal agencies provided student loan payback assistance to over 8,000 federal employees. The total cost to the government was $61.8 million in 2009, a 20% increase from 2008. “President Barack Obama has highlighted the importance of recruitment and retention tools and has asked each Federal agency to do its part to ensure ‘this Government is as efficient as possible and that every taxpayer dollar that is spent is being spent... more »

Americans Now Owe More on Student Loans than Credit Cards

Student loans now comprise a bigger chunk of American consumer debt than do credit card charges, according to recent data from Mark Kantrowitz, of FinAid.org and FastWeb.org, a somewhat unexpected finding considering the rough state of the economy. Kantrowitz asserts that as of June, Americans owe about $826.5 billion in revolving credit (most of which is credit card debt), while student loans, both federal and private, all together have now grown to $829.8 billion. This economic twist has apparently caught many by surprise. “The growth in education debt outstanding is like cooking a lobster,” Mr. Kantrowitz said as quoted on... more »

Changes to the Income Based Student Loan Repayment Program

As of July 1st, there are some changes that you should know about if you are a college graduate that is carrying federal student loan debt. Beginning last year income based repayment became available for student loan holders. The program capped the amount loan holders had to pay, depending on the amount of their loan and their income. Your monthly payment, if eligible, is no more than 15% of your income. If you make $16,000 a year or less you can completely defer your payments. The program was put in place to help keep loan payments manageable for those loan... more »

A Look at the New Student Loan and Its Advantages

Students heading to college in 2010 will be the first to take part of the new student federal loan program. In the past, student loans were funded by private entities, but no longer. Here on out students will borrow directly from the federal government, which comes with some great advantages. Here is a look at what it is all about. First, students and parents will be able to take advantage of an easy, free application process. There is just one form to fill out and it can be obtained right from your University. These federal loans now come with even... more »

Hey College Students – Here’s Your Wake Up Call

A recent story from the New York Times comparing the student loan industry to the pre-collapse subprime mortgage market has raised quite a few feathers. A follow up article said there were over 600 comments in response to the story about a young woman who is struggling to pay off her $97,000 in student loans that she racked up in order to get a liberal arts degree at NYU. Courtney Munna, the feature of the story borrowed all the money she could under federal loan programs, got grants and did work study to pay for her schooling. Even all those... more »

Wells Fargo Introduces New Student Loan Options

In response to the new regulations signed into law by the Obama administration governing student loans, Wells Fargo is rolling out a new student loan program. Private Banks starting July first of this year will no longer be able to issue federal backed student loans. Instead, the federal government will now directly loan to students. Private Banks that have been in the student loan lending business are estimated to be out approximately 2 billion a year in profits. Private Banks are now scrambling to stay in the business by offering their own loans for students. Wells Fargo’s new loan... more »

Student Loan Holders: Are You Aware of Federal Income Based Repayment Programs?

It is that time of year, college graduation time. Students across the country are being handed their diplomas. While it is a time of great accomplishment, it is also a time to start thinking about paying back the student loan debt that you have accumulated during your college years. What many student loan holders do not realize is that there are programs available to help ease the burden of paying back student loan debt. This year’s grads as well as other student loan holders can qualify. The Federal income based repayment program was updated last July to help those... more »

Student Loan Reform Leads Sallie Mae to Cut 2,500 Jobs

Sallie Mae, the nation’s largest student loan lender, has announced that it will be cutting a total of 2500 jobs–1200 of which will be before year’s end. Sallie Mae’s Killeen, Texas service center and Sallie Mae’s Panama City, Florida service center will both be shutting their doors. The remainder of the cuts are yet to be determined but are scheduled to take place sometime during 2011. According to Sallie Mae the cuts are part of the company’s forced restructuring due to new student loan reforms. Just recently congress ended the FFELP program (Federal Family Education Loan Program) which had... more »

Student Loan Bill Passes the House

Update March 25th, 2010: The Senate also approved the bill , all but assuring it will become law. This past Sunday, the House passed the largest student loan overhaul seen in decades. Under the new legislation, federal backing of private student loan lenders will end, and instead the federal government will be funding student loans. While private companies will still help in servicing the loans, the federal government will now be issuing them. The savings for this program is in the billions. Just over $60 billion over ten years is the projected savings according to the Congressional Budget Office. The... more »