Interest Rates on College Loans on Way Up - Putting her self through school, Shayna Stevens relies heavily on student loans to pursue a degree in secondary education at Northern Arizona University.

Currently a sophomore, Stevens said she is already $40,000 in debt. She works part time during the school year and plans to take two jobs over the summer to keep that amount as manageable as possible.

"If I didn't have to take out these loans then I wouldn't have to work all these extra jobs on the side and I could focus more on my studies and actually getting the education that I'm paying for," Stevens said.

Things won't be getting any easier next year. Unless Congress acts before July 1, interest rates on subsidized student loans, for which students must demonstrate financial need, will rise from 3.4 percent to 6.8 percent.

Students don't have to pay interest on subsidized loans while in school. Unsubsidized loans, which currently have a 6.8 percent interest rate, require students to pay interest on loans from the start.

Stevens, who has both types of loans, said she plans to finish her education but has concerns about her peers. She said she already has seen friends drop out of NAU after realizing that the financial burden would be too much.

"I think there's definitely going to be a huge drop out from students who just can't afford to take on these loans anymore," Stevens said.

Serena Unrein, public-interest advocate with the Arizona Public Interest Research Group, said the average Arizona student borrower will pay $1,000 more in interest if the rates double. (see HERE)

Jennifer Johnson, a senior at Arizona State University who took out subsidized loans throughout college, said that with the current interest rates she will be paying close to $2,000 in interest over a 10-year period.

"Doubling it to $4,000, I just can't even imagine," Johnson said.

Tucsonan Ann-Eve Pedersen, president of the Arizona Education Parent Association, said she has talked with parents who won't be able to send their children to college because of the rising cost not just of loans but tuition.

"We're just making higher education unaffordable, but we know that all of the quality jobs now and definitely in the future are going to require higher education, so we're moving in the absolute wrong direction as a state," Pedersen said.

Unrein said that the increased interest rates could also influence the decisions students make after college. She said that those with a lot of debt may choose to not go into lower-paying careers such as teaching or working for nonprofits.

"We need people to go into careers as teachers, as first responders, and if we're saddling people with the kind of debt that makes it impossible to go into those careers then that leaves our state in a world of harm," Unrein said.

The interest rates on subsidized loans were set to double last year as well. Just before the deadline, Congress passed a one-year extension of the 3.4 percent interest rates.

Megan McClean, director of policy and federal regulations with the National Association of Student Financial Aid Administrators, said that another one-year extension is unlikely.

"Last year, extending it for one additional year cost $1 billion, and I'm sure you know that that money is hard to come by in these particular times that we're in," she said.

McClean said that Congress and President Obama are looking for long-term solutions. In Obama's fiscal 2014 budget, he called for student-loan interest rates to be set each year based on the current market rate.

"I think from a broader standpoint … we need to find a long-term sustainable solution versus these quick fixes," McClean said.

Amid national discussions on college affordability, Sheila Shelton decided to return to college after 30 years. She took out subsidized loans to pay for an education degree at Phoenix College. (see HERE)

"If it doubles, I don't know if I'll be able to pay it all back," Shelton said. "It'll be a lifetime. I'm already over the age of the average student."

However, Shelton said that she won't let the increase postpone her dream of being a special-education teacher.

"It's going to be a challenge, but at this point I'm up for the challenge," she said.

Loan types

Subsidized

• Recipients must demonstrate need.

• The U.S. Department of Education pays interest: while a recipient is in school; during the six months after the recipient leaves school (only applies to loans disbursed before July 1, 2012); or during a period of deferment.

• Currently have an interest rate of 3.4 percent.

Unsubsidized

• No financial need necessary.

• Students are responsible for paying interest from the outset.

• Currently have an interest rate of 6.8 percent.

Source: Federal Student Aid Office of the U.S. Department of Education

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How to Find Fast Loans For Students - How to get an 'Education loan' The cost of education is getting higher day and day. To solve this problem, banks provide 'Education Loans' to all deserving students so that further studies become a good learning experience. Getting an education loan granted can be quite easy and one can apply online also for it.
To take an education loan from a bank, a student should take the following steps:

- Step 1: Take the student loan application form from the bank and fill it correctly. 

- Step 2: Have a personal discussion with the bank authorities. 

- Step 3: Provide correct supporting documents to the bank with your signatures on them. 

- Step 4: Get a guarantor.

- Step 5: Student signature on Promissory Note. 

- Step 6: Sanctioning of the loan or disbursal of the loan to the student.

All the above six steps have to be followed by the applicant. Now let us discuss each step:

Step 1: Loan Application form from the bank

Just as for all the other kinds of loans, for an education loan also the banks provide an application form to the applicant which has to be filled correctly. The bank will ask for personal details and all information related to the course for which one is applying. Make sure the information is accurate and can be easily verified. This information will help the bank to process your application faster.

Step 2: Personal Discussion with the bank authorities.

Once the applicant has filled the form, the next step is the discussion with the bank authorities. In this stage, the applicant is asked about his/her academic and extra-curricular performance. At this stage, it is very important to be lucid and clear about one's selection of the course and its potential of generating income in the future.

Step 3: Provide correct supporting documents to the bank with your signatures on them

In case of education loans, the documents related to admissions are mandatory even before the bank considers the loan application. The bank will verify on every step of the enrollment of the student in the concerned institute in which he/she is studying. One may also require collateral
security such as papers related to any property to be mortgaged if the loan amount is above 4 lakhs (INR).

Step 4: Get a guarantor.

For an education loan, a guarantor is mandatory.To get a loan approved there should be a person who takes the responsibility for the repayment of the loan in case of any mishap. The guarantor could be the applicant's parents or guardians. The bank will run a thorough check on the guarantor's credit history before sanctioning the loan. After the completion of the process, the loan may be sanctioned or denied.

Step 5: Student signature on Promissory Note

While the parents/guardians are guarantors, the student is the actual borrower of the loan. Once the loan is
sanctioned, the student has to sign a promissory note to the bank.

Step 6: Sanction of the loan or disbursal of the loan to the student

Once the paper work formalities have been completed, the bank will surely disburse the loan into your account or deposit the fee directly into the account of the concerned college/institute.
All the above 6 steps will surely help you to understand the process of education loan. Once the loan has been approved you may contact the Admission Times for the further process.

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Best Way To Minimize Student Loan Debt - Try to avoid overborrowing for your college education. Do not treat loan limits as targets. A good rule of thumb is that your total education debt for your entire college education should be less than your expected starting salary after you graduate. Ideally your student loan debt should be less than half your expected starting salary. Other signs of over-borrowing include borrowing more than $10,000 for each year in school or needing to borrow private student loans.

If you borrow more than your expected starting salary, you’ll have to repay your loans with an alternate repayment plan like extended repayment or income-based repayment instead of standard 10-year repayment. These repayment plans reduce the monthly payments to more affordable levels by increasing the term of the loan, but this also significantly increases the cost of the

loan. For example, switching a Federal Unsubsidized Stafford loan from a 10-year term to a 20-year term will cut the monthly payments by about a third, but it will also increase the total interest paid over the life of the loan by a factor of 2.2. That’s more than double the total interest. A longer repayment term will reduce the monthly payments, but do you really want to still be repaying your own student loans when your children enroll in college?

Find loans, banking benefits and student deals with Simple Tuition.

If you borrow more than twice your expected starting salary, you will be at high risk of defaulting on your debt. You can’t get away from this debt, as the federal government has very strong powers to compel repayment. The federal government can garnish up to 15% of your wages and intercept your income tax refunds without a court order. They can even garnish Social Security benefits. A student loan default on your credit history will make it more difficult to get credit cards, auto loans, home mortgages. It can even affect your ability to get a job or rent an apartment. Student loans are almost impossible to discharge in bankruptcy. A successful discharge requires demonstrating undue hardship in an adversary proceeding, a very harsh standard. Of roughly 72,000 borrowers in bankruptcy in 2008, only 29 had all or part of their federal student loans discharged. That’s 0.04%. You are more likely to get cancer or die in a car crash than to have your student loans discharged in bankruptcy.

Education debt can also have a big impact on your lifestyle after graduation. Students who graduate with no debt are almost twice as likely to go on to graduate and professional school as students who graduate with some debt. Student loans also affect career choices. An extra $10,000 in debt corresponds to a 5% to 6% decrease in the likelihood of a college graduate pursuing a public service career. Students who graduate with excessive debt or who default on their loans are more likely to be depressed. They often delay getting married, having children, buying a car and buying a home. Borrowing excessively can be like having a mortgage without owning a home. The debt may make it more difficult to save for retirement or your own children’s college educations. Live like a student while you are in school so you don’t have to live like a student after you graduate.

So how do you minimize your student loan debt?

Here are several tips on ways to reduce the need to borrow for college costs and cut the cost of borrowing.

Save before enrolling in college.

It is literally cheaper to save than to borrow. Every dollar saved is a dollar less you will have to borrow. If you save $200 a month at 6.8% interest for 10 years, you will accumulate about $34,433. If instead of saving this money, you were to borrow it at 6.8% interest, you will pay $396 a month for 10 years, almost twice as much. The difference is that when you save, you earn the interest, while when you borrow, you pay the interest.

Search for scholarships on free scholarship-matching sites like Fastweb.

Every dollar you win in scholarships is about a dollar less you have to borrow. You can win scholarships even after you’ve already enrolled in college, not just in high school and the earlier grades. Ask each college about its outside scholarship policy. Most colleges will reduce the need-based aid package by the amount of the private scholarships you win. But some colleges will reduce the loans first, letting you save money by substituting scholarships for debt.

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Student Loan Debt Crisis: How’d We Get Here and What Happens Next? (US Education)  - The amount of student loan debt and the rate of delinquency have been climbing for years now. If it seems like every new statistic is worse than the last, that’s because it is. Two studies released this week are no exception.

Credit bureau TransUnion says that in the past five years, the average student loan debt each borrower carries has risen 30% to $23,829. More than half of student loan accounts, which add up to more than 40% of the total dollars owed, are in deferral status. This is just a temporary reprieve; students can defer for only a few years before they have to repay.

The trouble is, many of them aren’t doing so. FICO Labs found that delinquencies rose by 22% in five years. For the newest group of loans it studied, delinquency rates are 15.1% — higher than the 11% cited by the Federal Reserve in a November report. Like the Fed’s study, the FICO analysis doesn’t include loans that are in a deferred status — which means the number of people who can’t afford to pay back that money may be almost twice as high as what the official delinquency rates reflect.

This situation obviously can’t be sustained over the long term. “I think a few more years and it’s going to be a general crisis,” says Barry Bosworth, an economist at the Brookings Institution. Interest rates are unusually low right now; when they rise, more borrowers who were just keeping their heads above water are liable to become delinquent.

Note EU-Digest: some European Governments like that of the Netherlands have also started to move away from Government subsidized student support and opted for a privatized student loan system. Given the results obtained in the US with this privatized loan system it does not seem to be the proper way to proceed.

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HR 432, Restoring Bankruptcy Protection Rights To Student Loan Borrowers - Last Wednesday, HR 432, which would allow private loans to be discharged in bankruptcy, was introduced by Congressmen Danny Davis (D-Ill.) and Steve Cohen (D-Tenn.). This is the fifth time that that this type of legislation has been presented for passage.

As most of my readers are aware, I am in full favor of restoring bankruptcy protection rights to borrowers with private student loans. The same goes for federal loans, too. However, there are valid concerns about the potentially, negative consequences of a bill like this passing - this is always the case when legislation is passed. That's to say, the outcome can result in unforeseen problems. The most significant concern I have is the following: if the bill passes, Congress and higher education policymakers might pat themselves on and declare, "The problem is

solved, so there is nothing to worry about now." That is not what we want our dear Congressmen, Congresswomen, and policymakers to conclude! Far from it.

And, as I've mentioned previously, the lenders, who are culpable - just as the U.S. government is - in creating this crisis, would not be held accountable if this law were passed. Furthermore, bankruptcy is not a walk in the park. It is a difficult procedure, which would in the end hurt the borrowers (not to mention taxpayers, too).

Again, I want to be clear - bankruptcy protection rights need to be restored. In fact, they should have never been taken away in the first place. Indeed, they were taken away as a result of false claims made about scores of doctors and attorneys, with high levels of student loan debt, who purportedly rushed to bankruptcy attorneys, declared bankruptcy, and got off the hook in - if memory serves me - the late 1980s and 1990s. Based upon extensive research I have done, searching to find proof of this fact, I haven't found a shred of evidence that confirms the claim. In fact, the argument reminds me of President Reagan's problematic description of the black "welfare queen" who, so he fallaciously claimed, abused the welfare system, bought fancy cars, flashy clothing, and so forth. While there are people who do abuse the welfare system, the majority of recipients use the support to feed and clothe their families. In addition, these people, who receive a minimal amount of support from the government, are also the working poor, a class of people in the U.S. that continues to grow - unfortunately - exponentially. Furthermore, the majority of welfare recipients are not African Americans, but poor, whites who live in the South in rural areas. Mind you, whites make up the majority of Americans, but it is a important reminder of how this remark by President Reagan became part of the national conversation as an accepted truth, one of which has had negative ramifications for the welfare system and those who receive support from it. This assertion led to an aggressive dismantling of the system. Naturally, the same goes for the myth that countless doctors and attorneys recklessly declared bankruptcy after they earned their degrees.

The bill is currently under review by the House Committee on the Judiciary.

What do you think? Will it pass, and if so, will the results be positive? Why or why not?

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How To Applying Online For Apprentice Loans - After admission top school, a lot of of us accept some abashing apropos our added education. It is never an simple decision, accessory Universities. Universities are expensive, although you can yield out a loan, it will yield years to pay aback even if you become acutely acknowledged with the career choices you make.
Today, ample numbers of lenders are accessible in bazaar to action you academy loans. Due to added competition, some lenders are alms adorable apprentice accommodation bales even with assorted liberties in repayments like transaction holidays. That’s why acceptance are brash to accomplish a analysis on their own afore finalizing a deal.

You can use Internet to seek for clandestine apprentice accommodation as able-bodied as government apprentice loan.

WHY administer online for apprentice loans?
1. Online apprentice loans are affordable with actual low amount of interest.
2. They are unsecured, so your home disinterestedness or retirement accounts are never at risk.
3. They are actual simple and fast, crave no government forms and no borderline and quick approval.
4. Online apprentice loans accord you adventitious to acquire on your investments and savings.
5. Crave no paperwork.
HOW to administer online for apprentice loans?
You can administer via lender or can anon login to the website, and can administer for an online apprentice loan.
If you are a graduate, you will be asked to accommodate the afterward information:
1. Information , name and abode of the applicant.
2. Two Personal references.
3. The Balance and amount of absorption of your accepted apprentice loans.
4. Your best of online apprentice loans transaction plan.
As a cessation online apprentice accommodation are easy, beneath time consuming, charge no cardboard plan and action you apprentice accommodation with aggressive absorption rate. However it is recommended that you accomplish a absolute analysis online to accept the best deal. Do not postpone, you can save a lot of money by accepting a apprentice loan.

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Is Student Loan Consolidation The Right Option? - As we know that educations is never decreased instead it's increasing from time to time, therefore the students force to deal with debt. Thus, applying for a student loan consolidation become an imperative to manage the debts.

If you are a new student, surely you are enjoying an independence and study, however things are often not as good as you expected, responsibilities attached to this condition. You worry about the things that you should think about before, such as payments. There are still other payments such as peripheral to think about like room, books and supplies, transportation, food, and tuition fees.


It will not be surprising if students encounter difficulties, particularly in the financial sector. As most of the time and effort students mostly centers on their studies, not to mention the fact of limited revenue streams, bills will be more difficult to pay. What can a student do when this unavoidable fact finds them and will be around for an indefinite period?

Student loan has become a popular option today. Apart from conventional loans, there are also direct loans from the government.

These direct loans works like the 'study now, pay later "program that will allow the student to borrow a certain amount it does not have to pay until graduation and getting a good job . They are called as such because they do not require a monetary deposit or guarantee.

Now, if it already has a lot of outstanding loans? That would really put a lot of difficulties in the future.

Imagine the interest in summarizing the unmanageable proportions! This is a good thing, a student could consolidate all his loans in existence to one single payment each month to a single lender.

There are many benefits associated with the consolidation loan student. Not only did he get a warrant more lenient to pay his debts, but it may pay an amount much less than what he originally bargained for.

Because it also has a grace period of six months before you actually start to repay its loans, the loan appears too possible for the student. With a smaller monthly payment, it can also manage other costs that will be taking care of the future, such as food, utensils, car expenses, mortgages, and education related fees for their children among other things.

Potentially, interest rates could be minimized, as there would be a pillar that would be used to determine the applicable interest and above.

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Consolidation student loans is a program that allows students to consolidate loans outstanding education in a new single loan. This is not limited to a single lender. Even if lenders hold these loans, you can always opt for the consolidated loan. Consolidating student loans is beneficial because it will reduce your monthly payments since the payment will be extended.

Consolidating student loans is convenient for students and parents because it simplifies the loan. The monthly amortization will also be lower due to the repayment can be spread over a longer period. The interest rate will also be reduced since the borrower will have many options benefit plan. The best time to consolidate loans is right after graduation before the grace period ends. This will allow the borrower to secure the lowest possible rates on the loans.


Government consolidation loans have lower monthly payments and have flexible terms and conditions of repayment. Rates may be as low as 3.5% and are calculated at a fixed rate. This will also benefit you if you want to get rid of the release of many controls. With student loans, the government consolidated, you will get a refund and unique easy since you only have to sign one check each month. Students over $ 10,000 in outstanding student loans are eligible for this program.

The borrower must also not be in school half-time or more. There are many types of loans that can be consolidated with this program. They are Stafford loans, Federal Consolidation Loans, Perkins Loans, Parent Loans Plus, HEAL / HPSL Student Loans, Federal Direct Consolidation Loans and many more.

Private student loans can also be consolidated. However, you should not consolidate federal and private student loans. This is because you are not able to defer payments on the loan consolidation private, but you can with the consolidation of federal loans if you want to return to school.

With the consolidation of private loans, you can not stop payment if you have economic difficulties. Private loans are not eligible to claim tax deductions. In addition, if the borrower has died, federal loans are forgiven as private loans, loans have gone to the nearest relative.

It is important to consolidate student loans from the federal government because it reduces the number of credit loans that you may have. This will also create a good credit score will allow you to better conditions for the consolidation of private loans.

Credit check is not required also the consolidation of government student loans from the government of the United States guarantees federal student loans. Application consolidation of student loans is very easy. Advisors ready on your school will be able to advise you on the procedures. You may apply online, by mail or by phone. It will only take 1-3 months to build.

If, however, you will not be eligible, you may consider refinancing your home or investment property to repay your loans. You may also consider a personal line of credit from the bank or consider consolidating private loans. Reimbursement has different terms.

For borrowers with loan balances of $ 10,000 to 19,999 dollars, have a repayment period of 15 years. Twenty years is allocated for those with loan balances $ 20,000 to $ 39,999. There is 24 repayment for one year for those loan balances $ 40,000 to $ 59,999. If your loan balance is $ 60,000 or more, the 30-year program will cover.

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California continues to show public universities the way towards a permanent austerity.  Governor Jerry Brown's budget proposal for 2013-14 (summary for higher education), released January 10, is a case in point. It raises once again the question about how to respond, which I'll discuss below.

A quick review: The budget provides $125 million in additional funds (the other $125M of a reported $250M was a Prop 30 tuition buyout for last year), and will still leave UC 19% below its 2007-08 state funding level in dollars unadjusted for inflation, enrollment increases, or new expenses for benefits etc. (Department of Finance figures p. 35).  After two additional years of the proposed 4 percent general fund increase, UC's general fund will be around $2.86B, still below 2010-11, the last year before Gov. Brown took office and cut UC and CSU $750M each.  In practice, less than that will flow to UC campus operations: see my discussion of the Regents' November budget for an explanation).

At that November Regents meeting, UC Executive Vice President for Business Operations Nathan Bostrom summarized the problem, with Jerry Brown in attendance.


    UC has absorbed nearly $900 million in State funding reductions over the past four years, nearly 30 percent of the State funding for UC. Tuition increases have addressed about one-third of this reduction. The level of State funding for UC was now at the same level as it was in 1997-98, when UC had 75,000 fewer students, one less campus, and fewer degrees and programs. On a per-student basis, UC core funding, including both State funding and tuition, was currently 25 percent less than it was in 1990. The University has absorbed some of these reductions through administrative efficiencies, but for the most part, these reductions have undermined the quality of UC’s core academic programs, through freezes on faculty hiring, stagnating faculty salaries, insufficient support for graduate students, and increased student-faculty ratios. The University hopes to take advantage of the stability of the next few years to address and reinvest in quality. (Minutes pp 3-4)

Mr. Bostrom went on to note that UC newly contributes an employer share to the pension that is $800M this year and will be $1 billion next year--which is equal to about a third of the state's general fund share.  The result was depicted in the Budget for Current Operations 2013-14:
This UCOP chart shows a $2.9 billion structural deficit in four years time, on the current budgetary trajectory. Clearly there is little chance for UC "to address and reinvest in quality." There is also an ongoing, serious budget crisis on a systemic level.


Governor Brown's budget offers two colliding frameworks.  One is that "The state must begin to reinvest to improve the quality and affordability of California’s system of higher education."  The second is that the state's universities have more than they need and have again asked for too much.  The second framework dominates the first.

The Governor presents the latter in detail: UC has asked, he says for a budget increase that is three times greater than the growth in state personal income, all while making itself unaffordable and being unproductive: "just 60 percent of students earn a degree in four years at UC" (and 16 percent, he notes, at CSU).  He also implies that tuition hikes have been gratuitous as well as damaging. He further suggests that any real gap can be closed with more technology.  There is more than a hint that California higher ed is a welfare queen that is unable to reform itself. In this context, before it gets anything more, it needs to be subject to a kind of welfare reform from outside.  Thus even as he calls for reinvestment, he justifies the small (and in the context of the cuts, a net negative investment) through a paired framework of the greedy undeserving.

How can public universities confront an austerity trap constructed out of this ambivalent double framework? How can they escape an austerity trap when when laid with the skill of the original Austerity Democrat Jerry Brown?

In fact there are remedies that would work, were they in fact implemented.

• Constantly correct mistakes in the public discourse.   The $250M increase was widely viewed as good news for UC and CSU.  Bob Samuels' analysis is an exception, and is essential reading for those wondering whether UC's decline will ever but be halted. But nearly all coverage (UC FA Blog, CSU Chancellor's office, Nature, Chronicle of Higher Education) reported  that UC and CSU got good deals. One major reason is that UCOP offered its standard uncritical gratitude to the governor, rather than also politely pointing out that it asked for a 6 percent increase in state funding, not 12 percent, recalling the previous year's $750M cut, noting projections of large budget surpluses over the next five years (Chapter 1, Figure 2) and sustained personal income growth of 4-5% per year (Chapter 2, Figure 2), and calling for more than a partial backfilling of existing deep budgetary holes.  Public universities need truth squads.  As it is, the dominant framework assures continuing, deepening inadequate resources.
• Explain clearly that technological improvements will not close the budgetary gap.  Unfortunately UCOP is a negative example here: it promised $500 M in savings through technology efficiencies that have yielded about a tenth of that (see links halfway down this post on the Regents' retreat). And it is gearing up a new round of technology promises for this week's Regents meeting, now in the form of online education.  I defy anyone to find meaningful cost savings in the gradual introduction of quality (blended) online instruction to any of higher ed's segments. I invite you to scour the full rush transcript of the MOOC meeting at UCLA last week; or to read full scale investigations of online impacts like Taylor Walsh's pro-tech Unlocking the Gates, which shows for example that simply posting course materials in the case of MIT's Open Courseware program nets the university negative $4M annually (page 84); or to go to the source of the original analysis of academia's "cost disease," William J. Baumol and his new book The Cost Disease; or to contemplate the extent to which online providers expect not to make money by offering newly cheap university curricula but by selling referrals and other ancillary products by competing with universities.  Or picture yourself as a venture capitalist, and ask if a one-time $10M investment has ever in history closed a $2.9B gap. Technology has become a source of budgetary delusion and fake solutions and this has to stop.
• Define desired results of a 21st century university degree and show what it costs. Public university administrations have not explained what current instruction really costs and why. The faculty in its official capacity has not defined the processes, practices, and outcomes that it expects from 21st century education in conjunction with society. (There are many scholarly exceptions but these are not part of official discourse.)  People will pay taxes for concrete benefits whose cost structure has been clearly justified--research costs included. Three major cut cycles later, most of this work still lies ahead.
• Tie higher education funding to personal income growth.  This would vastly improve public university funding if it also comes with an elimination of disproportionate cuts. Although tuition rises faster than inflation, public funding has risen well below income growth. Stan Glantz and I are circulating an op-ed on this subject and it will appear somewhere--possibly in this space--later this week.

My main point is that we can change a lethal public discourse about higher ed.  These measures would work: they simply haven't yet been tried on any decent scale.

Chris Newfield 15 Jan, 2013

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Student loans influence your future financial decisions and your credit. When student loan debt has exceeded eight percent of your income, it can be seen as bad credit when assessed for further loans such as home loans. This may not seem very important right now, but student loan consolidation can have a positive impact on your financial future.

Two Approaches In Reducing Your Student Loan Debt

1. You could eliminate or reduce the primary balance.

2. You could reduce the monthly total payment. Given that debts are measured by comparing your income to the loan payment, if your payment is reduced, it can help you in improving your credit.

With student loan consolidation, you can merge all of your loans into a single loan with one payment per month.

When interest rates of loans fall, your education loans could be consolidated or refinanced.

There are many kinds of student loan consolidation plans offered today. When students do not consolidate their student loan debt, this will result in the inability to acquire future mortgages, car loans, credit cards, and other kinds of credit in many cases.

5 Benefits Of Consolidating Your Student Loans

1. Easy to maintain, single payments per month.

2. Enables you to have manageable repayments of your student loan after you have graduated, especially if you had huge student loans.

3. Student loan consolidation is also beneficial to those students who have graduated; but find that they're still having difficulties managing the payments of all of the student loans they acquired to cover their college fees.

4. A more organized and cost effective plan, with lower interest rates will help you save some money.

5. A long term plan to paying your loan, giving you a longer time frame to pay for your loan. A longer payment plan also means a lower monthly payment, which gives you more flexibility

It is very simple to apply for a student loan consolidation. While your application for student loan consolidation is being processed, it’s important that you continue to pay for the existing student loans.

The lending institution would pay all the existing loans if you qualify. You would then make the payments for your consolidated student loans.

If you are looking for an efficient and cost effective way of managing your student loans, then student loan consolidation may be the right option.

By getting a student consolidated loan today, you gain more financial freedom and you can save money through lower interest rates and at the same time improve your financial future.


Dean Shainin is a consultant specializing in student loan consolidation. Get valuable resources, tools, information and more articles on student loan consolidation, visit this site: http://www.studentloanconsolidationtips.com


Get free valuable online tips for debt consolidation from his: Student Loan Consolidation

website.

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