Debt a drag on UK youth - Hard times - Young adults are finding it almost impossible to break free from their parents, both emotionally and financially, as they struggle to become independent, a British study has revealed.

A survey of 1500 people aged between 18 and 30 by The Co-operative Group found that debt had become the "new normality" for their generation.

Student loans, credit cards, loans and overdrafts were the main sources of debt, with almost a third admitting they are hiding the state of their finances from their parents.

More than four out of five of those questioned are receiving financial support from their parents, needing help to buy food or repay debts.(see HERE)

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Most also turned to their parents to help find a job, give them lifts, or do household chores, the report says.

The study also revealed that 18 to 30-year-olds were earning over £7000 ($A10,645) a year less than they thought they would in relation to their age and education, while one in 10 did not feel their job matched their qualifications.

Two-fifths of those surveyed were dissatisfied with their lives, believing they should have achieved more.

Martyn Wates, deputy group chief executive at The Co-operative Group, said: "It should not be forgotten that it is these young adults who are ultimately going to shape the future of Britain for years to come, so they need support and encouragement to thrive which, in turn, will only be positive for the future of the country.

"Whilst it is positive to see that young people believe that they will one day earn a healthy salary, the survey has signposted that the earnings of 18 to 30-year-olds do not currently live up to expectations which highlights that, for now at least, this ambitious group may have to re-evaluate their ideals."

The research also revealed that one in four young adults had never climbed a tree or played the traditional British game of conkers and one in eight had never ridden a bike.

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Student loans may make recent grads hesitant 2013 - Student loan debt is a troubling and not-so-

A recent Princeton study conducted by Fenaba R. Addo suggests that student loan debt could possibly leave some partners with cold feet — particularly men.

The study suggests women who have accumulated student loan debt are less likely to marry as opposed to men in the same financial predicament. Although this seems strange, there are some explanatory theories, as well as controversy from both sides of the argument.

“One interpretation of this study might suggest that women with more debt are more likely to be

pursuing professional degrees and careers, which might simply mean they are putting off marriage until a little later than average so that they can build a career first and then a family on their terms,” Seth Abrutyn, a sociology professor at the University of Memphis, said.

The United States has a federal student loan debt that resides somewhere between $902 billion and $1 trillion, according to the Federal Reserve Bank of New York. (see HERE)

“In times of economic recessions and uncertainty, both women and men tend to put off marriage and children until they feel financially secure,” Abrutyn said. “This answer doesn’t really explain the differential in rates between men and women, but it could explain why the data is saying one thing, when in five years, it might be saying something else.”
Though it could be just a misinterpretation of statistics, the classic American culture could be an explanation of why some men might be wary of taking on a traditional potential housewife fully loaded with money to pay back.

“I could understand how some men might be hesitant to marry a girl with debt, for financial reasons,” Addison Piggott, a junior criminal justice major, said. “Though the economy could be a primary issue, it seems the statistics could be distorted by the fact more people are simply waiting until later in life to get married, so that they’re financially stable.”
Sophomore Haley Hanners, an English major who has accumulated student loan debt over the past few years, believes that debts shouldn’t play a part in marriage, stating that a mutual education is well worth the burdens.

“I’m not worried about loans being a factor in my love life. I don’t value wealth and I don’t mind spending the majority of the rest of my life paying off loans as long as I can have an education and do what I want to do, career wise,” Hanners said. “And whoever I choose to marry will value the fact that I have an education and career regardless of loans and vice versa.”
Though there is little evidence of these financial issues actually interfering with  “true love,” a debt can last as long as marriage, if not longer in today’s world, so it is definitely something to consider when finding a potential life partner. (see HERE)

“I think statistics are a way of making people believe things that aren’t solid,” Hanners said. “They’re generally circumstantial, so I don’t put a lot of faith in them.”
distant reality for many currently enrolled students. However, recent studies show that it might not be just an economic problem.

Source : www.dailyhelmsman.com

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Watch Out for Student Debt Time Bomb 2013 - The American dream of a college education is turning into a nightmare for too many people. More jobs require a college degree, yet the percentage of unemployed and underemployed college graduates age 25 and younger is at its highest in 11 years.

Meanwhile, college costs are soaring, in part because cash-strapped states have less to give to public universities. And parents who’ve lost jobs or home equity after the financial crisis can’t support their children’s college costs as they planned.

The average total student debt load increased to $27,253 in 2012, a 58% jump during a seven-year period when debt as a whole rose 16%. More than 1 million adults have student debt exceeding $100,000.
Furthermore, student debt as a percentage of household debt has gone up to 8.5%, nearly three times what it was in 2003. The $870 billion now outstanding in student debt (which includes federal lending) outpaces that of auto loans ($730 billion) and credit card lending ($693 billion).

“We tell young adults, if your four-year-degree debt is going to exceed the average price of a midsize car, you need to look for a less expensive solution so you don’t start your first job behind the financial eight ball,” says John Coyne, a member of the board of trustees at Mount St. Mary’s University in Emmitsburg, Md., and vice chairman of Brinker Capital, a $13.5 billion investment management firm that provides advisory services to financial advisors. (see HERE)

Coyne says families can lower higher education costs if their children first live at home and go to a two-year community college. Later, they can complete their degree at a four-year institution.

He notes that professors laid off from four-year institutions are now teaching at two-year schools either full time or part time, bolstering the community colleges’ reputations.

To help keep costs down, colleges are condensing some four-your degree programs into three years.

The Consumer Financial Protection Bureau has come out with a Web-based tool kit called “Paying for College” (www.consumerfinance.gov/paying-for-college) to help student borrowers facing high payments and lacking alternative repayment and finance options. The site includes an application for financial aid and advice on choosing a loan. There is also a worksheet that allows students to compute how much they would need for particular colleges with different aid packages.

Undergraduate and graduate students should maximize federal student loan borrowing because the plans offer repayment and loan forgiveness advantages that private loans and federal Parent PLUS loans don’t, says Fred Amrein, a Philadelphia-area, fee-only financial consultant specializing in college education funding.

Amrein warns that the federal government is starting to go after the Social Security checks of parents who fail to keep up payments on the PLUS loans, which are typically used to meet tuition and fee expenses underfunded by student loans. (see HERE)

MassMutual financial advisor Marlene Dattilo says that before parents or grandparents cosign a private student loan, they should find out what their risk is for nonpayment and how it affects their credit rating. They should also ask: If the student becomes disabled or dies, is the loan still there and who is responsible for payment?

Dattilo says the family member preparing to cosign should bring the student along for this conversation. “Many times, the parents and grandparents have not discussed money matters at all [with children],” she says. “This is a great time to start.”

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Which Better Payday Loans or Pawn Shops? - Payday loans can be beneficial to you and a temporary finance-saving help to turn to when you are having a crisis. But on the other side it can turn into a horrible financial or debt-trap as many pawnbrokers have become to their customers. However, payday loans online are completely different from pawnbrokers, although the similarities are great.

Pawnbrokers would usually ask for your property as collateral to guarantee your loan. Usually the amount of money you are applying to borrow is only a fraction of the property’s value. To easily understand this, you may bring in your car as collateral which is valued $3,000 but you only receive $1000 as a pawn loan. The pawn shop will charge you interest on the loans which is usually a short term loan that lasts for one month. By the end of the month you are expected to pay back the amount of money you borrowed plus the interest that the loan has accrued.(see HERE)
Should you fail to repay the loan and interest on time, the lender will sell your property in order to get the money back but then also earn profit as the value of the property is significantly greater than the money they lost by lending to you. Pawn shops would usually not send you any reminders to repay the loan and will just sell the property without notice when the loan term is up and no payment has been made.
Payday loans online, however, does not require you to have a collateral to be eligible for a loan. The application for a loan is easier as you can do it online from home. All you need to do is to prove that you earn money which is directly deposited into a bank account. A legitimate payday loans online company will then verify this information.(see HERE)
Once you are approved to get a loan, the money will be available to you within about 24 hours. You are usually given a little time to repay the money without having any interest accrued to the loan. Usually payday loans companies give you 2 weeks to repay it. If after 2 weeks you are still unable to pay, then the interest will begin accumulating.
Before deciding where to get your loan from this time, make sure you ask a lot of questions first . Payday loans are usually competitive with one another and it is best for you to consider a few companies first before making any decisions.

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5 Steps to Maintain Student Loan Debt 2013 - As student debt levels — along with delinquencies and defaults — continue to rise, borrowers need to ask:

As a recent college graduate, this Student Loan Ranger knows both my mother and I had minimal understanding of student loans in general. And banks and schools aren't doing enough to inform us, so we end up making loan decisions in the dark.

"What can I do to keep my student loans manageable?"

Find out ways to pay for college.

To help figure it out, Equal Justice Works recently published an e-book, Maintai Your Future, which offers five of the following ways to maintain student loan repayment.

1. There are big differences between private and federal loans. It is important to understand these basic distinctions before borrowing and too often, students and parents lack knowledge on the various types of loans and what they entail.

Here are some crucial aspects to pay attention to when deciding how to borrow:

• Keep in mind that commercial or private loans are never eligible for federal relief programs (see HERE).

• Most private loans offer variable interest rates that may start low, but can — and likely will — increase.

• Federal loans, on the other hand, qualify for federal relief programs and come with borrower protections such as fixed interest rates and deferment and forbearance in times of hardship (see HERE).

Discover the ins and outs of financial aid.

Students should exhaust the federal loans available to them before taking the private loan route.

2. Income-Based Repayment can help many borrowers repay their loans. Federal relief programs inarguably help many borrowers. Among these programs is Income-Based Repayment (IBR), which keeps the amount borrowers must pay each month to 15 percent of their income. A few things to keep in mind:

• Only Federal Direct and federally guaranteed (FFEL) loans are eligible for IBR.

• You must have a partial financial hardship, meaning the amount you owe on your eligible loans exceeds 15 percent of your discretionary income.

• Your monthly payment depends on two things: your income and your family size. When income decreases or family size increases, you pay less (and vice versa).

Explore income-based and income-contingent repayment.

• If you remain in IBR you will be eligible for forgiveness of any amount remaining on your loans after 25 years of making qualified payments.

3. Pay As You Earn keeps payments even more manageable. Launched under the direction of President Barack Obama, this program helps a ton if a borrower qualifies. Participants must be a new borrower who experiences a partial financial hardship, and must have taken out their loans on or after Oct. 1, 2007.

Participants must also have at least one loan from Oct. 2011 or later. This includes: receiving a new loan, receiving a disbursement on an existing loan, or consolidating loans on or after Oct. 1, 2011.

Under Pay As You Earn, monthly payments are capped at 10 percent of discretionary income. As long as participants remain in the plan, they will be eligible for forgiveness after making qualifying payments for 20 years (see HERE).

4. Public Service Loan Forgiveness helps public interest workers with lower salaries. Public Service Loan Forgiveness (PSLF) motivates and helps individuals to work in the public sector. Borrowers must have Federal Direct loans to be eligible, and must be working in a full-time public service job, such as with a local, state, federal or tribal government or a nonprofit.

Participants must make 120 qualifying payments on those eligible loans while employed in public service. After making those 120 qualifying payments, submit the PSLF application for forgiveness. As a bonus, forgiveness receives through PSLF is not taxed.

5. Loan Repayment Assistance Programs can help with payments. Take advantage of Loan Repayment Assistance Programs (LRAPs). If you're eligible, LRAPs provide funds toward your monthly payments. And you may be able to use those funds for your private student loans. Ask your employer, school, and even your professional association if they offer an LRAP. There are even some available from state, local and the federal government.

Learn how to evaluate an LRAP.
Download Maintain Your Future, available in the Kindle Store, to learn more about these options and weave your way through the student debt maze — whether you're just starting to borrow or already in repayment. Every borrower should be informed when making decisions that will affect your future.

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Cheap Budgets With Different Effects On Student Loans 2013 - Among a number of other dissimilarities, federal budgets proposed by Democrats and Republicans in Congress offer varying effects for students involving federal financial aid and education funding.

Democrats in the House of Representatives’ House Budget Committee announced an alternative budget plan Monday in response to the budget released March 12 by House Budget Committee Republicans, according to a Monday press release from the committee.

“Any help that students can get — by committing to funding Pell Grants and just keeping interest rates as low as they have been — is really helpful,” said BU Democrats Communications Director Margarita Diaz. “… It’s important to ensure that everyone can actually afford an education.”

The alternative budget proposed by House Democrats continues full funding for students receiving Federal Pell Grants and prevents subsidized student loan interest rates, currently set at 3.4 percent, from doubling in July 2014.

“This focus on education is in sharp contrast with the Republican budget,” the Democratic budget summary stated. “Their budget makes it harder for out-of-work Americans to get the education and skills needed to find jobs in a competitive global economy by cutting job training services and by cutting student aid by $168 billion over 10 years.”

The Republican budget plan aims to reserve financial aid for those most in need (see HERE), cap Pell Grants awards at $5,645 annually, streamline federal aid programs and remove barriers in higher education, particularly those relative to non-traditional teaching methods like online college courses.

Tim Buckley, communications director of the Massachusetts Republican Party, said in an email that the Republican budget would protect students in the future and ensure the Pell Grant program is sustainable.

“This budget plan looks to maintain current Pell Grant levels and reform the system so today’s middle school students can access the same resources currently available — which left alone, would go broke,” he said.

He said measures aiming to lower costs of college in the past have generally been ineffective.(see HERE)

“It is important to remember that throwing money at efforts to reduce the cost of higher education has not worked, as anyone paying tuition today knows all too well,” Buckley said. “More spending is not translating into results.”

BU Republicans Vice President Mara Mellstrom said the budget proposals do not appear as if they will affect a majority of college students, and that most of the provisions for higher education deal with streamlining program funding.

“Where [U.S. President Barack] Obama wants to do more Pell Grants and more price control, it looks like [House Budget Committee Chairman] Paul Ryan and the Republicans just want to trim the fat,” Mellstrom, a College of Arts and Sciences junior, said.(see HERE)

Mellstrom said the budget proposed by Republicans is fair and appropriate.

“The Republicans are well aware that everyone deserves a college education and that everyone should have equal opportunity to get it,” she said.

While it is troublesome that Congress takes so long to come to a consensus on the budget, these dilemmas are more complex than most Americans think, Mellstrom said.

“It’s not black and white,” she said.

Diaz, a CAS senior, said the current stagnation in Congress is causing further distress for college students trying to fund their education.

“We are at a point where students must address the skyrocketing costs of college tuition, but we’re also at a point where, in Congress, everything is completely stalled right now,” she said. “The House Democrats, they’re just trying to make sure with this budget that college students don’t get caught in the fray of things like inflation or economic conditions in this country.”

Kayla McDonald, a CAS senior, said Congress should be quicker to make a decision on the national budget.

“It makes sense that it’s taking them [Congress] a long time, but they should definitely be able to come to an agreement faster than this,” she said.

McDonald said she receives federal aid, but would still like to see some improvement to federal aid programs.

“I think they overestimate the family’s contribution a lot of the time,” she said.

School of Law graduate student Kelly Soltis said while she does not receive federal aid, she would like to see a limit on how much colleges can charge.

“It would be helpful for students like me who don’t receive financial aid to have some sort of cap on either the percentage increase on tuition or tuition in general at universities, especially private universities,” she said.

CAS freshman Ellen Nevers said it is important to maintain a low interest rate on federal loans.

“It’s definitely helpful that some of the federal loans come with a much lower interest rate,” she said. “They’ve offered me a lot of loans that would be easier to pay back than trying to take a loan out myself.”
Source : http://dailyfreepress.com/

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Do you have student loans? Learn Your Options - College loans can be a bear for veterinarians. An article in the Express-News Business section pointed out the growing number of practicing vets across the country who have large college loans. They're not alone.

According to Think Progress, a political blog sponsored by the Center for American Progress, the number of students who go into debt to get a bachelor's degree has risen from 45 percent in 1993 to 94 percent today. In 2010, student loans surpassed credit cards as the largest source of debt for Americans and now tops $1 trillion.

Not making student loan payments can damage your credit, which can prevent you from obtaining a job. Unpaid student loans can follow you for decades and money can be taken from income tax refunds and Social Security benefits. Wages can be garnished, and it is rarely discharged in bankruptcy.

Graduates and others who have student loans should learn their options since there are repayment plans available, even for those who have defaulted. It is never too late to begin repaying. As a local nonprofit agency providing financial education for over 30 years, we want consumers to know we have knowledgeable experts available to help you find a way to manage college debt within your budget.

We encourage anyone with student loans to learn financial aid terminology to ensure they understand what options they have. There are many new loan forgiveness and income-based loan repayment options available today. However, navigating through all the student loan information can be overwhelming.

Let our counselors negotiate with your lenders to help you get back on track to financial stability.
After all, you went to college to attain financial security.

Source: http://www.mysanantonio.com

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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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Student Loan Defermest - Deferring payment on student loans is necessary when circumstances prevent a borrower from staying current on payments. There are many types of deferments available depending on the kind of student loan and the situation. For instance, deferments on private loans are completely discretionary to the lender. If a private lender wants to grant or deny a deferment they can, without consequences. Ironically, they may also charge a borrower requesting a deferment because they're unable to pay. Sallie Mae often charges $150 for a three month deferment.

For deferments of federal loans there are rules to be followed and made available to borrowers. The most common deferment on a federal student loan is the "in school" deferment. In other words, if a borrower is

in school for at least half-time, payments on the federal loans will be deferred. For Stafford loans there are also deferments available when a borrower is unemployed, in a rehabilitation training program, in a graduate fellowship, in the military service or following active duty, temporarily totally disabled or caring for a disabled spouse or dependent. Deferments are also available for economic hardship.

Economic hardship deferment applications must be in writing and can be issued in one year increments for a maximum of three years. To qualify for an economic  hardship deferment a borrower must show that they are receiving federal or state public assistance, are a Peace Corps volunteer, have an economic hardship deferment on another loan or is working full time but still at 150% of poverty. An unemployed borrower seeking a deferment must be registered with an employment agency and must show proof of eligibility for unemployment benefits. To obtain an economic hardship deferment on a Parent PLUS loan, all cosigners to the loan have to be unemployed.

In addition to deferments, borrowers can verbally request a discretionary forbearance for causes such as poor health or other personal problems. While a forbearance may be needed for a short term crisis it's important to remember that when a forbearance ends, all interest is capitalized, creating a long term significant increase in the amount of the student loan debt.

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They Won't They Let Education-Loan Debtors Refinance  - Just about any time I turn on the radio, I hear an ad exhorting people to refinance their loans.  Interest rates are lower than they've been in decades, those ads remind us.  Even some people with less-than-stellar credit--including those whose home mortgages are "underwater" or even in foreclosure--are getting those rates.

It's not only the homeowners who've overpaid for their McMansions who can refinance.  People with credit card debt, even if it's a result of gambling, will be considered for lower interest rates, especially if they have collateral--including homes with "underwater" mortgages!  Car loans aren't exempt from consideration, either.

In fact, there's only one kind of loan for which it's all but impossible to get lower interest rates.  Since you're reading this blog, you've probably guessed what it is:  Federally-guaranteed student loans. 

The government and banks point fingers at each other when it comes to this issue.  The government blames the banks for not wanting to reduce the interest rates on such loans, which are often carried by people who don't have collateral.  The banks blame the Federal government for regulating the interest rates on those loans. 

Of course, both sides don't want to give up the handsome profits they're making.  They also realize that most student debtors are a captive market:  Unlike, for example, credit card holders who can shift their balances from, say, Capital One to Barclays, those who are struggling to pay education loans don't have the option of moving their debts and balances to another credit provider.

Plus, the loans are one of the few areas in which the Government actually makes a tidy profit.  According to the Center for American Progress, these loans are expect to give Uncle Sam over $34 billion in profits this year by financing $864 billion of the $1trillion in outstanding student loans. In the current budget environment, nobody wants to ask the government to cut off such a cash cow.

Most of those loans are saddled with interest rates of 6 percent or more.  According to the CAP, simply applying a rate of 5 percent to all student loans that currently have interest rates higher than that will save borrowers around $14 billion. 

Then maybe, just maybe, they could take advantage of those lower interest rates on home and other kinds of loans. And they might start to buy the homes, cars and other things their parents were able to buy without having gone to college and endebting themselves for the privilege.

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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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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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Money Does Not Grow on Trees - It has now been over one month since my student loans entered repayment.  One month of numerous letters, emails, and telephone calls.  The letters arrived first to remind me of my upcoming payments.  Then the emails began and finally telephone calls.

     In reply, I have sent mail to all of my lenders and I have called them.  As I have stated in earlier posts, my lenders are unwilling to make different repayment schedules based on my financial situation.  That is, with the exception of my federal loans.
     My federal loans account for approximately $33,000 of my student loan debt.  Therefore, they represent about 25 percent of my total debt.  $33,000 is by no means a small amount and so I applied for Income-based Repayment.  I applied about a month ago through the Department of Education’s website and Nelnet.  It was a simple process that took approximately 15

minutes to complete.  Income-based repayment, or IBR, uses tax information from the IRS to determine how much money is owed per month.  Since I had current IRS information, a lot of work was streamlined.

     The decision has now been made regarding my application.  I found out this past week that I qualify for the IBR plan.  Five loans are under the plan, which amounts to $26,800.  Since I qualify, my monthly payments have been reduced from $304.55 to $0.  Yes, zero dollars.  The reason for that is because of my total debt to income ratio.  Although I wanted to qualify, I was unsure if I would.  Now that I have, it’s a good start to my student loan debt.

     By saving the $304.55 per month, my income almost covers my private loan debt.  However, I am still in the red by about $100 per month.

     Now that I know I qualify for the Federal guidelines of the IBR plan, it reaffirms my commitment in seeing new repayment plans for private loans.  If private lenders adopted a similar plan to IBR, student loan debt would be manageable.

     I am thankful for the Federal repayment plans and am hopeful that they will one day extend to all student loans.  After all, Money Doesn't Grow on Trees.

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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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Where are Best Schools for Veterans? - Sadly, there is no school that's exclusively for veterans only. A school for veterans just doesn't exist. I'm currently in class now as well as in my class you will find about 29 of us. three of us are veterans. Immediately I felt some kind of bond or connection with them considering that they have seasoned the army the same as I have.

Even in undergrad after i was acquiring my Bachelor's diploma, discovering someone that was a veteran was far and couple of in between. Simply since no one just went around on a loud speaker saying "I AM A VETERAN"!

Which means you never know who's a veteran going for walks around campus till you discuss with them they usually say items which can be distinct in your navy department.

As an illustration, I had been in the U.S. Navy, therefore if I commence a discussion with an individual plus they say terms like "shipmate" and "head", I know that they are clean out of the Navy. In fact that would be awesome if there was a school for veterans! It will be just like currently being while in the navy together with the whole camaraderie and all.

Although not getting a school for veterans is considerably an excellent point. I am going into a community university and i obtain the likelihood to fulfill so many folks!

Similar to while in the armed forces.

Despite the fact that a school for veterans does not exist, a veteran can head to any university that may settle for the GI Invoice.

And have faith in me, which is nearly every single university simply because meaning they're obtaining your tuition Assured through the armed forces.

No person, and that i indicate No one is going to move up guaranteed money, not even educational institutions! Opposite to popular belief, faculties are in enterprise to make cash.

Since I think over it, if somebody commenced a school for veterans, they might make money each and every semester.......assured! Any person need to think of doing that......

But don't allow not have a university particularly for veterans deter you from heading to highschool. I am going and that i get E-5 BAH each and every month which i go! And that's on top of them paying out my tuition and giving me a e-book stipend.

Now they will not spend you on holidays, or throughout breaks, like spring break or fall breaks. Mostly any split among courses you will not receives a commission.

Which sucks since I had been receiving accustomed to obtaining E-5 BAH just for likely to school right up until I spotted I had been heading to have significantly less than 50 percent of that in the months of December and January.

Less than 50 % I explain to ya!

I have a family to feed and my partner and that i each go to school entire time and acquire GI rewards. So most of us endure financially throughout these breaks.........which compelled me to discover a dietary supplement similar to this website.

Do not depend entirely on the government. If you're one you can make it. But when you do have a household, search for locating a dietary supplement to your income for the duration of those breaks like I have with different streams of cash flow similar to this site.

It is possible to supplement your earnings using a website way too, if you would like, to be able to get required revenue flowing into your own home.

So let's wrap this up........ A school for veterans does not exist, but definitely go to faculty to obtain that diploma and have that money!

Acquiring paid out to visit faculty! You cannot defeat that by using a stick!

And whilst you are at it, health supplement that income in the course of those dry months by obtaining an extra stream of income........like blogging!

That is what I did!
By Shun Smith

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Start Save Money to Pay Down Student Loan Debt Tax Act 2013  - How would you like to pay off your student loan debt?
As a mother of seven children who are young adults and college educated, I know what it is like to struggle to pay for school and manage student loan debt.
Be free of student loan debt
I believe that every person can be free from the worry of student loan debt and pay them off by following steps to save money.
The key is to free up funds to put toward retiring those debts. It’s also important to write a check (or make a payment online) toward the loan at the time you save the money.

Otherwise, your hard work at cutting back will only get reabsorbed into the family spending.

Here are some key areas where you can begin to reach that goal.

Save in Your Community

Begin the savings adventure close to home by supporting your local schools and businesses.

    School Discount Cards – Help your favorite student by purchasing their schools discount card, almost every school offers these as part of their fundraisers.Each card costs around $10 and is good at dozens of local businesses for savings on things like oil changes, dry cleaning, haircuts, pizza and more, depending on the card. We saved loads at a local coffee shop’s “buy one/get one free” offer. My friends kept wondering why I chose the same location each time we met for java but I saved $350 over the course of a year!

    Entertainment.com offers a coupon book and costs between $25 and $45. Preview the coupon booklet for your area first. You’ll save on movie theaters, theme parks, sporting events, and at local shops. The average advertised total book savings is $17,000. If you redeem 25% there would be an annual savings of $4250. Even a mere10% redemption is a savings of $1700 per year to put toward student loan debt

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Get Ready for the Student Loan Bubble to Rock Obama's Fragile Economy - Student loan debt is nothing more than slavery. The promise of a good education and easy money has many students going tens of thousands of dollars in debt without ever having a significant income all thanks to the federal government's program to make education obtainable to all. The only thing that is truly obtainable in programs like these is trouble down the road of many who buy into the promises of this government program.

This year, student loan debt may mean more trouble for the troubled US economy.

Fair Issac reports:

Research by FICO Labs into the growing student lending crisis in the U.S. has found that, as a group, individuals taking out student loans today pose a significantly greater risk of default than those who took out student loans just a few years ago. The situation is compounded by significant growth in the amount of debt that new graduates are carrying.

The delinquency rate today on student loans that were originated from 2005-2007 is 12.4 percent. The comparable figure for student loans that were originated from 2010-2012 is 15.1 percent, representing an increase in the delinquency rate by nearly 22 percent

See the crisis brewing as another easy money lending plan delivered to you by the federal government in the name of fairness threatens the entire economy just like the housing bubble eight years ago.

You know who owns all the student loan debt now, so it will be the American tax payer, many who don't have a dime of student loan debt, who will be left to bail out these bad loans.

It was just a year or so ago that American students, graduates, and college drop outs hit a significant milestone. There is now over $1 trillion in unpaid student loan debt enslaving people from around the United States. If we are nearing a 20% delinquency rate in student loan repayment, that means we are rising above $200 billion in bad student loans which taxpayers will soon be asked to pay back in the forms of more bank bailouts just like the housing bailouts.

America's borrowing culture is kicking America from every angle.

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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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How To Consolidate Cheap Student Loans? - Today, the cost of higher education is becoming increasingly expensive. Some families may not be able to afford to send their son or daughter for further education. Therefore get a student loan help. There are two main types of student loans available. Government student loans and private student loans. Student loans or federal government funded and administered by the U.S. Department of Education. It is classified under the student aid federal loans. They have very few requirements other than you are a student in an American college or university. International students may also apply if the approval is on a case by case basis.


Each year, the program through student loans pay nearly $ 60 billion making it a good choice for a government student loan. Thus, interest rates are very low. Private student loans are funded and administered by banks and other financial institutions. These lenders offer student loans at an interest rate higher compared to federal student loans. Some common student loans available are from Citibank and Sallie Mae

You are allowed to ask for private student loans and federal education needs your although I would not recommend it. For some students who have a few student loans to repay at the same time, it can be a financial burden on their family finances. This is where student loan consolidation comes in.

Student Loan Consolidation essentially consolidates all your student loans into one loan so that it is easier to manage and make payments. When you find a student loan consolidation whether from the government or the private market, your existing student loans are paid for and cleared by the lender to consolidate student loans. Balances are transferred to the new student loan consolidation. So you start a new loan and only needs to make a single payment each month.

There are several advantages to using student loan consolidation. Interest rates will be lower because it takes the average interest rates of your previous student loans. Thus, due to government legislation, the maximum interest rate can not exceed 8.25 percent.

It becomes much easier to manage a single student loan and payment are easier. Repayment options are quite flexible. To consolidate federal student loans, you can opt to start repaying after you have graduated from school. There are also several other options.

Another beneficial side-effect of student loan consolidation is that it can also improve your credit score. Since you are effectively clearing all your old student loans and taking a new one, your credit score will increase and it is important if plan to take other types of loans in the future ....

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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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