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A Little Loan Goes a Long Way


Nov 29, 2011
In recent years, college students have become more cautious about taking out loans to pay for school. There are multiple reasons for this – horror stories from friends or siblings, limited job prospects after graduation and high interest rates have all been cited – and while it’s an admirable goal to graduatefrom college debt-free, educators think this approach could actually hinder students from getting degrees. According to a recent Associated Press article, students are attempting to limit borrowing by working longer hours, taking fewer credits (and often not enrolling full-time), living at home and attending less selective institutions. While educators are impressed with this level of fiscal responsibility, they are quick to point out that each action above is a risk factor that [...]
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61 months ago 0 comments

While credit card debt, mortgage debt and auto loan debt have all steadily decreased since the fall of 2008, the same cannot be said for outstanding student loan debt, which has climbed 25 percent since the start of the financial crisis. Not only has student debt increased, but more often than not these loans aren’t getting paid off on time. The problem is that students take out sizable loans to [...]

64 months ago 0 comments Read More

If you’re a graduate student or considering graduate school, listen up: The debt deal reached by Congressional leaders and President Obama would make graduate school much more expensive. According to the agreement, Congress would scrap subsidized federal loans for graduate students in an effort to trim the deficits. These loans don’t charge students any interest on the principal of student loans [...]

64 months ago 0 comments Read More

The first day of classes means new professors, new classmates and a completely new routine. It is also about the time that universities distribute refund checks to students. Refund checks are extra funds that are left over after all school fees have been paid. These funds are the result of excess scholarships, grants and loans. Refund checks can come in handy, as students can use the extra [...]

65 months ago 0 comments Read More

There’s good news and bad news regarding state aid for students. The good: State financial aid for college students, including grants, work-study and loans, rose by nearly 4 percent last year. The bad: Just about half of the states surveyed cut need-based grants, even as demand for financial aid increased. The data – from a report by the National Association of State Student Grant and Aid [...]

65 months ago 0 comments Read More

Attention recent college grads: You may be able to pay down those student loans a bit sooner than expected! According to the annual Salary Survey by National Association of Colleges and Employers, graduates from the Class of 2011 shows a 4.8 percent starting salary bump over last year’s graduates. The increase was seen across most disciplines including engineering, liberal arts and social [...]

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In February, we read a New York Times article about students getting married to save on tuition and asked our Facebook friends and Twitter followers if they, too, would get hitched if it meant they’d pay less for school. The responses? Mixed, but the topic is still hot four months later. State aid is down, tuition is up and students are stuck in a tough position these days. While some are [...]

66 months ago 0 comments Read More

There are many factors that affect where, when and if students attend college, the most important being financial aid. So what can a student do when he or she hasn’t received enough funding? If you need financial aid to make college a reality, contact the financial aid offices at the schools you’re considering before applying. Find out the costs of tuition, room and board, and other [...]

67 months ago 0 comments Read More

If you’re a recent college graduate, chances are you’ll have to start paying off your student loans sooner than you think. And even with the economy in a slump, don’t expect a free pass on not paying your loans. Are you starting to panic? Well, don’t! There’s a ton of advice out there to help students stay on track and courtesy of the U.S. News and World Report, here are seven tips for repaying [...]

67 months ago 0 comments Read More

Here at Scholarships.com, we love the idea of students going to college debt-free but the reality is that student loans, for the most part, are a necessity in today’s educational world. And while private student loans should be a last resort when paying for college, it can help bridge the gap for families who have maxed out federal loan limits. The silver lining: Sallie Mae is lowering its [...]

67 months ago 0 comments Read More

If you are attending college, you probably need some form of financial aid to pay for tuition, room and board, books and other living expenses. Next year, it’s likely you’ll need a little bit more. The Columbus Dispatch recently reported the number of students in the U.S. who have filed forms for federal financial aid for the 2011-2012 academic year has increased by about 1 million from [...]

68 months ago 0 comments Read More

If you are attending college, you probably need some form of financial aid to pay for tuition, room and board, books and other living expenses. Next year, it’s likely you’ll need a little bit more. The Columbus Dispatch recently reported the number of students in the U.S. who have filed forms for federal financial aid for the 2011-2012 academic year has increased by about 1 million from [...]

68 months ago 0 comments Read More

On the heels of our latest post – a story about a Northeastern grad who accumulated $200,000 in student loans – the Pew Research Center released a report that members of the class of 2008 borrowed 50 percent more than their counterparts who graduated 12 years earlier. According to the report, increased borrowing by college students has been driven by three trends: more college students are [...]

73 months ago 0 comments Read More

Figuring out how to pay for a college education can be complicated, but what happens once you’ve graduated and your loans become so overbearing that even with a full-time job, monthly payment are implausible? A few weeks ago, we blogged that the average college student leaves school with $24,000 in debt, but what about the student who’s debt is about eight times that amount? Northeastern alum [...]

73 months ago 0 comments Read More

The Perkins Loan Program has played a vital role in the quest for higher education (mine included) since 1958 but in two years, it could end up just as extinct as dinos and dodos. Can it (and the dreams of countless students) be saved? The Perkins, or as one supporter affectionately calls it, “the David among the Goliaths of other aid,” is used by 1,800 colleges across the country yet Congress [...]

75 months ago 0 comments Read More

An analysis of long-term data conducted by The Chronicle of Higher Education has found that the number of students who default on their loans is far greater than what the federal government has been reporting. According to the data, about one in every five federal student loans overall has gone into default since 1995; the default rate for student loans covering costs at for-profit colleges is [...]

77 months ago 0 comments Read More

It’s rare for a college to tell a prospective student that their school may not be affordable enough for them to attend come fall. For a year, New York University did just that, calling admitted students and their parents and families to talk about the debt they could get themselves into if they chose to attend the pricey college. Citing little effect on enrollment rates, however, the school will [...]

78 months ago 0 comments Read More

Internet auction site eBay has removed a recent listing from a Purdue alum, citing a terms of use violation in his attempt to sell his bachelor’s degree in psychology. Nick Enlow, a 2008 graduate from Indiana University-Purdue University at Indianapolis, set the starting bid for his diploma at $36,000, plus $3.50 for shipping. His justification for the listing was that the student loan debt he [...]

78 months ago 0 comments Read More

July 1 marks the official date that colleges, if they haven’t already, must transition to the recently approved Federal Direct Loans Program. Schools will no longer offer students the option of having private banks or credit unions handle their federal loans; federal loans will now be coming directly from the U.S. Department of Education. Advocates of the student loan bill have said this will [...]

79 months ago 0 comments Read More

While many students – and their parents – will say no amount of student loan debt is ideal, a new report has zeroed in on those at the top of the pile, those who borrow most and may be most at risk for defaulting on their loans and running the risk of hurting their credit scores. The newest student debt story comes from a report released yesterday by the College Board Advocacy and Policy Center, [...]

80 months ago 0 comments Read More

Despite recent trends of more students across the country enrolling at institutions of higher learning, many students and their families remain mostly uninformed and unprepared to navigate the college and financial aid application process, according to a report issued yesterday called "Planning for College: A Consumer Approach to the Higher Education Marketplace." The report, from MassINC, a [...]

82 months ago 0 comments Read More

As a response to "operating in unsettled and ... unsettling times," Williams College has decided to stop offering its no-loan student-aid program and to reintroduce modest student loans to students' financial aid packages. In an open letter to the Williams community released over the weekend, the school's Interim President Bill Wagner said the change would not affect current students, but [...]

82 months ago 0 comments Read More

What if those worried about whether they can handle the rigors of college had an option to ease their worries about whether they were making a good investment? Would "failure insurance" get more of these hesitant students onto college campuses? How would students pay into such a program if they're already struggling to come up with the funds to cover college costs? An academic paper called [...]

83 months ago 0 comments Read More

On the heels of last week's announcement that Sallie Mae would not participate in the upcoming PLUS loan auction, the student lending giant once again comes bearing news that may ruffle some feathers and potentially hurt its customers' ability to pay for school. In a move to reduce default rates, Sallie Mae has announced changes to their popular private loan program.  As of next week, borrowers [...]

93 months ago 0 comments Read More

It seems Sallie Mae wants nothing to do with PLUS Loans and it's possible many other lenders will be reticent to bid on the graduate student and parent targeted loans at the upcoming "auction". Supposedly, the government is not allowing lenders to make enough money on these loans for it to be sufficiently profitable so they are opting to invest their capital elsewhere. Some are claiming this is [...]

93 months ago 0 comments Read More