College graduates with private student loans know the importance of staying current on their payments. But a new report by the Consumer Financial Protection Bureau finds that even consumers who pay their loans on time are finding themselves placed in default when the co-signer of their loan dies or declares bankruptcy. [More]
student loans
Michigan Town Foots The Bill To Send Students To State Universities, Community Colleges
By 4.16.14
Community is defined as a group of people living in the same place or having a particular characteristic in common. For one Michigan city that characteristic would be generosity, as in the $50 million anonymous donors have spent to send the town’s high school graduates to college. [More]
Graduates Get Help Paying Student Loan Debt By Volunteering
By 4.14.14
Graduates facing thousands of dollars in student loan debt often feel there is no relief in sight. However, a number of organizations and programs are popping up and aiming to take some of the burden in repaying massive student debt loans off young professional’s plates. [More]
‘Know Before You Owe’ Act Aims To Provide Clear Disclosures For Private Student Loans
By 4.2.14
With many incoming college students unable to afford rising tuition costs, and low-cost federal loans only providing some assistance, private student loans have become a necessary evil for some in recent years. But those higher-interest loans are leading to increased levels of debt among young Americans. Lawmakers are once again promoting a long talked-about bill to protect students. [More]
As Many As 1-in-3 Student Loans May Be Delinquent
By 3.19.14
Over the years, Consumerist has reported on student loans and the crippling impact their debt can have on recent graduates. But with rising tuition costs and financial aid opportunities becoming increasingly competitive it’s easy to see why student loans are a necessity for entering college. A new report claims that overall loan delinquency rates are declining, but a closer look at the numbers may reveal a problem that is much worse than previously believed. [More]
Sallie Mae Wants Me To Pay Down Debt By Opening Up A Credit Card
By 3.7.14
On the surface, this e-mail that reader S. received from Sallie Mae doesn’t seem like a bad idea. It’s offering a new credit card, which maybe you were going to get anyway. You can use the card’s cash-back rewards to save for a loved one’s college education, or to pay off your own student loans. Yet it doesn’t sit right with S. [More]
Colleges Tight-Lipped On Revealing How They Divvy Out Financial Aid
By 3.6.14
When choosing a college to attend most teens and their families shop around a little. With tuition skyrocketing, many consumers look at financial aid offered by universities as a top priority when considering which institution to attend. Even with regulations on the books requiring schools to outline how financial aid is distributed, families are finding it nearly impossible to estimate their child’s worth to a school. [More]
Sallie Mae’s Federal Loan Business Is Now Navient. What’s A Navient?
By 2.26.14
Sallie Mae is the country’s largest originator and servicer of student loans and a regular contender in our Worst Company in America tournament. They’re about to become two much-hated companies, spinning off their loan servicing, loan management, and collections as a new company called Navient. [More]
Student Loan Debt Preventing Consumers From Buying First Homes
By 2.18.14
First-time home buyers accounted for only a third of the homes purchased over the last year. The below-average number is thanks in part to American’s growing student loan debt. With high monthly payments and increased credit risk, student loan debt is keeping some first-time home buyers from entering the housing market; a trend that doesn’t appear to be turning around anytime soon. [More]
51 Groups Call On President To Not Let For-Profit Colleges Weaken “Gainful Employment” Rule
By 2.4.14
Last summer, the Dept. of Education began the process of reviewing a new rule aimed at those educational institutions that failed to demonstrate their students could find gainful employment in the fields in which they had been trained. The for-profit college industry has managed to weaken the rule, but today more than 51 different groups — including advocates for consumers, veterans, and students — asked the President to help prevent this rule from becoming toothless. [More]
How To Not Suck… At Borrowing For College
By 1.28.14
(This is Part Two of a two-part feature on paying for an education. Last week’s HTNS column focused on the best way to save up for college.)
With the rising cost of college tuition, many families figure they’ll have to beg, borrow and steal to pay for the cost of higher education. If those are the only options available to you, we recommend borrowing. [More]
College Student Protests Tuition Hike By Paying With Singles
By 1.23.14
Like many schools around the country, tuition at the University of Utah has soared in the last decade. In-state students at this school are now paying more than double what students paid only a decade ago, with another 5% increase coming. In minor protest of these rate hikes, one Utah student chose to express his feelings by paying his tuition in singles. [More]
College Senior Hopes To Pay Off Student Loans By Selling Ads On Graduation Cap
By 1.22.14
A student at the University of Michigan-Flint looked into the crystal ball and saw visions of student loan debt. But what if he could figure out a way to pay off that pile of debt before he even enters the job market? And so the young man started a campaign to sell advertising space on the top of his graduation cap. [More]
Some Banks Reward Private Student Loan Borrowers With Refinancing Options
By 1.21.14
Recent college graduates face a number of barriers after getting their diplomas – finding a job, moving out on their own and paying back thousands of dollars in student loans. But now consumers struggling to pay back private student loans might find a bit of relief in new refinancing options from banks. [More]
Your Guide To Proposed Laws & Regulation That Could Help Consumers In 2014
By 1.3.14
2013 is gone, a collection of memories never to be dealt with again. Next week, the 113th Congress returns for its second session, ideally to enact legislation throughout 2014, some of which could help consumers if they were to become law. [More]
One Company Is Working Hard To Make Sure Your Student Loans Stay With You Until You Die
By 1.3.14
Sometimes, terrible things happen in life. When something like cancer strikes, despite your best intentions and hardest efforts, medical bills and unemployment can leave you in a position where paying off your student loans is just not a thing you can make happen. [More]
71% Of Recent College Grads Owe Average Of $29K In Student Loans, Are Scared Pantsless About Paying It Off
By 12.4.13
The total of student loan debt in the U.S. has long since passed the $1 trillion mark, and a new report shows that this mountain of owed money is just going to keep getting bigger, while a recently released survey indicates just how terrified young adults are of folks’ ability to repay that debt. [More]
CFPB Adds Oversight Of Largest Student Loan Servicing Companies
By 12.3.13
While many banks offer student loans, much of the servicing of that $1 trillion in loans is actually done by non-bank, third-party companies, some of which have been criticized for being difficult to deal with and having byzantine repayment rules. Today, the Consumer Financial Protection Bureau, which already oversees student loan servicing by large banks, issued a new rule giving the agency the authority to supervise certain non-bank servicers in an effort to further ensure borrowers are being treated fairly and to rein in abusive loan servicing practices. [More]
