Student Debt Crisis Your One Stop Hub For Student Debt Issues Mon, 23 Nov 2015 17:36:12 +0000 en-US hourly 1 Clinton Talks Student Debt Refinance At Campaign Stop Mon, 23 Nov 2015 17:35:31 +0000 A campaign rally for Hillary Clinton at Fisk University was crowded despite the start of Thanksgiving break. Fisk students were joined by hundreds from Vanderbilt, Belmont and Tennessee State University to welcome the Democratic front-runner.
During the Friday night event, Clinton received the loudest applause when talking about her program for greater funding for the nation’s historically black colleges and easing the load of student debt.

“If you can refinance your home or your car, you ought to be able to refinance one of the biggest obligations you will ever have, which is mainly paying for your education,” she said.

On Friday, Clinton also stopped by LeMoyne-Owen College in Memphis, another HBCU.

Clinton talked about raising the minimum wage, closing tax loopholes and creating new jobs. On the state of the economy, she said, “We are standing, but we aren’t yet running.”

Continue Reading at Nashville Public Radio…

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Young, Brown and In Debt Mon, 23 Nov 2015 17:34:03 +0000 A recent survey from TIAA CREF, one of the leading financial services providers in the United States, indicates that nearly sixty percent of college educated Latinos find it difficult to cover their monthly expenses. Only forty percent of Latino college graduates feel they have enough saved in a rainy day fund. For these graduates, harsh reality is directly tied to what many activists are calling this generation’s crisis: student loan debt. On average, Latinos accumulate nearly $49,700 in student loan debt over their course of their undergraduate education. The majority of Latinos’ undergraduate debt comes from private loans, which carry a variable interest rate. This means that Latinos are taking out loans that are likely to carry high interest rates, have higher monthly payments and a take a longer time to pay off. The path to paying of undergraduate debt is indeed a difficult one for Latinos as more than half indicate that even well into their 30s that they still have too much debt.

At first glance, this is a startling reality that contradicts dream of pursuing a postsecondary degree. For many Latinos, education is viewed as the path to achieving the American Dream. Defined as obtaining a good job, purchasing a home and saving for the future. Increasingly, however, the hope of a better life is slipping away from college educated Latinos. As a young and educated Latino, I understand many of the pressures that my peers face: paying off their debts while also balancing personal and familial responsibilities and preparing for a secure future. Latinos’ growing student debt has strong implications not only for Latinos, but also for the future of our nation. Here is what is at stake if Latinos graduates continue to be crushed by their student loan debt: an increasingly unstable housing market, a disintegrating social security system and the future of our political system. As the demographics of our nation continue to shift and more Latinos become college age and enroll in postsecondary education, key stakeholders have a role to play in ensuring the future of our nation. Institutions of higher education, policymakers and researchers all have a role to play in ensuring that Latinos complete college with as little debt as possible. The future of our nation depends on it. In order to improve the financial well-being of Latinos, however, we must first understand how Latino college graduates are accumulating such high debt totals…

Read More at Huffington Post…

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More Options to Repay Student Loans, So Why Are Defaults Rising? Mon, 23 Nov 2015 17:22:46 +0000 A curious thing is happening. Despite an increase in the number of people enrolling in the government’s generous student loan repayment plans, more people are in default on their federal loans.

The White House has given Americans more options for repaying their loans so they can avoid default, expanding programs that cap monthly payments to a percentage of earnings, known as income-based repayment plans. Marketing campaigns and direct outreach by the Department of Education led to higher enrollment in the last year, yet the amount of people severely behind on their debt remains stubbornly high.

As of the end of September, 7.6 million people had not made a payment on their student debt in at least nine months, a seven percent increase over the same period a year earlier, according to data released Thursday by the Department of Education…

Read the Entire Article at Washington Post… 


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Student Loans Disrupt Millennial Investing Mon, 23 Nov 2015 17:15:37 +0000 The media proliferates stories analyzing millennial work ethics, buying patterns and values. With millennials consuming more media than any other generation, it’s always frustrating to see Twitter dominated with stereotypical headlines like “Are Millennials Lazy, Entitled Narcissists?” or “Desperate and In Debt.”

You’d think the message would be better tailored to the audience by now. Born during the perfect storm between 1980 and 2005, millennials came of age with the Internet, and pursued education during the worst financial crisis in recent memory, now holding more student debt than Gen Xers and Baby Boomers combined.

With more than $1.3 trillion in college loans, millennials face an unprecedented challenge in establishing investment habits for building wealth and retiring. They can’t depend on the safety nets of pensions, Social Security and employee profit-sharing on which their parents built their lifestyles….

Continue Reading at Tech Crunch…


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Read Grover Cleveland’s Eerily Modern 1900 Hot Take on the Value of College Mon, 23 Nov 2015 17:06:07 +0000 Pieces arguing over whether college is “worth it,” or if college “pays,” constitute a pretty vibrant journalistic subgenre nowadays. Usually, doubts over the value of college are portrayed as the inevitable consequence of skyrocketing tuition and spiraling student debt.

But this debate is actually far older than the current student debt problem. Case in point: the May 26, 1900, issue of the Saturday Evening Post, the then-prominent weekly magazine. The cover story is titled “Does a College Education Pay,” and it’s authored by Grover Cleveland, who had finished his second term as president only three years prior:


“Those who antagonize collegiate education are always with us,” Cleveland begins, already exhausted by a conversation that would continue for over a century more, “and we often hear them inveighing, with differing degrees of emphasis, against the expenditure of time, money and effort which such an education exacts.”

After dismissing what he regards as the stupidest contingent of college skeptics (“these we may properly disregard, with the wish that an intelligent environment may improve their condition”), he first tackles “self-made men,”…

Continue Reading at Vox…

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4 Facts You Should Know About Student Loan Interest Mon, 23 Nov 2015 17:01:46 +0000 Although the skyrocketing cost of education is largely to blame, another factor can majorly add to the size of your debt over time: student loan interest.

If anyone understands the serious impact of interest on student loans, it’s me. I graduated in 2009 with over $74,000 in student debt. Due to financial constraints, I chose to defer my loan payments – little did I know that would cause my debt to balloon to over $100,000 within months thanks to the interest charges I accrued.

If left unchecked, student loan interest can cause your existing debt to skyrocket. So whether you’re a current student or have already graduated, here are three things to keep in mind about interest as you get ready to start making payments.

1. Interest Can Accrue Even When You Aren’t Making Payments

It’s important to understand how and when interest is charged, especially if you choose to enroll in an income-based repayment plan, defer payments, or enter forbearance. In many cases, loan interest will continue to accumulate even if you aren’t required to make full payments toward the principal balance.

For example, the government won’t cover interest payments on unsubsidized loans or PLUS loans in deferment. Interested accrued on any loan during forbearance is also not covered. That means if you don’t make these interest payments yourself, they will be tacked onto your loan balance every month. The worst part? You’ll start paying interest on your interest!

2. Consolidation Doesn’t Always Save Money on Interest

When choosing a repayment strategy, it’s always important to do the math and make sure you’re saving as much money as you can. Student loan consolidation is often recommended as a tool for cutting the cost of student debt, but it doesn’t always do so…

Continue Reading at Cheat Sheet…

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Government to Expand For-profit College Relief Program, Despite 0 Students Helped to Date Wed, 18 Nov 2015 17:34:25 +0000 The Department of Education announced Tuesday that it would expand its program to forgive federal student loan debt to thousands more students who attended programs of Corinthian Colleges, once one of the nation’s largest for-profit education companies.

Earlier this year, the department said that tens of thousands of students who had attended Heald College, Corinthian campuses mostly in California, were eligible for immediate processing of requests for debt relief. Now, the pool of eligible students will include about 85,000 students who attended Everest University and WyoTech, two other programs in California, as well as students at Everest online programs in Florida, from 2010 to 2013.

“Our goal is to ensure that every eligible student receives every penny of the debt relief that they’re entitled to,” the deputy education secretary, John B. King Jr., said in a conference call with members of the news media…

Continue Reading at New York Times…

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Degrees Not Debt Campaign Strives to Combat Student Loan Debt Wed, 18 Nov 2015 17:28:39 +0000 It seems like there are countless groups on campus trying to get students to sign petitions for causes unrelated to them. But the National Education Association’s newest campaign on campus has everything to do with students.

The NEA, a teachers’ union, is focusing on advocacy this fall. Its newest campaign is called Degrees Not Debt and focuses on student loan debt and the action to be taken by Congress.

Susan Stancampiano, field organizer for the NEA, said The Higher Education Act is being reauthorized this fall and the campaign is petitioning for provisions on the act.

“It’s reauthorized every few years and we have goals that include expanding the student aid bill of rights, which is if you have to take out student loans,” Stancampiano said. “It’s (the) certain rights that are pretty common sense that are guaranteed for the students that have to take out those loans that they know what they’re getting themselves into and provided proper education on the loans.”

Stancampiano said the campaign is also petitioning for more grant money to be included in the act.

“The cost of college has continued to rise and every time Higher Education Act has been reauthorized they’ve taken out a decent chunk of money that was given to students,” she said…

Continue Reading at State News…

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More Young Women Are Living at Home Now Than in 1940 Wed, 18 Nov 2015 17:24:20 +0000

At no time since 1940 have so many young women lived with their parents or other relatives than they do today, primarily because of economic forces, according to a new report from Pew Research Center.

Using U.S. Census Bureau data, Pew found 36.4 percent of women ages 18 to 34 lived with relatives — primarily parents — in 2014, not including a spouse. In 1940, the number was 36.2 percent, creating what Pew calls a “striking U-shaped curve.”

“Young men, too, are increasingly living in the same situation, but unlike women their share hasn’t climbed to its level from 1940, the highest year on record. (Comparable data on living arrangements are not available from before then),” Pew said.

The Associated Press quoted Pew senior economist Richard Fry, saying, “young women are staying home now because they are half as likely to be married as they were in 1940 and much more likely to be college-educated. Economic forces such as increasing student debt, higher living costs and economic uncertainty are also playing a role.”…

Continue Reading at Deseret News…

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Half Of People Who Went To College In The Recession Haven’t Graduated Wed, 18 Nov 2015 17:06:42 +0000 One side effect of the 2007-09 recession was a surge in college attendance. Nearly 3 million Americans enrolled in college in the fall of 2009,1 half a million more than two years earlier. Some of those were new high school graduates who would have gone straight to work if jobs were available. Others were older workers who lost jobs and went back to school to learn new skills or even to qualify for student loans to cover living expenses.

Six years later, we are starting to get the first clear look at how all those students fared, and the numbers aren’t pretty. According to a new reportfrom the National Student Clearinghouse Research Center, barely half — 52.9 percent — of students who enrolled in fall 2009 had earned a bachelor’s or associate degree six years later. That’s down from a completion rate of 56.1 percent for the students who enrolled in 2007. (Graduation rates were especially low for students at for-profit colleges.)…

Continue Reading at FiveThirtyEight...

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