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Law Students Can Find Ways to Pay Off Debt
Tweet Share on Facebook June 8, 2011 Comment (4)It's a tough time economically. Unemployment remains high, which means states face seemingly never ending shortfalls in revenue. The showdown between Democrats and Republicans on Capitol Hill over how to deal with the massive federal deficit continues. Republican leaders in the U.S. House of Representatives recently set spending limits for the Appropriations subcommittee on labor, health and human services, and education at nearly $42 billion less than President Obama proposed in his fiscal year 2012 budget requests.
While the form those proposed cuts will take is currently unknown, it is anticipated that widely utilized educational grant programs—Pell Grants, in particular—will face cuts. And popular loan repayment programs, such as the Civil Legal Assistance Attorney Student Loan Repayment Program (CLAARP), designed to help civil legal assistance attorneys, have already been defunded.
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The Student Loan Ranger's Mailbag Express: Forgiveness and Repayment
Tweet Share on Facebook June 1, 2011 Comment (8)The Student Loan Ranger would like to give a special shout out to all you new graduates!
As you know, we dedicate a blog post each month to questions we have received in order to shed some light on the educational debt decisions our readers face. This month, we are going to look at some slightly technical (but oft asked) questions regarding Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF).
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Graduate School Debt Often Curtails Plans of Nonprofit Work
Tweet Share on Facebook May 25, 2011 Comment (2)The Project on Student Debt's recently released report, titled "Student Debt and the Class of 2009," estimates that college seniors in 2009 graduated with an average of $24,000 in student loan debt. For those continuing on to obtain advanced and professional degrees, the situation is even more dire. For example, the American Bar Association's Legal Education Statistics for the academic year 2008-2009 indicate that the average amount borrowed by law school graduates attending public school is $66,045 and by private law school graduates is $100,002.
Put these grim statistics next to the fact that salaries for public service and government positions are stagnant, and you have an alarming trend: Many people who want to work in public service jobs will not be able to afford to pursue those careers.
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Starting at Community College Can Save Thousands
Tweet Share on Facebook May 18, 2011 Comment (8)Want to reduce your educational debt? Consider attending a community college for two years and transferring to a four-year college or university to complete a bachelor's degree. This strategy is often referred to as a 2 + 2 plan.
Many community colleges have agreements to ensure students' credits will transfer to a four-year school, and some schools offer need- and merit-based aid to community college transfer students. Additionally, the cost of tuition at community college is often significantly lower, and saving on room and board for two years can help cover the increased costs that will be incurred when the student transfers.
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Student Credit Card Use Could Cause Problems Later
Tweet Share on Facebook May 11, 2011 Comment (4)Students increasingly have been using credit cards to finance living expenses and education, a necessity for many given the rising cost of education.
Despite the name, credit cards are in fact loans, requiring repayment with interest. Paying high interest on educational expenses means overpaying for college costs and the need for using credit cards must be balanced with the danger inherent therein.
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The Student Loan Ranger's Mailbag Express: Repayment
Tweet Share on Facebook May 4, 2011 Comment (4)Each month we will dedicate one of our blog posts to questions that readers have sent in to shed light on the educational debt decisions that our readers are facing. Please note that our responses are not meant to provide specific legal or financial advice. Every individual's situation is unique, and we encourage people to reflect carefully on their options and to consult a financial adviser who can review their specific financial situation.
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Considering 'Good Debt' And How to Use It
Tweet Share on Facebook April 27, 2011 Comment (3)With all the attention on the growing menace of educational debt, there is an irony to "investing" in higher education. Excitement turns bittersweet when faced with borrowing money to fulfill this dream.
Educational debt is often described as "good debt": Those with a college degree earn significantly more than high school graduates over a lifetime of work, making borrowing large amounts worthwhile. As we previously reported, the Project on Student Debt estimates the average debt for 2009 bachelor's recipients is $24,000. Students with advanced degrees carry an even heavier burden: Amounts can exceed $100,000 and take decades to repay.
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Pell Grants Survive Federal Budget Process
Tweet Share on Facebook April 20, 2011 Comment (10)Details continue to trickle out about the federal budget compromise negotiated last week. One piece of good news is that the bill provides $23 billion in funding for Pell Grants and maintains the maximum grant at $5,550.
But the bill does eliminate the so-called "two Pells" program, which allows students to get additional Pell Grants for summer enrollment. With Democrats and Republicans already preparing competing budget proposals for 2012, now seems like a good time to review the Pell Grants program.
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Take Another Look at Student Debt Consequences
Tweet Share on Facebook April 13, 2011 Comment (2)In last week's post, "Remember the Student Debt Factor," we discussed the importance of thinking about your educational debt burden as one of the key factors in deciding where to go to college. This week, we'll take a more in-depth look at the long-term fiscal consequences of being burdened with a large amount of educational debt.
Jane Median and Sam Spendthrift are fictional college students. Both did very well in high school and were accepted at a wide variety of schools. Jane Median chose to stay in state and attend a four-year public university. She will graduate with $24,000 in educational loans. Sam Spendthrift chose to go to a well-known four-year, private university. In addition, he used his loans to pay for spring break, rarely cooked at home, and bought a new laptop with his loan money. As a result, he will graduate with $52,000 in student loans.
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Remember the Student Debt Factor
Tweet Share on Facebook April 6, 2011 Comment (3)It's that time of year when high school seniors and graduate school candidates are making their final decisions of where to go to school. There are many factors that come into play in these decisions.
Unfortunately, one of the most important factors—how much debt you will have accumulated when you graduate—is often not on the radar screen. It may be the last thing you want to think about, but factoring the amount of student loan debt you will have into your decision can pay huge dividends after you graduate.
