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Student Debt Crisis Isn't Just About Economy
Tweet Share on Facebook January 11, 2012 Comment (8)With the Iowa caucus under our belt, the 2012 election year is in full swing and one issue being raised across the country is student debt. So far, it seems that a number of candidates propose to address this issue through their plans to "improve the economy." They don't seem to understand the educational debt crisis very well.
We certainly recognize the dire need for more jobs, but we think the issue of educational debt demands a more direct solution. We're taking this opportunity to raise some issues that warrant candidates' attention and to clarify the magnitude of what students and graduates are facing.
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Rapidly Rising Student Debt Harms Low-Income Students
Tweet Share on Facebook January 4, 2012 Comment (5)It's a truism that a college education is the key to better jobs and a brighter economic future for low-income individuals. So what is the effect of the explosion in student debt on low-income students? The Federal Reserve Bank of San Francisco's recent brief, "Student Debt and Default in the 12th District," is a fascinating look at student loan borrowing and default that focuses on students from low- and moderate-income (LMI) households. It provides some clarity, and it's not a pretty picture.
Keep in mind that this report is limited geographically (the 12th District includes nine Western states—Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington—as well as Guam, American Samoa, and the Northern Mariana Islands). But since states in the West tend to have lower average debt levels, we would argue the situation it describes is the same or worse across the country.
[Learn about how to pay for college.]
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Private Loan Borrowers Need Increased Protections
Tweet Share on Facebook December 28, 2011 Comment (7)In last week's blog post we mentioned (not for the last time) how important it is to max out federal loans before taking out private loans. We also promised to follow up on the Department of Education's recent report, "The Expansion of Private Loans in Postsecondary Education," which shows students are, unfortunately, not taking our advice. Because the Student Loan Ranger never forgets (okay, sometimes we forget, but not this time), we're doing just that.
The report contains a number of interesting findings, but we are going to focus on the disturbing rise in private loan borrowing among undergraduates from 2003-04 to 2007-08. From 2003–04 to 2007–08, the percentage of undergraduates obtaining private loans rose 9 percentage points (from 5 percent to 14 percent) while borrowing from all loan sources rose only 5 percentage points (from 34 percent to 39 percent).
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Think Twice Before Using Credit Cards to Repay Student Loans
Tweet Share on Facebook December 21, 2011 Comment (11)At the Student Loan Ranger, we think it's great when major players in the private student loan market like Sallie Mae offer advice on how to avoid spiraling debt from credit cards. But we also feel that Sallie Mae is sending a mixed message when it encourages borrowers to use credit cards by linking them to repaying student loan debt.
[Learn more about paying for college.]
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Consider College Net Price When Looking at Affordability
Tweet Share on Facebook December 14, 2011 Comment (2)Welcome to another action-packed edition of the Student Loan Ranger. We ride across your screen encouraging you to plan before you borrow and to earn your degree without drowning in debt. We also, of course, teach you how to manage the debt you do accrue. Check out our free student debt relief webinar, Drowning in Debt, on Friday, December 16, to learn about Income-Based Repayment, Public Service Loan Forgiveness, and loan repayment assistance.
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Lobby Congress, Learn More About Student Loan Consolidation
Tweet Share on Facebook December 7, 2011 Comment (5)Educational debt has received a lot of national attention lately. It is heartening to see that increasing public awareness can be an impetus for further reform.
Mass movements such as the Occupy Student Debt Campaign and ForgiveStudentLoanDebt.com have highlighted the tremendous scope of those affected and, perhaps because of that pressure, the Obama administration has also been cautiously weighing in.
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Consider These Factors to Ease Educational Debt Burden
Tweet Share on Facebook November 30, 2011 Comment (1)We hope you all had an excellent Thanksgiving and enjoyed some hearty feasting. We're still walking around in a post-turkey (or Tofurky) haze.
But with application deadlines for college and grad school looming, now is the time to start considering educational debt as a complete picture and map out how you will cover the costs of your education before, during, and even after you graduate. Here's some insight into the factors you should consider when choosing schools in order to ease the burden of educational debt.
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Here's a Brief Primer on Fixed-Rate Private Student Loans
Tweet Share on Facebook November 23, 2011 Comment (9)The number of private lenders—such as Wells Fargo, U.S. Bank, and Charter One—offering fixed-rate student loans has nearly doubled over the past year to about a dozen. There is little doubt that other banks will jump in soon with their own offerings.
If you do have to take out private loans, it's probably a good idea to compare the drawbacks and benefits of fixed versus variable rate private loans and, since we've been getting questions about this change, we are going to review some of the basics here.
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New Report Examines College Student Debt
Tweet Share on Facebook November 16, 2011 Comment (2)The Project on Student Debt has released its Student Debt and the Class of 2010 report. As in previous reports, it provides an overview of the student debt situation nationally and then breaks down the information by state (it even has a neat interactive map) and by college. The report closes with some notes on private loans. We can't think of a better way to do it, so we'll take you through the data the same way.
The national picture: First, it's important to recognize that the report hones in on the cumulative student loan debt of recent graduates from four-year public and private nonprofit colleges. It does not include for-profit colleges because so few of them report the necessary student data.
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Learn What Obama's Student Loan Plan Means for You
Tweet Share on Facebook November 9, 2011 Comment (65)We promised in last week's post that this week we would cover the details of President Obama's new executive order to make it easier for students to repay their federal student loans. For your convenience, we'll break this into three parts:
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