4 Ways To Cut Student Loan Debt While You’re Still In School

The latest bill helps all students. The basic principle is that it ties student loan rates to the bond markets. This fall, undergraduate students will pay an overall interest rate of 3.86% on their loans. It is comprised of the yield on the 10-year Treasury note on June 1, plus an additional 2.05%. Graduate students will have to pay 5.41% on loans this fall, or 3.6% over the 10-year Treasury, also on June 1.
Source: http://money.cnn.com/2013/07/24/news/economy/senate-student-loans/index.html

Education Department Finds Numerous Problems At Sallie Mae, Levies No Fines

25 that it was time to recoup some $22 million in improper payments made to Sallie Mae several years ago, following a 2009 recommendation by the departments inspector general that it recover the money. Also on HuffPost: Loading Slideshow D.B. RT @desusnice: Everyone hates you RT @SallieMae When Sallie Mae opened 1973, we had 7 employees. Today we employ 7,000 people nationwide. Rafael De La Ghetto Lmao @No_Cut_Card: Don’t complain about us complaining about Sallie Mae.
Source: http://www.huffingtonpost.com/2013/12/11/education-sallie-mae_n_4428048.html

Student loan deal passes Senate

The agency declined to name companies. But the list will likely include Sallie Mae, Nelnet, Great Lakes Educational Loan Services, and FedLoan Servicing/PHEAA all of which service large numbers of federal student more info loans. Some servicers that work with federal student loans will likely still fall under the threshold for getting the stepped-up oversight. Thats because, as weve noted , the Education Department has in the last few years expanded its stable of loan servicers to roughly a dozen. Shows that went on way too long “Californication” (seven seasons) This show is the current most-unlikely-to-still-be-on champ. Its perhaps the least-discussed show on Showtime, and has been for years.
Source: http://www.salon.com/2013/12/05/finally_real_oversight_for_student_loan_servicers_partner/

Finally, real oversight for student loan servicers

But if you think the greatest debt burden is falling on the poorest students, think again. At a time when the cost to attend some colleges exceeds $60,000, lower middle income students carry more student loan debt, on average, than students in any other economic group, according to a forthcoming study. About 41 percent of the 4,400 students in the study left school with some level of debt. But debt burdens did not decrease steadily as students’ family income rose. The study’s author, Jason Houle, an assistant professor of sociology at Dartmouth, found that students from families earning $40,000 to $59,000 are incurring about $11,000 more in student loan debt than students from families earning less than $40,000.
Source: http://www.cnbc.com/id/101262383

Private student loans no better than using a credit card for college

PSLs comprised seven percent of student loans taken out last year and are 15 percent of the nations total outstanding student loan debt. American consumers currently owe approximately $165 billion on PSLs. Choosing to pay for college through a private student loan is no better than paying for it on a credit card. Private student loans are generally more expensive and risky for consumers than more-common federal student loans, and dealing with private student lenders can be a tremendous hassle, states the PIRG analysis. PIRG also found that high debt borrowers are also disproportionately PSL borrowers, often with $40,000 or more in total debt. Even worse, PSL repayment was the subject of nearly 65 percent of the more than 4,300 complaints received by CFPB from Oct.
Source: http://www.frostillustrated.com/2013/private-student-loans-no-better-than-using-a-credit-card-for-college/

Guess which students have the highest college loan debt

Student debt is likely the biggest debt you will ever take on besides a mortgage, says Rachel Cruze, daughter of debt-free guru Dave Ramsey and speaker on student debt. Since you are the one ultimately signing on the dotted line, you must understand how the the different loans work and how the amount you borrow can affect you after you graduate. Cruze advises your main focus should be on your studies and staying in school, but you should also do everything you can to minimize the amount you are borrowing. It is especially important when using unsubsidized government student loans or private student loans which begin charging interest as soon as you receive the money in school versus lower-interest rate subsidized government student loans which are used interest-free during college. Think hard about your future repayment of student loans and use these ways to borrow less while you are still in school. Take out fewer loans If you are a first-time freshman, take the full amount offered in your financial aid package, advises Reyna Gobel, author of CliffsNotes Graduation Debt, fully updated in its second edition. Once you see what the true costs are and how the loans are applied, you can opt to reject future loans and look for ways to borrow less in subsequent semesters. Gobel advises under-used free financial counseling services available at your college.
Source: http://finance.yahoo.com/news/4-ways-cut-student-loan-140023243.html


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