Student loan | Student Loans Set For First Rate Increase Under New Law | The ...

Student loan | <b>Student Loans</b> Set For First Rate Increase Under New Law | The <b>...</b>

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• <b>Student Loans</b> Set For First Rate Increase Under New Law | The <b>...</b>
• For sale: One <b>student loan</b> - education - national | Stuff.co.nz
• Applying for a <b>student loan</b>? Prepare to pay more | KFOR.com
• Mark Cuban Explains the <b>Student Loan</b> Crisis Better in 90 Seconds <b>...</b>
• How to get rid of your <b>student loans</b> without paying | Marketplace.org

<b>Student Loans</b> Set For First Rate Increase Under New Law | The <b>...</b> Posted: 30 Jun 2014 06:28 PM PDT  A money changer inspects U.S. dollar bills at a currency exchange in Manila January 15, 2014. REUTERS/Romeo Ranoco   Federal student loans will see the first of what could be several interest rate increases Tuesday, as a deal enacted by Congress last year takes effect. Starting July 1 and continuing for the next year, all of the student loans offered by the federal government will see their interest increase by .8 percent. Undergraduate Stafford loans, the cheapest offered, will raise from 3.86 percent interest to 4.66 percent. Graduate Stafford loans will go up to 6.21 percent from 5.41 percent, and the most expensive PLUS loans will rise from 6.41 percent to 7.21 percent. For every $10,000 in student loans taken out, that's an extra $80 a year in interest. The increase is due to a rising rate of return on U.S. Treasury bills, to which the loans are now pegged. Until last year, student loan interest rates were set by law and did not adjust with economic conditions. Graduate Stafford student loans were stuck at 6.8 percent interest, while PLUS loans were at 7.9 percent. Last year, the expiration of a previous congressional student loan deal briefly caused the interest rate for undergraduate Stafford loans to rise from 3.4 percent to 6.8 percent. Congress responded to public pressure by passing the Bipartisan Student Loan Certainty Act of 2013, which finally allowed student loans to adjust year to year in accordance with the Treasury bill. The deal also lowered overall loan rates, down to 3.86 percent for undergraduate Stafford Loans, 5.41 percent for graduate Stafford loans, and 6.41 percent for graduate PLUS loans. As a result, even after Tuesday's increase, the top two tiers of student loans will remain cheaper than they were before. However, if the economy improves, student borrowers could end up on the hook for higher interest payments than ever before. Even the cheapest Stafford loans will only cap out at 8.25 percent interest, and the PLUS loans can rise to over 10 percent. Under the law, loan interest rates are fixed when the loan is taken out and do not continue to change later. That's a good thing for borrowers right now, when rates are rising, but if rates were to fall later graduates could find themselves stuck paying at higher rates. That concern, plus the possibility of record-high rates in a stronger economy, made several activists worried when the reform bill passed last year. The increase in interest rates could slightly help Democrats in the upcoming midterms, as they have decided to rally behind the issue of lowering student debt. Democrats have tried to build grassroots support for a proposal by Massachusetts Sen. Elizabeth Warren that would alter the current student loan system by allowing borrowers to refinance down to lower interest rates. Warren's bill, however, wouldn't affect the current situation of rising rates. Follow Blake on Twitter Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@ dailycallernewsfoundation.org.

For sale: One <b>student loan</b> - education - national | Stuff.co.nz Posted: 29 Jun 2014 03:57 PM PDT A former Blenheim man is auctioning off his student loan on Trade Me. Daniel Moran, 24, of Christchurch, has tried a different approach to getting rid of his debt. The former Marlborough Boys' College student completed a Bachelor of Information Technology at the Nelson Marlborough Institute of Technology in 2011. He racked up about $36,000 worth of debt while studying away from home at the Nelson campus. Over the past three years, he chipped away at the loan, which now sits at $26,508.34. On Saturday, he was sitting at home going through his finances when he had an idea. ''I had my student loan bill in one hand and I was flicking through Trade Me at the same time,'' he said. ''I saw the section Cool Auctions and I thought I'd put a silly one up.'' He created a listing called ''student loan for sale!''. The listing appealed to anyone with too much spare cash to ''buy'' the remaining balance. In return, the lucky buyer would get a photocopy of the payment receipt, a ''witty'' handwritten Christmas card every year, free technology advice, and a thank-you note. The technology support analyst, who works for Harcourts in Riccarton, created the listing as a bit of fun, but he wasn't ruling out the possibility of someone actually buying it. ''There must be someone out there with a bit of spare money,'' he said. ''There could be worse things to spend it on.'' If the loan was paid off, he would save the percentage of his pay that was taken out of his bank account each month and put it towards travelling. He was shocked the listing had already got almost 600 likes and 12 ''watchers'' in the three days it had been up, he said. ''Some people might think the idea is a bit silly, but it never hurts to think outside the box,'' he said.'' The top one per cent might have a lot of spare cash, and that's not a lot of money to them, but it's a lot to me.'' - The Marlborough Express

Applying for a <b>student loan</b>? Prepare to pay more | KFOR.com Posted: 01 Jul 2014 04:57 AM PDT WASHINGTON – If you are planning to apply for a student loan, prepare to pay more for it. Beginning Tuesday, all of the student loans offered by the federal government will see their interest rates increase by 0.8 percent. The change stems from a bipartisan deal brokered last year by Congress and signed by President Obama that ties the rates to the financial markets. Until last year, student loan interest rates were set by law and did not adjust with economic conditions. For every $10,000 in student loans, the average borrower can expect to pay $4 extra a month to pay it back.

Mark Cuban Explains the <b>Student Loan</b> Crisis Better in 90 Seconds <b>...</b> Posted: 22 Jun 2014 12:46 PM PDT Dallas Mavericks owner Mark Cuban gave an interview to Inc. Magazine where he predicted the collapse of the student loan bubble. The money quote, as transcribed by Mic: "It's inevitable at some point there will be a cap on student loan guarantees. And when that happens you're going to see a repeat of what we saw in the housing market: when easy credit for buying or flipping a house disappeared we saw a collapse in the price housing, and we're going to see that same collapse in the price of student tuition, and that's going to lead to colleges going out of business." A majority of young Americans- 57% – view student loan debt as a major problem, and the average college student graduates with $30,000 in debt. As Cuban and others point out, the failure to address these aspects will lead to diminished economic productivity in the long run, since young Americans have to spend a growing percentage of their income to service student loan debt. When you factor in a high youth unemployment rate of 13.2%, you have an economic perfect storm that can decimate Millennials before they even get started. President Obama has addressed the student loan crisis by targeting the symptoms: implementing measures to cap monthly payments, expand government grants and create tuition tax credits. However, the President's "solutions" do not get to the roots of the problem: the rising cost of tuition and the unending supply of student loans that are paying for it.

How to get rid of your <b>student loans</b> without paying | Marketplace.org Posted: 05 Jul 2013 12:22 PM PDT Students hoping to become public defenders, work in the health field, or hopeful veterinarians in the state of Kentucky specializing in large food animals -- you're in luck. You might be eligible for a number of programs that will help to repay your student loan debt. (Problem is, these programs aren't easy to find out about.) "The information can be really buried within a website or can be fractured," said Betsy Mayotte, director of regulatory compliance at the nonprofit organization American Student Assistance. "You kind of have to dig for the details." With the interest rate on new subsidized Stafford loans doubling from 3.4 percent to 6.8 percent on July 1, 2013, students taking on debt to pay for their graduate degrees might consider researching the different programs out there. To help guide students interested in forgiveness programs, ASA has put together an eBook called "60+ Ways To Get Rid Of Your Student Loans (Without Paying Them)." The organization divides the programs into two broad categories. "Forgiveness programs are generally programs where you are rewarded for something that you do. Generally it's some sort or volunteer or a specific working profession where there's a need for people to work in that profession," said Mayotte. "Unfortunately, discharge is for when something bad happens to you." The loan forgiveness and discharge programs were instituted by the federal government (as well as some state governments, organizations and private businesses) to eliminate all or part of a student's loans if he or she qualifies. Borrowers who give back to their community, work in fields or areas of need, or face unpredicted, extenuating circumstances are eligible for these different programs. To apply for forgiveness, you may need proof that you've worked for the required number of years at the location or profession that makes you eligible for the program. The types of loan forgiveness programs available can be divided among these broad categories: Community service One community service option is applying for an AmeriCorps. award. It repays part of a person's student loans based on their service in the AmeriCorps program. The U.S. federal government program is meant to engage adults in intensive community service work with the goal of "helping others and meeting critical needs in the community." Other volunteer organizations offering loan forgiveness include the Peace Corps. and Volunteers in Service to America (VISTA). Military Perhaps one of the most well-known ways to forgive your student debt. Generally there are two types of programs -- ones that pay for school while you're in school and then programs relating to existing loan forgiveness. You should speak with a recruiter about the different plans out there. Find out more information at Military.com. Profession The most common professions eligible for loan forgiveness tend to be in the health and teaching fields. Mayotte says some states are really thirsty for nurses, doctors, teachers, or public defenders -- and may have forgiveness programs to attract those types of workers. You can find more career-based forgiveness programs with an online search or by talking to your employer. Find out more information at FinAid.org. State specific You may be eligible for a program in a particular state if you are a legal resident in that state, work in one of the selected jobs, have a license for one of the jobs in the state, or went to school there. Search online to see what programs are available to you. Go to the state's website and search around. State specific programs can change or be eliminated based on budget, so keep an eye out. For more advice on dealing with your student loans check out these links: - Student loan interest D-Day: What's it mean? - How to survive severe student loan debt - The trouble with refinancing a student loan The types of loan discharge options include: Closed schools/school errors Borrowers may be eligible if their school closed while they were attending or within 90 days of leaving it. They may also be eligible if they withdrew from school and were not refunded the correct amount. Borrowers are only eligible if they received their loans on or after January 1, 1986. Disaster There's a discharge option for spouses of eligible public servants or other eligible victims who died or became permanently and totally disabled due to physical injuries suffered as a result of the September 11, 2001 attacks. Financial hardship Borrowers who face financial hardship based on income or debt could be eligible for these options: Bankruptcy Contrary to popular belief, you can get rid of your loans in bankruptcy. But it's difficult to do so. You must prove to a bankruptcy judge that repaying your loans would be an undue hardship. This standard generally requires you to show that there is no likelihood of any future ability to repay. Learn more. Income-based repayment To qualify you must have a partial financial hardship, which means that payments to your eligible loans exceeds 15 percent of your discretionary income. After 25 years -- 10 working in public service -- any student loan debt left over is forgiven. Learn more. Income-contingent repayment Similar to the income-based repayment program, but payments are capped at 20 percent of discretionary income. Learn more. Pay as you earn forgiveness Only for newer borrowers. You must be a new Direct Loan borrower as of October 1, 2007, with a disbursement made after October 1, 2011. Any Direct Consolidation loan made on or after October 1, 2011, that does not include a Parent PLUS loan or a loan made prior to October 1, 2007 is eligible. Learn more. Fraud If someone fraudulently obtained the loan in your name you may be eligible to have your loan discharged. Medical For borrowers who suffer from physical or mental impairments or have died. Mayotte said it's important to note that for many of these loan programs, the amount that's forgiven can be taxed as income. She says the best way to find out what programs are available to you is searching online and asking. "Ask a potential employer if student loan repayment is part of a benefit. Ask a school that you're attending if the school is aware," says Mayotte. "I wouldn't be surprised if there were some super secret programs out there that weren't online." Learn more about student loan forgiveness programs -- click play on the audio player above to hear the Marketplace Money  interview with Mayotte. Daryl Paranada is the associate web producer for Marketplace overseeing all daily website content and production, as well as producing multimedia features -- including the popular economic explainer series Whiteboard -- and special projects. Follow him on Twitter @darylparanada.

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