College loan – Gaoodgle http://gaoodgle.com/ Tue, 10 Aug 2021 21:11:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://gaoodgle.com/wp-content/uploads/2021/06/cropped-icon-32x32.png College loan – Gaoodgle http://gaoodgle.com/ 32 32 “Debt has transformed my life”: lawyers vote on suspension of student loans https://gaoodgle.com/debt-has-transformed-my-life-lawyers-vote-on-suspension-of-student-loans/ https://gaoodgle.com/debt-has-transformed-my-life-lawyers-vote-on-suspension-of-student-loans/#respond Tue, 10 Aug 2021 20:11:00 +0000 https://gaoodgle.com/debt-has-transformed-my-life-lawyers-vote-on-suspension-of-student-loans/ The top of a graduate student’s cap is pictured during his graduation ceremony at UC San Diego in San Diego, California. REUTERS / Mike Blake

  • White House extended moratorium on student loan repayments until January 31, 2022
  • The move will benefit young lawyers, many of whom are struggling with heavy student debt

(Reuters) – Marcella Jayne earns more than $ 200,000 as a third-year litigation partner at Foley & Lardner, a salary she knows is eye-catching to many people.

Yet the monthly student loan payment of $ 2,200 on her $ 180,000 balance – acquired from her undergraduate years and from Fordham University School of Law JD – is more than the rent the single mother of two pays. for his apartment in Manhattan.

“It’s a seemingly absurd position: you can make enough money to be in a very high income tax bracket, but home ownership is completely out of reach,” she told About struggling to repay her loans while looking after her children, one of whom has special needs. “I say this as someone who feels very lucky.”

Jayne is among thousands of lawyers who have benefited from a moratorium on federal student loan payments that began as the pandemic escalated in March 2020, and which the White House announced on August 6 would be extended. one last time, until January 31. , 2022. This freed up money to enroll one of Jayne’s children in a private school and pay for the extra services she needs.

“We were heading for the cliff,” Jayne said of growing expenses for her daughter.

The moratorium on student loan payments and the related 0% interest rate for that period were due to expire on September 31. The extension means that many student loan borrowers will go almost two years with no payment required and without seeing their loan amount increase due to the interest compounding.

BEARED BY DEBT

The student loan policy is a major problem for lawyers, who earn an average of $ 138,500 in student loans, more than any other field except medicine, according to data from the US Department of Education. MBA graduates, on the other hand, leave campus with an average of $ 59,400 in student loans.

Debt can end up shaping the career decisions of young lawyers, said Jolie Steppe, a research consultant for recruiting firm Greene-Levin-Snyder. Some associates will turn down internal lawyer positions or internships because they can’t afford a pay cut, she said.

“The younger associates seem to be really very aware of the debt. I wasn’t 20 years ago, ”said Steppe, who graduated from New York University law school in 2000 with student loans estimated at $ 200,000, which she has since cut to less than $ 200,000. $ 20,000.

Yet lawyers on the whole have done relatively well during the recession, said Chris Chapman, president of the AccessLex Institute, a nonprofit group that lobbies to make law schools more affordable and accessible. Law firms have not made many layoffs and most courts have resumed operations after brief shutdowns at the start of the pandemic, he said.

Andrew Jack VanSingel, who works as a tax lawyer at a federal government agency, said he felt somewhat guilty about the nearly $ 20,000 advantage he received during the moratorium on loan repayments, noting that he had not lost any income during the pandemic. He will be eligible to have his $ 350,000 student loan balance written off in December through the civil service loan forgiveness program, whereby a borrower’s loan balance is forgiven after 10 years of employment. in the eligible public service.

But VanSingel’s debt load, which rose from $ 210,000 when he graduated from Touro College Jacob D. Fuchsberg Law Center in 2010, has taken a heavy toll on him over the past decade.

“The amount of my debt has transformed my life,” said VanSingel. “Currently, I am not married. I have no children. I don’t own a house. All of those things that I felt like I couldn’t participate in until these loans ran out and / or I made more.

He said he used some of his $ 20,000 in moratorium savings to invest in the stock market and increase his charitable donations.

For Jo Bahn, a 2016 graduate of New York Law School who works at a government agency and lives in Washington, DC, the student loan moratorium has given her growing family a financial breath. Despite a partial scholarship, she graduated from law school with about $ 170,000 in loans, which have since grown to over $ 200,000 due to compound interest. (Bahn’s monthly payments are capped at a percentage of her income, and she also works on remitting civil service loans.)

Not having a monthly loan payment of $ 700 allowed Bahn and her husband to make improvements to the house they bought just before the pandemic started and to pay for child care for their toddler and their four-month-old child, she said.

“The end of the moratorium is certainly going to be a stressor when the student loan payment equals about a week of daycare,” Bahn said. “It’s really the difference in perspective for me. Basically it’s like paying for five weeks of child care instead of four.

At the behest of its younger members, the American Bar Association has made student debt a higher priority in recent months. Its governing body, the House of Delegates, overwhelmingly passed a resolution in February supporting the cancellation of student loans and measures that would make it easier for student loan borrowers to make their monthly payments.

The House of Delegates passed a separate resolution on Tuesday asking the organization to lobby federal lawmakers to make it easier to repay student loans in bankruptcy, which is now extremely difficult to do. This measure is sponsored by the Young Lawyers and Law Students Divisions of the ABA.

Jayne said she was grateful for the temporary stay offered by the moratorium on loan payments, but would like to see more meaningful and permanent changes in student loan policy.

“I feel like it’s a band-aid,” she said of the moratorium. “I want policy changes.”

Read more:

ABA will lobby Congress to relax student loan release in bankruptcy

Young lawyers ask ABA for help with student loan cancellations

ABA Supports Law School Debt Aid and Cancellation for Overloaded Lawyers

Additional reporting by David Thomas

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Student loan payment freeze extended to January 31 by US Department of Education and Joe Biden White House 2021 https://gaoodgle.com/student-loan-payment-freeze-extended-to-january-31-by-us-department-of-education-and-joe-biden-white-house-2021/ https://gaoodgle.com/student-loan-payment-freeze-extended-to-january-31-by-us-department-of-education-and-joe-biden-white-house-2021/#respond Sun, 08 Aug 2021 20:48:45 +0000 https://gaoodgle.com/student-loan-payment-freeze-extended-to-january-31-by-us-department-of-education-and-joe-biden-white-house-2021/

People in Ohio and across the country just got a stay on their student loans.Photo: MD Duran, Unsplash

The Biden administration announced on Friday afternoon that it was extending the break on federal student loan repayments until January of next year, as the delta variant of the coronavirus increases across the country.

“As our country’s economy continues to recover from a deep hole, this latest extension will give students and borrowers the time they need to plan for the restart and ensure a smooth return to repayment,” said US Secretary of Education Miguel Cardona in a statement.

The administration previously froze student loan repayments until September 30, but announced it would grant a final extension until January 31, 2022.

Democrats welcomed the break, but criticized the administration for failing to give more relief to student loan borrowers by forgiving student debt.

“While this temporary relief is welcome, it does not go far enough,” said Senate Majority Leader Chuck Schumer (DN.Y.); Senator Elizabeth Warren, (D-Mass.); and Rep. Ayanna Pressley (D-Mass.), said in a statement.

They renewed their calls for President Joe Biden to write off up to $ 50,000 in student loan debt.

“Canceling student debt is one of the most important actions President Biden can take right now to build a fairer economy and fight racial inequality,” they said. “We look forward to hearing the administration’s next steps in dealing with the student debt crisis.

However, the chairman of the House Education and Labor Committee, Bobby Scott (D-Va.), Praised the administration in a statement on its extension.

“Putting federal student loan borrowers back on loan repayments this fall would affect millions of workers and families who are just starting to get back on their feet,” he said.

“By extending this break, the Biden-Harris administration will help build momentum in our economic recovery and give student loan borrowers the time they need to build their financial security before restarting their loan repayments.”

The Federal Reserve estimates that the total student loan debt in the United States stands at over $ 1.7 trillion. In a February town hall in Wisconsin, a participant asked Biden what he would do to write off up to $ 50,000 in student debt. He said he “wouldn’t make it,” and instead offered free forgiveness programs for community colleges and the government.

This story was originally published by the Ohio Capital Newspaper and republished here with permission.

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70% of students say affordability impacted their plans for fall 2021 https://gaoodgle.com/70-of-students-say-affordability-impacted-their-plans-for-fall-2021/ https://gaoodgle.com/70-of-students-say-affordability-impacted-their-plans-for-fall-2021/#respond Fri, 06 Aug 2021 14:14:31 +0000 https://gaoodgle.com/70-of-students-say-affordability-impacted-their-plans-for-fall-2021/

College students today face undeniably difficult pressures. They have to contend with college costs that have skyrocketed over the past few decades and they must navigate to earn an education during a global pandemic.

According to Annual citizen student loan survey conducted from June 15 to 26 among 2,019 students and their parents, these realities are in the foreground. An estimated 70% of current college students say concerns about college affordability had a moderate or high impact on enrollment plans in fall 2021.

Public health concerns about the coronavirus have declined slightly since last year. In 2020, 53% of current students said they were worried about their safety due to the pandemic. Still, 36% of current students said such concerns had a big impact on their plans for fall 2021.

“Our annual survey has consistently shown that young adults worry about their future and the cost of education,” says Christine Roberts, head of student loans at Citizens. “We are seeing families embrace discussions about the cost of education sooner and it remains essential for financial institutions to continue supporting their clients as they navigate these difficult family conversations.”

Half of families tell citizens they had conversations about paying for college education in their students’ first two years of high school or before, and 20% say they had these discussions in grade 8 or before .

While the pandemic may have temporarily slowed the rise in college costs, 56% of respondents say they expect their costs (including tuition, accommodation and meals, meals, travel and activities) are increasing this year by $ 8,700, on average.

Over the past 10 years, tuition fees have increased by around 25% and US student debt has increased by over 100%. Today, 44.7 million borrowers collectively owe more than $ 1.7 trillion student debt dollars.

The pandemic can also affect the number of years students can expect to spend in school.

A 2020 survey of 3,941 students pursuing a bachelor’s degree and 2,064 students pursuing an associate’s degree by Gallup and the Lumina Foundation found that about half of students think it is likely that Covid-19 will have a negative impact on their ability to complete their program.

Among students earning a bachelor’s degree, 49% of students said the pandemic would likely or very likely have an impact on their ability to graduate, while even more 56% of those earning an associate degree said the same. .

Currently just 41% of full-time students for the first time get a bachelor’s degree in four years, and only 59% obtain a bachelor’s degree in six years. This means that many students will have to fund more than the four years allotted to earn a bachelor’s degree, and millions of people will go into debt and still fail to graduate.

Unfortunately, student loan borrowers who do not graduate often struggle financially. Indeed, the default rate of borrowers who have not graduated is three times higher than the rate of borrowers who have graduated.

In addition to public health and affordability concerns, the students also stressed that what they wanted to study was a top priority. Fifty-five percent of students told citizens that a college with a specific program of study they were interested in was a “must-have” when choosing where to enroll.

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Student loan cancellation focused on Capitol Hill today https://gaoodgle.com/student-loan-cancellation-focused-on-capitol-hill-today/ https://gaoodgle.com/student-loan-cancellation-focused-on-capitol-hill-today/#respond Tue, 03 Aug 2021 21:21:12 +0000 https://gaoodgle.com/student-loan-cancellation-focused-on-capitol-hill-today/

Canceling student loans became the primary focus today during hearings on Capitol Hill.

Here’s what you need to know.

Student loans

At a Senate Judiciary Committee hearing today, senators discussed a new bipartisan student loan bill that would make it easier for more student loan borrowers to get credit. cancellation of their student loan in the event of bankruptcy. However, the initial focus of the hearing turned to the large-scale cancellation of student loans. Senior committee member Senator Chuck Grassley (R-IA) addressed the issue of student loan cancellation, its impact on student loan borrowers, and the potential reasons for high US student debt. Here is what he said:

Student loan cancellation: why student loans are broken

Grassley said the federal student loan system is broken and it’s hurting both student loan borrowers and taxpayers. He referred to various student loan cancellation proposals, whether it was $ 10,000 or $ 50,000, for example, for each student loan borrower. Grassley noted that the amount of student debt has doubled over the past 10 years, with the federal government now holding 92% of all outstanding student debt. Why? According to Grassley, student loan debt has increased due to rising tuition fees, implying that colleges and universities have directly led to an increase in student loans. Grassley says we need to fix the underlying problem with student loans.

Here’s what else Grassley said about a flawed student loan system:

  • “Federal student loans are available regardless of who can pay and beyond what is needed. “
  • “Colleges have unlimited funding, which does not encourage colleges to cut costs. ”
  • Grassley noted that some senators want to hold colleges and universities more accountable for student outcomes such as placement, but this is difficult in practice because “different schools have different standards” and that still may not solve the problem. .
  • Grassley also didn’t address whether canceling student loans would boost the economy, although recent research indicates that canceling student loans isn’t the best financial stimulus. He also did not address recent news that several colleges have canceled student loans for student loan borrowers.
  • Grassley is a strong supporter of information disclosure so that students better understand college costs. He introduced three separate bills to Congress to provide students with better information about finding colleges and understanding the total cost of financial aid.
  • Grassley believes this will lead to “more transparency, more informed choices and more price competition between colleges.”
  • More importantly, Grassley says that greater transparency will limit borrowing to what every student loan borrower can afford.


Student loan cancellation: Grassley says student loan forgiveness is “regressive”

Grassley turned to student loan cancellation as a policy. Discussing the notion of large-scale student loan cancellation, Grassley said:


Student loans: why we have high student debt

Grassley went on to explain why America has such high student debt:

  • Grassley says that “we have a lot of bad federal policies.”
  • “We have a federal policy that encourages young people to take on more debt than they should.”
  • “When you have banks making loans, there is more to consider how much loan you should take than what a direct government loan gives.”
  • “We have a federal policy that encourages our universities to tell students maximum amount they can borrow and, as a result, they borrow more than they should.
  • “We shouldn’t be encouraging people to borrow more than they need. “

Student loans: higher education is down

“The incentives in higher education are severely shattered,” Sen. Jon Cornyn (R-TX) said at the hearing. Cornyn added that teens are expected to borrow tens of thousands of dollars to get a good job only to find that upon graduation jobs are limited or their work does not match their field of work. studies, which creates a lag in the repayment of student loans. Cornyn also said:

  • “Student loans can pave the way for a better life. “
  • Cornyn doesn’t want to stop a student borrower from borrowing a student loan.
  • “Schools sell a product for a price, and that price has to match what these students get for it. “
  • “Some schools have taken advantage of the US taxpayer.”

Biden or Congress did not enact large-scale student loan cancellations. That said, Biden has canceled $ 3 billion in student loans since becoming president. It is possible that Congress will pass bipartisan legislation to make it easier for student loan borrowers to cancel student loans in bankruptcy. However, it won’t be the same as full-scale student loan cancellation. If you have student loans, make sure you have a student loan repayment game plan. Here are some popular options to help you save money:


Student loans: more reading

Student loan cancellation may help more borrowers, but that doesn’t mean Biden will cancel everyone’s student loans

Canceling student loans won’t boost economy, new study finds

Are you ready to repay your student loans again? Elizabeth Warren Says Your Student Loan Officer Isn’t Ready

Is this a game-changer for student loan cancellation?

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12 Ways Military and Veterans Can Reduce Student Loan Debt https://gaoodgle.com/12-ways-military-and-veterans-can-reduce-student-loan-debt/ https://gaoodgle.com/12-ways-military-and-veterans-can-reduce-student-loan-debt/#respond Fri, 23 Jul 2021 17:30:47 +0000 https://gaoodgle.com/12-ways-military-and-veterans-can-reduce-student-loan-debt/

Student loan debt can be a financial burden to the point where you feel there is no other way out than defaulting on your loans. And if you want a job in national security, default is never the answer. Not only that, leaving one of your debts in default can have lasting effects on your life, especially when there are better ways to manage that debt without default. There are different ways to manage student debt depending on whether you are in the military or a veteran.

While serving in the army

If you currently have student loan debt, joining the military can help you pay off that debt in several ways:

1. Army or National Guard

Newly enlisted members of the army without previous military service are eligible for the Army student loan repayment program. the National Guard also has its own student loan repayment program.

2. Enlistment in the Army Reserve

Enlistment in the Army Reserve could qualify you for the Army Reserve College Loan Repayment Program depends on the choice of one of the many critical military occupational specialties (MOS).

3. Army or Navy health professional

If you join the military or navy as a medical professional, you may be eligible for the Loan repayment program for health professionals 4.

4. Corps of the Air Force Judge Advocate General

If you join the Air Force Judge Advocate General Corps, up to $ 65,000 in student loans could be repaid over the life of your enrollment.

5. Marine

Join the Marine could result in a loan reduction of $ 65,000.

6. Perkins loan and specific service

Having a Perkins loan and serving in an area of ​​hostile fire or imminent danger for more than a year may qualify you for a loan discount of up to 50% provided your active duty has ended by the 14th. August 2008; ending on or after August 14, 2008 and up to 100% of your loan may be canceled.

After leaving the army

Depending on your income after separation from military service, you may be eligible for one of the four options of the income based repayment plan: REFUND, PAID, IBR and ICR. Moreover, there are other options that you can follow in order to get that loan canceled or paid back faster.

1. REFUND

Under the revised Pay As You Earn repayment plan, the payment amount is typically 10% of your discretionary income. If all of your loans were taken out as an undergraduate, the loan is repaid in 20 years; for loans taken out within the framework of graduate or professional-level programs, the term is extended to 25 years.

2. PAY

Under the Pay As You Earn repayment plan, the payout is usually set at 10% of your discretionary income. But it will never exceed the standard amount of the standard 10 year repayment plan. The amortization period is set at 20 years.

3. IBR

Under the income-based repayment plan, the amount you pay depends on when the loan was taken out and whether you were a new borrower at that time or not. For new borrowers who take out a loan on or after July 1, 2014, the payment amount is typically 10% of discretionary income, but should not exceed the standard 10-year repayment plan amount. The loan is considered repaid after 20 years as a new borrower with a loan date starting July 1, 2014, and 25 years for subsequent loans made from the same date.

4. RIC

For the income-based repayment plan, the payback period is 25 years with the payment amount set at 20% of your discretionary income or what you would pay on a repayment plan with a fixed payment over the course of a 12-year adjusted plan based on your income.

To note: Under the standard repayment plan, the fixed payment amount is at least $ 50 per month for a maximum of 10 years for all types of loans except Direct and FFEL consolidation loans. With these types of loans, the repayment period varies depending on the loan amount.

At the lower end of the scale, with amounts up to $ 7,500, the payback is 10 years; with amounts of $ 60,000 or more, the payback period increases to 30 years. Interim loan amounts vary from payback periods of 12 years to 25 years depending on the loan amount.

5. Public service loan forgiveness program

If you work in a public service employment in a non-profit, government or civilian position for military personnel for at least 30 hours per week, a loan can be canceled after 120 monthly payments.

6. Waiver of the teacher’s loan

One creative option if you have the right degree and the heart to make a difference is to teach full-time for five years in a low-income school. This choice can earn you up to $ 17,500 in student loans, but it might not put you on the right track for a job in National Security. Note that the benefits of public service and Teacher loan forgiveness programs cannot be used at the same time.

There are many different programs available for serving members and veterans that can help reduce outstanding student loans. Find out which program may be right for you.

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9 benefits of good credit and how it can help you financially – Forbes Advisor https://gaoodgle.com/9-benefits-of-good-credit-and-how-it-can-help-you-financially-forbes-advisor/ https://gaoodgle.com/9-benefits-of-good-credit-and-how-it-can-help-you-financially-forbes-advisor/#respond Wed, 21 Jul 2021 16:04:35 +0000 https://gaoodgle.com/9-benefits-of-good-credit-and-how-it-can-help-you-financially-forbes-advisor/ Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.

Your credit score is a measure of your overall financial health and creditworthiness. Because your credit is a key part of your financial identity, it’s essential to build good credit early on. While a bad score can make your biggest financial purchases more expensive, a good credit score can give you a competitive edge when making loan decisions.

Increase your FICO® score instantly with Experian Boost

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Forbes Advisor describes nine benefits of good credit below.

1. Lower interest rates

One of the main advantages of good credit is the lower interest rates on your loans. When you apply for a loan, such as a mortgage or credit card, a lender or provider usually uses your credit score to determine your interest rate. The lowest rates are reserved for applicants with the highest scores; applicants with lower credit scores generally receive higher interest rates.

To put this in perspective, the estimated average interest rates for personal loans based on VantageScore risk levels, according to Experian, are in the table below. Please note that lenders determine and set an individual’s interest rate on a particular loan. The prices provided are estimates.

2. Better probability of being eligible for a loan or credit

If you’ve been denied a loan or a credit card, you know how painful it is. It can be a challenge if you are denied financing for something you need, such as a mortgage or a car. And it can be devastating if you are not approved for other loans, such as private student loans which help many people afford college. But with a better credit score, there is a better chance of getting approved. Of course, your credit score is not the only factor that lenders consider, but it is an important factor.

3. Approval for certain work

Some jobs, such as those that work with cash or in security clearance positions, require a personal credit check. This is to make sure that you are able to manage your finances or that you are not vulnerable to corruption due to financial problems. If you have a bad credit rating, you may not be eligible for certain positions.

4. Larger credit card and loan limits

If you have a good credit rating, you will be eligible for larger loans, such as the jumbo loans needed to take out a mortgage in certain areas with high cost of living. You can also benefit from higher credit card limits.

For example, according to a recent Experimental study, the average baby boomer had a credit score of 731 and a credit card limit of almost $ 40,000. But for millennials, the average person had a lower credit score of 668 and a lower credit limit of about $ 20,000. It should be noted that baby boomers have had more time to accumulate good credit since the length of credit history contributes to your overall score.

5. Better credit card rewards

Along with a higher credit limit, a better credit score also unlocks a wider variety of credit cards. Most of the best rewards cards require excellent credit for approval. This includes travel rewards cards that you can use to fully fund your vacation and cash back rewards cards that allow you to recoup a percentage of your spending.

6. Easier approval for rental properties

Even if you never plan to buy a home, you will still need a good credit score. A lot of people don’t realize it, but your credit score is a factor that landlords consider in your rental application. If you have a good credit rating, you are more likely to be approved as a tenant because a history of on-time payment behavior is likely to be more appealing to a landlord than to someone with multiple defaults. . Otherwise, you may have to pay a larger down payment, accept a short-term lease, or even be refused accommodation.

7. Lower insurance rates

Good credit can also save money on your insurance. Insurance companies use your credit score to decide whether to accept you as a customer and how much to charge you, although some officials believe this practice is unfair. According to a insurance quote study, people with fair credit (a FICO score of 580 to 669) paid 39% more on their auto insurance premiums. People with poor credit (a FICO score below 580) had it even worse, paying 103% more.

8. Avoid security deposits on utilities

A good credit score can also be important in activating your utilities. If you have a good credit rating, providers are likely to activate your utilities with minimal hassle. But if your credit is low, they may require a deposit from you, or even ask someone to legally agree to pay your bill if you don’t, like finding someone to co-sign a loan.

9. Negotiating power over loan terms

Not only can you get lower interest rates with a better credit rating, but you can also use it as a bargaining chip in the mortgage negotiation process. To do this, you will need to pre-qualify and check your rate with several lenders. Then you can submit your rate estimate to different lenders to see if they can offer you better terms, either lowering the interest rate even further or removing the loan fees.

Final result

Building and maintaining a strong credit profile is crucial because your credit score plays a key role in most loan decisions. If your credit rating is low, take the time to improve your credit rating to prepare for any future loan or rental applications.

Increase your FICO® score instantly with Experian Boost

Experian can help you increase your FICO® score based on paying bills like your phone, utilities, and popular streaming services. Results may vary. See the site for more details.

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If Biden Can’t Forgive Student Loan Debt, His Infrastructure Bills Mean Nothing https://gaoodgle.com/if-biden-cant-forgive-student-loan-debt-his-infrastructure-bills-mean-nothing/ https://gaoodgle.com/if-biden-cant-forgive-student-loan-debt-his-infrastructure-bills-mean-nothing/#respond Tue, 20 Jul 2021 21:08:12 +0000 https://gaoodgle.com/if-biden-cant-forgive-student-loan-debt-his-infrastructure-bills-mean-nothing/

Tomorrow’s deadline set by Senate Majority Leader Chuck Schumer to pass a bipartisan $ 1.2 trillion infrastructure bill is looming. Congress will step down in early August and before that, President Biden wants to pass a $ 3.5 trillion budget that he calls his “human infrastructure” legislation, as well as the bipartisan infrastructure bill. Republicans are, unsurprisingly, opposite how to pay the bills and do not want to see the cuts to corporate tax deals made by the Trump administration. But another major piece is missing: As long as the President and Democrats revolve around the issue of canceling student loans, we will not see our economy rebound with the strength and sustainability needed to compete in the long run with countries. like China.

According to Forbes, 45 million borrowers in the United States owe a whopping $ 1.6 trillion in student loan debt, which is now the second-largest category of consumer debt after mortgage debt. Most Republicans seem generally opposed to ridiculous ideas like universal pre-K or the expansion of dental and vision care in Medicare, both of which are in the proposed $ 3.5 trillion budget deal. . And I get it: if babies can’t make enough money to pay for their own toys and child care, they shouldn’t expect the government to step up their extravagant way of life! As for health, honestly, real Americans don’t need teeth to eat soup!

As reasonable as these arguments may be, I think the benefits of canceling student loans have a bipartisan, pro-capitalist appeal that Republicans in Congress overlook. If we want our free market capitalist society to thrive, we must ease the burden on generations of Americans who cannot get ahead financially because of the massive student debt that hangs out on them. When you owe tens or even hundreds of thousands of dollars in student loan debt, you can’t buy a house, save for retirement, get married, or go shopping – all of the fundamental pillars of spending (and savings) of this Yankee economy is based on.

When I went to law school in 2009, I never thought I wouldn’t be able to repay my student loans. No one submits to three grueling years of 16-hour days of enduring the Socratic Method, describing and reading hundreds of pages of jurisprudence a day, and passing a bar exam while simultaneously believing that they will not be able to. never earn enough money to pay everything back. That is to say nobody plan. Today, however, more than ten years later, I am faced with the terrifying and depressing realization that I will never be able to repay all I owe (and I didn’t even have to borrow for my undergraduate studies. ).

The American oppressive fee system for higher education has not always been so. When my mother went to college in the late 1960s and 1970s, student debt was manageable; even though she came from a family with very limited resources, she was able to work and go to college and my father to law school, buy a house, a car, get married and save for retirement. Manageable student loans are a thing of the past.

If Republican lawmakers want a throwback to the good old days where people could spend their way and pay it off, and if Democrats want to relieve Americans unable to move forward despite their hard work, then we must forgive student debt under these two infrastructure plans. Without it, it is simply not enough.

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College Ave Student Loans Review 2021 https://gaoodgle.com/college-ave-student-loans-review-2021/ https://gaoodgle.com/college-ave-student-loans-review-2021/#respond Mon, 19 Jul 2021 20:04:46 +0000 https://gaoodgle.com/college-ave-student-loans-review-2021/

Personal Finance Insider writes about products, strategies, and tips to help you make informed decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective.

Advantages and disadvantages

College Avenue Undergraduate Student Loans

Regular APR

Variable: 1.04% – 11.98%, Fixed: 3.34% – 12.99%

  • Advantages and disadvantages

  • Details


  • Benefits
    • No prepayment or origination fees
    • Eligible international students with an eligible co-signer
    • Low APR
    • Several repayment term options
    • Many ways to contact customer service
    The inconvenients
    • Credit check required
    • Late payment fees
    • Apply via your computer or mobile device
    • Customer service available by phone, text, email and live chat
    • Five, eight, 10 or 15 year repayment terms available
    • Late payment of 5% of the amount due, capped at $ 25
    • Minimum loan of $ 1,000, maximum up to 100% of participation fees
    • Loans made via Firstrust Bank, FDIC member or MY Safra Bank, FSB, FDIC member

    College Ave offers competitive fixed and variable APRs on its undergraduate student loans and does not charge any origination or prepayment fees. In addition, you have the choice of several terms of office, including periods of five, eight, 10 and 15 years.

    You will pay late fees with College Ave and a credit check is required to take out a loan.

    College Avenue graduate student loans

    College Ave graduate student loans are not as good as their undergraduate student loans because the lender has average APRs compared to their competition and comes with no additional advantages. On the plus side, the company offers many tenure terms and does not incur any set-up or prepayment fees.

    How College Ave Student Loans Work

    College Ave offers student loans for a variety of degree types, including undergraduate, graduate, vocational training, dental, law schools, MBAs, and health professions.

    To get a loan, you must meet the following conditions:

    • Be a U.S. citizen or permanent resident or international student with a Social Security number and an eligible co-signer
    • Be enrolled in a diploma school part-time or more
    • Make satisfactory academic progress as defined by your school
    • Pass a credit check

    You should think about your federal student loan options before applying for a private student loan, including one with College Ave, as you can usually get more favorable terms and protections through the government.

    You can apply for a loan in as little as three minutes, and you’ll need to provide the following information:

    • Contact information
    • Date of Birth
    • Social Security number
    • Household income
    • School attendance and your attendance fees
    • Expected Graduation Date
    • Amount of the loan

    You can choose from several options for contacting customer service at College Ave. You can call the company from 9 a.m. to 10 p.m. ET Monday through Friday or Saturday from 9 a.m. to 3 p.m. ET. You also have the option of sending an SMS to the lender. College Ave also has a live chat feature on its website where you can message a representative. In addition, you can send an email to the company.

    What options do I have for paying off my College Ave student loans?

    You have four options for paying off your student loan after you take it out: deferred, lump sum, interest only, and payment in full. Each option has its advantages for different types of borrowers.

    Is College Ave Trustworthy?

    College Ave is a Better Business Bureau accredited company with an A + in reliability rating from the BBB. The BBB assesses reliability by examining companies’ responses to consumer complaints, honesty in advertising, and clarity in business practices.

    That said, you won’t necessarily have a great relationship with College Ave just because the company has a top-notch BBB rating. You should educate and ask your friends and family about their experiences with the lender and read customer reviews online.

    College Ave has not been the subject of recent public controversy, so you may decide that you are comfortable taking out a student loan with the company.

    How College Ave Student Loans Compare to Similar Lenders

    College Ave’s rates are lower than those offered by comparable lenders, although the rates depend on your creditworthiness and other financial factors. Here’s how College Ave stacks up against the competition:

    College Ave Reviews vs. Sallie Mae Reviews

    If you have good credit, you will likely get better APR with College Ave than with Sallie Mae, because College Ave has a lower minimum rate.

    Neither company will charge a setup fee or prepayment penalties, but you will need to pay a 5% late fee, up to $ 25, from both lenders.

    College Ave will give you your rate and tell you if you’ve been approved for a loan through a soft credit check, which won’t impact your credit score. With Sallie Mae, the lender will perform a thorough credit investigation to determine your eligibility, which could negatively affect your credit score.

    College Ave Reviews vs Discover Reviews

    College Ave has a lower minimum APR to find out, and both have similar maximum APRs. College Ave may be the best choice if you have an excellent credit history.

    Discover only has one standard term available on its undergraduate student loans, 15 years, while you can choose from terms of five, eight, 10, and 15 years with College Ave.

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    Another college cancels student debt https://gaoodgle.com/another-college-cancels-student-debt/ https://gaoodgle.com/another-college-cancels-student-debt/#respond Sun, 18 Jul 2021 16:55:03 +0000 https://gaoodgle.com/another-college-cancels-student-debt/

    Another college canceled student debt.

    Here’s what you need to know.

    Student debt

    South Carolina State University will write off $ 9.8 million in student debt for 2,500 students. The State of South Carolina, the State’s only historically black college and university (HBCU), will ‘wipe out student account balances’ for students who continued to experience financial hardship due to the Covid-19 pandemic . Here’s how the state of South Carolina is paying for this student debt cancellation:

    • Care Act: $ 4 million
    • American rescue plan: $ 5.8 million

    “We are committed to providing these students with a clear path forward so that they can continue their college education and graduate without the burden of financial debt caused by circumstances beyond their control,” the acting president said. , Alexander Conyers. “Our university was founded on the principle of providing students with access to affordable, quality education. This is exactly what we intend to do. No student should have to stay home because they cannot afford to pay their outstanding debts after suffering the financial devastation caused by a global pandemic. “

    Most of the students who will benefit from this student debt relief have not registered for the upcoming semester due to the financial burden of overdue account balances. It’s important to note that this is student debt that students owe college, not student loan forgiveness for private or federal student loans. “Honestly hearing this news brings tears to my eyes,” said Leslie Young, a freshman who couldn’t attend school during the spring semester because she didn’t have the money. to pay the tuition fees. “My family has very low income. I was in a deep depression because school means everything to me. Without it, I felt like I was abandoning my dreams.


    Student loan cancellation at more colleges

    The state of South Carolina is among other colleges that have proactively written off student debt.


    Biden backs student loan cancellation at these colleges

    President Joe Biden canceled $ 3 billion in student loans. Biden also supports large-scale student loan cancellation up to $ 10,000 student loan cancellation for student loan borrowers, but wants Congress to act. (However, the latest stimulus package, infrastructure plan, and budget do not include any student loan cancellations). Biden supports additional cancellation of student loans, including cancellation of student loans at historically black colleges and universities (HBCUs) as well as four-year public colleges and universities. Under Biden’s plan, tuition would be free for students whose families earn less than $ 125,000 a year. Biden also wants student loan cancellation for student loan borrowers who attend these colleges and universities and earn less than $ 125,000. However, despite these proposals, Congress was unable to reach agreement on the large-scale cancellation of student loans. This has led many student loan borrowers to wonder: Has the student loan cancellation been reversed? For many student loan borrowers, this sounds too true. For now, targeted student loan cancellation appears to be the new normal.

    If you have student loans, make sure you have a solid plan for paying off your student loans. Here are some potential options to consider:


    Student loans: more reading

    Biden has now canceled $ 40 billion in student loans this way

    Biden may extend student loan relief beyond September 30, 2021, even if unemployment benefits and expulsion moratorium end

    Biden has now canceled $ 1.5 billion in student loans this way

    Is this a game-changer for student loan cancellation?

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    Pass university? Not if you wanna make more money https://gaoodgle.com/pass-university-not-if-you-wanna-make-more-money/ https://gaoodgle.com/pass-university-not-if-you-wanna-make-more-money/#respond Sat, 17 Jul 2021 00:33:45 +0000 https://gaoodgle.com/pass-university-not-if-you-wanna-make-more-money/

    Skeptical about the four-year college degree? It is always your best bet for making money.

    The backlash against college as a common stop on the road to adulthood has intensified over the past decade. Critics say four-year degree programs burden most students with five-figure debt without a clear path from class to career.

    Almost half (46%) of all families surveyed in November and December 2020 by Gallup for the Carnegie Corporation of New York said they would prefer their children to attend alternative institutions to four-year-old institutions – even in the absence of financial barriers.

    But when you compare the value of a four-year degree with other degrees – a high school diploma, certificate programs, and associate’s degrees – it still gives workers an edge in the workforce and leads to higher lifetime incomes, on average.

    BACHELOR DIPLMS ARE GENERALLY A GOOD INVESTMENT

    If a college degree is an investment, it’s a good investment, according to the New York Federal Reserve. The annual return on a typical four-year degree is around 14%, he calculates, well above the threshold for “good” returns for stocks (around 7%) and bonds (3%). .

    In dollar terms, bachelor’s graduates will earn on average about $ 78,000 per year, compared to a high school graduate who receives about $ 45,000 per year, according to 2019 data from the New York Federal Reserve.

    However, “on average” does not mean that the return on your education, or the premium on college earnings, will always be a gain. Where you go to school, how much debt you have, what you study and where you live after school all help determine your return. Many of these factors are influenced by your race, ethnicity, and gender.

    YOUR ABILITY TO REPAY DEBT AFFECTS THE VALUE OF YOUR DEGREE

    Student loan debt is hard to avoid and even harder to pay off. College costs increased 117% from 1985-86 to 2018-19, according to federal data. Wages, meanwhile, have not kept pace, increasing only 19% over the same period, according to the Federal Reserve Bank of St. Louis.

    However, loans remain the primary means for families without wealth to obtain college degrees. To make your degree worth it, you need to earn enough to justify it. That means having debt that won’t put you under water – a manageable student loan payment is about 10% of your after-tax discretionary income.

    To get the best return and be able to repay debt, graduation is crucial – many defaulting borrowers will have debt but no degrees.

    “It’s the worst case scenario – you incur some of these costs but with very, very little benefit,” says Jonathan Rothwell, senior economist at Gallup.

    REQUEST FOR YOUR BIG BUSINESS

    What you study in school will affect the type of job you can get, your income, and your ability to pay off your debts.

    Mid-career average earnings are highest among those with a bachelor’s degree in fields such as science, technology, engineering and math, or STEM ($ 76,000), business ($ 67,000) and health ($ 65,000), according to a 2015 data report from Georgetown University’s Center for Education and the Workforce.

    The same report found the lowest mid-career median earnings among those with a bachelor’s degree in fields such as the arts, humanities, and liberal arts ($ 51,000), as well as teaching and teaching roles. service such as social work ($ 46,000).

    To estimate income, graduation rates, typical student debt, and other factors at individual schools, use the Department of Education’s College Scorecard tool. You can search and compare income as well as debt by field of study.

    WHERE YOU LIVE AFTER OBTAINING YOUR DIPLME ALSO ACCOUNTS

    Where you live after you graduate also affects its value, according to the results of a May 2020 study for the Thomas B. Fordham Institute, a conservative nonprofit think tank.

    “In general, college degrees are a good investment, but the return in terms of cosmopolitan areas is phenomenal,” said John Winters, associate professor of economics at Iowa State University, who conducted the study.

    In cities, bachelor’s degree holders earn an average of $ 95,229, an 86.2% premium over a worker with a high school diploma, and a 55.7% premium over a high school graduate. holder of an associate’s degree.

    Winters says this is mainly because cities have a higher concentration of jobs in fields that often require workers to have four-year degrees, such as technology, finance and marketing. Workers in these fields earn higher wages, resulting in a better return on investment for degrees.

    However, Winters’ findings also mean that having a four-year degree is less essential if you want to live in a smaller metropolitan or rural area. Bachelor’s degree holders in non-urban areas have an average income of $ 67,893, which places their salary at a 46.4% premium over high school graduates and a premium of 29.6% compared to holders of an associate degree.

    OBTAINING THE DIPLME DOES NOT GUARANTEE EQUITY

    In some ways, a college degree can exacerbate income and racial inequalities, such as student debt and the ability to repay that debt, says Marshall Anthony Jr., senior policy analyst at the Center for American Progress, a research organization on public policies.

    “A college degree usually doesn’t work the same for everyone,” says Anthony

    Black borrowers tend to take on more debt – about $ 25,000 more, on average, than white borrowers, according to federal data.

    In 2016, among those with a bachelor’s or higher degree, full-time, full-year Asian workers aged 25 to 34 had higher median annual earnings ($ 69,100) than their white peers ( $ 54,700) and median incomes for both racial / ethnic groups were higher than those of their black ($ 49,400) and Hispanic ($ 49,300) peers, according to the most recent data available from the National Center for Education Statistics .

    Higher debt and lower wages also mean that black borrowers will accumulate more interest over time: four years after graduating from college, black graduates have $ 52,726 in student loan debt compared to graduates. whites at $ 28,006, according to a 2016 study from the Brookings Institution.

    This article was provided to The Associated Press by the NerdWallet personal finance website. Anna Helhoski is a writer at NerdWallet. Email: anna@nerdwallet.com. Twitter: @AnnaHelhoski.

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