The U.S. Government Accountability Office (GAO) has released a study that describes the growing number of colleges and universities who have entered into arrangements with financial institutions to market bank accounts, prepaid cards, debit cards and other financial services (including disbursing financial aid) to students. While the Consumer Financial Protection Bureau (CFPB) has encouraged financial […]
The U.S. Department of Education’s National Center for Education Statistics (NCES) released new data showing that more than seventy percent of undergraduates received some type of student aid (including student loans) during the 2011-12 academic year.
08.14.13 | On vs. Off-Campus Housing
With the fall semester of college starting up in a few weeks, college students are working towards finalizing their housing situation for the upcoming year. Unfortunately, you're running out of time to answer the looming question: "Do I want to live on campus or off campus?" To help you to answer this question, we've weighed some of the crucial factors to consider while making this decision.
08.07.13 | Student Loan Servicer Transfer
Last week, the United States Department of Education released a newsletter informing students and their schools that federal student loans handled by four nonprofit servicers would soon be transferred to new servicers. Over the next two months, the majority of loans that are currently serviced by COSTEP, EDGEucation, and EdManage will be transferred to MOHELA, while those serviced by KSA Servicing will be transferred to Aspire Resources Inc.
With bipartisan support, on July 31, 2013, the House of Representatives passed H.R. 1911, the Smarter Solutions for Students Act (also known as the Bipartisan Student Loan Certainty Act, as amended by the Senate), by a vote of 392 to 31. President Obama signed the legislation into law on August 9, 2013. Under the new law, interest rates on new loans each July 1 will be based on the last 10-year Treasury auction in the previous May.
This is still an interest rate increase masquerading as a decrease. Interest rates are at historically low levels and have nowhere to go but up. We can expect interest rates to start increasing by about 1.5% per year in 2015.
07.24.13 | 5 Ways to Cover College Costs
Whether you’re a soon-to-be freshman or second semester senior, it is never easy to figure out how to cover the costs of college. With tuition and hidden fees averaging out to about $40,000 per year, many of you are still wondering how your family is expected to pay for $35,000 of your education, even after having received your Student Aid Report (SAR) three months ago. To help you out in your pursuit of a college degree, here are 5 ideas for paying for college when FAFSA comes up short.
07.19.13 | College Costs Out of Control
Despite the concerns arising over the recent increase in the federal student loan interest rate, the real problem at hand is the rising cost of college, and decline in government grants
Congratulations on finally finishing college. While it's great to be working and living on your own, you now get to pay your own bills (and yes, now you finally understand why your parents always yelled at you for taking more than 10 minutes in the shower). Amongst these bills, the most pressing may be those student loan repayment letters that start to arrive all too soon after graduation. With student loan debt averaging out to $23,000 per borrower, you could end up paying $200 per month for the next 15 years!
If Congress does not act, interest rates on new subsidized Stafford loans will double from 3.4% to 6.8% on July 1, 2013. Previously originated subsidized Stafford loans and all other education loans will not be affected. Doubling of the interest rates certainly sounds dramatic, but the actual impact on students will be more muted.