In short, this is a collection of different options that may forgive, discharge, or pay for all or a portion of your federal student loans. Simple, right? The tricky stuff comes once you get into the eBook.
What kind of society sends its young people from higher education into adulthood this way? I’m aware I’m only talking about those lucky enough to go to college, when roughly one-third of high school graduates don’t – but if this is the way we treat our relatively lucky kids, the rest of them don’t have a prayer. For many, the school to prison pipeline functions much more efficiently than the school to college one; California is one of at least 10 states that now spends more on prison than higher education. According to the Federal Reserve Bank, two-thirds of college graduates leave with some debt, and 37 million Americans are repaying a student loan right now.
The headlong rush of black Americans to get schooled has also led too many down a depressingly familiar path. As with the mortgage market of the pre-crash era, those who are just entering in the higher ed game have found themselves ripe for the con man’s picking. They’ve landed, disproportionately, at for-profit schools, rather than at far less expensive public community colleges, or at public universities. And that means they’ve found themselves loaded with unimaginable debt, with little to show for it, while a small group of financial players have made a great deal of easy money. Sound familiar?
At a time when overall student debt approaches $1 trillion, the facts reveal that student loans aren’t loans, not in the traditional sense. They exhibit none of the qualities of modern consumer financial instruments, and are often sold under false pretenses, with the promise of a lifelong benefit that never materializes. We need to change how these loans work and have a broader conversation about what we should be doing — including bankruptcy and refinancing — to help future generations obtain a quality, affordable education, which is critical to our economic future. Your student loan isn’t really a loan
If you're one of the 37 million Americans with student loan debt, you're in for a real treat come July 1. That's when interest rates on federal student loans are set to rise to 6.8 percent—double the current rate of 3.4 percent. That deadline has lawmakers scrambling for a fix. Student Loan Debt Is a Beast.
Why can't I ever recall seeing an article about the millions of out of work American's who went back to school and took out student loans to survive. No matter who reports on the student loan bubble this reality always seems ignored.
Almost two-thirds of private institutions require students from families making $30,000 or less annually to pay more than $15,000 a year, according to the report released today by the Washington-based New America Foundation. The research analyzing U.S. Education Department data for the 2010-2011 school year undercuts the claims of many wealthy colleges that financial-aid practices make their institutions affordable, said Stephen Burd, the report’s author. He singled out schools -- including Boston University and George Washington University -- that appear especially pricey for poor families.
“In the ‘new normal,’ retirement and health care costs simultaneously drive up the cost of higher education, and compete with education for limited public resources. The ‘new normal’ no longer expects to see a recovery of state support for higher education such as occurred repeatedly in the last half of the 20th century. The ‘new normal’ expects students and their families to continue to make increasingly greater financial sacrifices in order to complete a postsecondary education. The ‘new normal’ expects schools and colleges to find ways of increasing productivity and absorb ever-larger budget cuts, while increasing degree production without, we hope, compromising quality.” via A Dangerous ‘New Normal’ in College Debt - NYTimes.com.
In his speech at the Democratic convention, former President Bill Clinton heaped praise upon a program that the Obama administration started to help people repay their student loans. Known as “income-based repayment,” it lets borrowers adjust monthly payments down to 15 percent of their income and wipe out the debt after 15 years. “No one will ever have to drop out of college again for fear they can’t repay their debt,” Clinton said.
Two to three million further borrowers could qualify for the program, says Mark Kantrowitz, publisher of FinAid.org, who crunched U.S. Department of Education and U.S. Census data to devise his estimate.
There's a tool that can help you figure this out. It's called the "net price calculator." And all colleges are now required to post a net price calculator on their website. The calculator asks a series of questions about the student and the family's financial situation. At the end, you get a page that shows the school's sticker price, the scholarships and grants you'd be likely to qualify for, and the price you'd be likely to pay.
ADA, Ohio — Kelsey Griffith graduates on Sunday from Ohio Northern University. To start paying off her $120,000 in student debt, she is already working two restaurant jobs and will soon give up her apartment here to live with her parents. Her mother, who co-signed on the loans, is taking out a life insurance policy on her daughter. “If anything ever happened, God forbid, that is my debt also,” said Ms. Griffith’s mother, Marlene Griffith.
As it turns out, ultra-conservative North Carolina Republican Virginia Foxx Foxx herself is benefiting from the waste and abuse of federal tax dollars. Among the top 20 financial contributors to Foxx in the 2011-2012 cycle are the Association of Private Sector Colleges/Universities, the Apollo Group owner of the University of Phoenix, and Corinthian Colleges. Since federal student loans comprise the vast majority of the revenues of those for-profit schools, it follows that their campaign contributions to Foxx are also made possible by U.S. taxpayers.
Some of these older Americans are still grappling with their first wave of student loans, while others took on new debt when they returned to school later in life in hopes of becoming more competitive in the labor force. Many have co-signed for loans with their children or grandchildren to help them afford ballooning tuition. The recent recession exacerbated this problem, making it harder for older Americans — or the younger people they are supporting in school — to get good-paying jobs. And unlike other debts, student loans cannot be shed in bankruptcy. As a result, some older Americans have found that a college degree has led not to a prosperous career but instead to a lifetime under the shadow of debt.
We are in a generational turning point that is being felt around the world. It's a particularly fraught one, as we're beginning to see. It's a poignant moment of ecological and economic crisis, and young people are beginning to understand how much of the brunt we’ll bear. With that in mind, we assembled a group of incredibly strong writers and thinkers to address this poignant shift. Some were already friends, some acquaintances, and others strangers, but together they represent well the challenges for graduates today, while providing useful strategies and tactics for thriving in recession. -- Malcom Harris
That is the premise, here is the book.
Over just the last year 41 states have cut spending for public higher education. That’s on top of deep cuts in 2009 and 2010. Some, such as the University of New Hampshire, have lost over 40 percent of their state funding; the University of Washington, 26 percent; Florida’s public university system, 25 percent.
Rising tuition and fees are making up the shortfall. This year, the average hike is 8.3 percent. New York’s state university system is increasing tuition 14 percent; Arizona, 17 percent; Washington state, 16 percent. Students in California’s public universities and colleges are facing an average increase of 21 percent, the highest in the nation.
Though the size of the cuts may be all California --that is, big -- the situation is everywhere. And, as usual, students and their families will likely end up paying the price. From the Marketplace Education Desk at WYPR, Amy Scott reports.
An undercover investigation by the Government Accountability Office has found evidence of lax academic standards in some online for-profit programs. The probe, which is described in a report made public Tuesday, found that staff at six of the 12 colleges that enrolled the investigators tolerated plagiarism or awarded credit for incomplete or shoddy work.
The release of the report, "For-Profit Schools: Experiences of Undercover Students Enrolled in Online Classes at Selected Colleges," comes roughly a year after the accountability office revised an earlier report on recruiting abuses at for-profit colleges, acknowledging errors and omissions in its findings. A coalition of for-profit colleges has sued the office over that report, accusing its investigators of professional malpractice.