Rising Student Loan Delinquency

Student loans can help fund college expenses, yet create a future financial burden for students when in repayment.  Currently, the total of student loans 90 days or more delinquent is at a record high of $124.3 billion – an increase of more than $3 Billion since last quarter.  Possible reason for the delinquency can include the growing underemployment rates for…

Continue Reading

Student Loan Repayments May Cost More Than The Amount Borrowed

Changes to repayment rules for Federal student loans offers borrowers flexibility to manage their debts, as outlined in a recent New York Times article.  However, not only do the recent changes provide assistance for current borrowers, potential student loan borrowers can plan ahead. Our recommendations are outlined, alongside excerpts of the article in italics. Rising default rates are a warning…

Continue Reading

Student Loan Interest Rate Relief In Sight

The U.S. House of Representatives passed a bill to lower Federal student loan interest rates to 3.9% from 6.8% for the upcoming 2013-14 school year–following the U.S. Senate’s passage of the same bill last week.  The rate reduction would mean  a savings of $944.44 in interest over the life of the loan, for first year college students who borrow the maximum…

Continue Reading

It’s Never Too Early (or Late) to Plan for College Costs

After talking with News10 Sacramento this morning about financial aid and paying for college, thought I’d share a few additional tips and expand on a few points we discussed: Understanding the Family’s Finances: The more parents can understand the family finances, the better planning can take place for the additional expense of college tuition.  Some expenses, like food and gas…

Continue Reading

More 25 Year Olds Have Student Debt…And At Higher Average Amounts

As seen in the chart below, the red line indicates that the portion of 25-year olds with student debt has grown from 25% in 2003 to 43% in 2012–meaning an increasing portion of young adults are choosing to “bring forward” expected future earnings to pay for a college degree. Furthermore, the black line on the chart shows that not only is…

Continue Reading

Will College Price Itself Out of Its Demand?

As the price of tuition continues rising, will students (and their families) choose to forgo a college education?  The most recent college application cycle for Fall 2013 doesn’t seem to indicate that students are not choosing a college education.  Applicant numbers are up around the country from a 10.7% increase for the University of California system to 16% increase for…

Continue Reading

What’s College’s Value Given Today’s Prices?

Choosing a college based on price or which campus offers the greatest amount of financial aid can seem like a foreign concept to many families.  However, as tuition continues rising annually and parents face the quandary of balancing saving for retirement and paying for college, at the same time their income seems to be shrinking, families may be facing increasing…

Continue Reading

Wrapping Your Arms Around College Costs

Parents often remark that they don’t want money to define their child’s choices for college, and then proceed to ask me questions about financial aid and scholarships.  The sense of an impending expense in the thousands of dollars can make any normal human being nervous.  Teens can often react with guilt and fear, that they are potentially asking for the…

Continue Reading