No Free Lunch: A Student Loan Borrower’s Tale

My student loans were just paid-off this year–13 years after I first assumed them**.  I originally borrowed $18,500 to pay for graduate school, plus a $740 loan origination fee.  I ended up repaying about $29,500, which includes interest and principal–approximately $10,260 was paid in interest alone. I’m not particularly attentive to my expenses or money in general, yet I’m not…

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The Six Figure Cost of College: In Dollars & Sense

The words, “financial aid,” can send chills down any parent’s spine, as they wonder, “How in the (insert expletive) are they going to pay for college, without going bankrupt?”  Many American families approach college, like other purchases in their lives–dream big and figure out how to pay later.    Parents often believe, “If my kid does his/her job–getting the right…

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Gaining Scholarships & Paying for College is a Process

The recent October Comstock’s Magazine–a business publication in our Sacramento region–featured Art’s & Jill’s advice to plan for rising college expenses and answer the all-important how to apply for scholarships question.  Click here to read more. Financing a college education is a series of choices–sometimes over years.    However, waiting until the first tuition bill arrives as the impetus to start…

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Financial Aid Myths: Fact & Fiction

Soccer field sidelines are filled with parents sharing their college expense stories and sometimes “nightmares” that can create misinformation circulating through the community.    Depending on the listening parent’s effort to validate or debunk the information gleaned can determine how useful the shared experience will be in guiding their own children. Here’s a few common myths:

College Tuition: Is a Private University Always More Expensive than Public?

According to the Wall Street Journal and the College Board, public university tuition is rising faster than private universities around the nation.  “In-state residents at four-year public schools, tuition and fees are up 25.1% from the 2008-09 academic year; over the same time period, tuition and fees at private universities rose 13.2%.”  While public universities may seem less costly, the…

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How Are Middle & Upper Income Families Affording College?

For families with $94,000 to $205,000 in yearly income, the percentage of debt is increasing.  The Wall Street Journal reports, 25.6% of these middle-upper income families incurred student-loan debt in 2010, up from 19.5% in 2007. With the costs of college increasing and use of debt is increasing, will families begin making college decisions with fiscal concerns being a higher…

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Are College Going Attitudes Changing?

Are students’ and their families’ attitudes changing about college?  375 colleges, an increase of 96 institutions from 2011, report still having space available for freshmen and/or transfer students for Fall 2012.     Has the economic uncertainty caught up with families’ choices?  Is the $1 Trillion total student debt and consequences for individual borrowers causing families to pause, and not enroll in…

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Will continuing tuition increases eventually cool demand for college?

Total student loan debt hit the $1 Trillion mark this week and continues growing.  Congress is debating to stop the increase in the student loan interest rates from 3.4% to 6.8% on July 1, 2012.  And, UC’s are considering an additional 6% tuition hike on top of the 47.6% tuition increase, since 2009.   With more attention about the consequences of…

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The $1 Trillion Inheritance

The Student Debt total reached $1 Trillion today.  What are the costs for future generations and its prosperity? Since student debt is future income brought forward, Creative Marbles suggests thinking carefully about career and major choices to know if a student would be able to afford the monthly loan payments.    Also, students need to consider the “opportunity” costs of diverting…

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Student Loan Debate in Congress Continues

It’s partisan politics as usual in this election year, as Congress continues its debate on student loan legislation. According to the Wall Street Journal, “Republicans on Tuesday blocked the Senate from considering a measure to keep the rate on subsidized federal student loans from doubling amid suspicion of Democrats’ motives as they seek to court the youth vote. The vote…

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