Does a Free Lunch Exist?

Here’s how to borrow $127,000 in student loans, only repay $87,000 over twenty years, and have the U.S. Government pick up the tab for the $450,000 still owed at the end of the repayment period.  [Notice the quadrupling effect on the total balance owed because of the interest that accrues in the two decade long repayment period? ]

Student Debt in Seven Charts

Not all student debt is ruinous.  However, borrowing can be complex.  Loans spend tomorrow’s income today, and for college students, a promise of tomorrow’s income is spent to pay for expenses in the present day.  Understanding recent growth in student loans and the challenges of repayment can help potential student loan borrowers consider both the benefits and the risks before borrowing. For the last 30 years,…

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Ahead of the Curve: All About Financing A College Education

Thoughts from the news: Flip Side of Reducing Student Debt Is Increasing the Federal Deficit, New York Times, February 11, 2015—for every benefit, there is a cost Looking At Student Loan Defaults Through a Larger Landscape, Federal Reserve Bank of New York, February 19, 2015—student loan defaults are not only increasing, but also occurring earlier in the repayment period  Why You…

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The Perils of Scholarships

To many parents, winning scholarships both rewards academic excellence and various leadership achievements, while subsidizing the total costs of college. Even though many high school seniors also desire the benefits of scholarships, many scholarships remain un-awarded. Understanding the timing of scholarship deadlines may explain why action doesn’t follow good intentions.

Guest Post: So You’re Gonna Be A College Freshman

About the author: Allie is starting her senior year at University of Arizona, which she selected after an intensive search for colleges in the Western U.S. with speech therapy and audiology programs.  She graciously agreed to allow Creative Marbles to repost the following from her blog.   This summer I worked at the College of Admissions at the University of Arizona and…

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Ahead of the Curve: July 5, 2014

Inspired by CMC Clients Advanced Placement (AP) Test Scores:  Students often believe that a score of less than 3 will hurt their college admissions competitiveness.  The belief is a myth.  A student’s willingness to challenge themselves academically by taking AP classes and the tests will be considered by college officials in the admissions process.  The score, however, is of little consequence…

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A $60 Trillion Inheritance…in Debt

Wishing a better life for our children is normal.  Actually setting aside our personal wants in favor of our children is more complicated in practice.  The next generation will inherit a record $60 Trillion in total U.S. debt—government debt, business debt, mortgage debt and consumer debt. (See chart below) Furthermore, the growth of student loan debt, a $1.2 Trillion subsection…

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