Tag: Student Debt

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Student Loan Interest Rates for 2020-21

Federal student loan interest rates for the upcoming 2020-21 school year will be set lower than the 2019-20 school year. The 2020-21 rates will be as follows: Undergraduate Direct Loans: 2.75% Graduate Student Direct Loans: 4.3% Parent PLUS Loans: 5.3% Student loan interest rates are set annually and apply to any loan taken during that …

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The value of a college education

In my recent conversation with Ron Kroichick of the San Francisco Chronicle, I discussed the changes to the college admissions process starting in Fall 2021, as well as sentiment about the value of a college education. Although colleges are non-profit organizations, which in the collective culture are imagined to be altruistic endeavors where the potential …

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Student Loan Payment Pause

On Friday, March 27, 2020, Congress and President Trump passed the CARES Act [Coronavirus Aid, Relief, and Economic Security Act], and millions of student loan borrowers gained a temporary reprieve from making payments until September 30, 2020. Additionally, as President Trump promised two weeks ago, student loan interest is also waived until September 30, 2020. …

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The State of A College Education, Part 2: The (Un)Fulfilled Promise of a College Degree

As I posited in Part 1, although an exact date is impossible to state, sentiment amongst college graduates is set to decline (as seen in the graph above), testing and possibly exceeding the 2009 lows. As the last of the Millenials graduate college this year (2019), many are disgruntled that the financial prosperty promised by …

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The State of College Affairs, Part 1

In the chart above, the confidence amongst college graduates has steadily increased during the longest economic expansion in U.S. history. Yet, as said sentiment drops with each recession and economists now predict recession within the next twelve months, I’d posit that sentiment amongst college graduates is rolling over and will revisit the 2009 lows. I …

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Delicious Student Loan Relief

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While Mom always warns us not to eat too much fast food, Burger King’s recent offer may change her mind. Given the historically record setting $1.5 Trillion total student loan debt, Burger King is offering 301 of the 44 million Americans with student debt some relief–up to $100,000 for one lucky person and $500 each …

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Paying for College…Before College

Parents, no matter their net worth, readily take risks, if they believe their children will benefit. And, the risks parents will take know no bounds—as seen in those facing federal prison trying to guarantee a college admissions to those who go into debt to pay for extra-curricular activities. However, why are parents so willing to take …

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College Admissions Decisions: The Troll Underneath the Bridge or The Gateway to Oz

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As college admissions decisions are delivered to email and postal mail boxes all over the world, the decisions can seem to either validate or condemn a lifetime’s efforts. However, just as in Justice: What’s the Right Thing to Do, where Harvard Professor Michael Sandel hypothesizes a straightforward college acceptance letter, the truth can be more layered: In …

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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. …

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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. Related PostsThe Wisdom of Our …

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Wait…I Have Student Debt?!?

In a recent survey published by the Brookings Institute, current college students with student debt were unaware of the exact loan amounts, as well as what they’d eventually repay.  At $1.2 Trillion and growing daily, total student debt may be more complicated than we, as a society understand. Highlights of the findings are below: At a public four-year …

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Living with Mom & Dad?

Is the trend shown in the chart below, caused by the increase in student loans, as seen in the following chart? Charts Courtesy: Goldman Sachs Global Investment Research & Zero Hedge, October 26, 2014 Related PostsDialogue: A Key to Affording Rising College Costs Expectation Canceled The College Freshman Holiday Homecoming

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College Tuition Up 1225% Since 1978

As has been previously discussed, college tuition is increasing annually, and shows few signs of abating; however, at some point college education will be subject to the law of supply and demand.  As demand for college education continues growing – seen in each year’s record numbers of applicants, with total student debt growing beyond the record breaking $1.2 Trillion mark …

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Why Winning Free Money Takes Effort

Scholarships are not mysterious.  Winning them takes work – which is only a continuation of the efforts to be eligible to compete for scholarships in the first place.   Related Posts3 hours and 45 minutes…Preparing for the SAT or ACT Distance, Yes. Learning, Maybe. The Separation Between Parent and School?

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The Skinny on Increasing College Tuition

Wondering why college seems more costly than in the past?  According to the U.S. Bureau of Labor Statistics, college tuition has increased 559% since 1985.  Over the same time, disposable income has increased only incrementally, which can create the perception of greater costs for each family. Related PostsPrudent Fiscal Planning (Part 2): Income’s importance in …