In the current economic backdrop, where the median view of economists predict a near 5% year over year decline in GDP (total amount of goods and services produced in the American economy) for 2020 (officially a recession), where both initial and continuing unemployment claims stubbornly loom above their longer run average, and though the economy seems to have bottomed, a…
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 school year. The interest rates…
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. Mark Kantrowitz of SavingForCollege.com, recommends:…
Updated: March 14, 2020 at 9:45 pm PST On Friday, March 13, President Trump worked to provide some fiscal relief for the 44 million Americans who’ve borrowed Federal money to attend college, including the thousands of college students attending colleges where normal university operations were suspended this past week: “To help our students and their families, I’ve waived interest on…
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 previous generations is not their…
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 will argue over the next…
Often students earn college degrees to increase their likelihood of future financial stability. Yet, as college costs are rising, students and their parents subsequently are borrowing more to earn said degree, thus students “spend” the equivalent of a few years’ of post-graduation wages while parents may delay retirement, the question is, “Is college worth the cost?” According to a recent…
Wonder no longer…
University of California (UC) and California State University (CSU) students will pay more tuition for the 2017-18 school year. For the first time in six years, both the UC and CSU boards have approved tuition and fee increases. At the same time, Governor Jerry Brown proposes to phase out the state-sponsored Middle Class Scholarship program for students starting college for the first…
The FAFSA or Free Application for Federal Student Aid, the government form required to apply for financial aid at any U.S. college or university, will be released on October 1, 2016. The October date is a full three months earlier than previous years, when the FAFSA was released on January 1. What the earlier release date means: Families will use…
[Sung to the tune of Heigh Ho from Snow White & the Seven Dwarfs] “I owe, I owe, so off to work I go…” Even though I remember singing this refrain in jest, Millennials, the current generation between age 18 – 35 , may not be so light-hearted. According to Bloomberg News in April 2016: A new survey conducted online in…
In the last several years, our middle class clients are being confronted by flattening incomes and college costs that have risen over 1000%. More and more families are finding themselves not only planning to pay for college when their children are quite young, but asking for more financial assistance when their children are ready to enroll in college. With families…
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? ]
Middle class families can sometimes feel like this: Cartoon credit: Americans for Limited Government, 2015 Especially when considering the annually increasing tuition, and other costs for a college education:
For most of us, moving out of the parental units’ house is the ultimate signifier of adulthood. So, what’s the threshold defining adulthood for the growing numbers of 25 year olds, who live with their parents (even after moving away for college)? Since 2002, parental co-residence rates have only risen: And, in 2012:
