Grads(lg).CMC2015

The search for merit aid begins with the proper valuation of a college degree

“Do you help with scholarships?” is often one of the first questions that parents ask me. Fearful of the ever-increasing cost of college tuition, they (mis)perceive a college education as a large purchase, rather than an investment.  To invest in a college education, both institution and family mutually consent to a partnership. Yet, in any partnership, both parties must first…

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CMC_Debt(new).2014

Why the May 13, 2021 10 Year Treasury Auction Matters to Student & Parent Loan Borrowers

Federal student loan interest rates, the cost of borrowing money to be paid at a fixed rate over the life of the loan, are set by adding 2.05% for undergraduate loans to the 10 Year Treasury Rate after the last May auction each school year. [For the upcoming 2021-22 school year, loan interest rates will be set after the May…

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CMC_Debt(lg).2014

Student Loan Forbearance to End

Since March 2020, nearly 37.4 million people, or 90% of all student loan borrowers, stopped making payments under the loan forbearance provisions of the CARES Act. Additionally, all student loan interest has been suspended for the past eight months. However, since the current $900 billion stimulus bill does not extend the forbearance of student loans, the 42 million US borrowers,…

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Teenage Unemployment Blues

Many high school and college students, who are normally camp counselors, are unemployed as many in-person and residential summer programs were cancelled. While a financial deficit for many students in the short term, cascading consequences may also affect students’ prosperity in the long term.  On May 24, Patrick Thomas of The Wall Street Journal wrote an article chronicling the current…

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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? ]