Owner: Student Loan Advice URL:http://studentloanadvice.blogspot.com/ Join Date: Tue, 03 Oct 2006 22:34:45 -0500 Rating:1 Site Description: This site is all about helping you get rid of student loan debt. Two out of every three graduating seniors now have student loans to pay off! I plan on talking about loans and loan companies, debt collectors and debt consolidation. I'll also cover indust Site statistics:Click here
This blog has moved ... 2006-11-01 14:39:00 ... you can now find it at:
http://www.student-loan-blues.com
Sallie Mae Student Loans 2006-10-03 18:16:00 Since this site is real young, I thought I would write some posts about the basics.
If your research on college financial aid has just begun, you need to know about Sallie Mae. They are "the" largest college student loan company in the nation. Over 9 million people have loans with them. For a long time, Sallie Mae was a government initiative but now they are a private company with a prominent New York Stock Exchange listing (SLM).
The company has both federal and private loan products:
Sallie Mae Federal Loans
Sallie Mae Private Loans
Current interest rates on their loans can be found here.
Sallie Mae also runs a very popular college advice site at http://CollegeAnswer.com
I've heard their customer service is poor. Still, they have a wealth of on-line information that can help you make decision.
If you're feeling overwhelmed by it all, here's a great reference book that covers all the basics you need:
Sallie Mae How to Pay for College: A Practical Guide for Families Read more:Student
, Student Loans
The Five-Point Plan for Fair Loan Payments 2006-09-29 21:48:00 The Department of Education has put out a call to the public asking for rule change ideas to help ease the growing student debt problem. The Project on Student Debt has come up with the Five-Point Plan for Fair Loan Payments. Go check them out. Here is a summary of their proposal:
1) Limit student loan payments to a reasonable percentage of income.
2) Recognize borrowers with children have less income available for student loan payments.
3) Protect borrowers from high interest charges when they face hardship situations.
4) Cancel remaining debts when borrowers have made regular payments for 20 years.
5) Simplify the application process for hardship deferrals and other repayment options.
If you believe this is the proper way to tackle to problem, let your voice be heard by following this link and signing the petition letter to the Department of Education.
The Student Loan 2006-09-27 20:59:00 This site is all about helping you get rid of student loan debt. This growing problem is now at at crisis level in our society. Two out of every three graduating seniors now have student loans to pay off!
I plan on talking about loans and loan companies, debt collectors and debt consolidation. I'll also cover industry news and general money management tips to help get you out of trouble.
While much of the material will be addressed to Americans, I will also tackle issues facing people in the places like Canada, New Zealand, and the U.K. Read more:Student
Email or YouTube me your student loan stories 2007-01-11 19:23:00 If you have a gripe about your student loan, email me your story at studentdebt@gmail.com. Better yet! Make a YouTube
video and I'll post it on this blog.
Email
me at studentdebt@gmail.com when you get your video up on YouTube.
Along with any rant you might have, try to answer these questions in your video clip:1) How much was your original student loan ?
2) Has the benefits of the loan outweighed the troubles ?
3) What personal problems has student loan debt caused in your life ?
4) If you had to do it all over again, what would you do differently ?
5) How much left do you have to pay off ?
First 100 Hour Plan for the Democrats 2007-01-11 18:41:00 Check out this U.S. House of Representatives Vote Schedule for January.
http://www.student-loan-blues.com/wp-includes/images/100hourscalendar.pdf
Cutting student loan interest rates is due for a vote next Wednesday on January 17th ! Read more:First
, Democrats
In memory of Robert T. Stafford 2007-01-11 18:38:00
Former Sen. Robert
T. Stafford, R-Vt., who was such a champion of the federal student-loan program that his colleagues eventually named it in his honor, died Dec. 23 at the age of 93.
Mr. Stafford, who chaired the Education, Arts, and Humanities Subcommittee of the Senate Labor and Human Resources Committee from 1981 to 1987, was known as a moderate lawmaker and a strong advocate for education and the environment. He had a close working relationship with then-Sen. Claiborne Pell, D-R.I., the namesake of the primary federal student-grant program in higher education ...
(Source: Education Week)
Backdating Stock Options 2007-01-11 18:35:00 While not necessarily illegal, the unethical practice of backdating stock options for "favorable grant dates" has been uncovered at Affiliated Computer Services Inc. CEO Mark King and CFO Warren Edwards were sent walking after an investigation found they had backdated stock options.
The entire business world is now facing this issue and many high profile executives have been put out on the street because of it. It is of no surprise that a student loan company has faced the same problem.
Source: Sun-Sentinel Read more:Stock
, Options
6 Reasons Why Today's Halving the Student Loan Rate is a Bad Idea 1970-01-01 00:59:59 The Heritage Foundation has a great article on why the legislation scheduled today to be passed is a bad idea.1) Federal spending on student financial aid is already skyrocketing.2) Student
s already have many options for federal grants and low-interest loans.3) Student aid subsidies are already set to increase much further.4) Tuition costs rise with financial aid.5) Lower interest rates will not increase access to college.6) Most college graduates can afford to repay their student loans.Rather than providing billions in new federal subsidies, Congress should instead focus on the fundamental problem of college affordability: out-of-control higher education costs. Congress should determine whether ever-increasing federal subsidies for higher education contribute to increasing college costs.Referencehttp://www.heritage.org/Research/Education/wm1308.cfm Read more:Reasons
, Today
, Student Loan
Petition to cap private loan interest rates 2007-08-04 07:11:00 Hello! Well my story is short.. I have a lot of Student Loan Debt! ~ $110,000.. my interest rates are from 6.25%-10.25% and I have monthly payments around $1000... I'll be in debt for the next 20 years.. so I want to propose a change. I started an online petition to propose to congress for the capping of private loan interest rates because there is about to be a massive amount of graduated students so far in debt they will never be able to get out of it. http://www.petitiononline.com/endloans/petition.html Spread the word and help me attempt to make a difference!--Erica Buffingtonericabuffington@gmail.com
Sallie Mae News 2007-10-11 15:10:00 Sallie Mae has posted a 13% increase in student loan originations this quarter compared to the 3rd quarter a year ago.This is the way CEO C.E. Andrews puts it:“Thanks to our industry-leading brand, our scale and efficiencies, and our focus on students and families, we successfully faced a number of challenges this quarter. We have a solid track record of growing our ‘core earnings’ through various political, interest rate and economic environments, and the fundamentals of our business point to a bright future for our company.”How nice. All this new business with all of its origination fees should help comfort them in swallowing the $344 million loss they have this quarter due to stock market declines and defending against company acquisition.
Average Student Debt 2007-10-09 15:25:00 Here's a good reference from projectstudentdebt.org showing the 2006 average student debt state by state.The bottom 3 worst: District of Columbia ($27,757), New Hampshire ($24,800), and Vermont ($24,839). This makes sense because the New England area has the highest tuition rates as well.The top 3 best states: Hawaii ($11,758), Utah ($12,807), and Kentucky ($15,406).There's also a section showing stats on the best and worst schools.The national "average" yearly tuition in 2006 was right at $10,000. That's $40K for an "average" college education. Have your financial plan in order before approaching Sallie Mae. I know in my last post I said student loans "can" be considered good debt. Still, having a realistic financial plan to pay off your student loan may be more important than getting a good enough SAT score to get into college in the first place. A wrong choice at such a tender young age entering school can financially ruin you for life.There are many horror stories out the Read more:Average
, Student
College loans are considered good debt ? 2007-10-05 15:36:00 The Etownian Online has things that "may" ease your mind as you take the student debt plunge. Student debt is actually considered good debt if you're faithful in making regular payments on it.1) Lenders are more likely to grant you mortgage and car loans if you show them you are being responsible with your student debt.2) Some companies you work for will help pay off your loan as long as you stay with that company for a certain number of years.3) Other volunteer groups such as The Peace Corps will reimburse you too.4) If grad school is your next stop, you might be able to get some student loan compensation by becoming a TA for a research fellowship. There's a common theme in the last three items. If you're willing to donate some time and effort, you might see your loans disappear faster. Read more:College
Preston Orr 2007-10-05 15:27:00 Preston Orr writes:I have been out of college for 5 years now. I have been paying this $20,000 loan with an interest rate that started at 8% and is now at 12.5%. I bought a townhouse, hoping that I will build enough equity to pay off my loan. I cannot consolidate this loan. What is wrong with this country?... I know this is a brief note but does anyone else want to vent their frustration? Read more:Preston
Start thinking about student loan finance for next year. 2007-11-14 15:41:00 Student loan season most always runs at the beginning of the year. All colleges and universities have firm deadlines for financial aid applications. Be ready and early in filling out your FAFSA (Free Application for Federal Student Aid). Both parents and students need their W2 forms as early as possible in January. If you can't get your W2 early, then come up with a really good estimate of what you think it'll be. You want to be at the head of the queue if you want the best shot especially at the scholarships and grants. Each school has there own deadline. It's not uniform across the country. If you miss the deadline, you'll be stuck looking for private loans which have higher interest rates. Read more:Start
, thinking
, finance
Scholarships, scholarships, scholarships 2007-11-14 15:33:00 Always, I mean ALWAYS, be looking out for scholarships. There's nothing like free money ease your student loan finance situation. Here's just a couple of places to look:Hispanic Scholarships: http://www.hsf.net/The Google 2008 Anita Borg Scholarship (for women): http://www.google.com/anitaborg/There are so many out there for all sorts of people, not just based on gender or race. You just have to go hunting. The Sallie Mae site is a great place to start.
The Financial Aid Office is Your Friend 2007-11-16 08:52:00 Don't shy away from seeking financial aid from the college you are attending or applying for. Many don't seek financial aid from universities simply because they are too proud. With the cost of education these days, you HAVE to get over that. By not humbling yourself and seeking help, you're practically asking for years more of student debt. The university financial aid administrator is there to help you. They are full of advice and may open financial doors you haven't even thought of.Don't get cocky either trying to butt in front of other students and sucking everything out of them. You don't want to bite the hand that feeds you. Everybody wins if you're nice about it. Read more:Financial
Student Loan Tip: Finish school! 2007-11-30 15:18:00 It's almost the end of the fall semester. Are you a struggling college student thinking about throwing in the towel and dropping out of school? If you're living off of student loans, you had better suck it up and keep going. If you think your young life is painful now trying to keep up in class, you ain't seen nothing yet if you decide to enter back into the world with a load of student debt and no college degree.You're not likely to pull down a good enough job to pay off your loans anytime soon. You could very easily find yourself holding down two jobs just to make ends meet and keep Sallie Mae off your back. You'll find yourself slaving away for long hours while you ponder, "Why in the world did I drop out of college?"So suck it up. So what if your grades this semester won't be that great. This had better be motivation for you to get serious about your classes next year. Stop the partying and hole yourself up and study hard. You can't afford not to. Read more:Student
, Finish
, Student Loan
Benefits of a Direct Consolidation Loan 2007-12-04 16:04:00 Direct Consolidation
Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages. One Lender and One Monthly PaymentWith only one lender and one monthly bill, it is easier than ever for borrowers to manage their debt. Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan.Flexible Repayment OptionsBorrowers can choose from four different plans to repay their Direct Consolidation Loan, including an Income Contingent Repayment Plan. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a Direct Consolidation Loan, borrowers can switch repayment plans at anytime.No Minimum or Maximum Loan Amounts or FeesThere is no minimum amount required to qualify for a Direct Consolidation Loan! In addition, consolidation is free.Varied Deferment OptionsBorrowers with Direct Consolidation Loans may qualify for renewed deferment b Read more:Benefits
, Direct
Extended Repayment Plan 2007-12-16 15:23:00 To qualify for this plan, your Direct Loan balance (your new Direct Consolidation Loan Amount plus other Direct Loans) must be greater than $30,000. Your plan options are: Fixed Monthly Payment Option - Under this plan, you will pay a fixed amount of at least $50 each month for up to 25 years. Repayment under this plan will result in lower total interest paid when compared to graduated plans with similar terms. Graduated Monthly Payment Option - Under this plan, you will pay a minimum payment amount of at least $50 or the amount of interest accrued monthly, whichever is greater, for up to 25 years. Your payments start out low and then increase every two years. Repayment under this plan may provide lower initial monthly payments, although the total interest paid may be greater when compared to plans with similar terms with fixed payments. This plan may be beneficial if your income is low now but is likely to steadily increase.**Extended
repayment terms are available to Direct Loan borro
Graduated Repayment Plan 2007-12-15 15:22:00 Under this plan, you will pay a minimum payment amount at least equal to the amount of interest accrued monthly for up to 10 to 30 years, based on your total education indebtedness. Your payments start out low, and then increase every two years. Generally, the amount you will repay over the term of your loan will be higher under the Graduated Repayment Plan than under the Standard Repayment Plan. This plan may be beneficial if your income is low now but is likely to steadily increase.(Source: loanconsolidation.ed.gov)
Standard Repayment Plan 2007-12-14 14:21:00 Under this plan, you will pay a fixed amount of at least $50 each month for up to 10 to 30 years, based on your total education indebtedness. This plan may result in lower total interest paid when compared to repayment under one of the graduated plans.If you have not selected a repayment plan by the time repayment begins, your loan(s) will be placed on the Standard
Repayment Plan.(Source: loanconsolidation.ed.gov)
What are the repayment plans? 2007-12-14 10:31:00 Standard Repayment Plan:You will pay a fixed amount each month until your loan(s) are paid in full. Your monthly payments will be at least $50 for up to 10 to 30 years, based on your total education indebtedness. Graduated Repayment Plan:Your minimum payment amount will be at least equal to the amount of interest accrued monthly. Your payments start out low, and then increase every two years for up to 10 to 30 years, based on your total education indebtedness Extended Repayment Plan:To be eligible, your Direct Loan balance must be greater than $30,000 and you will have up to 25 years to repay your loan(s). You have two payment options: Fixed Monthly Payment Option -You will pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50. Graduated Monthly Payment Option - Your minimum payment amount will be at least $50 or the amount of interest accrued monthly, whichever is greater. Your payments start out low, and then increase every two y Read more:plans
What are the consequences of defaulting? 2007-12-13 15:15:00 Borrowers who fail to make a payment on time are considered delinquent on their Direct Consolidation Loans. Borrowers who do not make payments for 270 days are in default. Defaulting has severe and long-lasting consequences
, as follows:1) The Department of Education can immediately demand repayment of the total loan amount due. 2) The Department of Eduction will attempt to collect the debt and may charge collection costs. 3) The Department of Education reports defaulted loans to national credit bureaus, damaging borrowers’ credit ratings and, making it difficult for borrowers to make purchases such as cars or homes. 4) Borrowers with loans in default are ineligible for Title IV student aid. 5) Borrowers with loans in default are ineligible for deferments. 6) The Internal Revenue Service can withhold borrowers’ Federal income tax refunds. Borrowers' wages may be garnished. It is important that borrowers with Direct Consolidation Loans stay in touch with the Direct Loan Servicing Ce
Should I rehabilitate before consolidating my defaulted loan? 2007-12-13 10:40:00 Rehabilitation or Consolidation?There are many benefits to rehabilitating a defaulted loan before consolidation. If you consolidate a defaulted loan without rehabilitating it, your credit record continues to show a default status on the loan. This is true even after the consolidation loan pays off the defaulted loan in full.Consolidating a defaulted loan will result in your credit report bearing the notation that the loan was in default but then "paid in full." This notation will remain on the credit report for up to seven years. While a "paid in full" notation is preferable to an unpaid default, , there is still the possibility that lenders will deny you future credit, such as mortgages, auto loans, or credit cards because of this notation. However, if you rehabilitate a defaulted loan before consolidating it, the loan holder will update your credit record to no longer reflect the default status of the rehabilitated loan(s). Rehabilitating a defaulted Direct Loan or FFEL loan require
Can I Consolidate a Defaulted Loan? 2007-12-11 12:00:00 Generally, Federal education loan(s) in default may be consolidated in a Direct Consolidation Loan if borrowers: Agree to repay the loan(s) under the Income Contingent Repayment Plan. ORMake satisfactory repayment arrangements with the current loan holder(s). If, before applying for consolidation, borrowers who want to completely clear the default notation from their credit records, they may want to consider another option: loan rehabilitation. Borrowers should contact their loan holders to obtain more information about this option.Borrowers cannot consolidate defaulted loans under these conditions: 1) If a judgment has been issued against a defaulted loan, it cannot be included in the consolidation unless the judgment order has been vacated (dismissed). 2) If they are trying to consolidate defaulted Direct Consolidation Loans. 3) If they are trying to consolidate defaulted FFEL Consolidation Loans unless they have made satisfactory repayment arrangeme Read more:Consolidate
Can I consolidate my loans that are in grace? 2007-12-11 10:10:00 Yes, Borrowers who consolidate loans that are in grace may receive a lower interest rate on their Direct Consolidation Loans if they are consolidating variable rate loans. However, once grace status loans are consolidated borrowers lose any remaining grace period. Borrowers receive their first bills within 60 days after the new Direct Consolidation Loan is made.The timing in which an application is submitted is important:Loans first disbursed on or after July 1, 2006 have fixed interest rates. While borrowers with fixed interest rate loans can consolidate while in grace, there is no benefit to do so since the interest rates for in-grace and in-repayment are the same. Borrowers with variable interest rate loans should apply for Direct Consolidation Loans while their loans are in the grace status in order for them to receive the possible interest rate benefit. Since repayment begins within 60 days of the day the Direct Consolidation Loan is made, borrowers should not apply too early in t
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