Obama tackles student loan crisis

Washington, DC (PRWEB) August 21, 2013 On August 9th, the Student Loan Alliance (SLA) launched a broad strategic partnership with MortgageKeeper.com designed to ensure Americans needing assistance receive access to a wide range of resources. The SLA will be the exclusive provider of student loan counseling offered through MortgageKeeper and SLA will offer other supportive resources to student loan borrowers requesting assistance. From employment help and financial counseling to assistance gaining access to disability payments or home repair subsidies, there are hundreds of programs across the country designed to help people in crisis. Typically, counselors and other advisors to distressed student loan borrowers do not have information on these programs. Yet, if accessed appropriately, these services have the potential to help borrowers avoid default or become current on their loan.
Source: http://www.sfgate.com/business/press-releases/article/Student-Loan-Alliance-SLA-Partners-with-4750970.php

The vast majority of these loans will be paid in full with interest, which is why the Congressional Budget Office projects that the federal government will make a massive profit of more than $184 billion in the next 10 years. Far from being financially explosive, the forgiveness ultimately earned by the small percentage of borrowers expected to complete 10 years of qualifying public service will probably be just a drop in the gigantic bucket of student loans. The authors also assert there is nothing to stop every graduate school from including all of their graduates in an LRAP, not just those who commit to public service careers, by taking advantage of the 20- or 25-year forgiveness in income-driven repayment plans. However, they provide no evidence that schools are planning to do this, and the Student Loan Ranger finds it far-fetched that schools would embrace such a logistically difficult and ethically and legally questionable scheme or that the Department of Education would allow them to do so. [Learn which law degrees have the best return on investment .] Based on these arguments, the authors propose capping Public Service Loan Forgiveness at $30,000 and instituting an aggregate limit of $75,000 for all federal loans.
Source: http://www.usnews.com/education/blogs/student-loan-ranger/2013/08/21/understand-calls-for-loan-repayment-reform

Weve got a crisis in terms of college affordability and student debt, Obama said, before an enthusiastic crowd of students at the University of Buffalo. The speech reunited Obama with one of his most supportive constituencies students and the 52-year-old president reminded his audience he only finished paying off his college loans while he was in his 40s. The US Federal Reserve has estimated that there is nearly one trillion dollars in outstanding college debt in the United States. In 2011, the average outstanding amount of student loan debt for each graduate was $23,000 dollars. Obamas return to his role as champion of the middle classes, a focus-group tested message that worked to great effect last year, comes ahead of looming budget battles with Republicans. The president and Republicans on Capitol Hill will wage their latest bitter contest over the shape of next years budget and a requirement to raise the governments borrowing limit.
Source: http://news.in.msn.com/international/obama-tackles-student-loan-crisis

The White House Wants to Help You Make Smaller Student-Loan Payments

Adam S. Minsky, a Boston lawyer specializing in student loan law, said he has had several people contact him as they receive transfer notification. 4 Ways to Pay Off Your Student Loans Faster “They were contacted by a company they had never heard of before saying, We’re going to be your new loan servicer, please start paying us,” Minsky said. “Borrowers aren’t being notified until the transfer is just about to happen or has already happened. That can be really scary for borrowers.” How to Prepare for the Move Though the Education Department hopes the transition will go smoothly, as stated in the announcements, those with student loans may want to take a proactive approach to the changes.
Source: http://abcnews.go.com/Business/government-switch-student-loan-servicers/story?id=19975798

Student Loans: The New Calculation

Fri, Aug 23, 2013, 23:15 BST – UK Markets closed Which is better: student loan or paying upfront? Telegraph columnist Martin Lewis caused heated debate when he advocated using loans. Nicole Blackmore looks at the arguments By Nicole Blackmore | Telegraph Thu, Aug 22, 2013 19:45 BST Yahoo! Finance UK/Chris Young/PA Wire – Related Content Article: Where to invest in student property Yahoo! Finance UK – Tue, Jul 23, 2013 16:18 BST It is a dilemma not just for students heading off to university at the end of summer but for their parents and grandparents as well. Which is the better financial decision: to borrow the money to pay tuition fees and other costs using the http://www.obamastudentloanforgiveness.net/ new student loan arrangement, at the risk of being indebted for decades?
Source: http://uk.finance.yahoo.com/news/better-student-loan-paying-upfront-184510141.html

Which is better: student loan or paying upfront?

On the plus side, there is stability. Prior adjustments to student loan interest rates were unhelpful. Students found themselves in situations where they did not know until the 11 th hour what their interest rate was going to be. In the new bill, the rate is locked in and has no expiration date. Rates on federal college loans will not double and a long-term fix will be in place.
Source: http://finance.yahoo.com/news/student-loans-calculation-130109975.html

Government Switches Student Loan Servicers: What You Need to Know

… A partial financial hardship is when the 10-year standard monthly payment on what you owed when you first entered repayment is more than 15% of discretionary income. You must have a partial financial hardship to be eligible for IBR. … IBR started in 2009. * Income Contingent Repayment, as described by the Department of Education : This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship.
Source: http://www.theatlantic.com/politics/archive/2013/08/the-white-house-wants-to-help-you-make-smaller-student-loan-payments/278948/

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