Defaults on federal student loans spike in Jersey The Star-Ledger NJ.com
15.12.09
Yesterday marked the first time Washington reported
three-year default rates, in addition to the standard
two-year figures. It offered a sharper picture of how many
students began shouldering one of the most pesky forms of
debt -- which can't be eliminated as part of bankruptcy
filings -- just when they began to launch careers and start families.
College officials said they weren't surprised by the
increase, given the deteriorating economy.
"When you're faced with a situation of paying your
rent and buying food, or making a $150 student loan payment,
you're going to make sure you have your home
covered," said Tom Eastwick, owner of five for-profit
schools around the state. "It's just common sense
you would do that."
The statistics showed students at for-profit institutions,
which include trade schools and small campuses with
traditional bachelor's programs, came out worst. About
23 percent defaulted on their loans, more than that
sector's national average of 21.3 percent.
Source:
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Student loan?
May 22, 2008 by Alex K. | Posted in Financial Aid
I know I'll need to get a student loan sometime during my university studies. I was just wondering how they work, what you need to get one and how long you have to pay it back. Any extra details would be much appricated.
P:S I am a planning on studying in the U.S but I live outside the U.S.
Most student loans are limited to citizens or resident aliens of the US. You do not mention whether you are a US citizen living outside the US, or a citizen of another country.
If you are a US citizen, or resident alien (there are a couple of other types of non-citizens that are eligible...refugees for example) then you need to apply each year. The first step is the FAFSA and you can apply on line at www.fafsa.ed.gov. After that, there is more to do, but it varies depending on the answers on your FAFSA.
Good luck.
Danette | May 22, 2008
like mentioned earlier, you must be a us citizen or eligible non citizen to get student loans. Here is a good book that describes everything including the definition of us citizen and eligible non citizen. (look in the index in the back)
Found-1 | May 22, 2008
The Student Loan can help to finance your study. It's made up of three parts - compulsory fees, course-related costs and/or living costs.
And if you are a international student who are planning to study in US. Students can apply for the loan program online or through internationalstudentloan.com website . You can borrow annually up to $70,000 for medical, dental, law or business school, and up to $50,000 for graduate and undergraduate study. International students are required to have a US Citizen or permanent resident as a co-signer to apply for this loan.
These loans also offer:
* Funds are disbursed directly to you!
* Loans are accepted at thousand of approved schools
* Competitive interest rates
* No application fees
gui | May 22, 2008
Is student loan still tax deductable when refinancing a student loan with a personal loan?
Sep 04, 2007 by Andrew M | Posted in United States
My daughter has two very high interest student loans. Her credit won't let her do anything, but I can "refinance" it with me getting the loan using my credit. But is it still a "student" loan that she can deduct. She is making the payments and her name will be also on the loan (ironically, she will co-sign for me). This seems to be some gray area once the loan gets moved around. Just want to make sure the "chain of custody" still makes the new loan interest tax deductable. Hope this made sense and thanks for your help.
Nope, sorry, but personal loan won't qualify, as you will have nothing in writing to say that it is student loan interest.
PepsiLime | Sep 04, 2007
It wasn't that very clear, but from what I understood your co-signing on the loan. She'll pay for the loan's premium and interest. and that's about it ...
Remember: Who ever pays the student interest, that person will have the right to deduct those interest payments on their tax return (up 2,500).
The only thing that I can figure that will absolutely confirm that you are paying a student loan is that if at the beginning of the tax season, you receive a 1098-E "Student Loan Interest Statement" from your Lender.
mechbasket | Sep 04, 2007
What Loan company will take over my federal student loans when the loans are in forbearance?
Aug 26, 2008 by Dat_1_Chiq | Posted in Financial Aid
What Loan company will take over my federal student loans when the loans are in forbearance so I can go back to school?
My loans are government loans from Saillie Mae. I owe them under $5000.
I heard about this company that will take over your school loans from them but I don't know the name of the company.
No one will "take over" your loans. You will still owe the money to your lender when you are in forbearance. They will simply add interest every month while you are making payments.
If you are asking about defaulting the lender will just contract out with a collection agency to start calling and hounding you to mail them payments. If you make 6 to 12 months worth of willing and reasonable payments you can ask your lender to "rehabilitate" your loan. This is when you are issued a new loan and pay off the one in default so you can get federal fin aid again. Again, rehabilitation can only be done after you have made 6 to 12 months of payments.
Found-1 | Aug 26, 2008
What Loan company will take over my federal student loans when the loans are in default?
Aug 26, 2008 by Dat_1_Chiq | Posted in Financial Aid
What Loan company will take over my federal student loans when the loans are in default so I can go back to school?
My loans are government loans from Saillie Mae. I owe them under $5000.
I heard about this company that will take over your school loans from them but I don't know the name of the company.
I am at the point where I can't get a federal student loan until I pay this off.
When your federal educational loans are in default, you have several options:
You can repay the loan in full.
You can negotiate a new payment plan with your lender.
You can "rehabilitate" your loan.
You can consolidate your loan.
Obviously option one is rarely attractive or possible for defaulted borrowers.
Option two (renegotiate) should be investigated fully - most borrowers skip this step, but it's probably the best option for most people. Call your lender and ask to speak to someone in the "Workout" Department. Explain your situation to them (there's nothing unusual about it) and ask what options are available to you for switching to a graduated, extended or income-sensitive repayment plan. If your lender will agree to change your repayment plan, a few regular payments will get your default status removed, and the new plan may be easier for you to keep up with.
Option three (rehabilitation) is really a specific form of a workout agreement. It probably won't help you much in your situation, because it requires an agreement between you and the lender that will allow you to make 9 consecutive on-time payments of some agreed-upon amount.
Option four is everyone's favorite, but you must absolutely understand what a consolidation loan will do. To keep this utterly simple - a consolidation loan is a brand new loan that will pay off your old, defaulted loan. A consolidation loan MAY lower your monthly payments, but understand how this works. A consolidation loan never lowers your payments by wiping away some of your debt - a consolidation loan lowers your payments by stretching out the length of your loan. If you pay less every month, you'll make many additional monthly payments, and - in the end - you'll pay far more back than you would have paid on the original loan.
As an example: Suppose I lent you $100 and you agreed to pay me back in 2 weeks by paying me $50 a week. You came back a few days later and explained that you weren't going to be able to afford to pay me $50 - is there something else we could do? "Oh, absolutely," I'd say, gallantly. "Instead of paying me $50 a week for 2 weeks, how about if you only pay me $10 a week for 17 weeks?"
See - in the end, you'll pay me back $170 instead of $100 - that's how a consolidation loan works. But remember - we're not talking a $100 loan for a couple of weeks - by the time you pay that $5000 loan of yours back over many years, you'll pay a few thousand more than you might have paid if you didn't consolidate that loan.
I've attached some information about consolidating from the Department of Education - take a few minutes to read it over. If you do choose to go this route, be sure to consolidate with a reputable lender (or directly with the government) and not with some fly-by-night operation that you learn about from some pay-per-click site shilled on Yahoo! Answers.
Good luck to you!
NotAnyoneYouKnow | Aug 26, 2008
Right now it's taking over 9 months of consecutive payments to get out of 'default'. I have no way of knowing which lender is going to take over your loan because quite frankly, student lenders have really clamped down on who they will work with.
This can also mean that you could stay in collections until it's paid off.
The collection agency will work to find a lender to take your loan back over once you're out of collections.
Once you are deemed out of 'default', you can then apply for student financial aid.
beut_els_guese | Aug 26, 2008
Does a student loan and a bank loan affect your credit the same way?
Aug 30, 2007 by videogamer1979 | Posted in Credit
I have one credit card ( revolving credit ) and I have one student loan ( fixed monthly payments ). I want to keep one revolving account and one fixed account. Would a bank loan that pays off the student loan look better as a fixed loan? I guess my question is: Do they both count as fixed loans or is the bank loan a more "authentic" fixed loan?
doesnt matter....they're both 'installment' loans on your credit report. i wouldnt take a bank loan because MOST LIKELY the interest isnt tax deductible like the student loan.
i would advise to have 2-3 credits...2 installment loans....can be student loan, auto loan or other loan...and a MORTGAGE!
make sure you keep low balances are on revolving accounts...and you should be go to go.
Carolinahomerates.com | Aug 30, 2007
Credit card debt affects the studies seriously. Lack of concentration, focusing on excessive debts can lead to lower scores and GPA.
Lack of proper attention to studies, lower GPA's, increased debt pressure can all lead to a point where student drops out from the college.
A high credit card debt can force a student to take up a part time or regular job, which often has a degrading effect on studies.
Though the student credit card is designed to give a good beginning to a person's credit history but, excessive debt can cause a serious dent to credit score this factor alone can cause serious problems for students.
Due to a bad credit score which is the result of credit card debt, a student can face difficulties in finding apartments for rent.
Same factor can make insurance rates higher or unaffordable for students, because insurance companies find it risky to insure people with poor credit.
Getting a job also becomes difficult when a credit card debt causes poor credit history. The employer also shy away from people with poor financial skills and money management. Read more from: http://www.credit-card-gallery.com/article/273,10_ways_how_student_credit_card_debt_can_turn_your_college_life_into_hell
dolly blaine | Aug 30, 2007
If I consolidate my student loan with a personal loan can I still write off the interest?
May 15, 2008 by MLE | Posted in United States
I had a federal student loan which I consolidated about 8 years ago to someone who eventually sold that loan to Citibank. I pay about 8.35% in interest. I am considering paying off that student loan with a personal loan where I can get a better interest rate. If I do this will I still be able to write off the interest I pay on my taxes?
Nope. It will no longer be a student loan then. You may be able to consolidate several student loans into another student loan at a better rate, but if you pay it off with a personal loan you'll be left with a non-deductible personal loan.
bostonianinmo | May 15, 2008
How to stop student loan wage garnishments if you agreed to make default payments?
Aug 22, 2007 by workingmywayback | Posted in Financial Aid
I recently defaulted on my student loan and contacted the student loan company to before they started garnishing my wages. I agreed to a reasonable monthly payment and made the payments on time when I noticed that my wages were being garnished as well. I contacted the student loan company several times and they kept saying that they would remove the garnishment and that my employer had recieved the paperwork. I contacted my employer's payroll and the stated that they never got the paperwork and I should ask for a copy myself to fax it in myself just in case. The student loan company wouldnt give me a copy of the garnishment letter to the employer and claimed to have faxed the paperwork in. It has been 4 straight pay periods and nothing has been done meanwhile im still making monthly payments directly from my bank account. Is there anyway to stop this? PS: I dont need smart remarks about you should have paid in the first place, i know that much but i couldnt afford to at certain points.
Well it seems to me if you set up the auto-draft to your bank account willingly you should be able to stop it at will as well. Call your bank and tell them you want to stop sending that company money. Or allow them to take it out of your account, however it was set up.
Good luck!
Found-1 | Aug 23, 2007
Student loan for Canadian students who want to study in Romania?
Sep 06, 2008 by caroline | Posted in Financial Aid
Hi, I am currently a second year university student in Canada. I am planning to go study in Romania next year. I was wondering is there any kinds of student loan out there that will lend money to canadian students who wants to go study in Romania? Thanks alot!
know of a company that gives personal canadian loans.
You can use the money for any purpose and they don't have upfront fees.
They work with most credit issues but you need verifiable employment.
contact:
http://www.ewebhost.biz/cgi-bin/affiliates/clickthru.cgi?id=autoprt
for details.
rogers b | Sep 08, 2008
Can student loan interest be used as a tax deduction if the loans are in deferment/forbearance?
Apr 14, 2008 by AG | Posted in United States
I know that student loan interest can be deducted.
My student loans are all either in deferment or forbearance. I'm accruing interest on some of them, but I haven't actually paid any interest yet. Can I deduct the interest that accrued?
Thanks!
No, you can only deduct the interest when you actually pay it, not when it accrues
Judy1 | Apr 14, 2008
How does a student loan affect your credit?
Sep 28, 2007 by FuzzyLizard | Posted in Credit
I have a student loan that is about 50K. I am making payments on it but I am on the income contingent plan and every month I get a statement showing that what Im paying is not enough to pay even the interest, so the balance is higher every month. Does this negatively affect my credit, I pay every month on time but I want to know if this will affect my credit. Does the 50K count towards debt to available credit ratio also. How does the student loan affect credit ratings?
Student loans effect your credit score like any other loans (that means credit cards also). As long as you pay on time your credit should be fine. But you do want to pay more than your monthly accrued interests, otherwise you will never pay off your student loan, and the balance will just get higher and higher.
XoxoxoxoX | Sep 28, 2007
Student Loan Debt Consolidation Calculators Will Offer Mental Relief
When you're looking to get out of debt, you're more than likely under a lot of pressure. It's about this time that many people have the bill collectors breathing down their necks, calling them at dinner and even calling their bosses; it can be very stressful and it can cause even the most sane people to feel like running away from it all. However, all you need in this situation is a little student loan debt help. You can find that help with student loan debt consolidation companies. These companies will bundle your debt into one lump sum and then will offer solutions so that you can get out of debt faster and easier. These companies will usually have student loan debt consolidation calculators on their websites where they will tell you when they will be able to get you out of debt. This can be very freeing mentally as you'll finally be able to see the light at the end of the tunnel.
Follow The Instructions
For these student loan debt consolidation calculators to work, you have to follow the organization's instructions to a T. Sure, the student loan debt consolidation calculators can provide mental catharsis but they're useless if you don't follow the organization's instructions. For example, if the organization tells you to mail off a monthly payment equal to X and you miss a few payments, you're not going to get out of debt anytime soon.
Beware Of Scams
Also, when you see a student loan debt consolidation calculator on a website, make sure you look out for scams. Try to gauge the professionalism of the company, navigate the site to see if they are legit and do an internet search on that company to see if anyone else calls it a scam. You can follow any debt consolidation calculator on the internet as they are merely tools to show you how they will get you out of debt but never actually send anyone any money until you're absolutely sure they are a legitimate company who actually wants to help you.
Government Asks Student Loan Borrowers in Default to Pony Up Americans who have failed to repay their federal student loans may soon find themselves facing litigation, The National Law Journal reports (“Government
ArkansasSports360.comLawmakers, students mull cost of college But though many lending agencies have dropped out of the student loan business, or drastically cut their offerings, loans still are available. Tuition freeze called unlikely at Kentucky colleges
BBC NewsBanker stole £50000 to pay loan A bank worker opened fake accounts to steal £50000 from his employer to pay off his student loans, a court has heard. Greig Smith was an assistant manager
Tax Savings Without Itemizing Student loan interest. If you have paid interest on qualified student loans, you can claim an above-the-line deduction for the interest of up to $2500. The 11 Most Overlooked Tax Deductions
Your finances in the balance It can be a confusing time, especially when your student loan arrives: it is all too easy to feel artificially rich and blow the lot.
ArkansasSports360.comLawmakers, students mull cost of college But though many lending agencies have dropped out of the student loan business, or drastically cut their offerings, loans still are available. Tuition freeze called unlikely at Kentucky colleges
BBC NewsBanker stole £50000 to pay loan A bank worker opened fake accounts to steal £50000 from his employer to pay off his student loans, a court has heard. Greig Smith was an assistant manager
