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Seven Tips for Repaying Your Student Loans

May 22, 2015

by Suada Kolovic

If you're a recent college graduate, chances are you’ll have to start paying off your student loans sooner than you think. And even with the economy in a slump, don’t expect a free pass on not paying your loans. Are you starting to panic? Well, don’t! There’s a ton of advice out there to help students stay on track and courtesy of the U.S. News and World Report, here are seven tips for repaying your student loans.

  • Repay you student loans automatically. Make things easier on yourself by setting up automatic withdrawals from your bank account. This reduces the chance of late or missing payments.
  • Aim for 10 years. The traditional repayment period for student loans is 10 years and ideally you'll be able to pay off all your debt within that time period. If you end up struggling with your monthly payments, however, you could stretch out your loans to 20 or even 30 years. Your monthly payments will become more manageable but you will end up paying a lot more in interest.
  • Stay organized. Having multiple student loans can be a challenge to keep track of but with the government's National Student Loan Data System, you’ll be able to track all your federal student loans in one place.
  • Pay off the loans with the highest interest rates first. A high interest rate costs you every month and compounds that amount you owe every month you aren’t paying off the entire balance.
  • Consider IBR. The IBR is a federal Income-Based Repayment program that allows a borrower to repay his or her federal loans based on what is affordable and not what is owed.
  • Keep abreast of student loan developments. Staying informed is just as important as making your payments. Familiarize yourself with websites that are devoted to college debt issues like Project on Student Debt and the National Consumer Law Center's Student Loan Borrower Assistance Project.
  • Contact the Federal Student Aid Ombudsman. Sometimes your relationship with a lender can go belly-up. If you end up in a dispute, the Federal Student Aid Ombudsman may be able to help resolve the issue.

Are there any tips you'd like to add? Share your suggestions in the comments section.

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

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Understanding President Obama’s Student Aid Bill of Rights Initiative

Mar 13, 2015

by Suada Kolovic

The financial aid process can be a daunting one but if you're planning on attending college any time soon, you should know that there are tons of federal student aid options available. From Pell Grants to Perkins Loans to the FAFSA, the funding is out there but your eligibility to receive aid depends on your level of need and, subsequently, how much aid you are eligible to receive. Translation: For the majority of students, loans are inevitable. But don't fret just yet because President Obama announced the Student Aid Bill of Rights initiative to help student borrowers with the challenging student loan process.

What it does:

  • Helps borrowers keep track of their student loans. For years, consumer groups and colleges have been warning that borrowers with more than one servicer are losing track of their loans — and winding up in default as a result. The Education Department acknowledged those concerns last fall, when it adjusted some institutions' "cohort default rates," or the share of borrowers who default on their loans within a certain time frame.
  • Make it easier for borrowers to file complaints involving their student aid. Right now, borrowers can file complaints with a variety of agencies, including the Consumer Financial Protection Bureau, the Department of Veterans Affairs, and the Defense Department. But there isn't a centralized website where all borrowers can lodge their grievances against lenders, servicers, debt collectors, and colleges.

What it doesn't do:

  • Prevents students from overborrowing in the first place. Many of the challenges that student-loan borrowers face in loan repayment are the result of unmanageable debt. After all, if borrowers could afford their loan payments, they wouldn't have to turn to income-based repayment or deal with debt collectors.
  • Overhaul student-loan debt collection. They want the government to handle debt collection itself. But the president's plan merely talks of "raising standards" for student-loan debt collectors, and it’s pretty vague about what those higher standards would look like.

For more on the president's Student Aid Bill of Rights, head over to The Chronicle of Higher Education. . What do you think of the president's attempt to ease the financial burden associated with student loans? Share your thoughts in the comments section. And don't forget, going to college doesn't have to break the bank! Check out our Financial Aid section for more info on federal funding and while you're there, conduct a free college scholarship search where you'll get match with countless scholarships, grants and other financial aid opportunities!

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

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Is Earning a College Degree Worth It? Study Finds Modest Return for Some

Feb 10, 2015

by Suada Kolovic

It wasn't too long ago that the majority of Americans agreed that one had to pursue a college degree in order to succeed in the workforce. Unfortunately for millennials, the rate of success after obtaining said degree is no longer so intrinsically tied: According to reports, millions of college students don't graduate, suffer a mismatch between education and employment and are left with massive amounts of debt.

New research suggests that earning a college degree is no longer the surest ticket to the middle class. "'Ticket' implies a college degree is something you can just cash in," said Alan Benson, assistant business professor at the University of Minnesota. "But it doesn’t work that way. A college degree is more of a stepping stone, one ingredient to consider when you’re cooking up your career...It’s not always the best investment for everyone." Benson, along with MIT’s Frank Levy and business analyst Raimudo Esteva, co-authored a new paper examining the value of public university options in California. They found that factors like how long it takes to complete a degree and whether students even make it to graduation can significantly diminish the value of pursuing higher education. Unsurprisingly, the study also found that students who take out loans and don’t graduate on time incur much more debt. All in all, Benson concluded that the investment of a college education is generally better for those who graduate – on time – from a school with healthier resources. (For more on their research, click here.)

Do you think that a college degree is necessary for gainful employment and upward mobility? Share your thoughts in the comments section. And don’t forget to try and fund your education with as much free money as possible – a great place to start is by visiting Scholarships.com and conducting a free college scholarship search where you'll get match with scholarships, grants and other financial aid opportunities that are unique to you!

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

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Pay It Forward Plan Draws Serious Criticism

Jul 21, 2014

by Suada Kolovic

When it comes to paying for a college education, it seems as though students have two options: deal with impossibly high payments while they're in school or crippling debt for years afterwards. Well, Oregon students were provided a third option last year when legislators approved the Pay it Forward plan that would allow students to attend state colleges without paying tuition or taking out student loans but would instead commit a small percentage of their future incomes to repaying the state. It turns out, however, that said plan isn't the saving grace for college students afterall.

First proposed by students at Portland State University, Pay It Forward has drawn serious criticism since Oregon passed a law to study the idea. According to a report by the American Association of State Colleges and Universities, analysis shows that the plan would leave most graduates deeper in debt than if they had taken out loans and would throw colleges’ balance sheets into uncertainty. Here are some of the more prevalent points in the association’s report but for a more detailed look, click here:

  • Pay It Forward does not account for non-tuition costs like room and board.
  • Students who generally rack up the most debt – those at for-profit and private nonprofit institutions — would not be eligible for the program.
  • The program would have “enormous” start-up costs.

Early estimates suggest that Oregon would have to take about 3 percent of a former student’s earnings for 20 years for it to work. With that being said, what are your thoughts on Pay It Forward? Do you think it’s too soon to tell if this is a viable option for other states to adapt?

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

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Attention High School Seniors: Free College in Tulsa, Oklahoma!

Jun 13, 2014

by Suada Kolovic

Understanding the true cost of college is essential when finalizing the decision on where you’ll pursue your post-secondary education. Remember that amid all the literature schools send out, take more than a gander at the teeny-tiny font listing “sticker price” because that number probably doesn’t include room and board, books and myriad other fees you’ll be have to pony up while attending. And while the majority of students won’t pay anywhere near the sticker price, the average cost of college has steadily increased to $20,000 at public colleges and topped $50,000 at private colleges, which has left many families wondering how they’ll afford these astronomical amounts. Unless, of course, you’re a resident of Tulsa, Oklahoma: Eligible students there get the first two years of college for FREE!

Tulsa Achieves is a gap-funding program that provides up to 100-percent tuition and fees to Tulsa County high school graduating seniors who enroll at Tulsa Community College the fall after they graduate. Who’s eligible? Every high school graduate living in Tulsa County, including public, private or home-schooled students with a 2.0 or higher grade point average. The program pays for up to 63 college credit hours or up to three years of college, whichever comes first; students are also required to complete 40 hours of volunteer service each academic year. The total cost is $3,400 per student per year and is mostly paid for with local property taxes. "We established Tulsa Achieves seven years ago because we no longer believed that a high school diploma was sufficient in terms of the jobs of the future," said Tom McKeon, Tulsa Community College’s president. "I think we're seeing kids that never, ever dreamed that college was a possibility for them because parents didn't think it was within their realm," he added. (For more on this story, click here.)

Let us know your thoughts on Tulsa Achieves program in the comments section. And if your state doesn't offer a deal as sweet, head over to Scholarships.com to find financial aid that’s tailored to you – create a profile and conduct a free scholarship search today!

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

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Legislation Seeks Student Protection on College Debit Cards

May 23, 2014

by Suada Kolovic

With graduation season in full swing on college campuses across the country, many of you are well-prepared and excited for this new chapter in your lives. So whether you've snagged a position in your field (way to go!) or have a coveted internship lined up, it seems as though things are all finally falling into place...until you realize that along with the crippling student loan debt you’ve accrued the past four years, you also have a ton of debit card debt. Yikes! Fortunately, Congress seems to be tackling predatory college debit card programs head-on.

The legislation – known in the Senate as the Protecting Aid for Students Act and in the House as the Curbing Abusive Marketing Practices with University Student Debit Cards Act – would prevent "revenue-sharing" deals between college and banks for college-issued deposit accounts/debit cards and would require that banks pay colleges at "market rate" to provide and promote their banking services. The bill also calls for a "code of conduct" for colleges that bans banks from giving gifts to college officials. "Many of today's college students are being strong-armed into using financial products that are endorsed by their university," lead House sponsor Rep. George Miller of California said in a written statement. "These products often carry unnecessarily high fees that chip away at students' federal grants and loans, which should be helping pay for classes, not lining the pockets of banks. In reality, these ‘preferred’ products aren’t preferable at all." (For more on this story, click here.)

What do you think of the proposed legislation? Were you tempted by every credit card promotion with a free t-shirt incentive while on campus? If so, check our Campus Life section for tips on credit card money management, resisting the urge to splurge and recognizing want vs. need to get back on track!

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

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Consider Consolidating Your Private Student Loan Debt

May 13, 2014

by Suada Kolovic

If you're a recent college graduate, chances are you'll have to start paying off your student loans sooner than you think. And even with the economy in a slump, don't expect a free pass on not paying them back. So while keeping track of the multiple loans you've accrued during your college career is tasking, it's important to understand your options. An often overlooked possibility is private loan consolidation. Aren't familiar? Allow me to explain.

A consolidation loan can simplify the loan repayment process by allowing the borrower to combine several types of loans into one. And often, the interest rate on a consolidation loan is lower than the rate on a typical student loan. Until recently though, few banks have offered consolidation loans for private student debt. Why? According to a report last year by the Consumer Financial Protection Bureau, part of the problem was the high cost of marketing to potential borrowers and finding adequate financing to provide the loans. But that may be changing: In January, Providence, R.I.-based Citizens Bank said it would begin offering private consolidation loans which could signal that change is afoot nationally. Wondering who should consider a consolidation loan? It's an ideal option for students who have finished school, are gainfully employed and have been making on-time payments on your private student loans for at least a year or two. The real advantage of refinancing is the chance to get a lower interest rate on your debt and to simplify their monthly payments into a single bill. (For more on this story, click here.)

For more information on student loan consolidation, borrowing responsibly and tips on repaying your student loans, head over to Scholarships.com financial aid section.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

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Student Debt Forgiveness Programs Skyrocket

May 6, 2014

by Suada Kolovic

Unless you plan on paying for your college education out-of-pocket, completing the FAFSA and applying for scholarships are essential in your quest for financial aid. But have you considered federal programs that forgive student loan debt almost entirely? It’s an increasingly popular option: According to reports, government officials are trying to rein in federal programs that forgive some student debt, amid rising concerns over the plans’ costs and the possibility they could encourage colleges to push tuition even higher.

The fastest-growing plan requires borrowers to pay 10 percent a year of their discretionary income in monthly installments. The unpaid balances for those working in the public sector or for nonprofits are forgiven after 10 years while those private-sector workers see their debt wiped clear after 20 years. And while there is currently no limit on such debt, the Obama administration has proposed to cap the amount eligible for forgiveness at $57,500 per student. The cost? A report last week from the Brookings Institution estimated that the plan could cost taxpayers $14 billion a year! “Loan forgiveness creates incentives for students to borrow too much to attend college, potentially contributing to rising college prices for everyone,” the study said. The authors went on to recommend the forgiveness provisions to be scrapped entirely. (For more on this story, click here.)

Share your thoughts on federal student debt forgiveness programs in the comments and check out our financial aid section for more information on how to fund your college education.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

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Update: Teen Who Sued Parents Returns Home

Mar 14, 2014

by Suada Kolovic

In an interesting turn of events, the New Jersey teenager who sued her parents for tuition and living expenses has reportedly returned home. I guess growing up and moving out while you're a teenager and still know everything doesn't always pan out!

Morris Catholic high school senior Rachel Canning claimed her parents “constructively abandoned” her, mostly because she would not break up with a boyfriend they didn't approve of. She moved out of their house on October 30th and had been living with a friend’s family since then. In her lawsuit, Rachel had been seeking a declaration of non-emancipation, or continued financial dependence on her family. (Basically, she wanted the court to order her parents to award her $654 weekly in child support and access to an existing college fund – an order the judge refused last week.) Though Rachel has returned home, the lawsuit has not yet been dropped but the family's lawyer has confirmed that the conflict has been resolved. (For more updates on this story, click here.)

While all the hoopla surrounding this story will surely die down in the coming weeks, do you think there could be long-term negative effects on Rachel Canning’s future?

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

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Top Issues Millennials Want Discussed in State of the Union Address

Jan 28, 2014

by Suada Kolovic

For those of you that don’t closely follow politics, tonight President Barack Obama will deliver his fifth State of the Union address. If you aren’t familiar, the address not only reports on the condition of the nation but also allows the President to outline his legislative agenda and national priorities. And with potentially millions of young Americans watching, we wondered what issues mattered most to Millennials? Fortunately, Generation Progress asked them just that! Check out some of the top responses below: (For the full list, head over to Generation Progress.)

  • A solution to the student debt crisis. With 40 million Americans shouldering $1.2 trillion dollars in educational debt, Millennials want to see President Obama call for ways to address this crisis.
  • Create a fair economy that shrinks the income inequality gap by raising the minimum wage to $10, maintains federal government programs like unemployment benefits, expands the U.S. apprenticeship system, supports young entrepreneurs to create new business and reinvest in national service programs like AmeriCorps.
  • Every state needs to expand Medicaid under the Affordable Care Act (ACA), so young Americans can purchase affordable health care plans with subsidies Medicaid provides via the law.
  • Invest in green jobs while addressing the effects of climate change.
  • Enact common-sense gun legislation such as mandatory background checks.

What do you think of the top issues that Millennials want discussed? Any you would add? Let us know in the comments section.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

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