What’s New With Student Loans?
Scanning headlines over the last month to deliver to you the latest news and insights into the student loan landscape.
- NY Post describes collateral damage caused by rising higher ed costs; namely, the family’s financial condition:
‘Beyond the $1.19 trillion in student loan debt reported by the Federal Reserve Bank of New York last week lies an additional problem: an unmeasured mountain of related credit card and home-equity debt, plus money diverted from retirement accounts.”
- Should student loans be dischargeable in bankruptcy? The WSJ weighs in on the debate:
“Last week, our Examiners took on the controversial issue of student loan debt and bankruptcy. And the group came down on both sides as to whether student loan debt should be dischargeable in bankruptcy, with arguments for a change to the bankruptcy code, for preserving the status quo and for a more nuanced approach.”
- Federal student loan rates to drop for 2015-16 school year (WSJ):
“Interest rates will be lower on federal student loans given out for the upcoming academic year, cutting costs for millions of college students and their families. The rate on federal Stafford loans for undergraduates will be 4.29% for the 2015-16 year, down from 4.66% on loans given out during the 2014-15 school year. On graduate Stafford loans, the interest rate will be 5.84%, down from 6.21%. On Plus loans, taken out by many parents of undergraduates as well as graduate students, the interest rate will be 6.84%, down from 7.21%.
The new interest rates go into effect for loans disbursed beginning on July 1 for the upcoming school year.”
- For those who borrow, the average member of the Class of 2015 will graduate with $35,000 in debt (research by Edvisors in Boston Globe):
The average class of 2015 borrower will graduate college with just over $35,000 in debt, according to an analysis by Edvisors, a publisher of free websites about planning and paying for college. That makes the class of 2015 the most indebted class in history, graduating with a whopping $56 billion in student loan debt.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.