We have been conditioned to think that student loans are inevitable. A necessary evil for today’s college student. But yesterday’s New York Times article on student loan debt has an optimistic message: One out of three students earn their BA degree with no student debt. That’s right — one-third of all undergrads will get through their degree without owing a penny in student loans, according to a new survey conducted by the College Board. So what’s that we keep hearing about how all students are drowning in student loan debt? According to one of the College Board’s researchers, Sandy Baum: People think students are drowning in debt, and there is a small proportion of students that borrow an exorbitant amount, but most students graduate with a manageable d...

For those of you whom graduated this past June, the grace period on your student loans is coming to an end.  Starting in January, you will be responsible for paying back the principle and interest of your student loans every single month, faithfully and on time, until they are paid off in their entirety. It’s a weighty responsibility, but there are a few things you need to know to make them a little more manageable. 1. Save money by setting up automatic withdrawals. If you have a federal student loan (Perkins or Stafford), you are entitled to a discounted interest rate (usually .25%) when you sign up for automatic deductions from your checking account.  This is a great deal for you and one that you should definitely take advantage of — not only will you save money on inte...

With the cost of tuition rising and the economy seizing up, it would seem that most students are going to need some form of student loan to pay for college. But according to a Monday report released by the Institute for Higher Education Policy, there are a growing number of students who forgo borrowing — despite needing it and being qualified for aid. According to the report, there are three reasons students may chose not to borrow money, despite need and being qualified: 1) They attend less expensive schools and/or attend very part-time. In 2003-2004, part-time community college students were the least likely to take out student loans. 2) They are older, employed and delay college until they can finance it with their current income or other saved resources. 3) They are a member ...

A few months ago, I wrote a couple of posts comparing Obama’s views on financial aid to McCain’s views on financial aid.  Now that we have a new President (elect), I thought we should take a closer look at how federal financial aid, and specifically student loans, might look come January 21st under the new administration. Just days before the November 4th election, Obama spoke on MTV about issues of concern to young voters. Primary among those concerns were student loans and financial aid.  Here’s what he had to say (from the blog at walletpop.com): …I think the average student is taking out $25,000 to $30,000. That’s a huge burden, especially in a time when wages and income are not going up. So here is what we want to do: increase the Pell Grant program, e...