As the economy tanks and employment skyrockets, the number of former students struggling to pay off their student loans is likely to grow, too. While failure to repay any debt can have serious consequences, not making payments on your student loan is especially grave. Here's a quick primer on what it means to default on student loans -- and how to avoid it. What does … [Read more...] about What Happens When You Default on Your Student Loans?
federal student loans
A new law to make private student loans eligible for discharge in a bankruptcy is being debated by the U.S. Congress. It is stands right now, no student loans -- neither federal nor private -- can be discharged in a bankruptcy. Unlike home loans, car loans and credit card debt, so-called "education loans" are exempt from bankruptcy laws. But private student loans, which … [Read more...] about Congress Debating Student Loan Bankruptcy Law
President Obama's plan to federalize student loans and increase funding for the Pell Grant cleared its first legislative hurdle today when the House Education Committee approved the plan. Known as the Student Aid and Fiscal Responsibility Act of 2009, the President's plan would expand the number of students eligible for Pell Grants. Currently 40 percent of American college … [Read more...] about In the News: Plan to Increase Pell Grants Clears First Legislative Hurdle
On Wednesday, President Obama revealed his budget plan, which includes a major overhaul of the current federal student loan program. The sweeping and controversial plan would completely alter the $85 billion student loan business, which currently profits companies like Sallie Mae to the tune of $4 billion a year. Here's how: The way federal Stafford student loans work right … [Read more...] about In the News: Obama Suggests Major Overhaul of Student Loans
According to this recent article on MSNBC, college students are scrambling for financial aid for next year: "The financing system for college is in real crisis," said Barmak Nassirian, associate executive director of the American Association of College Registrars and Admissions Officers. "Every one of the participants in the system is experiencing hardship - higher education … [Read more...] about In The News: Financial Aid Is a Mixed Bag for Next Year