President Makes It Easier to Repay Student Loans

Just as the Federal Reserve Bank of New York is raising concern about growing student loan debt and defaults, President Barack Obama is moving to expand a repayment program aimed at helping lower-income borrowers. The president today signed an executive order that the administration says will allow nearly 5 million more borrowers to qualify for a program that keeps monthly payments on federal loans to no more than 10 percent of discretionary income. This plan has been available only to more …

Skipping Out on Student Loans? Check Your Wallet

So what can Uncle Sam do if you don’t repay your federal student loans?   Report you to credit reporting companies. Garnish your wages. Keep your tax refunds and Social Security payments until the debt is paid off.   That’s right, all of the above.  Only most people aren’t aware of it. Economists and researchers at the Federal Reserve Bank of New York asked this of more than 1,000 consumers – only to discover that less than one-third of them correctly answered that the …

Hug Your Parents, and 7 Other Lessons for New Grads

The day after graduation at Miami University in Ohio, I took a run through campus. Barricades blocked paths, and white party tents waited to be disassembled. Ikea shelves and desks and deck chairs lined curbs. Kids snapped last-minute photos, while moms and dads carried storage bins and hitched U-Haul trailers to the backs of SUVs. It had been a while since I’d seen this scene – about 10 years. I graduated from college in 2005 and, after a short stint …

Students Find $40,000 in Thrift Store Sofa

Three college roommates who bought an old couch for $20 at a Salvation Army store in New Paltz, N.Y., had the surprise of their lives when they found $40,000 in cash hidden inside. “I almost peed,” Reese Werkhoven, one of the lucky trio, told TheLittleRebellion.com, an online student newspaper at SUNY New Paltz. “The most money I’d ever found in a couch was, like, 50 cents.” As it turned out, the couch contained three cash-stuffed plastic envelopes, one of which had …

College Students: Ideal for ID Theft

If you have children or grandkids attending college, or about to graduate, it’s time to school them on the dangers of identity theft. Last year the Better Business Bureau deemed college students the “most at-risk” group for identity theft, and those in their 20s represented 1 in 5 of all victims (higher than any other age group), according to reports filed with the Federal Trade Commission. College students and recent graduates are often targeted because they’re ideal victims. Reasons: Many …

Some Student Borrowers Face Default if Cosigner Dies

Many parents and grandparents are aware of the hazards of cosigning an education loan, putting themselves on the hook to repay if the student doesn’t. Now another wrinkle has emerged that can end up hurting student borrowers: Under the terms offered by most private lenders, institutions can demand that borrowers immediately repay a loan in full if the cosigner dies or files for bankruptcy. These so-called auto-defaults can occur even if the borrower has been keeping up with payments. And …