Sallie Mae

Some Student Borrowers Face Default If Co-Signer Dies

Posted on 04/22/2014 by |Senior Editor, Money Team | Comments

Bulletin Today | Money & SavingsMany 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 …

Defaults Rise in Parent PLUS Loans

Posted on 04/11/2014 by |Money and Work | Comments

Bulletin Today | Money & SavingsParents who’ve taken out federal student loans to help pay for their children’s college education are increasingly finding themselves in serious financial trouble. Default rates on Parent PLUS loans have tripled in the last few years, according to federal data released this month. Some 5.1 percent of loans that originated in the 2010 fiscal year were in default three years later, according to U.S. Department of Education data released last week. Default rates were highest, at 13.3 percent, for Parent …

Paying for College With Your Retirement Funds? Don’t.

Posted on 07/30/2013 by |Money and Work | Comments

Bulletin Today | Money & SavingsSure, we want our kids and grandkids to go to college. But not every family, including mine, has been able to save enough to cover four years’ worth of tuition expenses. Consider this: In the next five years, college costs at a public institution are likely to be $99,125 for four years, and $203,114 at a private institution. Who can afford this? It’s no wonder, then, that many of us parents are doing the worst thing we could be doing: tapping into …