Banks Ease Terms for Struggling Student Borrowers

Big banks are beginning to cut some slack to distressed student-loan borrowers. Wells Fargo announced a new program this week that will lower the interest rate on loans so payments will be more affordable based on a struggling borrower’s income. The bank will review borrowers’ financial situations to determine whether they qualify for short- or long-term loan modification. >> 8 Hidden College Expenses According to the Wall Street Journal, both borrowers and cosigners will have to show financial hardship to get a modification. Modifications …

Debt for College Hits 70% of Graduates

Most graduates in the Class of 2013 left campus with more than a diploma. Nearly 7 out of 10 also had student loan debt. The average amount: $28,400, up 2 percent from the debt of those who graduated a year earlier. That’s according to a report by the Project on Student Debt at the Institute for College Access & Success, a California-based advocacy group that has been tracking these figures for nine years. >> Hidden College Expenses Education debt is a growing concern …

Millennials Need Parents to Talk About Long-Term Plans

Religion, sex, politics and money rank as taboo topics for polite conversation, perhaps avoided with our adult children, too. But money should be on the table for the simple reason that our financial situation often affects our kids as we age. A reminder of that comes in an honest and heartfelt column by Yahoo financial adviser Mandi Woodruff about her parents. She writes: “These days, I find myself worrying far more about their financial futures than I do my own. …

Getting a Student Loan? Your Interest Rate Just Went Up

Starting today, parents and college students will be paying more for federal education loans. Interest rates on new federal loans are adjusted every July, and this year’s rates are slightly higher than those for loans issued in the previous 12 months. The rate on Stafford loans for undergraduates is now 4.66 percent, up from 3.89 percent. Parents and graduate students now will pay a rate of 7.21 percent for PLUS loans, compared with 6.41 percent previously. These rates are fixed …

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 …