Sometimes, financial aid, scholarships, and federal grants and loans are just not enough to help you pay your way through college. Also, sometimes a federal loan is just not what you are looking for, as you must abide by the strict regulations surrounding the loans and must follow specific plans to pay back these loans. In these instances, why not apply for a private education loan through a company that specially tailors a loan just for your specific educational purposes?
Tuesday, November 30, 2010
Monday, November 29, 2010
Debt From Student Loans Grows as Graduate Unemployment Sets Record
College seniors who graduated in 2009 carried an average of $24,000 in debt from student loans. That figure represents a 6-percent increase over 2008 and continues a four-year trend of rising debt from student loans among college graduates, according to a recent report by The Project on Student Debt.
The report, “Student Debt and the Class of 2009,” analyzes average student loan debt loads for graduates of more than 1,000 public and private nonprofit four-year colleges throughout all 50 states and the District of Columbia. The report comes with a companion interactive map that allows states to be searched for student loan debt information from individual institutions.
Most of the states with high levels of student loan debt were in the Northeast, while most of the low-debt states were in the West. The highest average levels of debt from college loans were held by graduates from colleges in the District of Columbia ($30,033) and New Hampshire ($29,443). The lowest average levels of student loan debt were held by graduates from colleges in Utah ($12,860) and Georgia ($16,568).
Actual state averages of college loan debt loads “are likely higher than these estimates, which are based on data reported voluntarily by public and private nonprofit four-year colleges,” according to the press release announcing the report (“Student Debt Keeps Rising, Unemployment High for Recent Grads,” Oct. 21, 2010).
These state averages also do not include college loan data from private for-profit institutions — which enroll students who generally borrow more money in student loans than students at public and private nonprofit four-year colleges — because very few for-profit schools voluntarily report data on debt from student loans.
More Student Loans, Plus Record Unemployment, Equals Tough Times for Grads
In addition to an overall national increase in average debt from student loans, the report also found that unemployment rates for college graduates ages 20–24 spiked from 5.8 percent in 2008 to 8.7 percent in 2009, marking the highest annual graduate unemployment rate on record and creating more challenges for graduates looking to pay back increasing amounts of student loans.
“The unemployment rate is higher than ever for everyone, including people who didn’t go to college, and obviously that’s a huge concern,” said Sandy Baum, an economics professor who found similar average student loan debt levels in her analysis of student loan data for the College Board (“Average College Debt Rose to $24,000 in 2009,” The New York Times, Oct. 21, 2010).
“With student debt rising and jobs hard to come by, it’s more important than ever to shop around when deciding where to go to college,” said Lauren Asher, president of the Institute for College Access & Success, the research and advocacy group that operates The Project on Student Debt.
Asher said the report shows that students’ debt levels from college loans “vary widely — not only from state to state but also from college to college, even when the sticker prices look the same.”
Asher emphasized that it’s in students’ best interests to exhaust all their scholarship and federal financial aid options, including government-issued grants and low-cost federal student loans, before turning to non-federal private student loans.
“Differences in the kind of debt students graduate with matter,” Asher said. “It’s important to remember that the experts all agree that if you’re going to borrow, you should take out federal loans first, because federal student loans come with far more repayment options and borrower protections than other types of loans.”
Further Reading
The Project on Student Debt. “Student Debt and the Class of 2009.” October 21, 2010.
The Project on Student Debt. “Student Debt and the Class of 2008.” December 1, 2009.
The Project on Student Debt. “Student Debt and the Class of 2007.” October 22, 2008.
The Project on Student Debt. “Student Debt and the Class of 2006.” September 25, 2007.
The Project on Student Debt. “Student Debt and the Class of 2005.” August 29, 2006.
Federal Stafford Loans from NextStudent Have Great Incentives on Already Low Rates
After exhausting all forms of “free money” for college, such as scholarships and federal grants, the next best thing for students are federal student loans to help them pay for school. Federal Stafford loans have low interest rates and are more appealing when they feature benefits and incentives, according to NextStudent, the Phoenix-based premier education funding company.
Sunday, November 28, 2010
Oregon Sues University of Phoenix for $10 Million for Investor Fraud
Oregon has joined a class-action lawsuit against for-profit college behemoth University of Phoenix, seeking $10 million for losses due to the school’s misrepresentations to investors and other fraudulent practices, Oregon state officials announced on Monday (“Oregon Sues to Recover $10 Million Connected to Misleading Filings by University of Phoenix,” Oregon Department of Justice press release, Oct. 18, 2010).
The state has asked for lead-plaintiff status in the case.
In the lawsuit, originally filed in August in U.S. District Court in Arizona, Apollo Group, the Arizona-based parent company of University of Phoenix, is charged with securities fraud, accused of making misleading financial statements to investors and to the U.S. Securities and Exchange Commission that artificially inflated the company’s stock price and its projected future performance (Gaer et al. v. University of Phoenix class-action complaint, Aug. 13, 2010).
As part of the company’s misrepresentations, the suit alleges, Apollo also masked its damaging practices of deceptive marketing, improper student recruitment, and the encouraged fraudulent use of federal student loans and other government financial aid funds — practices that, when brought to light, caused the company’s stock to plunge and lost investors millions of dollars.
Fraudulent Accounting, Federal Investigations Cost Apollo Investors Millions
Apollo’s activities drew the attention of the SEC, and the resulting SEC investigation, which Apollo disclosed in late October of 2009, brought about the first tumble in the company’s stock price.
The company allegedly misrepresented its income to investors by failing to account for losses associated with student withdrawals from school courses, an accounting practice that came to light in its quarterly earnings filing last October, at the same time that Apollo disclosed it was being investigated by the SEC (“SEC Investigates University of Phoenix Owner, Apollo Group,” Oct. 29, 2009).
As a result of the disclosures, Apollo’s stock price slumped, losing 18 percent of its value in a single day, falling from $73 per share to $60.
Apollo shares remained depressed, Oregon officials say, and continued to erode as the U.S. Department of Education, Congressional panels, and consumer advocacy groups began to push more aggressively for stricter regulations governing for-profit schools and the industry’s use of federal student loans and financial aid money.
By Aug. 2, Apollo stock was trading in the neighborhood of $46.
Then on Aug. 3, news leaked of an undercover investigation into 15 for-profit colleges conducted by the Government Accountability Office, the auditing arm of Congress. The resulting GAO report, which found that the schools were engaged in numerous deceptive and fraudulent practices, caused another slide in Apollo shares. By Aug. 13, when the class-action suit against Apollo was filed in Arizona, the company’s stock price had shrunk to $39.
All told, the drop in Apollo’s shares from $73 to $39 between October 2009 and August 2010 cost the state of Oregon an estimated $10 million from the Oregon Public Employee Retirement Fund, say state officials. The state retirement fund invests in an index fund that includes the Apollo Group.
By joining the class-action lawsuit in Arizona, Oregon officials are charging Apollo with making “materially false and misleading” statements that prevented the state, as an investor, from accurately assessing the risk of its investment in the company.
“As a responsible investor, the Oregon Treasury takes action against companies that violate the public trust and fail to act in shareholders’ best interests,” said State Treasurer Ted Wheeler, in the statement released by the state’s Department of Justice.
Added Oregon’s attorney general, John Kroger, “Companies that cook their books will have to answer to Oregon in court.”
School’s Fraudulent Dealings Included Student Loans
Apollo’s financial practices were also detrimental to Oregon students who were pursuing a degree through the University of Phoenix, the state maintains.
The school improperly cancelled federal college loans for students who had withdrawn from classes, Oregon officials charge, leaving these students with financial obligations to the university instead — an accusation reminiscent of another class-action lawsuit filed against Apollo and the University of Phoenix by three former students in December 2008.
In the 2008 case, the three former University of Phoenix students accused Apollo and the university of improperly denying them the use of federal student loans, in violation of the Higher Education Act (Martin et al. v. Apollo Group and University of Phoenix class-action complaint, Dec. 9, 2008).
The students alleged that, when they dropped courses shortly after enrolling, the University of Phoenix returned all of their federal student loan funds to the lenders without the students’ “knowledge or consent,” even though the students had already incurred tuition charges. The school then demanded immediate repayment from the students for the partial tuition owed.
By charging the students directly and not allowing them to use their federal student loans as payment, the 2008 complaint stated, the University of Phoenix denied these students the borrower protections and more generous loan repayment terms offered by the federal government.
Returning the students’ federal student loan money was also a “transparent attempt” by the University of Phoenix to unlawfully manipulate its federal student loan default rate, the lawsuit charged, since students who don’t finish their education are at the highest risk of defaulting on their student loans. A school can lose access to federal financial aid funds if its student loan default rate exceeds an acceptable level.
But since the school had cancelled the students’ federal loans, if the students failed to pay their tuition charges, they would be defaulting on a debt to the University of Phoenix, not to the government — a default that wouldn’t affect the school’s eligibility for federal funds.
Apollo derives the bulk of its revenue from government-backed college loans and is the largest single recipient of federal student loan funds in the United States.
“With this lawsuit,” said Wheeler, the Oregon treasurer, “we are taking a clear stand that we will not tolerate businesses practices like those used by the University of Phoenix to take advantage of their students and their investors.”
Apollo Responds to Oregon Lawsuit
The Apollo Group responded to the news of Oregon’s charges in a company statement.
“Apollo Group takes its disclosure obligations very seriously and intends to defend this lawsuit vigorously,” said Manny Rivera, a company spokesman.
“Apollo Group is a leader in enhancing the student experience, expanding student protections, and working to help students succeed in completing their degree programs,” he added.
The company operates four University of Phoenix campuses in Oregon, serving about 4,200 students.
The University of Phoenix is the nation’s largest for-profit college, and Apollo, which is also parent company to the for-profit schools Western International University and Axia College, is Arizona's fifth-most valuable company, with a stock-market worth of more than $6 billion.
Further Reading
Gaer et al. v. University of Phoenix. Class-action complaint. Filed August 13, 2010.
Martin et al. v. Apollo Group and University of Phoenix. Class-action complaint. Filed December 9, 2008.
“SEC Investigates University of Phoenix Owner, Apollo Group.” October 29, 2009.
U.S. Government Accountability Office. “For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices.” Testimony submitted to the U.S. Senate Committee on Health, Education, Labor, and Pensions. August 4, 2010.
Consolidate Student Loans before July 1 for Best Rates, Incentives
The road to student loan consolidation is about to take a sharp turn, as interest rates and rules are slated to change on July 1, just about five weeks away. Interest rates on federal student loan consolidation are expected to increase approximately 2 percentage points, making payments much more difficult for student loan borrowers.
Saturday, November 27, 2010
College Savings Plans – are they the best choice for my child?
College savings plans could be the best way to help fund your childs education. Learn more about the College 529 savings plan here.
Friday, November 26, 2010
Durbin, Miller Introduce Bill to Cut Student Loan Interest Rates
In an effort to cut the interest rates in half on student loans before they increase on July 1 and to provide better access to college, Sen. Richard J. Durbin, D-IL, who also serves as assistant senate Democratic leader, in conjunction with Rep. George Miller, D-CA, senior Democrat on the House Committee on Education and the Workforce, introduced April 13 the Reverse the Raid on Student Aid Act of 2006, or H.R. 5150. Interest rates would be cut for student borrowers and parent borrowers alike.
Relying On What You Already Know May Cost You More Then You Think
August 3rd, 2010
Are you looking to use a student loans guide to find financing to go to school? If you are then one question you might have is why should you use them when you can simply apply for the types of loans you are already aware of, what would be the point of doing this? Well some of the loans you might already know about have undergone extreme changes since the last you looked into them. If you haven’t noticed, the economy is in a very terrible state right now. There are many financial institutions, which are making it very difficult to obtain financing you could’ve gotten in the past. Even though the student loan market is a large market it does not guarantee that you will get the financing you need. So by using a good loans guide you’ll give yourself access to vital information that will point you in the direction of various options. Various options are what you would need in order to have the best chance for success.
A student loans guide is designed to bring multiple resources to you all in one place. When you are looking for information about student loans you will find information scattered all over the place. How can one hope to be successful when they cannot get properly organized? When you have organized information you’re able to better pick it apart and get to the meat of what you actually can use. The information that you cannot use because it doesn’t apply to you can simply be thrown out. The right type of student loans guide will offer information, which you will be able to make reference to whenever you need it. This is always the type of resource you should look to have at your disposal.
With a student loans guide that is up-to-date you will be able to research other options besides just loans, you’ll be able to find information on grants as well as possible scholarships you may qualify for. As I have already mentioned the more options you have the better. Various scholarships and grants may give you the extra punch you need in order to fund your education without having to get into so much Debt. Being able to properly learn about these other options is just one more weapon you can add to your arsenal.
With a student loans guide you will never be left without the information you need and you will have access to it whenever you have more questions or if you just want to review something you read before applying for it to get a student loan. Being able to make reference to this information will definitely come in handy. You will surely have questions along the way and you will need to refresh your mind at times. When you’re able to do this you will always be prepared for whatever may arise in the future concerning getting student loans. The right type of student loans guide will offer you all of these options, and that is why it is so beneficial for you to use them.
College Student Loans Entry Filed under: College Student LoansThursday, November 25, 2010
NextStudent Announces Winner of ‘Rock My Grad Party’ Contest
Matthew Pierre, a junior at Marcos de Niza High School in Tempe, AZ, won a new laptop computer and $5,000 for his school’s Grad Night Party. NextStudent, a leading Phoenix-based education funding company, launched the Web-based “Rock My Grad Party” contest in April as a way to promote higher education and its Scholarship Search Engine to high schools throughout the Phoenix area.
Using College Federal Financial Aid Model for Private K–12 Education
At the end of January, in his final State of the Union address, President Bush revealed continuing plans for expanding federal funding of private K–12 schooling with the proposal of a $300 million Pell Grant for Kids program. This program, named after the long-running college Pell Grants program, would provide federal grants to low-income families with children in underperforming schools to help send those children to private, faith-based, or higher performing out-of-district public schools.
Wednesday, November 24, 2010
Nextstudent Flies Extra Mile To Ensure Reconsolidation Applications Arrive On Time At Department Of Education
This is the last chance for borrowers to reconsolidate their student loans and receive benefits and incentives before the Department of Education ceases to accept applications, as reconsolidation no longer will be available after March 31.
NextStudent Offers Low In-School Consolidation Rates Before July 1 Deadline
Student loan borrowers in less than three weeks will come face to face with new legislation changing rules and regulations and increasing interest rates affecting federal student loans. Most notable is that federal student loan interest rates onJuly 1, 2006 will increase 1.84 percentage points, the second-largest interest rate hike in the history of the program.
Tuesday, November 23, 2010
N.J. Woman Charged With Scamming $200,000 in Student Loan Fraud
A New Jersey woman was arrested last week for running a student loan scam that allowed her to collect nearly $200,000 in student loans from fraudulent college loan applications she submitted over a period of four years (“U.S. Attorney: Browns Mill ‘Student’ Got $192,000 in Education Loans,” The Trentonian, Aug. 11, 2010).
La’Vada Cruse, 23, has been charged in federal court with mail fraud and aggravated identity theft.
According to the complaint filed with the U.S. District Court in Camden, N.J., Cruse applied for 92 student loans between 2003 and 2007, seeking more than $1 million in student loan funds, even though, according to authorities, she completed only two college courses in three years. Cruse applied for the student loans both in her name and in the names of people whose names, Social Security numbers, and dates of birth she used without their permission.
From those loan applications, Cruse successfully obtained 17 student loans totaling $192,000. The lenders issued the student loan checks directly to Cruse or to a nominee, and Cruse deposited the money into accounts that she controlled.
Student Loan Scam Included Fake Documents and Co-Signers
In the loan applications, authorities charge, Cruse claimed to be a full-time student at any one of six New Jersey–area colleges, and many of the applications were accompanied by a falsified college enrollment letter stating that she was a student at the school.
Federal officials later learned that Cruse completed only six credit hours of classes at Burlington County College in Pemberton, N.J., between 2004 and 2006 (“Burlington County Woman Accused of Obtaining Thousands in Fraudulent Student Loans,” The Philadelphia Inquirer, Aug. 12, 2010).
Cruse’s student loan applications also included a fake co-borrower, with fraudulent biographical, employment, and financial information. Cruse falsified letters of employment and created fake pay stubs and tax forms for the ostensible co-signers in order to submit supporting documentation with her loan applications, authorities said.
U.S. Attorney and IRS Joined Investigation
The Philadelphia Inquirer reports that Cruse came under scrutiny in 2007 after police questioned her in the parking lot of a bank in Medford, N.J., where she was sitting in a silver Mercedes-Benz E320 that contained numerous applications for student loans. In the Mercedes, police also found identification in various names and illegally obtained credit cards, according to an arrest complaint.
Medford police were called to the bank after Cruse reportedly attempted several times to withdraw money from an account that had been frozen on concerns raised by bank employees.
A local investigation grew into a federal probe that involved the U.S. Attorney’s Office, the IRS, and the U.S. Postal Service.
If convicted of the mail fraud charge, Cruse faces a prison sentence of up to 30 years and up to a $1 million fine. The aggravated identity theft charge carries a mandatory minimum sentence of two years.
Monday, November 22, 2010
Last-Minute Withdrawal by Lenders Leaves Students Scrambling for Student Loans
On July 28, just a few weeks before the fall semester gets underway, some 40,000 college students in Massachusetts suddenly found themselves facing outstanding tuition bills with no money to pay them, when the nonprofit Massachusetts Educational Financing Authority announced that it wouldn’t be able to provide any private student loans for the upcoming semester. MEFA, the largest issuer of student loans to Massachusetts residents, had already suspended its federal student loan program back in April.
First Lawsuit Filed to Challenge Deficit Reduction Act
Students and concerned citizens may see some recourse after the upset of the passage of the Deficit Reduction Act, S. 1932, that was approved narrowly Dec. 21 by the Senate and then signed into law Feb. 8 by President Bush.
Sunday, November 21, 2010
Financial Aid Options
Before entering college, you may find yourself pondering exactly how you will be able to pay for college. Many public colleges and universities cost thousands of dollars, while private colleges and universities can cost $10,000, $20,000, $30,000, or even more just to attend. Before getting too worried about these high prices, it is important to know that help is just a click of the computer mouse away, as the internet can help you to find the financial aid option that is right for you!
Knowing How To Find Them Is Key Them In A Certain Way Is Key To Being Successful
August 4th, 2010
How does one go about finding loans for students in a way where it will not end up walking away being confused? This is a very important question you need to ask yourself before looking for loans for students. Many people end up walking away confused because they end up finding information, which is not properly organized. They also end up finding information that is out of date and cannot be relied upon at all. If you are serious about attending a major university or college then you need to make sure you’re able to look for loans for students in an organized and efficient manner. Only when you’re able to do this will you be able to properly take note of which loans you qualify for as well as learning what the eligibility requirements are.
One thing you can do is decide to research various governmental authority sites that offer information on all the various types of loans for students. There are many government authority sites which usually offer information that is up to date as well as accurate. These particular websites will offer links to other websites which will give you more information about any given student loan you’re interested in getting. Typically on the site will you will also be able to find the forms you need to get started with the application process. These types of sites are very important to you if you are looking for information that is organized in a very specific manner.
You can decide to use a good online student loans guide that is up-to-date with all the information you need so you’re able to go about your search in an informed fashion. Sometimes government authority websites may not be enough for you, sometimes you may want more. If you want more then using a good online student loans guide may be just the option you are looking for. These types of guides are usually organized according to the types of loans, the requirements, as well as other options you may not have even considered. You will be able to study the information you need so you’re able to move on with your research in a much more informed fashion.
If neither of these options suits you another option you can use is online forums, which will have questions and answers from other students who are trying to look for student loans. Sometimes getting feedback from other students who are in the same situation as you are is a good option. You will be able to ask questions and get feedback from various people. You’ll also be able to learn about resources and options you may not be able to find anywhere else. Being able to come together in such an environment can have many different benefits. But it is going to be up to you to determine if using an online forum is for you or not.
College Student Loans Entry Filed under: College Student LoansSaturday, November 20, 2010
Conyers Joined by 10 Congress Members in Lawsuit to Declare Deficit Reduction Act Unconstitutional
The Deficit Reduction Act of 2005, S. 1932, that was signed into law on Feb. 8 by President Bush continues to come under fire. Another lawsuit to declare that the legislation is unconstitutional was filed April 28 by Rep. John Conyers Jr., D-MI, ranking member on the House Judiciary Committee, who was joined in the suit by 10 Congress members including Rep. George Miller, D-CA, ranking member, House Committee on Education and the Workforce.
Friday, November 19, 2010
Stafford Loans From NextStudent Provide Graduate Students With up to $20,500 a Year for Graduate Study
Graduate and professional degree students looking for ways to finance their graduate studies could get some of the financial aid they need with Federal Stafford Loans from NextStudent, a leading Phoenix-based education funding company.
Wells Fargo Empties Customer’s Checking Account to Pay Delinquent Student Loan
An Atlanta couple has found themselves with their savings wiped out after their bank, Wells Fargo, cleared out their checking account in order to pay a piece of what bank officials maintain is an outstanding student loan (“Suddenly, Bank Account Was Gone,” The Atlanta Journal-Constitution, May 1, 2010).
After Hope and Matt Hughes had problems trying to make a purchase with their debit card last month, they discovered that Wells Fargo had cleaned them out, withdrawing $4,059.82 — everything they had — from their checking account. They were also hit with $385 in overdraft fees for debit-card purchases they had made on the day their checking account was emptied.
Wells Fargo appropriated the funds under its right of “setoff,” a prerogative held by most banks that allows a bank to take money from a customer’s savings or checking account in order to pay off any other account — a home mortgage, credit cards, student loans — that the customer holds with the bank that’s overdue.
In the Hugheses’ case, Wells Fargo was collecting money it says it was owed on a $10,000 student loan Hope had taken out with Wachovia Bank, which was acquired by Wells Fargo in 2008.
Your Bank’s License to Help Itself to Your Money: The Right of Setoff
Setoff policies can vary from bank to bank, but in general, banks aren’t required to provide a customer with advance notice that they’re going to take money from a cash account as payment for another account. There are also typically no restrictions, other than the amount that a customer owes on overdue accounts, on how much money a bank can withdraw.
Seizing money through setoff, however, is usually reserved for a last resort, when other attempts at collection have failed, says David Oliver, a senior vice president of marketing and communications with the Georgia Bankers Association.
“We don’t do this without lots of attempts to communicate with our customers and try to work things out,” Jay Lawrence, Atlanta spokesman for Wachovia, told The Atlanta Journal-Constitution. “When this happens, we don’t like to do this. We want our customers to succeed.”
Lawrence declined to comment on the Hugheses’ case except to say that bank records differ from the version of events given by the couple.
Borrower Believed Her Private Student Loan Was in Deferment
Hope Hughes had taken out three student loans on her way to a marketing degree from Kennesaw State University: two government-backed federal college loans and one non-federal private student loan through Campus Partners, a private education loan program offered by Wachovia.
Hope said she thought she had a six-month grace period after she graduated last May before she had to begin paying back her student loans.
“After several rounds of calls and faxes to prove she graduated in May 2009, not December 2008, as the bank believed, and a last-ditch application for a deferment, she thought things were settled,” The Atlanta Journal-Constitution reported.
But in January of this year, Wells Fargo apparently wrote off the Wachovia private loan as a defaulted student loan, sending it to collections. Hope began receiving bills for $11,338.60 — the total student loan amount, plus interest, fees, and penalties.
In early April, after the Hugheses had already encountered the problems with their Wells Fargo debit card, they received a letter notifying them that the bank had exercised its right of setoff and taken the money from their checking account to apply toward Hope’s allegedly defaulted student loan.
The balance of the private loan, nearly $7,300, is still outstanding.
In the meantime, Hope and Matt have had to dip into his 401(k) account, put personal effects up for sale on Craigslist, and negotiate with their other creditors in order not to fall behind on their home and car loans, which are also held by Wells Fargo.
“We are so far behind,” said Hope. “I don’t want anybody else to go through what we’ve been through. … I was blind-sided.”
Bank-Based Private Student Loans Hold Out Convenience … and Vulnerability
As banks have expanded their services from simply being repositories for customer cash to offering everything from home loans and car loans to credit cards, insurance, and student loans, customers have increasingly consolidated their range of financial needs with a single institution. This one-stop banking, or “relationship” banking, has grown over the past 30 years.
To their advantage, customers may be able to qualify for lower interest rates or preferred services when they take out additional loans or lines of credit with a bank where they already have an established relationship.
On the other hand, these customers leave themselves open to their bank being able to seize their cash, should they ever fall behind on one of those loans or lines of credit — a situation in which more and more families are finding themselves as the current recession and high levels of unemployment drag on.
“Our counselors are seeing more and more examples,” said John McCosh, spokesman for the Consumer Credit Counseling Service of Greater Atlanta, a nonprofit financial counseling agency. “When people come to us and we go through their budget and various credit accounts and bank accounts to help them get an overall picture of their finances, … and if we see that there is any vulnerability because someone has a delinquent account at the same place where they have their cash reserves, we will point out that it’s a vulnerability.”
Hope Hughes went to Wachovia for her student loan because she and Matt had banked there for 10 years, taking out their home and car loans there as well.
Wells Fargo “may have had a right legally” to seize the cash from her checking account, Hope said. “Ethically, should they have done it? No. Should they have wiped out my entire bank account? Absolutely not.”
Thursday, November 18, 2010
NextStudent offers students last chance to reconsolidate and save thousands
PHOENIX – March 28, 2006 – NextStudent, http://www.nextstudent.com/, one of the nation’s premier education funding companies offering both consolidation and reconsolidation programs, offers students their last chance to reconsolidate student loans. There only are two days left to reconsolidate, as the option no longer will be available anywhere after March 31. Borrowers now must take advantage to reduce their monthly payments and save thousands before reconsolidation is a thing of the past.
Students Should Consolidate Loans before July 1 Deadline
There roughly are seven weeks remaining until interest rates on student loans are expected to greatly increase and rules and regulations will change. College and graduate students alike will feel a major pinch unless they now take action to consolidate their student loans.
Wednesday, November 17, 2010
NextStudent’s Graduate PLUS Loans Available to Fall Graduate Students
Numerous graduate students who are starting classes this fall now are scrambling for the funds needed for their tuition and other educational expenses at graduate school. With the high cost of graduate school and the fall semester just around the corner, graduate students still have time to get the funds needed to help cover the full cost of their education, according to NextStudent, the Phoenix-based premier education funding company.
Consolidation of Debt and Student Loans
So you have finally got the degree, but were you surprised with what came along with it? A pile of debt and student loans that need to be paid back starting very shortly after college! Whether it is a Federal PLUS Loan or a loan obtained from your local bank, chances are that a college graduation also brings collection agencies to your mailbox, as everyone wants to be paid back for helping to provide you with a college education. But, while you are writing out all these checks to different loan agencies, have you considered and thought consolidation through yet? Better, yet, do you even know what consolidation is?
Tuesday, November 16, 2010
Variety of Student Loan Options Available through NextStudent
As tuition at state colleges increases every year along with the increasing inflation rate, students and their parents often wonder how to pay for the entire cost of college. Oftentimes, federal student loans do not cover the full cost of tuition. However, NextStudent, the Phoenix-based premier education funding company, has a variety of ways to make it possible to receive that college degree.
Monday, November 15, 2010
Colleges’ Search for New Student Loan Lenders Becomes Top Priority This Fall
As some 17 million students prepare for college in the fall, financial aid offices across the country are scrambling to find new student loan lenders to replace those that are no longer offering federal student loans at their institutions.
Student Loan Consolidation – How does it Work?
Student loans are a great source of financial aid for students who need help paying for their education. Unfortunately, students often leave college with burdensome debt. In addition, they often have multiple loans from different lenders, meaning they are writing more than one loan repayment check each month. The solution to this problem is loan consolidation.
Sunday, November 14, 2010
Arizona Credit Union Awards Student Loan Forgiveness Grants
Arizona State Credit Union announced that it has awarded $34,000 in college scholarships and student loan forgiveness grants to 17 students and recent college graduates from around the state.
The credit union’s Loan Reduction Grant provides funds to help recent Arizona graduates pay down their student loans. The grant is awarded to graduates on the basis of academic achievement and continuing commitment to their communities.
Recipients of the credit union’s Community Leaders Scholarship, aimed at Arizona college students still in school, are awarded money to help pay for tuition, fees, textbooks, and other college expenses.
The winners are students and graduates from state colleges and universities — Arizona State University, Northern Arizona University, the University of Arizona, Coconino Community College, and Yavapai Community College — and all 17 “are representative of Arizona’s diverse student population,” the credit union said in its press release.
Phoenix-based Arizona State Credit Union, a statewide nonprofit financial cooperative serving more than 130,000 Arizonans, has been offering scholarships and grants to Arizona students for over 50 years.
Read the press release announcing this year’s scholarship and grant winners:
“Arizona State Credit Union Awards Scholarships to College Students and Recent Graduates,” Oct. 4, 2010.
NextStudent Helps College Students Formulate College Funding Strategy
By now, college students across the country have had ample opportunity to enjoy their summer vacation, and their break from school soon will be drawing to a close. Now is the ideal time to consider more serious matters like how students will plan for their next year of education, according to NextStudent, a leading Phoenix-based education funding company.
Saturday, November 13, 2010
Consolidating Federal Student Loans Keeps Graduates on Course
Although many people have achieved the dream of completing their college education, many of them face an unfortunate downside following graduation: paying back the inevitable student loan.
Friday, November 12, 2010
July 1 Brings Record-Setting Drop in Interest Rates on Federal Student Loans
As a result of the string of rate cuts made by the Fed over the last year, most parent and student borrowers who have existing variable-rate federal student loans will see their interest rates drop by 3 percent on July 1, 2008 — the biggest rate drop in the history of the federal student loan program.
Student Loan Checks Delayed at D.C. University
Students at the University of the District of Columbia who depend on federal student loans and other financial aid to cover their school and living expenses are still waiting for their fall-semester money — 14 days overdue and counting.
The school is two weeks late in printing financial aid disbursement checks for its approximately 2,500 students who rely on federal financial aid, The Washington Post reported yesterday (“2,500 UDC Students Don’t Have Their Federal Aid Checks,” Oct. 14, 2010).
No disbursement checks had been issued at all until Wednesday, when UDC began printing them in “small batches.”
School Says Student Loan Legislation Behind Financial Aid Delays
UDC spokesman Alan Etter said that the university was caught unprepared for the sweeping changes to the federal student loan program, legislated as part of the Obama administration’s health care overhaul bill, that went into effect on July 1 — changes that Education Secretary Arne Duncan had warned colleges, in a letter sent back in October of last year, to begin implementing in anticipation of the student loan legislation passing (“Colleges Are Pushed to Convert Loan System,” The New York Times, Oct. 26, 2009).
The Student Aid and Fiscal Responsibility Act, included as part of the health care reconciliation bill in March, ended the third-party federal student loan program known as FFELP (Federal Family Education Loan Program) that had allowed private banks and lenders to act as a student loan middleman, issuing government-backed college loans on behalf of the Department of Education.
In FFELP’s place, the bill left the Federal Direct Loan Program, by which federal college loans are issued directly by the Department of Education with no third-party lender involvement.
Schools whose financial aid systems were set up exclusively for FFELP student loan disbursements were required to overhaul their systems in order to accommodate direct student loan disbursements from the government. These systems should have been in place by July 1, when FFELP effectively ceased to exist.
UDC, however, wasn’t ready.
“We didn’t have the technology in place that would allow us to cut a great number of [student loan] checks at the same time,” Etter said. “It was a technological glitch. We should have realized that we couldn’t handle that capacity.”
In exactly the sort of scrambling, slipshod chaos that the student loan industry and FFELP’s supporters had warned would be the result of leaving schools solely in the hands of a government bureaucracy to obtain their federal student loan dollars, UDC is issuing financial aid checks to students piecemeal, as it can.
In a letter to students, the school’s vice president, Valerie Epps, promised that checks for student loans and other funds will be issued “on a daily basis” until all awaiting students have received their financial aid money.
“We hope to have this cleared up within a week,” said Etter. “Maybe a little longer," he added.
Thursday, November 11, 2010
Single Consolidation offered from NextStudent for Multiple PLUS Loans from Multiple Children
The federal PLUS Loan— Parent Loans for Undergraduate Students, is a smart and easy way for parents to pay for their child’s college education. The PLUS loan is not based on financial need or income, so most people qualify for the loan. Since it is a federal loan, the interest rate is as low as 8.5 percent. These loans help families meet college costs, beyond tuition and fees, at below-market rates and with generous terms. Parents can borrow up to 100 percent of the total college costs, less any financial aid received.
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