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29 10, 2015

Student Loans: Income based repayment (IBR) 10/27 Update


To stem the tide of overwhelming student debt, the Federal Government has come up with a number of programs that can ameliorate the borrower’s level of pain. Some entail public service based efforts which when a stipulated period of service is completed, the balance of the loan is forgiven. Another attractive offering is the IBR or income based repayment.

This program, which was established in 2012, allows the borrower to pay a percentage of their discretionary income to meet their monthly payment obligation and can reduce the budget squeeze of a much larger payment as per the original loan agreement. On […]

17 08, 2013

The One Trillion Dollar Student Loan Debt Debate


As the search for a solution to the one trillion dollar of student loan debt rages on, let’s not forget that this trillion is still in repayment: people are still making monthly payments on their student loans. The government and taxpayer are likely not going to lose all of this trillion. Most of the borrowers are repaying this debt. We may not recoup the entire trillion but more than likely we won’t have one trillion in defaulted loans. I’m writing this in reference to this article:

It does not mean that an entire trillion is lost. The majority of borrowers are in repayment […]

11 08, 2013

The Truth about the $1Trillion Student Loan Debt


I felt compelled to reply to this editorial claiming the taxpayer is bailing out students with loans in the August 11, 2013 in the Wall Street Journal:  The Rolling Student Loan Bailout

The trillion dollar student loan debt results from the cumulative borrowing over the last few decades. Let’s not confuse political administrations with facts. The genesis of this problem pre-dates the current administration. Consider that students don’t have to start paying their undergraduate Stafford loans until six months after they graduate or leave college. In most situations undergraduate students can’t borrow but a fraction of the costs through Stafford loans. […]

2 08, 2013

Congress Approves Lower Student Loan Rates!


They said it could not be done!  However, we finally have a decision from Congress on the student loan rates that will apply to college borrowers! Many college students and their parents borrow each year in order to pay for college but the loan terms were in limbo. Federal student loans rates are usually set by June 30th.  However, this year, they were hung up in both the Senate and Congress due to bipartisan disagreement. Earlier in July the House passed a bill that set interest rates at 6.8% plus fees for both subsidized and unsubsidized loans and 7.9% for […]