Signing student loan deal into law, Obama says ‘job is not done’ on college affordability

To find out whether that’s the case, talk to an experienced bankruptcy attorney familiar with the laws in your state. None of this reduces your son’s responsibility for his debt. If collectors can’t come after you, they will start to pursue him in earnest for payment and he’ll learn just how wrong he is about student loan debt. But that’s his problem, and he at least has a working lifetime ahead of him to pay back what he borrowed. Divorcee eligible for spousal benefits Dear Liz: My daughter, 63, has been recently amicably divorced and receives a small alimony ($1,000).

Some pundits argue that the focus on repaying college loans is stifling investment in business and discouraging young adults from buying a first home. The American Medical Association says many new doctors are choosing lucrative specialties, rather than family practice, in order to get a handle on their often massive debts. The College Board has information on college costs at The Finance Authority of Maine has information about filing your Free Application for Federal Student Aid and more at Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maines all-volunteer, nonprofit consumer organization.

Take extra care before agreeing to co-sign for a student loan. Having a co-signer can be beneficial to a student by possibly allowing him or her to obtain a very low rate. “But a co-signer is a co-borrower, equally obligated to repay the debt,” warns Mark Kantrowitz of If the student defaults on the loan, the student will not only ruin his or her own credit, but also the co-signer’s credit. Read the fine print and pay attention to various programs that could save you money.

The compromise is a good deal for all students through the 2015 academic year. After that, interest rates are expected to climb above where they were when students left campus in the spring, if congressional estimates prove correct for 10-year Treasury notes. Undergraduates this fall will borrow at a 3.9 percent interest rate for subsidized and unsubsidized loans. Graduate students would have access to loans at 5.4 percent, and parents would borrow at 6.4 percent. The rates would be locked in for that years loan, but each years loan could be more expensive than the last.

Student loan deal passes Senate

The Congressional Budget Office estimates that rates would not reach those limits in the next 10 years. A student looking for a loan must be able to prove there’s a financial need in order to qualify for a subsidized Stafford loan. About two-thirds of these loans are awarded to students with family adjusted gross income of less than $50,000. About one-fourth go to families with AGI between $50,000 and $100,000, and less than 10 percent go to families with AGI’s more than $100,000, according to Keep in mind that the government pays the interest on subsidized Stafford loans during the in-school period, effectively giving students and families a 0 percent interest rate during that time.

It may not be total coverage of their expenses, but it helps, she said. PHCC stopped participating in the federal student loan program in the early 1990s, Keller said, because the default rate (number of students not paying on their loans) jeopardized the schools access to federal grant money. Instead, PHCC promotes scholarships through the schools foundation as well as federal and state grants, she said. If that isnt enough, Keller said, private loans also are available through banks, although very few do that because rates are tied to the financial markets as well as the applicants credit, she added. Keller estimated that 75 percent of PHCC students receive some form of financial assistance, adding that even if a student is registered for a single hour of class, he still is eligible for aid. Since PHCC also has many non-traditional students, she added, many students pay their way through school.

Student loan bill inked

“My colleagues and I have been fighting for months for a long-term market-based solution that will serve students and taxpayers, and the legislation before us today will do just that,” said Minnesota Republican John Kline, who runs the House education panel. Related: Student loan horror stories The new rule doesn’t apply to loans that students get from private lenders. It only affects Stafford loans, which are made by the U.S. government to help finance a college education. On July 1, the interest rate on subsidized Stafford loans doubled from 3.4% to 6.8%, affecting 7.4 million students. The subsidized loans are based on financial need and account for about 26% of all federal student loans, according to the Congressional Budget Office.

Susan Tompor: Despite student loan relief, do math carefully when borrowing

The subsidized government student loans are based on financial need and account for about 26% of all federal student loans, according to the Congressional Budget Office. Unsubsidized loans and graduate loans were already paying 6.8% interest rates. The latest bill helps all students. The basic principle is that it ties student loan rates to the bond markets. This fall, undergraduate students will pay an overall interest rate of 3.86% on their loans. It is comprised of the yield on the 10-year Treasury note on June 1, plus an additional 2.05%.


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