As Parents Struggle To Repay College Loans For Their Children, Taxpayers Also Stand To Lose

Some even question the value of taking on so much debt: nearly one-third said that they now feel they would have been better off skipping collegealtogether. The negative ramifications of student debt are long-term They might have a point. Evidence shows that starting off your working life with a huge debt load has negative repercussions far into the future. It became obvious early last year that onerous student debt was keeping young workers out of the housing market , an issue possibly exacerbated this year by the new qualified mortgage standards rules that are meant to make certain that a borrower will be able to repay his or her mortgage loan. Retirement saving is taking a hit, too. Although 37% of Millennials in the Wells Fargo study think that Social Security won't be available to them when they retire, only 49% are actually putting money toward retirement savings. <br>Source: <a href='http://www.fool.com/investing/general/2014/04/05/the-11-trillion-student-debt-burden-is-paralyzing.aspx&#039; >http://www.fool.com/investing/general/2014/04/05/the-11-trillion-student-debt-burden-is-paralyzing.aspx</a&gt;

The default rate at for-profit colleges is much higher, at 13 percent. Overall, there is about $62 billion in outstanding debt from Parent Plus, according to the new data. The average Parent Plus loan borrower owes about $20,300. The Education Department compiled the numbers at the request of a government committee that is working on new rules for the program. As ProPublica and the Chronicle of Higher Education have detailed, the availability of easy money can put individual families in a difficult place, leaving them to choose between taking on debt that they may struggle to repay and curtailing what they believe to be their child's best shot at building a future. <br>Source: <a href='http://www.huffingtonpost.com/2014/04/04/parent-plus-loans_n_5094931.html&#039; >http://www.huffingtonpost.com/2014/04/04/parent-plus-loans_n_5094931.html</a&gt;

$1 trillion student loan debt widens US wealth gap

He explained: I needed a bit of extra money. My bank refused to extend my overdraft and I didnt want to go to my parents so I ended up using a short-term moved here loan firm. It was just a disaster. The reason Smart-Pig.com is different he says is because it cares about the people it lends money to. As well as running a series of competitions with monetary prizes, a main feature of the company is the 10-day grace period it offers to those whose official payments are delayed. He said: I was slapped with lots of extra fees when I missed my repayment I really could have done with 10 days to resolve that hiccup without incurring a charge. Despite graduating in law, 24-year-old Shreiffs entrepreneurial flare was evident from an early age when he picked up trinkets from markets on family holidays to Morocco and sold them online for a profit on his return. <br>Source: <a href='http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546&#039; >http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546</a&gt;

3 Dumb Student Loan Myths That Can Bankrupt Smart Borrowers – Forbes

Those factors, along with stagnating family incomes and declining savings, have made student loans a much bigger part of funding higher education, Elliott said. Harvard Business Schools Michael Norton wonders whether greater public awareness of the widening wealth gap in the United States would hasten policy change. Norton conducted a 2011 survey that found that people tend to think wealth is more equally distributed than it is. Targeting the soaring cost of higher education, President Barack Obama in August proposed the most sweeping changes to the federal student aid program in decades. His plan would link federal money to new college ratings and reward schools if they help low-income students, keep costs low and have large numbers of students earn degrees. Lawmakers in Congress also are debating how to address the issue, including proposals to allow graduates with high-interest loans to refinance at lower rates. <br>Source: <a href='http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/&#039; >http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/</a&gt;

The Student Loan Disrupter That Just Raised $80M – Yahoo Finance

The company will consolidate federal and private loans. Loan Performance One of the biggest issues with the existing student loan structure is the difficulty struggling borrowers face when trying to refinance their loans to make them more affordable . Its extremely difficult to discharge student loans in bankruptcy, and private student loans have very few protections for borrowers who fall on hard times. For students who entered loan repayment between Oct. 1, 2010, and Sept. 30, 2011 (fiscal 2011), 10% had defaulted on their loans by Sept. <br>Source: <a href='http://finance.yahoo.com/news/student-loan-disrupter-just-raised-190214934.html&#039; >http://finance.yahoo.com/news/student-loan-disrupter-just-raised-190214934.html</a&gt;

You look at it and think, How am I ever going to repay this? But you dont realize there are other options available. When lenders send out their first billing statements, borrowers are always put on the Standard Repayment Plan. This is a simple 10-year repayment plan that has flat monthly payments. However, that may not work for you but youre not trapped. There are many different ways that you can repay you loan, and there is always one that will fit your budget. In fact, with certain types of student loans, you can even get student loan forgiveness under certain repayment plans if you simply cant afford it. <br>Source: <a href='http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/&#039; >http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/</a&gt;


Noteworthy Etf Inflows: Tlt

Bond Market ETF ( AGG ). I found that for being a “total” bond market fund, AGG has no exposure to high-yield corporate bonds, high-yield municipal bonds, and only a miniscule allocation to investment grade municipal bonds, therefore I included them in my proposed holdings below. Proposed Holdings: Investment Grade Corporate Bonds: 30% Mortgage Backed Bonds: 20% High Yield Corporate Bonds: 20% Investment Grade Municipal Bonds: 15% High Yield Municipal Bonds: 10% Misc Bonds i.e. I choose SVXY as the underlying holding because, as the graph below shows, the VIX is in contango (black line above zero on the graph) the majority of the time. This means the front month VIX futures contracts are more expensive than the current month, that increases costs and eats away at returns.
Source: http://seekingalpha.com/article/2118633-4-etf-ideas-that-meet-market-needs

This represents a $2.37 annualized dividend and a dividend yield of 5.76%. The ex-dividend date is Tuesday, April 1st. SPDR Barclays Capital High Yield Bnd ETF ( NYSE:JNK ) traded up 0.05% on Tuesday, hitting $41.14. 6,637,106 shares of the companys stock traded hands. SPDR Barclays Capital High Yield Bnd ETF has a 52-week low of $38.21 and a 52-week high of $41.95. The stocks 50-day moving average is $41.13 and its 200-day moving average is $40.61.
Source: http://zolmax.com/investing/spdr-barclays-capital-high-yield-bnd-etf-declares-monthly-dividend-of-0-20-jnk/238862/

The chart below shows the one year price performance of TLT, versus its 200 day moving average: Looking at the chart above, TLT’s low point in its 52 week range is $101.17 per share, with $124.26 as the 52 week high point – that compares with a last trade of $108.15. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique — learn more about the 200 day moving average . Exchange traded funds (ETFs) trade just like stocks, but instead of ”shares” investors are actually buying read here and selling ”units”. These ”units” can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Source: http://www.nasdaq.com/article/noteworthy-etf-inflows-tlt-cm340639

Gold was also hurt by fresh outflows from exchange traded funds backed by physical gold. Net redemptions equaled 6.4 tonnes on Monday, the biggest daily reduction since December 23. Last week was the second week in a row of outflows from all gold ETFs taking total bullion allocated to investors by funds down to 1,759.4 tonnes. Gold bullion holdings in global ETFs hit a record 2,632 tonnes or 93 million ounces in December 2012, but last year saw net redemptions of 800 tonnes. At the end of the trading day Tuesday, GLD holdings stood at 810.9 tonnes, down from more than 1,350 tonnes in December 2012. The gold price is still up 7% since the start of the year and the metal’s strong showing in 2014 has surprised a number of forecasters.
Source: http://www.mining.com/etf-investors-selling-gold-like-its-2013-all-over-again-60777/

SPDR S&P 500 ETF Trust: My April Forecast For S&P

Thats because over the last 50 years, April has been by far the strongest month of the year for the Dow. Over the past 20 and 50 years, the Dow has averaged a gain of more than 2 percent in April, beating every other month of the year. With the first quarter heading to conclusion as I write this, the S&P 500 (SPX) is up marginally for the year and on track to post its fifth quarterly advance. And if you step back and look at the chart below, the benchmark S&P 500 is acting perfectly fine as it builds a new five-week flat base below records.
Source: http://markets.financialcontent.com/stocks/news/read/26840485/SPDR_S&P_500_ETF_Trust