Author: Drew Cloud

Last-Minute Tax Tips for Student Loan Borrowers

Tax day is quickly approaching, and there are undoubtedly many consumers who are putting their taxes off until the last minute. Up to 25 percent of taxpayers file within two weeks of the deadline, according to the IRS.For student loan borrowers wondering what the best tax strategies are, here are a few things to keep in mind.How Borrowers Should FileMany married individuals wonder whether filing jointly or separately is the best plan. The answer to this really depends on their individual circumstances.There are many advantages to filing jointly; borrowers will be eligible for the student loan interest deduction and...

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Student Debt Repayment Success Indicator

The Student Debt Repayment Success Indicator (SDRSI) is a value that gauges the potential of a graduating class to successfully repay student loan debt.SDRSI can be used to figure out which colleges offer the best return-on-investment and can help students and their families make the best financial decision when it comes to choosing a college.  Quick Navigation School Rankings By StateNational School RankingsMethodology It involves three different metrics from a graduating class from each college analyzed – average student loan debt per borrower, default rate, and average early career pay.Average student loan debt per borrower is the average amount...

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Should Private Student Loan Cosigners Buy Life Insurance for the Primary Borrower?

For many students, private student loans are a necessity to cover the cost of college. While federal student loans are generally preferable due to their lower cost and higher protections for borrowers, their low limits often cannot pay for the full cost of attendance at many colleges and universities. Many students then turn to private loans, which are issued by banks, credit unions, and other commercial lenders.These loans are typically approved based on the creditworthiness of the applicant. Since most applicants are under the age of 25 and/or do not have a solid credit history, lenders usually require these...

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Contrary to Early Reports, the PROSPER Act Increases Higher Education Spending

In late 2017, House Republicans released a bill aimed at reauthorizing the Higher Education Act. Known as the Prosper Act, the bill makes substantial changes to student loan programs and loosens restrictions on for-profit colleges. And last week, the nonpartisan Congressional Budget Office released its official score of the bill.Initial reports on the CBO score stated that the bill will decrease spending to federal student aid by $14.6 billion over the next 10 years. Republicans seized on this information, claiming it demonstrates that the bill is “fiscally responsible.” Meanwhile, Democrats and higher education advocates used this score to criticize...

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FTC Files Lawsuit in Alleged Student Debt Relief Scam Targeting Student Borrowers

The Federal Trade Commission filed a lawsuit Feb. 9, 2017, against three interrelated student loan debt relief companies for allegedly violating Section 5 of the FTC Act and the Telemarketing Sales Rule.The FTC issued a press release saying that the defendants illegally charged thousands of consumers more than $28 million. The defendants also falsely promoted that these monthly payments would be applied to their student loans, according to the FTC’s complaint.The FTC claimed the defendants sent consumers mailers telling them they qualified for a federal program that would either minimize their monthly payments or provide total loan forgiveness. According...

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