Author: Jamie Johnson

Report Reveals How Borrowers Recover After Federal Student Loan Default

A report completed by the American Enterprise Institute looked into what happens after student borrowers default on their loans. About a million borrowers default on their student loans every year. And there is a lot of data about what type of borrower is most likely to default on their loans or what the most common causes of default are. But there isn’t a lot of existing data on what happens after borrowers default on their loans.A report from the American Enterprise Institute examined exactly that, and many of the findings were surprising. Overall, the report found that there is no...

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Wells Fargo Might Tap Into the Federal Student Loan Market

According to a Bloomberg report, Wells Fargo is looking into offering refinancing on federal student loans. Wells Fargo might begin offering refinancing on federal student loans. The company sees this as a good way to jump-start a relationship with college-age consumers, according to a Bloomberg report.The company currently only offers private student loans and private student loan consolidation – and federal loans cannot be included in the consolidation. Borrowers who have multiple private student loans through Wells Fargo can combine them into one larger loan.John Rasmussen, head of personal lending at Wells Fargo, told Bloomberg that the bank hasn’t made...

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New App Lets Students File Their FAFSA From a Mobile Phone

My Student Aid, a new app being launched by the Department of Education, should help students fill out the FAFSA. The Department of Education will launch the beta version of a new app called My Student Aid on Aug. 15, which will finally allow borrowers to fill out the Free Application for Federal Student Aid (FAFSA) through their mobile phones. The department expects the app to be fully functional by Oct. 1.This is part of the Department of Education’s promise to simplify the student loan process for students and families.Students who fail to fill out a FAFSA could miss out...

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Want to Cut Your Tuition Costs? Negotiate.

Many college students and parents do not realize that financial aid offers can be negotiated. The rising cost of college tuition means that most families have to rely on financial aid and supplement any gaps with student loans. But many people don’t realize that financial aid offers can be fair game for negotiation.In fact, there is quite a bit of bartering that goes on during the college admissions process, according to Nick Ducoff, co-founder and CEO of the Boston startup Edmit. Most colleges spend a lot of money recruiting students in order to hit their yearly enrollment goals, Boston’s WBUR...

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Paying for College Linked to Higher Risk of Foreclosure

New research found that high foreclosure rates between 2006 and 2011 were closely linked to high college attendance rates. Could sending a child to college increase a family’s risk of losing their home? New research published in the journal Demography seems to indicate this could be the case.Sociologists Jacob Faber and Peter Rich found that from 2006 to 2011 high foreclosure rates were closely linked to high college attendance rates.The study looked at 305 metro areas that are roughly 85 percent of the population. The results showed that when college attendance rates rose in one area, foreclosure rates rose the...

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