Author: Drew Cloud

Have You Ever Heard of Private Student Loans Just for Parents?

Student loans are becoming almost mandatory in order to pay for a college education. While the federal government holds the large majority of student loans, more students are starting to look at private loan offerings. In addition, more parents are taking out private loans on behalf of their children.Carlo Salerno, a Washington, D.C. education economist, says that parents are playing a much bigger role in paying for their children’s education than ever before. Part of that larger role includes federal loans like the Parent PLUS loan, but many parents are looking to private funding sources to make those ever-growing...

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Borrowers Enrolling in IDR Plans Could End Up Costing the Taxpayers Money

A recent audit found that the number of student loan borrowers enrolled in IDR plans rose 625 percent over a five-year period. According to an audit completed by the Department of Education’s Office of Inspector General, the amount of money the government is lending could soon outpace the amount that is being repaid. The report showed that this is largely due to the increasing number of people signing up for income-driven repayment plans (IDR).Currently, IDR plans cap a borrower’s monthly payment at a percent of his or her discretionary income. Because IDR plans are calculated differently than a typical loan...

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Student Loan Options in California

Most California students of higher education will need to take out student loans in order to pay for their educational costs. From tuition to living expenses, these costs frequently add up to a significant sum that must be paid back after graduation, so choosing loan options—and their accompanying interest rates and terms—is especially important. Student loan borrowers in California have the option of both federal and private student loans.Federal Student LoansThe majority of student loans taken out each year, both in California and across the nation, are federal loans. Federal student loans are made or insured by the federal...

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New Federal Data Released on Student Loan Borrowing

Earlier this week, the U.S. Department of Education published key financial aid data.On Tuesday, the U.S. Department of Education released new federal data about financial aid information. The National Center for Education Statistics releases this information every four years to provide a glimpse into how students are paying for their education.After looking at around 100,000 undergraduate and graduate students, the data revealed that that the number of borrowers receiving some sort of financial assistance increased over the four-year period. While 71 percent of students received financial aid during the 2011-2012 school year, this figure rose to 72 percent during...

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Sallie Mae vs. Discover: Comparing Private Student Loans

Sallie Mae and Discover are two popular private student loan options. Sallie Mae offers consumer banking products. The company used to service federal student loans, but it now offers private student loans. Discover is a familiar name because of its credit card sector. However, the company also offers private student loans.Over time, Sallie Mae and Discover have become two of the most popular private student loan lenders. Having such large companies offering a loan product to students can make choosing between them difficult. That’s why it is important to do a comparison.Sallie Mae vs. DiscoverInterest Rate ComparisonBoth Sallie Mae...

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