I’m Frugal But My Student Loans Are Too Expensive

So, it finally hit a wall. I worked for a university that twice when I worked for them they messed my pay up. First time it took them 4 months to get me my first paycheck. They refused to walk it though. I ended up losing my truck and then they sold it and I was still left with most of the payment, could not get to work, etc.
Source: homepage http://www.wral.com/i-m-frugal-but-my-student-loans-are-too-expensive/13322191/

These colleges will pay your student loan bills

The foundation will cover half of the student loan bills for someone earning $29,000 a year. Samuelson wouldn’t disclose exactly how many schools have signed on to the LRAP program, but said the number increased by 50% last fall and includes dozens of colleges. Is the cost of college crippling? CNNMoney found eight small, private Christian colleges offering the program, either currently or for students starting next fall. Each of the schools have no more than a few thousand students and cost between $30,000 and $40,000 a year in tuition, fees and room and board. “People right now are nervous,” said Eric Currie, vice president for enrollment management at Houghton College, which is in Western New York “This is about giving confidence.” Related: Obama seeking to help poor students, but policies favor the rich Still, there are some caveats: Participants must graduate and work at least 30 hours a week to receive assistance.
Source: http://money.cnn.com/2014/01/22/pf/college/student-loan-repayment/index.html

Student loans and bankruptcy

In order to do it, a person has to prove to a judge that he or she has absolutely no hope of ever paying the debt back. In every case that has been approved over the past ten years, the former student was either dead or in a coma. To make matters worse, a bank or the federal government is allowed to come after the paycheck of someone who defaults on his or her student loans. In addition to garnishing wages, they are also allowed to garnish tax refunds, Social Security checks, and any other government payments. Because student loans cannot be discharged in bankruptcy, it is usually recommended that former students come up with some way to make payments on the loan.
Source: http://www.examiner.com/article/student-loans-and-bankruptcy

Education Department Teams With Treasury, Intuit to Help Student Borrowers

Unlike private loans, which can be difficult if not impossible to refinance at a lower interest rate, federal loans have some built-in consumer protection measures to help borrowers through financial hardships. [ MORE: 3 Potential Student Loan Changes to Eye in 2014 ] While the standard student loan repayment plan sets payments at a level that would allow the borrower to pay off his or her loans in 10 years, there are three other plans based on the borrower’s income that could significantly reduce, if not temporarily eliminate, monthly payments for those struggling to make them. Under the “Pay As You Earn” plan, for example, monthly payments can never exceed 10 percent of the borrower’s income, and any leftover debt after 20 years is forgiven. But CFPB data shows fewer than 50,000 borrowers are enrolled in that program. Under the Income-Based Repayment plan, borrowers’ payments are set based on income and family size and are adjusted annually, based on changes in those two factors. But monthly payments can never exceed the amount a borrower would pay under the 10-year Standard Repayment Plan, with the possibility that any remaining debt may be wiped away after 25 years of qualifying repayment.
Source: http://www.usnews.com/news/articles/2014/1/24/education-department-teams-with-treasury-intuit-to-help-student-borrowers

The Hard Truth About Defaulting On Student Loans

HEADLEE: So when you saying exactly the same problems, if you’re a parent, they could be garnishing your tax refund or your Social Security benefits? BAUM: The garnishing is easier for the federal government to do than for private lenders to do. But you cannot discharge a student loan in bankruptcy. So whether you’re the parent or the student, that’s going to apply to you. One of the things that happens to people is that they’ve borrowed $10,000, and then they don’t pay. And there is interest that accrues, and there are penalties imposed for nonpayment.
Source: http://www.npr.org/2014/01/21/264526781/the-hard-truth-about-defaulting-on-student-loans


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