Not all student debt is ruinous. However, borrowing can be complex. Loans spend tomorrow’s income today, and for college students, a promise of tomorrow’s income is spent to pay for expenses in the present day. Understanding recent growth in student loans and the challenges of repayment can help potential student loan borrowers consider both the benefits and the risks before borrowing.…
Tag: Fiscal plan
Wait…I Have Student Debt?!?
In a recent survey published by the Brookings Institute, current college students with student debt were unaware of the exact loan amounts, as well as what they’d eventually repay. At $1.2 Trillion and growing daily, total student debt may be more complicated than we, as a society understand. Highlights of the findings are below: At a public four-year…
Living with Mom & Dad?
Is the trend shown in the chart below, caused by the increase in student loans, as seen in the following chart? Charts Courtesy: Goldman Sachs Global Investment Research & Zero Hedge, October 26, 2014
College Confidence?
The following chart shows wage growth (or lack of) 60 months into the most recent economic “recovery”, which is at the lowest point since World War II. Furthermore, the employment situation is no more rosy: “The bottom line is, we’re a million miles from full employment,” said [David] Blanchflower, a Bank of England policy maker…
The Bill Always Comes Due
An unprecedented $1.2 trillion in student debt has grown exponentially in the last several generations, showing few signs of abating. In less than one generation, college graduates have tripled their debt burden. According to the Wall Street Journal, over 70% of the Class of 2014 will graduate college with an average of $33,000 in student…
Ahead of the Curve: July 5, 2014
Inspired by CMC Clients Advanced Placement (AP) Test Scores: Students often believe that a score of less than 3 will hurt their college admissions competitiveness. The belief is a myth. A student’s willingness to challenge themselves academically by taking AP classes and the tests will be considered by college officials in the admissions process. The score,…
A $60 Trillion Inheritance…in Debt
Wishing a better life for our children is normal. Actually setting aside our personal wants in favor of our children is more complicated in practice. The next generation will inherit a record $60 Trillion in total U.S. debt—government debt, business debt, mortgage debt and consumer debt. (See chart below) Furthermore, the growth of student loan…
Borrower Beware
Student borrowers aren’t the only ones defaulting on college loans… Chart source: Department of Education & Inside Higher Ed
Who Can Afford College?
Presented with no comment. Click to enlarge Chart Credit: zerohedge.com
Why Winning Free Money Takes Effort
Scholarships are not mysterious. Winning them takes work – which is only a continuation of the efforts to be eligible to compete for scholarships in the first place.
Free Money For the Asking
Imagine someone wants to give away money to help pay for college, and publicly extends their offer to many people. The only step needed to get the money is to ask for it. Asking for the money happens as a written request – usually consisting of some forms requesting basic personal contact information and a…
Ahead of the Curve: January 5, 2014
From Our Clients: More Common App Problems: January 1 is one of the common college application due dates for popular and highly selective colleges, like Stanford, Harvard, Rice, Brown, Notre Dame, Claremont McKenna, Northwestern – just to name a few. In the midnight hours starting on the East Coast and moving West, the Common Application website,…
Caution: For Soon-to-Be-Graduated College Students
As the chart shows, 18% of college graduates are currently living with their parents. In addition, unemployed college graduates are more likely to live at home (45% vs. 29%),
Ahead of the Curve: December 3, 2013
From the News: Student Exchanges Between U.S. and Other Countries Rise to Record, New York Times November 17, 2013 College On The House, New York Times November 29, 2013 SF [San Francisco] Seeks Injunction to Stop CCSF [City College of San Francisco] Closure, San Francisco Chronicle November 25, 2013 From Our Clients: College Applications &…
Student Loan Repayments May Cost More Than The Amount Borrowed
Changes to repayment rules for Federal student loans offers borrowers flexibility to manage their debts, as outlined in a recent New York Times article. However, not only do the recent changes provide assistance for current borrowers, potential student loan borrowers can plan ahead. Our recommendations are outlined, alongside excerpts of the article in italics. Rising…