When submitting the FAFSA or Free Application for Federal Student Aid to apply for financial aid at colleges and universities all over the United States, parents and students have needed a PIN number as their electronic signature. Recently, Federal Student Aid has changed the PIN to an FSA ID, which will serve as an electronic signature for the: FAFSA, My…
Tag: Student loan
Student Debt in Seven Charts
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. For the last 30 years,…
Ahead of the Curve: All About Financing A College Education
Thoughts from the news: Flip Side of Reducing Student Debt Is Increasing the Federal Deficit, New York Times, February 11, 2015—for every benefit, there is a cost Looking At Student Loan Defaults Through a Larger Landscape, Federal Reserve Bank of New York, February 19, 2015—student loan defaults are not only increasing, but also occurring earlier in the repayment period Why You…
The Perils of Scholarships
To many parents, winning scholarships both rewards academic excellence and various leadership achievements, while subsidizing the total costs of college. Even though many high school seniors also desire the benefits of scholarships, many scholarships remain un-awarded. Understanding the timing of scholarship deadlines may explain why action doesn’t follow good intentions.
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 colleges, 24% correctly estimated their…
College Tuition Up 1225% Since 1978
As has been previously discussed, college tuition is increasing annually, and shows few signs of abating; however, at some point college education will be subject to the law of supply and demand. As demand for college education continues growing – seen in each year’s record numbers of applicants, with total student debt growing beyond the record breaking $1.2 Trillion mark and college tuition skyrocketing, demand…
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 debt. The convergence of multiple,…
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, however, is of little consequence…
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 debt, a $1.2 Trillion subsection…
Borrower Beware
Student borrowers aren’t the only ones defaulting on college loans… Chart source: Department of Education & Inside Higher Ed