The U.S. House of Representatives passed a bill to lower Federal student loan interest rates to 3.9% from 6.8% for the upcoming 2013-14 school year–following the U.S. Senate’s passage of the same bill last week. The rate reduction would mean a savings of $944.44 in interest over the life of the loan, for first year college…
Tag: Student loan
1140% = Increase In College Tuition Since 1978
Another chart showing college tuition is increasing at a steepening rate: And is causing families to spend a greater portion of the family budget to pay for college expenses, thus making college “more expensive”: (If unable to view chart, click)
College Tuition Set to Keep Rising with No Relief In Sight
Since 1980, college tuition has risen 945%, in comparison with inflation’s rise of 193% during that same period–meaning all purchases have increased in price, but college tuition has increased at a ratio of 9 to 1–based on information from the Bureau of Labor Statistics. The University of California (UC) and California State University (CSU) systems…
The Worth of Wealth
What is wealth? The Urban Institute recently reported that the average net worth of today’s 29 to 37 year old has fallen 21% in comparison with previous generations since 1983. On the surface, this idea of “less wealth” may seem like a bad thing, as generally, I don’t like to be “less” at anything. However,…
What Trends in Public University Tuition Means for College Bound Seniors
Public universities and colleges are partially funded by student tuition and partially by state and local government revenues (i.e. taxes collected), alongside subsidies by the Federal government and private donations. Public funding is then allocated per full time student, as shown in the map below. Alaska contributes the most per student at $14,837, while the…
The Student Debt Dilemma
While debt can be a useful tool to finance a college education, potential borrowers (and their families) would be prudent to think through their choices, as we discussed in a earlier 6-part series on fiscal planning. And, to add emphasis on the need to think ahead, Fidelity Investments recently found that, “[e]ven with the…
More 25 Year Olds Have Student Debt…And At Higher Average Amounts
As seen in the chart below, the red line indicates that the portion of 25-year olds with student debt has grown from 25% in 2003 to 43% in 2012–meaning an increasing portion of young adults are choosing to “bring forward” expected future earnings to pay for a college degree. Furthermore, the black line on the chart…
U.S. Congress Considering Student Loan Interest Rate Increase
Federal student loan interest rates on subsidized* (see below) loans are set to rise from 3.4% to 6.8% on July 1, 2013. (Note: the interest rate for unsubsidized Federal student loans, in which interest begins accruing from the date of the loan, is currently 6.8%.)
More Details About Federally Funded Student Loans
As interest rates for subsidized Stafford loans (i.e. interest is withheld throughout college) is poised to increase from 3.4% to 6.8% as of July 1, 2013, Congress is considering to postpone the increase, as happened in 2012. (BTW, unsubsidized Stafford loans, where interest begins accruing from the date promissory note is signed, is already 6.8%.)
College Degree: Gateway to Middle Class Prosperity or Financial Burden?
While many students and their families pursue a 4 year college degree for the imagined financial security and solid middle class living, the cost(s), both to pay for the degree and the long term effects of earning the degree, may be greater than the return. Generations have been raised to expect that their standard of…
Denied?!? WHAT THE WHAT?!!!?
The email inbox for a college applicant at this time of March can be an emotional minefield. Each “ding” alerting the Senior to a newly received message can create a heart-pounding, nervous-butterflies-in-the-stomach-hand-quivering-as-you-click-the-mouse-on-the-bolded-new-message-from-such-and-such-college, frantically searching the opening text for, “Congratulations!” and instead seeing, “With a record number of applications, we regret we were unable to admit you…
Not Every Student Loan Balance Is In the Six Figures or Overdue
Contrary what the media often reports, not all student loan balances are unmanageable amounts. Further, since not EVERY student loan borrower is delinquent on payment, adds credence that not all student loan balances are unwieldy. Graphs from The Federal Reserve Bank of New York, February 28, 2013
The Skinny on Increasing College Tuition
Wondering why college seems more costly than in the past? According to the U.S. Bureau of Labor Statistics, college tuition has increased 559% since 1985. Over the same time, disposable income has increased only incrementally, which can create the perception of greater costs for each family.
Need Based Financial Aid Explained
Paying for college can sometimes be a separate worry from concerns about admissions. Often, parents ask us nervously about how to afford college, as well as the family’s chances of actually qualifying for any financial aid. I find that parents are most concerned about need based aid, given the family’s income and asset values. The…
Guest Post: The Savings for College Challenge, Part 4 – Saving for College vs. Saving for Retirement
About the authors: For over 25 years, Cynthia S. Meyers, CFP®, MBA, has assisted people with their Lifetime Financial Planning–helping to build and preserve wealth in every area of life. Jenny Hood, CFP® has been a paraplanner with Cynthia S. Meyers for five years and enjoys being a part of the financial planning process. ____________________________________…