STUDENT LOANS » College Financing

Going to court for failing to pay back student loans is not something that most college students consider as they apply for financial aid, but new reports show the Department of Education (DOE) is filing more civil lawsuits against those in student loan default than ever before.

The number of delinquent borrowers has already increased by more than five times since 2006 and is expected to continue rising due to the tough economy. So how can borrowers avoid going to court over their student loans?

Sallie Mae announced on Monday that it has dropped its rates on private student loans in order to become more competitive. The company was once an approved lender of federal student loans, but now has to compete in the private market thanks to changes to the student lending process.

Lender Lowers Interest Rates

A community college in Virginia is setting a new lending standard by requiring students to create repayment plans in order to qualify for Federal student loans. While this goes above and beyond requirements issued by the Education Department, the school thinks this approach could work to reduce loan debt for students.

Tidewater Community College Rewrites Lending Rules

Student loan repayment is easier for students who earn a degree, according to a new study released by the Institute for Higher Education Policy (IHEP). The Washington, D.C.-based organization found that college graduates are more likely to repay their debt because they’re also more likely to earn a higher income than those who do not graduate.

Graduation Makes a Difference in Avoiding Loan Delinquency

A military student loan deferment program offered by JPMorgan Chase was recently reinstated after NBC News questioned the program’s elimination. The family that contacted NBC may have helped hundreds have their deferments reinstated while on active duty after the program ended two months ago.

Chase Pressured into Reinstating Deferment Program

Repaying student loans was difficult for the 25 percent of students who defaulted within three years of beginning repayment. According to the Department of Education, the one thing these students had in common is that they had all attended for-profit colleges.

For-Profit Students Twice as Likely to Default on Loans

New data released on Friday by the Department of Education revealed that not only have one quarter of all borrowers with federal student loans at for-profit colleges defaulted, but these students will be twice as likely to default as their counterparts at non-profit institutions.

Rock star, novelist, fashion designer. We all have a dream job, but the number of us who are actively pursuing it is probably pretty small. That’s because there are quite a few factors that prevent people from finding success in their ideal careers, such as lack of talent, a high level of competition or most importantly, low pay along the way to the top. So while obtaining your dream job may be the answer to finding true joy in life, consider whether you can really afford to be that happy.

Dream Job With Dream Pay Not Likely

A new college tuition tax credit is expected to help 9.4 million American families this year, U.S. Treasury Secretary Timothy F. Geithner said on Thursday. This credit is known as the American Opportunity tax credit, a relief program designed to ease the cost of college tuition and fees.

Tax Credit to Offset Rising Tuition Costs

There are quite a few financial deadlines to remember over the course of 12 months and it’s probable you’ve missed one or two in the past. Are you familiar with the sense of panic that accompanies waking up on April 15th and realizing you haven’t started your taxes? Did you forget to max out your retirement account contributions last year? If you need some assistance remembering all your important 2011 budget and planning dates, here’s a quarterly calendar to keep you on track.

Q1 2011 (January-March)

Former students are always looking for ways to ease the pressure of paying back student loans, especially when there are multiple loans to repay. For many, loan consolidation has become a great way to reduce loan payments while eliminating the need to keep up with multiple lenders and interest rates.

You may have heard of a number of consolidation options, including the Direct Consolidation Loan Program. Since it offers a lot of advantages for borrowers looking to consolidate, let’s take a look at what the program is and how you could benefit from it.