STUDENT LOANS » College Financing

For-profit college student loans received in 2008 are expected to see a 46-percent default rate, which in turn is prompting the federal government to consider implementing a “gainful employment” rule. This rule would ensure for-profit colleges only accept students who are actually expected to earn enough salary after graduation to repay funds before receiving distributions for federal student loans.

Nearly Half of Students to Default

This is the third installment of our financial myth-busting series. Below, we’ll dispel some of the most common student loan myths. Be sure to check out the rest of the series.

There’s a lot of confusion surrounding student loans and you’ve probably heard a lot of myths. So to get you on track to the truth, let’s explore the false information currently out there.

If you are in school, or if you have kids attending college, you know that every year the expenses associated with a higher education rises. Paying for college is increasingly difficult as available scholarships shrink in number. Additionally, federal student aid does not always cover all the costs of going to school. There are private student loans, but sometimes those are not practical (or attainable) in an individual’s situation. If you are experiencing a “funding gap” with your educational financing, you might be able to close with the help of P2P lending.

You probably already know that peer-to-peer (P2P) lending offers various opportunities for those wishing to consolidate credit card debt. P2P lending also helps businesses find financing. Business microloans are becoming increasingly popular as start-ups find it difficult to get more traditional financing, and there is a very real possibility that students might find P2P lending helpful for closing a college funding gap.

College tuition is rising at an alarming rate–faster than inflation, and faster than most people’s ability to save for college. It is becoming more difficult for the average student to make it through college without some form of financial aid, but that doesn’t mean it is impossible. In fact, if you are willing to do a little legwork, you may be able to graduate college without owing any student loans, which is essential if you are working toward one of the lowest paying college degrees.

Here are some tips to help you make it through college without student loans:

By Casey Bond

There’s no doubt that the rising cost of college tuition and other expenses associated with higher education is making it harder and harder for people to attend college. Plus, those who are otherwise capable of obtaining affordable student loans tend to be doubtful that the current job market will supply them with the employment necessary to pay them back. It seems a college degree is something reserved for the affluent.

After high school, I joined the legions of graduates who went to college. I lasted one year at a traditional four year university before adventure came calling. I had solid grades, but I didn’t know what I wanted out of college, so it didn’t seem right to continue getting my education when I didn’t have a plan in place. So I left. I didn’t drop out of college for good, but I did place my education on hiatus.

My situation isn’t unique–thousands of people put college on hold every year for one reason or another. In my case, I joined the USAF. I was seeking an adventure and 5 continents and 30 countries later, I decided I had my adventure and I wanted to complete my degree. So I went back to school while I was on active duty.

The following is a guest post from MD of Studenomics. Make sure you check the blog out if you want down-to-Earth tips for finding the best online banking and killing your student debt.

You’ve been seeing someone for a few years and now it’s time to tie the knot. You’re already engaged and ready to start planning that colossal wedding. There’s only one little hurtle– one of you is in massive amounts of student loan debt!

A large increase in tuition was padded by a big jump in federal aid offered by the government, according to a new report from the nonprofit College Board. The report also found that the dollar amount of student loans taken out this year was reduced thanks to the increase in aid.

Tuition Costs Increased This Year

Taking out a student loan these days is not much different than creating a social network profile; virtually anyone can do it and any subsequent repercussions from the action could take months or even years to surface. The only problem is some students don’t realize just how much of an impact taking out a student loan can present on their financial lives down the line, especially if they don’t earn enough to pay it off after graduating.

Some students take out the maximum amount available only to make a fraction of that loan amount per year in income. This is why it’s good to have an idea of your earning potential before ever applying for a student loan. This way, you won’t end up with student loans you can’t afford to pay off later.

A tax credit proposed by President Barack Obama could help finance all four years of college and save families thousands. He is currently calling Congress to action to make the credit permanent, something he hopes will create the highest number of proportionate college graduates in the world.

The American Opportunity Tax Credit