STUDENT LOAN REPAYMENT

By Tara Struyk

When Monique Harps makes the last payment on her student loan debt, she plans to celebrate with a cake–and perhaps a trip to Brazil. After all, she’s about to have a whole lot more spending money; after four years of hard work, she’s less than a year away from putting her $105,000 in debt to rest.

A new study conducted by Country Financial reveals that one in four Americans believe a college education isn’t a good financial investment. The belief stems largely from the massive increase in tuition costs seen over the past few years and mounting student loan debt that has come as a result.

26 Percent Say College Isn’t Worth It

College tuition is more expensive than ever, leaving many prospective students to wonder whether they should go at all. Of course, there is a lot to gain from attending college for those who can afford it. In addition to knowledge to use in the workforce, a student can gain plenty of personal experiences that last a lifetime.

However, for those who choose not to go to college, there are several high-paying jobs available. They still require training and have a lot of competitors waiting for openings, but if you’re at the right place at the right time, with the right training, you might be able to start a great career that doesn’t require a bachelor’s degree.

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?

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

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.

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

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.

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