Student loans in the United States are a form of financial aid used to help more students access Higher Education. Student loan debt has been growing rapidly since 2006, rising to nearly $ 1.4 trillion by late 2016, roughly 7.5% GDP. Approximately 43 million have student loans, with an average balance of $ 30,000. Loans usually must be repaid, in contrast to other forms of financial aid such as scholarships , which never have to repaid, and grants , which only rarely have to be repaid. Research indicates that the use of student loans has been a significant factor in college cost increases. [1]

Overview

Student loan debt rose from $ 480.1 billion (3.5% GDP) in Q1 2006 to $ 1,397.3 billion (7.5% GDP) in Q3 2016.

Student loans play a very large role in US higher education . Citation needed ] Nearly 20 million Americans is expecting college each year. Of that 20 million, close to 12 million – or 60% – borrow annually to help cover costs. In Europe, higher education receives much more government funding, so student loans are much less common. [2] In parts of Asia and Latin America government funding for post-secondary education is lower – usually limited to a few flagship universities, like the Mexican UNAM – and there are no special programs under which students can easily and inexpensively borrow money. [2] However, in the United States, much of college is funded by students and their families through loans, ALTHOUGH public institutions are funded in-part through state and local taxes, and Both private and public institutions through Pell grants and, Especially with older schools, gifts from Donors and alumni. [2] [2] [2] [2] [2] [2] [2] [2] [2] Some of the most commonly used intergenerational correlations. [4] Nonetheless, higher education in the United States has been shown to be an excellent investment both for individuals and for the public, even though differences in the returns to educational institutions have been overstated in many cases. [5] [6] [7]

Student loans in several varieties in the United States, but are basically split into federal loans [8] and private student loans . The federal loans, for which the FAFSA is the application, are subdivided into subsidized (the government pays the studying at least half-time) and unsubsidized. Federal student loans are subsidized at the undergraduate level only. A subsidized loan is by far the best kind of loan, but an unsubsidized federal student loan is far better than a private student loan. Some states have their own loan programs, as do some colleges. [9] In almost all cases, These students have better loans – sometimes much better – than the heavily advertised and expensive private student loans. [10]

Student loans can be used for any college-related expenses, including tuition, room and board, books, computers, and transportation expenses.

An unusual provision in the law prohibits student loans from being discharged through bankruptcy .

The main types of student loans in the United States are the following:

  • ( Stafford and Perkins loans). These loans are made regardless of credit history; Approval is automatic if the student meets program requirements. The student makes no payments while enrolled in at least half-time studies. If a student drops below half time or graduates, there is a six-month grace period. If the student re-enrolls in at least half-time status, the loans are deferred, but when they drop down, All Perkins loans and some undergraduate Stafford loans receive subsidies from the federal government. Amounts of both subsidized and unsubsidized loans are limited. There are many deferments and a number of forbearances (cancellation of loan) one can get in the Direct Loan program. [11] For those who are disabled, there is also the possibility of 100% loan discharge (cancellation of loan) if you meet the requirements. [12] Due to exchange by the Higher Education Opportunity Act of 2008 , it est devenu Easier To get one of These discharges after-July 1, 2010. [13] There are loan forgiveness provisions for teachers in specific subjects or critical in a school with more than 30% of students are icts Reduced-price lunch (a common measure of poverty), and Qualify for loan forgiveness of all Their Stafford, Perkins, and Federal Family Education Loan Program loans totaling up to $ 77,500. [14] In addition, any person employed full-time (in any position) by a public service organization, or serving a full-time AmeriCorps or Peace Corps position [15] qualifies for loan forgiveness (cancellation) after 10 years of 120 Consecutive payments without being late. [16] However, forgivenesses or discharges are considered taxable income by the Internal Revenue Service under 26 USC 108 (f). [17] Or serving in a full-time AmeriCorps or Peace Corps position [15] qualifies for loan forgiveness (cancellation) after 10 years of 120 consecutive payments without being late. [16] However, forgivenesses or discharges are considered taxable income by the Internal Revenue Service under 26 USC 108 (f). [17] Or serving in a full-time AmeriCorps or Peace Corps position [15] qualifies for loan forgiveness (cancellation) after 10 years of 120 consecutive payments without being late. [16] However, forgivenesses or discharges are considered taxable income by the Internal Revenue Service under 26 USC 108 (f). [17]
  • ( PLUS loans ): Much higher limit, but payments start immediately. Credit history is considered; Approval is not automatic.
  • Private student loans, made to students or parents: Higher limits and no payments until after graduation, however interest starts to increase immediately and the deferred interest is added to the principal, Case with subsidized student loans). Interest rates are higher than those of federal loans, which are set by the United States Congress . Private loans are, or should be, a last resort, when federal and other loan programs are exhausted. Any college financial aid officer will recommend you borrow the maximum under federal programs before turning to private loans.

Federal loans

Federal loans to students

See also: Federal Perkins Loan , Stafford loan , Federal Direct Student Loan Program , and Federal student loan consolidation

United States Government-backed student loans Were first offert en 1958 sous le National Defense Education Act (NDEA) and Were only available to select categories of students, Such As Those Toward studying engineering, science or education degrees. The student loan program, along with other parts of the Act, qui Subsidized college professor training, Was Established in response to the Soviet Union ‘s launch of the Sputnik satellite, and has Widespread perception que le United States Was falling behind in science and technology , In the middle of the Cold War . Student loans were extended more broadly in the 1960s under the Higher Education Act of 1965 , With the aim of encouraging greater mobility and equality of opportunity. [3] [18]

Prior to 2010, Federal Direct loans included Both loans-originated and funded Directly by the United States Department of Education-and-guaranteed loans originated and funded by private investors, profit guaranteed by the federal government. Guaranteed loans Were eliminated in 2010 through the Student Aid and Fiscal Responsibility Act and REPLACED with Direct loans Because of a belief That guaranteed loans benefited private student loan companies at Taxpayers expense, goal Did not Reduce costs for students. [3] [18]

These loans are available to college and university students through scholarships, grants, and work-study. They may be subsidized by the Government or may be unsubsidized depending on financial need. The US Department of Education published a booklet comparing federal loans with private loans. In this same document, the government describes what you can use the loan for:

You may use the money you receive to pay for education expenses at the school that awarded your loan. Education expenses include tuition; Room and board; fees; books; supplies; equipment; Dependent childcare expenses; transportation; And rent a personal computer.

Both subsidized and unsubsidized loans are guaranteed by the US Department of Education either directly or through guaranty agencies. Nearly all students are eligible to receive federal loans (regardless of credit score or other financial issues). Federal student loans are not priced according to any individualized measure of risk. Rather, pricing and loan limits are politically determined by Congress. Undergraduates typically receive lower interest rates, but graduate students typically can borrow more. This lack of risk-based pricing has been criticized by scholars as contributing to inefficiency in higher education. [3]

Both types offer a grace period of six months, which means that no payments are due until six months after graduation or after the borrower becomes a less-than-half-time student without graduating. Both types have a fairly modest annual limit. The dependent undergraduate limited effective for loans Disbursed is golden after-July 1, 2008 is as follows (combined Subsidized and unsubsidized limits): $ 5,500 per year for freshman undergraduate students, $ 6,500 for sophomore undergraduates, and $ 7,500 per year for junior and senior undergraduate students, Enrolled in graduate programs. For independent undergraduates, the limits (combined subsidized and unsubsidized) effective for loans on July 1, 2008 are higher: $ 9, 500 per year for freshman undergraduate students, $ 10,500 for sophomore undergraduates, and $ 12,500 per year for junior and senior undergraduate students, as well as students enrolled in teacher certification or preparatory coursework for graduate programs. Subsidized federal student loans with a demonstrated financial need. Financial need may vary from school to school. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $ 10,000 during college owe $ 10,000 on graduation. Subsidized federal student loans with a demonstrated financial need. Financial need may vary from school to school. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $ 10,000 during college owe $ 10,000 on graduation. Subsidized federal student loans with a demonstrated financial need. Financial need may vary from school to school. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $ 10,000 during college owe $ 10,000 on graduation.

Unsubsidized federal student loans are also guaranteed by the US Government , but the government, while controlling (setting) the interest rate ,. Nearly all students are eligible for these loans. Expected Family Contribution . Those who borrow $ 10,000 during college owe $ 10,000 plus interest upon graduation. For example, those who borrowed $ 10,000 and had $ 2,000 increased in interest owe $ 12,000. Interest begins to accrue on the $ 12,000, ie, there is interest on the interest. The accrued interest is “capitalized” into the loan amount, and the borrower begins making payments on the accumulated total. Students can pay the interest while still in college, but few do so.

Federal student loans for graduate students have higher limits: $ 8,500 for subsidized Stafford and $ 12,500 (limits may differ for certain courses of study) for unsubsidized Stafford. Many students also take advantage of the Federal Perkins Loan. For graduate students the limit for Perkins is $ 6,000 per year.

Stafford loan aggregate limits

Students who borrow money for education through stafford loans may not exceed certain aggregate limits for subsidized and unsubsidized loans. For undergraduate dependent students, the maximum aggregate limit of subsidized and unsubsidized loans combined is $ 57,500, with subsidized loans limited to a maximum of $ 23,000 of the total loans. [19] Students who have borrowed the maximum amount in subsidized loans (based on grade level-undergraduate, graduate / professional, etc.) . Once and for all, the borrowed funds are used to finance the borrowed funds.

Graduate students have a lifetime aggregate loan limit of $ 138,500.

Federal student loans to parents

See also: PLUS loan

Usually these are PLUS loans (“Parent Loan for Undergraduate Students”). Unlike loans made to students, parents can borrow much more, usually enough to cover the remainder of the costs. Interest increased during the time the student is in school. No payments are required until the student is no longer in school, although parents may start repayment ahead of time if they want, thus saving on interest.

The parents are responsible for repayment on these loans, not the student. Loans to parents are not a ‘ cosigner ‘ loan with the student having equal accountability. The parents have signed the master promissory note to repay the loan and, if they do not repay the loan, their credit rating will suffer. Also, parents are advised to consider what their monthly payments will be after borrowing for four years at this rate (initial loan documents will give the repayment schedule as if only one year of loans was taken out). What kind of loans are you able to pay for a loan? ($ 200 a month) Borrowing is not free, and the more borrowed, the more expensive it is.

Under new legislation, graduate students are eligible to receive PLUS loans in their own names. These Graduate PLUS loans have the same interest rates and terms of Parent PLUS loans.

The United States Congress in 2006, is 8.5%.

Disbursement: How the money gets to student or school

Federal Direct Student Loans, also known as Direct Loans or FDLP loans, are funded from the United States Treasury. FDLP loans are distributed through a channel that begins with the US Treasury Department and from there passes through the United States Department of Education, then to the college or university and then to the student.

According to the United States Department of Education, more than 6,000 colleges, universities, and technical schools participate in FFELP, which represents about 80% of all schools. FFELP lending represents 75% of all federal student loan volume.

In 2010, the Health Care Reform Act incorporated provisions on education, which terminated the Federal Family Education Loan Appropriations after June 30, 2010. From this date on, all government-backed student loans have been issued through the Direct Loans program.

Debt levels

Distribution of student loan debt in the US

The maximum amount that any student can borrow is adjusted as federal policies change. Current borrowing costs are the most expensive and the most expensive. Scholars have advocated increasing federal debt limits to reduce the interest charges to student debtors. [18]

The maximum amount that any student can borrow is adjusted as federal policies change. A study published in the 1996 edition of the Journal of Student Financial Aid , “How Much Student Loan Debt Is Too Much?” Some of the 8% rule. ” Circumstances vary for individuals, so the 8% level is an indicator, not a rule set in stone. A research report on the 8% level is available at the Iowa College Student Aid Commission. [20]

The Economist reported in June 2014 that United States student loan debt exceeded $ 1.2 trillion, with over 7 million debtors in default. Public universities increased their fees by a total of 27% over the five years ending in 2012, gold 20% adjusted for inflation. Public university students paid an average of almost $ 8,400 annually for in-state tuition, with out-of-state students paying more than $ 19,000. For two decades ending in 2013, college costs have risen 1.6% more than inflation each year. Student enrollments rose from 15.2 million in 1999 to 20.4 million in 2011, but fell 2% in 2012. [21] [22]

Standard repayment

When Federal student loans are repayment, they are automatically enrolled in standard repayment . [23] Under it, a borrower has 10 years to repay the total amount of his or her loan. The loan servicer (whoever is sending the bill) determines the monthly bill by calculating a fixed monthly payment.

Payments pay off the interest building up each month, plus part of the original loan amount. Depending on the loan, the loan term may be shorter than 10 years. There is a $ 50 minimum monthly payment.

Income-Driven Repayment Plans

Main article: Income-Based Repayment

If a student’s loan is a high-income earned income they can qualify for an income-driven repayment (IDR) plan. Most major types of federal student loans-for PLUS loans for parents-are eligible for IDR plan. [24] Income-driven plans allow borrowers to cap their monthly payments to 10%, 15%, or 20% of disposable income for up to 20 or 25 years, after which the remaining balance is forgiven. [25]

Currently, four specific IDRs are available:

1. Income-Based Repayment (IBR)

2. Pay As You Earn (PAYE)

3. Revised Pay As You Earn (REPAYE)

4. Income-Contingent Repayment (ICR)

Discharge of student loans

Main article: Student loan in the United States

United States Federal student loans and private student loans Some Can Be Discharged in bankruptcy only with a showing of “undue hardship.” In contrast to credit card debt, which can be discharged through bankruptcy proceedings, [26] [27] [28] [29] this option is not available for educational loan debt. [30] [31] [32] Additionally, those seeking to discharge their student loan debt must initiate an adversary proceeding, a separate lawsuit within the bankruptcy case where they illustrate the required undue hardship. [33] Many borrowers can not afford to retain an attorney or the other litigation costs associated with an adversary proceeding, let alone a bankruptcy case. Further complicating matters, the undue hardship standard varies from jurisdiction to jurisdiction, but is difficult to meet, making student loans practically non-dischargeable through bankruptcy. Brunner test: [34]

As noted by the district court, there is very little appellate authority in the definition of “undue hardship” in USC § 523 (a) (8) (B). (1). (1) The term “legislative history” is used in the definition of the term ” Minimal “standard of living for herself and her dependents; (2). (1). (2). (2). And (3) that the debtor has made good faith efforts to repay the loans. For the reasons set forth in the district short’s order, We adopt this analysis. The first part of this test has been applied frequently as a minimum necessary to establish “undue hardship.” See, eg, Bryant v. Pennsylvania Higher Educ. Assistance Agency (In re Bryant), 72 BR 913, 915 (Bankr.EDPa.1987); North Dakota State Bd. Of Higher Educ. v. Frech (In re Frech), 62 BR 235 (Bankr.D.Minn.1986); Marion c. Pennsylvania Higher Educ. Assistance Agency (In re Marion), 61 BR 815 (Bankr.WDPa.1986). Requiring such a computing with common sense as well. [35] R. 235 (Bankr.D.Minn.1986); Marion c. Pennsylvania Higher Educ. Assistance Agency (In re Marion), 61 BR 815 (Bankr.WDPa.1986). Requiring such a computing with common sense as well. [35] R. 235 (Bankr.D.Minn.1986); Marion c. Pennsylvania Higher Educ. Assistance Agency (In re Marion), 61 BR 815 (Bankr.WDPa.1986). Requiring such a computing with common sense as well. [35]

While federal student loans can be discharged administratively for total and permanent disability, private student loans can not be discharged outside of bankruptcy. [30] [31] [32]

One set of empirical data comes from Educational Credit Management Corporation , qui serviced loans for twenty-five lending agencies and the US Department of Education; In 2008 it was reported that of 72,000 loans in bankruptcy proceedings, only 276 debtors attempted discharge, and by November 2009 of the 134 resolutions thus far, 29 resulted in total or partial discharge. [36]

A review of records in the United States Bankruptcy Court for the Western District of the United States of America found that 57% of the 115 adversarial proceedings in the case of a partial discharge, through settlement or trial; However, the authors cautioned not to generalize the results of this small sample. [37] 86% involved either (or both) the United States Department of Education or the Education Credit Management Corporation, a nonprofit which loans the student has declared bankruptcy. [37]

The Higher Education Opportunity Act of 2008 . Loan holders are a substantial gainful activity (SGA) as a result of disability. The new regulations have effect July 1, 2010. [38] Under further changes to take effect July 1, 2013, if a borrower is determined to be disabled by the Social Security Administration , that determination will be accepted as proof of total and permanent (SSA). The SSA is the most widely used one in the world. [39]

Private student loans

Main article: Private student loans

These are loans that are not guaranteed by a government agency and are made by banks or finance companies. Private loans, loans, loans, loans, and loans. They are not eligible for Income Based Repayment plans, and frequently have less flexible payment terms, higher fees, and more penalties. [3] [18] [40]

Advocates of Private Student Loans: A Guide to Student Loans, Student Loans, and Student Loans. Unlike Federal Parent ( PLUS ) loans, which are available on a grace period of six months (occasionally 12 months) with no payments due until after graduation; However,. This is a great place to spend a weekend or a long weekend with friends and family. [41] [42]

Private student loan types

Private student loans come in two types: school-channel and direct-to-consumer.

School-channel loans offer borrowers. School-channel loans are “certified” by the school, which means the school signs off on the borrowing amount, and the funds are disbursed directly to the school. The “certification” means that only the school funds will be used for educational expenses only, and agrees to hold them and disburse them as needed. Certification does not mean that the school approves of, recommends, or has even examined the terms of the loan.

Direct-to-consumer private loans are not certified by the school; Schools do not interact with a direct-to-consumer private loan at all. The student simply supplies enrollment verification to the lender, and the loan proceeds are disbursed directly to the student. While direct-to-consumer loans are the most expensive loans, they do not allow them to get access to funds very quickly – in some cases, in a matter of days. Some argue that this convenience is offset by the risk of student over-borrowing and / or use of funds for inappropriate purposes, since there is no third-party certification that the amount of the loan is appropriate for the education needs of the student in question , Or that it will only be used for education. [43]

Direct-to-consumer private loans were the fastest growing segment of education finance with the “percentage of undergraduates obtaining private loans from 2003-04 to 2007-08 rose from 5 percent to 14 percent” and were under legislative scrutiny due to the lack of School certification. [44] [45] Loan providers range from large finance finance companies to specialty companies that exclusively focus on this niche. [43] [45] Lenders often push such loans by advertising: “no FAFSA required,” or “Funds disbursed directly to you.” (HCERA), the death knell sounded for private sector lending under the Federal Family Education Loan Program (FFELP). Since July 1, 2010, No new student loans have been made under the FFELP; Staff Loans, PLUS loans, and Consolidation loans have been made solely under the Federal Direct Loan Program. [45]

Private student loan rates and interest

Federal student loan interest rates are set by Congress, and fixed. Private student loans usually-have Substantially Higher interest rates, and the rates fluctuate DEPENDING on the financial markets. Some private loans disguise the true cost of borrowing by requiring substantial up-front origination “fees”, which enable deceptively lower interest rates to be offered. Interest rates and rates.

Most private loan programs are tied to one or more financial indexes, Such As the Wall Street Journal spleen premium gold the BBA LIBOR rate plus an overhead load. Because private loans are based on the credit history of the applicant, the overhead charge varies. Students and families with excellent credit and loan originations. Money deductible . However, lenders rarely give full details of the terms of the private student loan until after the student submits an application. (For good credit borrowers). Borrowers with bad credit can expect as much as 6% higher, loan fees that are as much as 9% higher, and loan limits that are two-thirds lower than the advertised figures. [46]

Private student loan fees

Often Private loans carry an origination fee , qui peut être substantial businesses. Origination fees are a one-time charge based on the amount of the loan. They can be taken out of the total loan amount or added on top of the total loan amount, often at the borrower’s preference. Some lenders offer low-interest, 0-fee loans. Citation needed ] A percentage of the total amount of the loan paid out of the loan. Some of them have a lot of fun. Citation needed ]

In this paper, the APR ( Annual Percentage Rate ) report is available at: it. Unlike the “base” rate, this rate includes actual interest, fees, etc. When comparing loans, it may be easier to compare APR rather than “rate” to ensure an apples-to-apples comparison. APR is the best yardstick to compare loans that have the same repayment term; However, if the repayment terms are different, APR becomes a less-perfect comparison tool. With different term loans, consumers often look at “total financing costs” to understand their financing options.

Private student loan cosigners

Co-sponsor / co-endorser / coborrower. This is in contrast to the FAFSA . For many students, this is a great benefit to private loan programs, as their families may have too much income or too many assets to qualify for federal aid. The benefit of a co-signer is that of a student and the co-signer, which improves the student’s chances of being approved for a student loan. [47]

Many United States citizens have permanent resident status. However, some graduate programs (notably top MBA programs) have a tie-up with private loan providers. [48]

After a student and the student’s co-signer are approved for a student loan, a co-signer release option, which “releases” the original co-signer from any financial responsibility for the student loan. There are several student loan lenders who offer co-sign releases and other benefits. [49]

Private student loan terms

In contrast with federal loans, which are public and standardized, the terms for private loans vary from lender to lender. However, it is not easy to compare them, as some conditions may not be revealed until the student is presented with a contract ( promissory note ) to sign. A common suggestion is that it is not just a bait-and-switch. However, shopping around could damage your credit score. [50] Examples of other borrower terms and benefits that vary from one year to the next, and forbearances (a period when payments are temporarily stopped due to financial or other hardship).

Criticism of US student loan programs

In 1987, then-Secretary of Education William Bennett argued That “… Increases in financial aid in recent years-have enabled colleges and universities blithely to raise tuitions Their confidant Federal loan subsidies That Would help cushion the Increase.” [51] This Bennett Hypothesis. “In July 2015 (revised in March 2016), a Staff Report was published by the Federal Reserve Bank of New York, the findings of which indicate Program maximums tend to respond with disproportionate raises in tuition prices:

In this paper, we use a bartik-like approach to identify the effect of increased loan supply on tuition following broad policy changes in federal aid programs. (The fraction of qualifying students) and the maximum legislative program. Pell Grant, a subsidized loan, and unsubsidized loan of about 40, 60, 60, And 15 cents on the dollar, respectively. [1]

The federal student loan program has been criticized for not adjusting interest rates according to the riskiness of factors which are under students’ control, such as choice of academic major . This paper presents the results of this study. [3] However, in the case of the federal government, the federal government is required to pay a maximum of $ 100,000 to the federal government to pay the federal tax credit. Not necessarily place a substantial burden on society at large. [52]

After the passage of the Bankruptcy Reform Bill of 2005, both federal and private student loans are not discharged during bankruptcy. 7 percent a year. [53] In January 2013, the “Fairness for Struggling Students Act” was unveiled. This bill, if passed, would once again allow private student loans to be discharged in bankruptcy. [54] The bill was referred to the Senate Judiciary Committee where it died. [55]

Some critics of financial help claim that, because of their schools, they have a great deal of interest in their students. Graduates in some fields of study. About one-third of students, whether or not they graduate or find jobs that match their credentials, are financially burdened for much of their lives by their debt obligations, instead of being economically productive citizens. When they train students on their obligations, the burdens are shifted to taxpayers. Lastly, the proportion of graduates who have since declined since 1970. [56]

In 2007, the Attorney General of New York State, Andrew Cuomo , led investigations into lending practices and anti-competitive relationships between students lenders and universities. Specifically, many universities steered student borrowers to “preferred lenders” that charged higher interest rates. Some of these “preferred lenders” allegedly rewarded university financial aid staff with kick backs . American universities. Many universities have also rebased millions of dollars in fees back to affected borrowers. [57] [58]

The biggest lenders, Sallie Mae and Nelnet , are criticized by borrowers. The False Claims, by Dr. Jon Oberg, Department of Education researcher, against Sallie Mae, Nelnet, and others Lenders. Oberg argued that the lenders overcharged the United States Government and defrauded taxpayers of over $ 22 million. In August 2010, Nelnet settled the lawsuit and paid $ 55 million. [59]

In an attempt to Improve the student loan market, startups like LendKey , SoFi (Social Finance, Inc.) , and Konsolidate CommonBond Were founded to offer student loans and refinanced loans at lower rates than traditional repayment systems using an alumni-funded model. [60] [61] According to a 2016 analysis by online loan loan market Credible, about 8 million borrowers could qualify to refinance their loans at a lower interest rate. [62]

The New York Times published an editorial in 2011 in support of allowing private loans to be discharged during bankruptcy. [63]

In June 2010, the Amount of Student Loan Debt Held by Americans exceeded the amount of credit card debt held by Americans. [64] At that time, student loan debt totaled at least $ 830 billion, of which approximately 80% was federal student loan debt and 20% was private student loan debt. By the fourth quarter of 2015, total outstanding student loans owned and securitized had risen to, and surpassed, $ 1.3 trillion. [65] This rising student debt is contributing to the expanding wealth gap . [66]

With each passing year, student debt continues to rise. Nearly two-thirds of undergraduates are in debt. By graduation, their student loan debt averages around $ 26,600. One percent of graduates leave college with $ 100,000 or more of student loan debt. In 2013, the federal debt had grown to $ 16.7 trillion. Six per cent of that debt is spent on student loan loans and mortgages in consumer debt. The Consumer Financial Protection Bureau reported that as of May 2013, federal student loan debt had reached $ 1 trillion bringing the total number for outstanding student loan to $ 1.2 trillion. However, borrowing from relatives, borrowers, borrowers and borrowers from their parents, In actuality, The burden of student debt is much greater than these numbers indicate. [67] The Federal Reserve Bank of New York ‘s February 2017 Quarterly Report on Household Debt and Credit Reported That 11.2% of aggregate student loan debt Was 90 or more days delinquent in the final quarter of 2016. [68]

See also

  • Student financial aid in the United States
  • College tuition in the United States
  • EdFund
  • Free education
  • Higher Education Bubble
  • Higher Education Price Index
  • Post-secondary education
  • Private university
  • Student benefit
  • Tuition agency
  • Tuition center
  • Student debt
  • Student loan
  • Tuition fees
  • Tuition freeze
  • Institute for College Access and Success

References

  1. ^ Jump up to:b “Credit Supply and the Rise in College Tuition: Evidence from the Expansion in Federal Student Aid programs” . FRBNY . July 2015.
  2. ^ Jump up to:c Pan, Maoyuan; Dan Lou (2008). “A Comparative Analysis on Models of Higher Education Massification”. Frontiers of Education in China . 3.1 : 64-78.
  3. ^ Jump up to:f Michael Simkovic, Risk-Based Student Loans (2012)
  4. Jump up^ Gregory Mankiw, “Defending the One Percent”http://scholar.harvard.edu/files/mankiw/files/defending_the_one_percent.pdf
  5. Jump up^ OECD, Education at a Glance (2011)
  6. Jump up^ “The Impact of a More Selective College, Alan Kruegerhttp://qje.oxfordjournals.org/content/117/4/1491.short
  7. Jump up^ “Brian Leiter’s Law School Reports” . Leiterlawschool.typepad.com . Retrieved 2015-11-15 .
  8. Jump up^ “Student Loans | Consumer Information” . Www.consumer.ftc.gov . Retrieved 2015-11-11 .
  9. Jump up^ Consumer Financial Protection Bureau. (2012)Private Student Loans. See also:Report Details Woes of Student Loan Debt. NYT.
  10. Jump up^ http://finaid.com/loans
  11. Jump up^ https://www.dl.ed.gov/borrower/DefermentFormList.do?cmd=initializeContext
  12. Jump up^ https://www.dl.ed.gov/borrower/OtherFormList.do?cmd=doViewRequirements&wizardName=Total%20And%20Permanent%20Disability%20Discharge%20Request
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  14. Jump up^ Wondering if you can get your federal student loans forgiven or canceled for your service as a teacher? . FederalStudentAid.gov.
  15. Jump up^ “Public Service Loan Forgiveness | Federal Student Aid” . Studentaid.ed.gov . Retrieved 2014-02-15 .
  16. Jump up^ Public Service Loan Forgiveness. FinAid.org. See also:HR 2669 (110th): College Cost Reduction and Access Act: Library of Congress.
  17. Jump up^ USC
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  19. Jump up^ “IFAP – Dear Colleague Letter” . Ifap.ed.gov . Retrieved 2014-02-15 .
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  21. Jump up^ The Economist-Creative destruction-June 28, 2014
  22. Jump up^ The Economist-The digital degree-June 28, 2014
  23. Jump up^ “How Standard Repayment Works” . American Student Assistance . Archived from the original on June 11, 2010 . Retrieved June 8, 2010 .
  24. Jump up^ “Income-Based Plan” . Federal Student Aid, a Department of the United States Department of Education . Retrieved September 9, 2012 . If your student loan debt is high but your income is modest, you may qualify for the Income-Based Repayment Plan (IBR). Most major types of federal student loans-for PLUS loans for parents-are eligible for IBR.
  25. Jump up^ Andrew Martin (September 8, 2012). “Debt Collectors Cashing In on Student Loan Roundup” . The New York Times . Retrieved September 9,2012 .
  26. Jump up^ “25 Rich Athletes Who Went Broke” . Business Pundid. 2009.
  27. Jump up^ Feingold, Sarah (2006). “Radio documentary to focus on bankruptcy, Credit Abuse Resistance Education program.” . Daily Record.
  28. Jump up^ “BANKRUPT: Maxed Out In America (transcript)” . American RadioWorks. 2011.
  29. Jump up^ “STATEMENT OF THE NATIONAL MULTI HOUSING COUNCIL / NATIONAL APARTMENT ASSOCIATION LEGISLATIVE JOINT PROGRAM, NATIONAL LEASED HOUSING ASSOCIATION, MANUFACTURED HOUSING INSTITUTE, AND THE INSTITUTE OF REAL ESTATE MANAGEMENT” . ABUSE PREVENTION AND CONSUMER PROTECTION ACT OF 2003. 2003. Archived from the original on September 28, 2011.
  30. ^ Jump up to:b “Student Loans & Bankruptcy” . Student Loan Borrower Assistance. 2011.
  31. ^ Jump up to:b “Student Loans in Bankruptcy” . Lawyers.com. 2011. Archived from the original on July 4, 2011.
  32. ^ Jump up to:b “Student Loan Bankruptcy Options” . MONEY-ZINE.COM. 2005-2011.
  33. Jump up^ “Filing an Adversary Proceeding (AP) Without an Attorney | Northern District of Florida” . Flnb.uscourts.gov . Retrieved 2013-08-24 .
  34. Jump up^ Ron Lieber (August 31, 2012). “Last Plea on School Loans: Proving a Hopeless Future” . The New York Times . Retrieved September 1, 2012.
  35. Jump up^ Marie Brunner, Appellant, c. New York State Higher Education Services Corp., Appellee ,831 F.2d 395(United States Court of Appeals, Second Circuit Argued Sept. 22, 1987. Decided Oct. 14, 1987) (“Whether not discharging Brunner’s student loans Her “undue hardship” under 11 USC § 523 (a) (8) (B) requires a finding regarding the legal effect of the bankruptcy.
  36. Jump up^ Melear KB. (2011). The Devil’s Undue: Student Loan Discharged in Bankruptcy. Published in West’sEducation Law Reporter.
  37. ^ Jump up to:b Pardo RI, Lacey MR. (2009). The Real Student Loan Scandal: Undue Hardship Discharge Litigation. American Bankruptcy Law Journal . Preprint at SSRN .
  38. Jump up^ “Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program” (Docket ID: ED-2009-OPE-0004) . Regulations.gov. August 25, 2009.
  39. Jump up^ 77FR 66088
  40. Jump up^ Philip G. Schrag & Charles W. Pruett, Coordinating Loan Repayment Assistance Programs with New Federal Legislation, 60 J. LEGAL EDUC. 583, 590-597 (2010)
  41. Jump up^ “New changes will make you good if you have student loans” . USA Today . July 1, 2008 . Retrieved May 24, 2010 .
  42. Jump up^ “Private Loans Deepen a Crisis in Student Debt” . The New York Times . June 10, 2007 . Retrieved May 24, 2010 .
  43. ^ Jump up to:b “Comparison of Federal and Private Student Loans” . Discover . Retrieved May 22, 2014 .
  44. Jump up^ Woo, Jennie, H., and (ED) National Center for Education Statistics. “The National Center for Education Statistics (2011): ERIC. Web. May 21, 2014
  45. ^ Jump up to:c SANTO JR., GF, & RALL, LL (2010). Private Student Loan Financing in an Era of Needs and Challenges. Journal Of Structured Finance, 16 (3), 106-115.
  46. Jump up^ “Loans | Private Student Loans” . FinAid . Retrieved 2014-02-15 .
  47. Jump up^ “Make Lemonade: Do I Need a Co-Sign?” . Make Lemonade . Retrieved September 3, 2016 .
  48. Jump up^ Jain, Ayushman (2012). Money Matters: Financing your MBA at UCLA. The MBA Student Voice, UCLA Anderson. Blog. Retrieved on 5/23/14 fromhttp://mbablogs.anderson.ucla.edu/mba_students/2012/07/money-matters-financing-your-mba-at-ucla.html
  49. Jump up^ “Make Lemonade Student Loan Reviews” . Make Lemonade . Retrieved September 3, 2016 .
  50. Jump up^ Lieber, Ron (July 26, 2008). “Danger Lurks When Shopping for Student Loans” . The New York Times . Retrieved May 24, 2010 .
  51. Jump up^ Bennett, William J. “Our Greedy Colleges.” Nytimes.com. The New York Times Company, February 18, 1987. Web. April 28, 2016.[1]
  52. Jump up^ “Federal Reserve Bank of Kansas City,” Student Loans: Overview and Issues, “August 2012” (PDF) . Retrieved 2014-02-15 .
  53. Jump up^ Collinge, Alan. The student loan scam: the most oppressive debt in US history, and how we can fight back. Boston, MA: Beacon Press, c2009. ISBN 978-0-8070-4229-8 http://lccn.loc.gov/2008012230
  54. Jump up^ Kingkade, Tyler (January 24, 2013). “Fairness for Struggling Students Act Would Reform Private Student Loan Bankruptcy Rules” . Huff Post College . Retrieved February 20, 2013 .
  55. Jump up^ “S.114 – Fairness for Struggling Students Act of 2013” . January 23, 2013 . Retrieved March 2, 2015 .
  56. Jump up^ Vedder, Richard; Denhart, Christopher; Hartge, Joseph (June 2014),Dollars, Cents, and Nonsense: The Harmful Effects of Federal Student Aid , Center for College Affordability and Productivity , retrieved November 23, 2014
  57. Jump up^ “Cuomo: School loan corruption widespread” . USA Today . April 10, 2007 . Retrieved 2008-04-08 .
  58. Jump up^ Lederman, Doug (May 15, 2007). “The First Casualty” . Inside Higher Education . Retrieved 2008-04-08 .
  59. Jump up^ Field, Kelly (August 15, 2010). “Nelnet to Pay $ 55 Million to Resolve Whistle Blower Lawsuit” . The Chronicle of Higher Education . Retrieved 2011-07-14 .
  60. Jump up^ “P2P Lending & Education: CommonBond Launches With $ 3.5M, Joining SoFi In Quest To Solve The Student Debt Crisis” . TechCrunch . December 1, 2012.
  61. Jump up^ “SoFi Tapping Alumni to Help With Student Loans” . The New York Times . April 3, 2012.
  62. Jump up^ Lobosco, Katie. “8 million Americans Could get a lower rate on Their student loans”, CNN Money , 15 November 2016. Retrieved 10 March 2017 is.
  63. Jump up^ “Relief for Student Debtors” . The New York Times . August 26, 2011.
  64. Jump up^ Kantrowitz, Mark. “Total College Debt Now Exceeds Total Credit Card Debt” . Fastweb . Retrieved August 1, 2014 .
  65. Jump up^ “Student Loans Owned and Securitized, Outstanding.” Research.stlouisfed.org. New York Federal Reserve, April 7, 2016. Web. April 19, 2016.[2]
  66. Jump up^ Carolyn Thompson (March 27, 2014). $ 1 trillion student loan debt widens US wealth gap. Associated Press . Retrieved July 6, 2014.
  67. Jump up^ Denhart, Chris. “How the $ 1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy”. Forbes Magazine. Forbes.com, August 7, 2013. Web. November 15, 2014. <http://www.forbes.com/sites/specialfeatures/2013/08/07/how-the-college-debt-is-crippling-students-parents-and-the-economy/>
  68. Jump up^ Federal Reserve Bank of New York (February 2017). “Quarterly Report on Household Debt and Credit” (PDF) . Retrieved March 23, 2017 .