FACT – In 2004, nearly two-thirds (62.4%) of graduates from public universities had student loans. (Source) Given this level of borrowing, there is no doubt that the current mortgage and student loan crisis has the immediate attention of parents and students. The student loan squeeze is a three part series that will answer a few of the most important questions on the minds of students and parents around the country.
I remember back in the 80’s when Reebok came out with their new “pump” style sneakers. The shoe had a rubber ball shaped pump at the top of the tongue, and when you squeezed it, the sneakers would inflate around your heels. If I was ever going to dunk the basketball, the Reebok Pumps were my ticket. Of course when I presented the situation to my parents, I got the same response I always got when I asked for money…”do you think money grows on trees?” My dreams of playing professional basketball were shattered.
Now that I’m taller, and a financial aid director, I’m starting to believe that my parents were wrong. Perhaps money really does grow on trees. (more…)
I know there are plenty of parents out there that are saving to pay for the college education of their children. First of all, I think that is a noble and honorable thing to do and I applaud parents who are doing it. Your children will be better off because of your intuitive thinking and fiscal intelligence. (more…)
The student loan industry has been viewed with much skepticism over the past few years due to the fact that the percentage of loans over grants and scholarships has increased drastically. This is bad news by itself because many students will not graduate and find a job that enables them to pay off the loans, leaving them to either default or reduce their standard of living. Some schools default rates are so high that federal loans are being removed from the financial aid package entirely.
Until today I thought that default rates and ability to pay the loans back were the only issues. (more…)
