Loan Modifications.....for student loans?????

Private loans have gotten a deservedly bad rap because of their  inflexible nature. Well, it appears that it is snowing in hell (and currently in Buffalo, NY). Wells Fargo and Discover are allowing people to modify their PRIVATE loans when they experience hardships. What the what? Apparently, they are also doing it of their own volition (or on the advice of a PR firm). This is potentially good news for those burdened by private loans.

Who knows how this will actually manifest, or how much help it will truly bring people. Still, it is a start. A start of something good, I hope.

Some Student Loan Documentaries/Reports on YouTube.

What is better than free? Not much! YouTube offers some great entertainment for no cost. Ever peruse cute kitten videos for stress relief? It works. 

Anyway, onto student loan topics. 

Here is a very informative (but scary!) documentary on student loan default. 

Here's another.

Don't read some of the comments, though :(

Living expenses and financial aid.

 The Chronicle of Higher Education has an informative article about the cost of living expenses when going to college. This was the main thorn in my side when working on my doctorate. Even with a roommate for most of my PhD, the cost of rent, car payments (for an old, but reliable, car), utilities, internet, food, gasoline, etc. really added up. Thankfully, the area in which I live has reasonable rental options compared to places such as New York City, Boston, or San Francisco. 

People in authority often give advice that students should commute from home, share a house with 7 people, find that magical living space that is safe and inexpensive, live off of Ramen noodles, and sell plasma for book costs in order to reduce living expenses. Some of that advice is spot on, but it won't work for all people. Sometimes a long commute does not actually save money. Grad school debt is also rising alarmingly, and the solution isn't simply reducing expenses. Most students live rather minimalist lives as it is.

So, what can be done? Perhaps better funding at state colleges for grad students engaged in long programs of study. Also, there are creative ways for students to earn extra money. Here's an article from Lifehacker about how to earn extra money (some active, some passive). I plan on trying some of them to help my broke self. I'll keep you posted on what works!

Retirement funds and student loans? Yeah, right! Or, maybe.....

How many students contribute to retirement funds? Not enough. How can those with student loan payments even think about putting money away for retirement? Kind of by necessity. If you earn enough for Standard Repayment, then good for you! I hope you are socking away as much as possible. For those on Income-Sensitive repayment plans, there is some good news:


Your monthly payments are calculated annually based upon your adjusted gross income (AGI). Your AGI is your gross income, less any deductions. Well, certain retirement contributions lower your AGI.  Check out this site for more details about how to reduce your AGI, and thus your monthly payment. Awesome news, and highly recommended since retirement is very important. No one wants to adjunct five classes instead of traveling with the grand kids.

For-proft universities fight the government.

I was very happy to read that the government was attempting to regulate for-profit colleges. In many cases, these institutions take advantage of students. Shame on them. See the following stories for more details:

 1. For-Profits and Their Scams

 2. Corinthian Colleges are Scams

 3. For-Profits are Predatory Towards African American Students 

 4. Attempts to Regulate For-Profit Colleges


For a humorous breakdown on student debt and for-profit colleges by John Oliver, go here.

Now, for-profit colleges are suing the government for attempting to curb their abuses. There may be some for-profit colleges that are not scams, but their entitlement in general is sickening.

More than just high earners have staggering student loan debt....

The supposed good news for today? I came across this piece in Reuters and think it is a bit misleading. The gist of the article is that most people, such as doctors and lawyers, with high student loan debt also earn a high salary. Unfortunately, this is not always the case. Many low to mid salary earners also carry a burdensome amount of debt. That's not good news for anybody.

On a better note, there is some help for those with private student loans. I've mentioned this before, but the CFPB handles some private student loan issues. They are a great starting point for misbehaving loan servicers and companies.

Example A:

http://consumerist.com/2014/10/16/cfpb-private-student-loan-companies-provide-few-options-for-borrower-driving-them-to-default/