The White House Wants to Help You Make Smaller Student-Loan Payments

The bus tour comes on the heels of recent news regarding student debt, an epidemic that is cutting across all age brackets and affecting more than 38 million Americans. On August 9, the president signed the Bipartisan Student Loan Certainty Act, which ties interest rates on Stafford and PLUS loans to the fluctuations of the 10-year Treasury bond. Its being touted as a better alternative to the fixed 6.8% interest rate that doubled in July from 3.4%. But while the passage of this new law, which Republicans and Democrats claim will help students, is temporarily lowering interest rates, in five years, its estimated that interest rates will actually end up being higher than before the bill was signed — and according to the Congressional Budget Office, will make the government an extra $715 million. The CBO reports that the government is already making an estimated $184 billion from student loans — and this bill jacks up the number to a staggering $184,715,000,000. Matthew Holmes, a 24-year-old graduate of Johnson and Wales University, whose student debt is almost $20,000 in principal, says adding in the estimated accrued interest over a 10-year-period hikes his debt to almost $35,000 — $15,000 more than his current balance.
Source: http://www.foxbusiness.com/personal-finance/2013/08/23/quest-for-college-affordability-and-why-congress-latest-student-loan-bill-may/

Under the ICR plan you will pay each month the lesser of: the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or 20% of your monthly discretionary income…. The maximum repayment period is 25 years. If you haven’t fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged. The ICR program launched in 1994. Update: This isn’t the president’s first push to enroll more people in IBR; he started urging the Department of Education to do so in summer 2012 .
Source: http://www.theatlantic.com/politics/archive/2013/08/the-white-house-wants-to-help-you-make-smaller-student-loan-payments/278948/

Student loan deal passes Senate

It means that students who borrow this fall will pay 3.8 percent on are student loans forgiven subsidized loans, 5.4 percent on unsubsidized Stafford loans, and 6.4 percent on PLUS loans. The new law reverses the interest rate jump on subsidized loans, which jumped from 3.4 percent to 6.8 percent on July 1. [More from Manilla.com: Are Today’s College Students Getting an Education in Financial Responsibility? ] Student loan repayment options Under the new law, loan payments may be limited. Borrowers who choose the income-based repayment option will pay no more than 10 percent of their income above a basic allowance (the ceiling had previously been 15 percent).
Source: http://finance.yahoo.com/news/student-loans-calculation-130109975.html

Solving the Student Loan Crisis – Piglt Campaigns are Live

Los Angeles, CA (PRWEB) August 22, 2013 Piglt ( http://www.PIGLT.com ), Educations Entrepreneurial Piggy Bank, went live this week. Piglt (pronounced piglet) is the only innovative incentive-based crowdfunding platform that allows individuals to fund their tuition or student loan debt, thus solving the nation’s student loan debt epidemic and helping users find jobs through a dual focus on entrepreneurship and community involvement. Piglt just launched its inaugural batch of Campaigns on Aug 20th. Student loan debt in the US has risen above $1 trillion and the cost of higher education is skyrocketing. Thats preventing individuals from progressing socially and economically. The rising cost of higher education is preventing Americans from getting the kinds of degrees they want to finance the lives they want to lead.
Source: http://www.sfgate.com/business/press-releases/article/Solving-the-Student-Loan-Crisis-Piglt-Campaigns-4752997.php

Student Loans: The New Calculation

“This fall, all undergraduates, subsidized or unsubsidized, would only have to pay 3.86% interest rate for the life of the loan,” said Sen. Tom Harkin, an Iowa Democrat, whose support was key to a Washington deal. “That means real savings for borrowers.” It doesn’t apply to loans that students get from private lenders. It only affects Stafford loans, which are made by the U.S. government to help finance a college education. Students can apply through their university financial aid office.
Source: http://money.cnn.com/2013/07/24/news/economy/senate-student-loans/index.html

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U.S. Stock Futures Rise As Investors Weigh Housing Data, Fed

The early spike higher was attributed to problems in the arbitrage system of Shanghai-based brokerage China Everbright Securities. The Shanghai Stock Exchange said it was investigating the issue. Meanwhile, Japan’s Nikkei Stock Average fell 0.8%. European markets traded mostly lower, with the Stoxx Europe 600 down 0.1%, as uncertainty over U.S. monetary policy kept investors on edge. In corporate news, Applied Materials shed 0.8% in premarket trading after the semiconductor equipment maker reported fiscal third-quarter earnings and revenue that fell short of forecasts and provided a downbeat outlook for the current quarter.
Source: http://online.wsj.com/article/BT-CO-20130816-703873.html

Where To Invest When The Stock Market Bubble Bursts

India had first entered the trillion-dollar club in June 2007, but moved out in September 2008, amid the global slowdown. It again got back into the elite league in May 2009 and had largely remained there since then, except for some brief periods including once in 2012. Weakness of the rupee has been a key force behind the dollar-valuation plunge in recent months. Since the beginning of the current fiscal in April 2013, though the rupee valuation of Indian stock market has fallen by nearly 5%, its dollar valuation has plunged by 19.76%. The rupee has depreciated by over 13% during this period. With India out of this league, only 13 stock markets across the world now enjoy a trillion-dollar status, led by the US (an estimated $20 trillion).
Source: http://www.hindustantimes.com/India-news/Mumbai/Indian-stock-market-slips-out-of-trillion-dollar-club/Article1-1108782.aspx

Indian stock market slips out of trillion-dollar club

Where appropriate, we believe that a strategy of up to 70% of assets invested in both liquid and illiquid alternative investments will be very successful moving forward. Our selection of alternative investments is an intensive process, which attempts to avoid virtually any investments that have performance directly tied to the appreciation of the S&P 500, and stability of the bond market. The central bank institutions have congratulated themselves on saving the economy because they artificially inflated stock and bond prices. These efforts will undermine investor confidence for years to come.
Source: http://www.forbes.com/sites/jeffreysica/2013/08/15/where-to-invest-when-the-stock-market-bubble-bursts/

Stock Market’s Like a Badger & Right Now Its Claws Are Out: Strategist

) He also likes United Rentals , because “the industry is moving toward construction companies leasing equipment instead of buying to conserve capital. Essentially, this company is leveraged to an improving economy.” Jim McCaughan, CEO of Principal Global Investors, told CNBC that longer-term investors look to accumulate positions in emerging equities. In the next six to 12 months, he expects “extreme” volatility in emerging markets, although they offer potential in the long-term. Trading a visit their website market in transition Yesterday’s sell-off was a buying opportunity, says Jim McCaughan of Principal Global Investors, discussing the impact of future Fed tapering on the markets, with Stephanie Link, TheStreet; Zachary Karabell, River Twice Research, and Jason Trennert, Strategas Research Partners. Zach Karabell, president at River Twice Research, sees a trend of lower stock prices in August and thinks that interest rates on bonds are likely to “overshoot” in the near term with the likelihood that the Fed taper will begin next month.
Source: http://www.cnbc.com/id/100967904

Best investment ideas in this ‘stock picker’ market: Pros

That is 3.69 percent above its 50-day moving average and 49.33 percent above its 200-day moving average. The companys stock is trading 11.62 percent below its 52-week high and 305.56 percent above its 52-week low. Two companies Big 5 Sporting Goods Corp. (NASDAQ: BGFV) and gun manufacturer Sturm Ruger & Co., Inc.
Source: http://easternmorningherald.com/stock-market-after-hours-top-gainers-august-15-aspen-gains-14-percent/1230643/

Stock Market Opens Lower on More Retail Woes

Wal-Mart and Macy’s gave bleak outlooks earlier this week, raising doubts that shoppers will spend enough to give the tepid U.S. economy a boost. Next week is busy with retail earnings, including results from J.C. Penney. The government reported that developers broke ground on homes at a faster pace in July.
Source: http://abcnews.go.com/Business/wireStory/stock-market-opens-lower-retail-woes-19979836

Stock Market After-Hours Top Gainers, August 15 – Aspen Gains 14 Percent

You have to remember we were up almost 20%, he says. With all the macro headwinds, in particular Fed taper talk, the market really needed to take a breather and its doing so. Related: S&P 500 Headed to 1770 Even If Fed Tapers: S&Ps Gibbs Looking ahead at catalysts that could drive the market higher or lower, Hill zeroes in on a lot of negatives right now. One of those catalysts is oil. Take a look at the accompanying video to see how it impacts economic growth and in what way an increase in prices can translate to an equity market headwind. Tell Us What You Think! Send an email to: thedailyticker@yahoo.com.
Source: http://finance.yahoo.com/blogs/daily-ticker/stock-market-badger-now-claws-strategist-152420608.html