Student Loan Crisis: Does Over $1 Trillion In Debt Prove That College Is Now A Scam?

Forgiveness programs can be divided into these broad categories with a few examples listed, outlining each below: Community service If you spend a substantial amount of time serving your local community, you might be eligible for a number of forgiveness programs through organizations like the Peace Corps. and AmeriCorps. If you complete a term of service with the AmeriCorps , a federal program thats meant to engage adults in intensive community service work, you could receive an award for more than $5,000. Military Talk to a recruiter about your options or visit to find out more. Two examples of military forgiveness programs: If youre an active duty health professional in an identified skills shortage area you could be eligible for up to $40,000 of loans forgiven in the Active Duty Health Professionals Loan Repayment Program . If you have no prior military experience and enlist in the Navy for a minimum of three years, you could be eligible to receive 33 percent of the remaining principal balance or $1,500 per year with a maximum of $65,000 in the Navys Loan Repayment Program .

And will that bubble burst? “Very possibly,” says Bob Traitz, a college financial-planning professional with American Education Funding. “I believe that it might become necessary to limit student loans, to the degree that one is able to demonstrate their ability to repay what they’ve borrowed.” It’s a potentially controversial idea — one that raises the concept of new regulations — but Traitz says the underlying issue is affordability and whether private and federal student-loan institutionsare allowing higher-ed tuition to balloon out of control, setting students up for a post-graduation fall. “Continually lending to people with no credit history, who are considered a huge financial risk?” says Traitz. “The perfect storm does exist.” Borrowing more than ever, repaying at the same old pace So, about this potential bubble: Is there one, whose bubble is it, and what happens if it breaks? Here are some key things that we know.

Ways to Get Rid of Your Student Loans Without Paying

According to The Institute for College Access and Success (TICAS), the average student loan debt amounts to a whopping $26,600, interest notwithstanding. Meanwhile, Forbes found out that two-thirds of 4-year college graduates have student loan debt to pay off. For high school juniors and seniors dead set on attending college one avenue to explore is Federal Student Loans . Federal Students loans offer lower interest rates than private loans, like those offered by Discover ,for instance. Yet $1 trillion of the $1.2 trillion in total debt is linked to Federal Student loans. Facebook’s first investor, PayPal co-founder and former CEO Peter Thiel, doesn’t think that college is for everyone.

Fitch Maintains Negative Rating Watch on South Carolina Student Loan Corp 2013-1

FFELP student loan ABS are maintained on Rating Watch Negative following the revision of the U.S. sovereign rating on Oct. 15, 2013. Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust’s asset balance over bond balance) and excess spread. As of December 2013, parity is at 102.46%.


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