3 Dumb Student Loan Myths That Can Bankrupt Smart Borrowers – Forbes

"People who went to these schools in order to better themselves so they could get a job and didn't get decent training are not in a good position to pay off these loans," she said. Robyn C. Smith, an attorney who works with the National Consumer Law Center, estimates that "thousands and thousands" of former students fall in that category. The U.S. Department of Education proposed rules last month that target career colleges, an industry buffeted by criticism and lawsuits. <br>Source: <a href='http://www.baltimoresun.com/business/bs-bz-student-loan-debt-trade-schools-20140406,0,6952592.story&#039; >http://www.baltimoresun.com/business/bs-bz-student-loan-debt-trade-schools-20140406,0,6952592.story</a&gt;

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<img src='http://blog.credit.com/wp-content/uploads/2013/08/student-loan-forgiveness.jpg&#039; />

$1 trillion student loan debt widens US wealth gap

He explained: I needed a bit of extra money. My bank refused to extend my overdraft and I didnt want to go to my parents so I ended up using a short-term loan firm. It was just a disaster. The reason Smart-Pig.com is different he says is because it cares about the people it lends money to. As well as running a series of competitions with monetary prizes, a main feature of the company is the 10-day grace period it offers to those whose official payments are delayed. He said: I was slapped with lots of extra fees when I missed my repayment I really could have done with 10 days to resolve that hiccup without incurring a charge. Despite graduating in law, 24-year-old Shreiffs entrepreneurial flare was evident from an early age when he picked up trinkets from markets on family holidays to Morocco and sold them online for a profit on his return. He said: It was a little hobby and a lot of fun but it really set the business side of me going. Now two years old, Smart-Pig is going from strength to strength. <br>Source: <a href='http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546&#039; >http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546</a&gt;

Are you frustrated with the fact that youre struggling to pay it off? Then youre like millions of Americans buried in student loan debt. The fact is, there is over $1 trillion dollars in outstanding student loan debt in the U.S., and for borrowers who recently graduated only to find a tough job market and little help, the burden of student loan debt can be daunting. continue It doesnt help that there are so many myths surrounding student loan debt programs and repayment options. So, before you fall for one of these myths, make sure you educate yourself. Myth #1: You Always Have To Pay Back Your Student Loan Debt You hear every pundit telling you, You always have to pay back your student loan debt. <br>Source: <a href='http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/&#039; >http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/</a&gt;

or doctorate and you get the same job at the same place, you make the same amount of money, said William Elliott III, director of the Assets and Education Initiative at the University of Kansas. But that money will actually mean less to you in the sense of accumulating assets in the long term. Graduates who can immediately begin building equity in housing or stocks and bonds get more time to see their investments grow, while indebted graduates spend years paying principal and interest on loans. The standard student loan repayment schedule is 10 years but can be much longer. The median 2009 net worth for a household without outstanding student debt was $117,700, nearly three times the $42,800 worth in a household with outstanding student debt, according to a report co-written by Elliott last November. About 40 percent of households led by someone 35 or younger have student loan debt, a 2012 Pew Research Center analysis of government data found. <br>Source: <a href='http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/&#039; >http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/</a&gt;

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