Sallie Mae, Education Department Under Fire For Student Loans To Military Service Members

When all else fails, PHCC offers an emergency short-term loan directly from the school to cover up to 15 credit hours. I exhaust every option of free money before I even suggest that, Keller said. Once students pursue four-year degrees, Redd said he can help them to find every revenue source possible to pay for school without accumulating debt. Its not a process you should go through by yourself, he said, adding that high schools also counsel students to help them and their parents find as many sources of financial aid as possible. The key, he said, is putting in the effort which will pay off in the end.

Signing student loan deal into law, Obama says ‘job is not done’ on college affordability

The agency also could terminate a companys contract. Still, some financial analysts said they doubted the Education Department will take punitive action against Sallie Mae. Michael Tarkan, Compass Point Research & Trading senior analyst, said the likely servicemembers law violation will probably increase political pressure on Sallie Mae, but wont affect its relationship with the Education Department. Sallie Mae is too large and important to the system, which has experienced some growing pains” after the 2010 elimination of a bank-based federal student loan program, Tarkan said. Reducing business sent to Sallie Mae could increase risk and cause further disruption. Its unclear if previous criticism of the Education Departments supervision of Sallie Mae has had any effect.

As a condition of his support, Sen. Tom Harkin, D-Iowa, chairman of the Senate Health, Education, Labor and Pensions Committee, won a Government Accountability Office report on the costs of colleges. That document was expected to come in December. “Even with this important bill signed into law, much work remains to ensure college stays within reach for middle-class families and those striving to get into the middle class,” White House spokesman Jay Carney said Thursday. But for now, interest payments for tuition, housing and books would be less expensive. In all, some 18 million loans will be covered by the legislation, totaling about $106 billion this fall.

Susan Tompor: Despite student loan relief, do math carefully when borrowing

So the cost of a 2.25 percent private variable loan is in the same ballpark as the federal loans, Kantrowitz said. But private loans typically do not offer all of the same repayment benefits as federal education loans. Research the options that your private loan may have for repayment plans. Kantrowitz warned that a 5 percent variable rate, if you could get it, might hit 9 percent during a 10-year life of the loan. “You might be chasing after a low teaser rate, but ultimately it will cost you more,” Kantrowitz warned.

Obama to Sign Student Loan Deal

Interest rates will how to apply for Obama student loan forgiveness program not top 8.25 percent for undergraduates. Graduate students will not pay rates higher than 9.5 percent, and parents rates would top out at 10.5 percent. Using Congressional Budget Office estimates, rates would not reach those limits in the next 10 years. In all, some 18 million loans will be covered by the legislation, totaling about $106 billion this fall. The Congressional Budget Office estimated the bill would reduce the deficit by $715 million over the next decade.


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