Student Loan Pros And Cons

The majority of students around the country are enjoying their summer off, while some stay behind to take classes. It seems that New York Attorney General Andrew Cuomo is doing homework this summer on the student loan industry. For those unfamiliar with the epic saga taking place, student loan lenders are having their feet put to the fire by Cuomo and Congress. Cuomo's office has carried out a far-reaching investigation regarding conflicts of interest in the multi-billion dollar student loan industry. The student loan lenders on innumerable occasions have induced college officials with kickbacks of several hues to navigate students toward preferred lenders. Of course, the students and their parents were in the dark about this alliance. Unfortunately
The federal government does not guarantee these loans and has minimal oversight over them. This oversight of government in regulating these private lenders must be expanded to protect vulnerable students from predatory practices of "profit at all cost", violating all norms of ethics. I applaud New York Attorney General Andrew Cuomo and some members of Congress such as Senator Edward Kennedy for their attempts at rectifying these problems that plague the student loan industry and universities. Last week, Senator Kennedy issued a report that reinforced the findings of New York's Attorney General of widespread conflicts of interest in the $85 billion-a-year student loan industry. Kennedy, chairman of the Senate Health, Education, Labor and Pensions Committee, found many instances of private lenders giving gifts, jobs, monies, salaries, positions on advisory boards, and other similar activities to gain influence with university officials. Even though, Kennedy's report focused exclusively on unethical practices in the government student loan program; nonetheless, the private unregulated loan practices mirror the above incidents. Unless the investigations delve deeply into the crevices of the private student loan industry program; ultimately, the students will be the ones to
Or have you begun paying them, but keep thinking there must be a better way. Here are a few tips and tricks to paying back your federal student loans without going crazy. With federal loans, if you're enrolled in school at least halftime, your loans are ALWAYS eligible for educational deferment. That means you aren't required to pay back your federal student loans while you're attending school. This can include any type of school, so whether you're getting an MBA, Doctorate, Graduate Degree, Etc. you don't have to pay it back yet. Federal loans offer a variety of ways to forbearance, although a forbearance will still rack up interest payments (where a deferment won't get any interest charges.) Every month, you'll be charged interest plus a principal charge for a total amount billed each month. A loan in forbearance will be charged the total bill for the month, but that charge goes to the back of the overall loan amount, so you aren't paying it back yet, but by the time the entire loan is paid off, you will have paid all those interest charges. If the payments are too high for you to handle, you can lower the monthly payment on your student loans. There are many different payment options set up through the Department of Education. Most of the repayment options will be almost equal to the amount of the interest accrual every month. Lower payment options can be applied and