Need Help with Those Student Loans

There are often cases of Law students using their newfound legal understanding against the universities which they attend. The danger of teaching students legal information that could be used against them is a risk law professors have long been aware of. With the job market taking a bit of a downturn, however, performing well at university has become all the more important.

With the higher stakes for university students have come a lot more cases of students suing universities. What’s more, it is not only a law student’s game anymore. Individuals studying everything from midwifery to theatre are bringing lawsuits against universities. They hire west London solicitors or a lawyer from elsewhere, and make their case.

Andrew Croskery, a student at Queen’s University Belfast, is in engaged in a much talked about case against the university he attends. His case disputing a grade of 2:2 in electrical engineering is currently being evaluated by the high court. Mr Croskery is arguing that if he had received better supervision from the university his grade would have been higher.

Queen’s University Belfast’s lawyers are arguing that the judicial system is not the proper forum for the case, and thus it should be thrown out. For the high court to take a case like this would be uncommon but not unheard of. For example, last year a midwifery student at Oxford Brookes made the case that the high court should be able to interfere with the university’s claim that she was not cut out to be a housewife because of her performance in a course there. She was successful.

With the job market as fragile as it is, no doubt other student will be motivated by much talked about successes like the aforementioned. Is this development really a good thing for Uk students and universities, however?

Some might assert that holding universities accountable is always a good thing, even if students do it in the judicial system. There is certainly a compelling case to be made that universities cannot police themselves internally with regard to some issues, and thus students should be able to deal with such issues in court.

The other side of the issue is that students are likely to begin taking advantage of the legal system to bring up their grades much more regularly. Some students are already trying to do just this, but the courts have done an excellent job so far of weeding out such people.

The ultimate barometer on whether or not lawsuits against universities are out of hand will be if solicitors in London and elsewhere start specializing in such cases. Law lecturers will really have to be careful then.

Learn About the Primary Three Types of Student Loans

There are a number of different types of student loans.
They are all created to help students and parents discover the right choice for their respective situation. The overall cost of both private and public colleges are steadily increasing and students need to find the means for funding their education. Deciding which student loan, whether a private or  federal student loan, is a very important decision. You will eventually be responsible for paying it back, so research all of your options.

<u><i>What is a Student Loan?</i></u>
A student loan is an educational loan from a lending institution intended for the payment of tuition and additional collegiate expenses. These loans are used for a number of degrees and programs. Some of the more common are undergraduate and graduate degrees and law or medical programs.
You, as the borrower, must begin to repay the loan after you are finished with school. In addition to the cost of tuition, student loans can be used towards the purchase of books and computers.

<u><i>Types of Student Loans</i></u>
There are three primary types of student loans available, a federal student loan, a private student loan or a parent loan. Two of the most common federal loans used by students are Stafford loans and Perkins loans. What is beneficial behind a federal student loan is that federal laws regulate the interest rates charged for these programs.
A lender has to offer a federal loan at the specified interest rate, which is usually lower than the national interest rate. A federal student loan can also be consolidated after the student graduates, allowing the student loan repayment plan to fall under one large umbrella.

Private student loans are separate from federal loans, and students applying for these don’t have to fill out federal forms. Private lenders offer these loans, making them cost more because there is no legal requirement to stay within a certain interest rate. Private loans also require a student to submit their credit history, and the interest and fees paid on the student loans are based upon the student’s credit score.

Parents may be required to co-sign for a private student loan, making them responsible if the student has to defer payments at any time.
A parent loan, or the Parent Loan for Undergraduate Students (PLUS), is a type of student loan parents apply for to encompass any additional cost their child’s financial aid or student loans won’t cover. PLUS loans, like other federal loans, come with a fixed interest rate.

These loans can also be consolidated, like the Stafford and Perkins loans, and parents are fully responsible for repaying PLUS loans to the lender after they are disbursed.
Finding student loans that are right for you doesn’t have to be a difficult task. It just takes a little time and research before making a final decision. Talking with your college’s financial advisor can help you go down the right path when choosing a loan. It is important to go over all the student loan repayment options when choosing a loan program from a lender because you will be financially responsible after graduation. Deciding upon the right loan can help you achieve your dreams of higher education.

How Would Tying Student Loans to Repayment Rates Affect Higher Education

Defaults on student loans can be measured in a number of ways, but one of the most common measures of default is the official cohort default rate, defined by the Department of Education as the percentage of a school’s student loan borrowers who enter repayment on certain federal education loans “during a particular federal fiscal year, Oct. 1 to Sept. 30, and default or meet other specified conditions prior to the end of the next fiscal year.”

In other words, the cohort default rate is the percentage of borrowers who enter repayment on their federal student loans and then either stop making payments on their student loan debt or never make payments at all during the 12–24 months after entering repayment.

Student Loan Default Rates vs. Repayment RatesGovernment analysts now want to look more closely not at schools’ default rates on federal college loans but at schools’ repayment rates on those loans.

Consumer and student advocates have long argued that the cohort default rate, as currently measured, severely underrepresents the proportion of a schools’ students who are struggling with college loan debt by looking at only an initial 24-month period. The two-year snapshot, these critics maintain, misses a large swath of students who are able to muddle through making their payments for the first couple years but then begin defaulting in the third and fourth years of their repayment periods in accelerated numbers.

The default rate also fails to take into account those students who aren’t able to make payments on their student loans but who aren’t considered to be technically in default because they’ve arranged for a student loan debt management plan that permits them to put off making payments on their federal college loans.

In proposed rules that would regulate a school’s eligibility for federal student aid, the Department of Education would consider a school’s student loan repayment rate and not simply its default rate, as current regulations do.

By expanding its institutional financial aid eligibility rules to include student loan repayment rates, the Education Department would be looking at how many students simply aren’t repaying their student loans — not only counting borrowers who have defaulted, but including those borrowers who are in a legitimate deferred repayment plan or approved forbearance period that allows them to temporarily forgo making their federal student loan payments.

The Student Loan Debt Problem, as Measured by Repayment RatesEarlier this year, the Department of Education reported that the national cohort default rate was 7 percent for the 2008 fiscal year, the last year for which repayment data are available.
Looking at repayment rates, on the other hand, while also expanding the time span over which student loan repayment is measured, yields a far larger non-payment rate among student loan borrowers and paints a truer picture of the size of the inability-to-repay problem among student loan borrowers.

The Department of Education estimates that in 2009, among alumni of public universities who carried federal student loan debt, only 54 percent of those who had graduated or left school within the last four years were in repayment on their federal student loans — a far cry from the 93-percent national non-default rate of 2008.

The four-year repayment rate was marginally higher for students at private nonprofit universities, at 56 percent. Perhaps predictably, the repayment rate among alumni of private for profit colleges was substantially lower — just 36 percent over four years.

These figures come from a new repayment database that the Department of Education will use to track government-issued student loans, from the time they’re issued until the time they’re paid off. The database can also track what happens in between.
By looking more carefully at each loan’s entire lifespan, the Education Department hopes the database will help identify the point at which borrowers first begin to show signs of trouble repaying their federal college loans.

Schools’ Student Loan Problems Could Mean Loss of All Financial AidAs the government’s proposed financial aid rules are currently worded, the new rules would allow the Department of Education to impose financial aid restrictions on schools whose overall student loan repayment rate falls below 45 percent.

Schools that have a repayment rate of lower than 35 percent would face the loss of federal student aid altogether.

Using the Education Department’s 2009 data, more than half of the higher education institutions in the United States would face some type of federal student loan sanctions if the proposed financial aid rules were in effect today, and 36 percent of post-secondary institutions would be barred from offering federal student aid for a period of at least two years.

However, the proposed new Department of Education rules will also allow schools to report student loan repayment rates separately by program. By segmenting out repayment rates by program, institutions could avoid school-wide federal financial aid sanctions, leaving intact federal student aid for academic programs whose repayment rates are within the established guidelines, while still receiving sanctions for programs whose graduates consistently fail to make payments on their federal college loans.

 college loans, student loan default rates by school, debt management

Getting Student Loans With Credit Issues

Student loans are an important right of passage for many people that desire to go to college. Most individuals cannot directly afford to pay their entire school costs out of pocket. However, there are also many people that find it impossible to acquire loans for this purpose due to not having anyone that can cosign for them. A lot of traditional lending institutions require cosigners for college age students due to a lack of credit history or even a poor credit rating. There are alternative options, however. There are two basic types of student loans without a cosigner available. These loans are derived from a governmental standpoint and a private lending sector standpoint. Each of these types has its own usefulness and drawbacks.

The governmental type of no cosigner education loans is the easiest to acquire for anyone with bad credit or no credit. The reason for this is that government based loans are made via the need of the applicant. These loans can come from many different sources but each requires the individual to fill out their FAFSA. The FAFSA is an application form that helps the Department of Education determine the financial need of each applicant. There are several loan types handled by the government and each has a specific type of requirement or need. The negatives of a government based loan are primarily found in the limited amount of funding that they can provide. There is a hard cap on loans which forces the applicant to repeatedly apply for new ones if they need to completely pay for college.

The private sector lending institutions have a wide variety of means by which an individual can borrow money. However, finding a private loan that does not require a cosigner can be very difficult. The applicant will need to have a high credit rating, impressive history of payment on-time, and a clean background check for most banks to even consider them for this type of loan process. An individual with a poor credit rating or legal infractions on record will find it extremely difficult to get a loan without a cosigner. It might be impossible in some instances.

Between the two lending types the government based solutions are the best to approach first. There are grants that can be applied for. A grant is like a loan but it does not need to be repaid. A government loan is smaller in amount but it is both easier to acquire and has a low interest rate. Private sector loans have no hard limit on the amount that they can lend out. This is their primary attraction. In the end someone with a decent credit rating can receive a loan for the entire cost of their schooling as long as they are willing to consider both federal, and private education loans, as well as there financial situation.

Collections For Student Loans Are More Intense Than Payday Loans

When you have defaulted on an online payday loan, there will be collectors contacting you for payment.

When the default is against a student loan, the government will be coming for your money. The Department of Education has many more options to collect against those who default with their student loan payments.
Collectors delight in having the opportunity to collect student loan debt. The use of these loans has exploded with the cost of higher education no longer being affordable for the average student. The struggle to payoff these loans continue to grow as well.

Just the numbers have increased for those taking out these loans, so has the numbers of people who have fallen at least 12 months behind on their payments. There are now almost 6 million people in the U.S. who have fallen behind on their student loan payments. This number is a third higher than just five years ago.
There is about one in every six borrowers who carry default balances which is interpreted to approximately $76 billion. The numbers are staggering and the problem continues to increase. The debt collectors are just one option to obtain repayment of these loans. The Department of Education pays collections agencies as well as other groups to hunt down those who are behind on their loans.

Your wages can be garnished by the government in order to collect on your loan. Another option which the Department of Education will have is to seize tax returns. You can file your tax return and only receive back a notice letting you know that your money was used to pay back part of your default loan. There have been people who change their phone numbers without prevail.

The government has more access to personal information to find you in order to collect.
These agencies buy the debt and then work at collecting money from those who have defaulted on the loans. The collections agencies which the Department of Education hires get a certain amount per dollar collected. Because the loans are usually in the tens of thousands, collectors are very happy to have the job.

They will work hard to collect and must follow the best collections practices. Some of these agencies get over zealous with the income potential and have been prosecuted for aggressive and abusive collection attempts. No matter what the debt you owe, whoever comes collecting must follow the Fair Debt and Collections Practices Act.

Other large opportunities for debt collectors are with medical and credit card bills. Payday loan online agencies, will usually attempt to collect themselves before selling your debt off. Once the debt is sold, your credit will be negatively affected. Since there is no effect on your credit score throughout the whole loan process, it would be a shame to have the debt sold in the end.

The better you protect your credit score, the more protected your future finances will be.