Tag: Student

The best US cities for millennials who have student debt

The best US cities for millennials who have student debt

But according to a new analysis from financial consultancy RewardExpert, these cities might not be the best places for young people with student loans, since living costs are relatively high.
Housing and transportation costs (as compared to the median income for the area) are also lower than 95% of all cities and metro areas in the analysis.
Mankato’s unemployment rate of 2.4% is among the lowest in the nation, and the region’s young residents have considerably low debt loads and high credit scores.
Those under 23 years old have just $8,875 in average total debt with $1,340 on cards ($13,812 and $1,401 nationally).
And while the median rent here is $1,163, renters have a relatively high median income of $48,981.
Combined housing and transportation costs amount to only 58.6% of annual income, which is much lower than the national average of 75.4%.
Commutes in this metro region average just 13 miles, and unemployment stands at a low 2.85%.
About a third of jobs are in industries that typically require a college education.
Plus, median student debt here is $1,072 lower than the national average, and younger residents have lower than average total debt burdens and lower credit card balances than those living elsewhere in the US.
Millennials living here also have 33% less credit card debt than the Midwest’s average.

Oklahoma teachers strike for 2nd day, canceling class for 230,000 students

Oklahoma teachers strike for 2nd day, canceling class for 230,000 students

Oklahoma teachers continued to rally Tuesday, shuttering many schools for a second day to demand higher pay and education funding, in an effort that has also recently engulfed West Virginia, Kentucky and Arizona.
Oklahoma teachers won raises last week of 15% to 18% — the first pay increase for some educators in a decade — under legislation signed by Gov.
Mary Fallin.
But that wasn’t enough to prevent a walkout Monday that brought about 20,000 teachers, students and other supporters to the Oklahoma state capitol.
The rallies closed the 10 largest school districts in the state, with a combined 234,000 students.
Those schools remained closed Tuesday.
“If I didn’t have a second job, I’d be on food stamps,” said Rae Lovelace, a third-grade teacher and single mother in northwest Oklahoma who works 30 to 40 hours a week at a second job.
The state also ranked 47th in public school revenue per student, according to the teachers’ union.
More about teacher protests: All 120 county school districts close in Kentucky as teachers rally against bill that would hurt pensions The walkouts come less than a month after teachers in West Virginia ended a nine-day strike that shuttered schools there and less than a week after thousands of Arizona teachers rallied to demand a 20% pay increase.
Kentucky schools were closed Monday after teachers and other school workers went on strike, with thousands flooding the state capitol, chanting “Stop the war on public education.” Kentucky lawmakers are debating a new state budget with higher spending for public education, paid by a 6% sales tax on services that were previously tax free.

You may soon be able to declare bankruptcy on your student loans—here’s how
Social Security Disability

You may soon be able to declare bankruptcy on your student loans—here’s how

In February, the Department of Education announced that it will review and potentially alter policies that make it difficult for student debt to be discharged in bankruptcy.
Miranda Marquit, personal finance expert at Student Loan Hero tells CNBC Make It that there are three steps for discharging student debt in bankruptcy: Borrowers must find a lawyer, decide what type of bankruptcy proceeding to pursue and prove that they face “undue hardship.” “The problem was undue hardship was never defined, and the case law has never led to a standardized definition.” “Basically, you have to show that you can’t maintain a basic standard of living while paying the student loans and that this difficulty would last throughout a large chunk of your repayment period,” explains Marguit.
Now, the Department of Education is exploring how to explicitly define undue hardship.
Democrats have previously advocated for a clearer and broader definition, suggesting that specific criteria such as eligibility to receive social security or having a military service-related disability be used in order to determine if a borrower is truly unable to pay their loans.
Making it easier for students to discharge student debt could streamline the bankruptcy process and would help borrowers in serious trouble begin to rebuild their lives. “It absolutely could hold back growth,” said Powell, as reported by Market Watch.
It hurts their credit rating. “Alone among all kinds of debt, we don’t allow student loan debt to be discharged in bankruptcy,” he said.

The Student Debt ‘Crisis’ Is Students’ Fault, And They Shouldn’t Get A Bailout

The Student Debt ‘Crisis’ Is Students’ Fault, And They Shouldn’t Get A Bailout

Yet while 45 million Americans are on the hook for more than $1.4 trillion in student debt, Americans should realize that millennials don’t need a government bailout or intervention.
The student debt crisis isn’t as bad as it seems, and it’s a “crisis” of our own making.
Choices Have Consequences The average college graduate leaves school with around $31,000 in debt, which certainly sounds like a lot, but that’s just a monthly payment of approximately $300.
For people who make this much, it’s not very difficult to pay a few hundred dollars per month for student loans.
But if you major in philosophy or gender studies, you might struggle to find any job in your field, let alone a well-paying one.
Maybe you went to an expensive private college for four years, or got a graduate degree.
But they don’t need the government’s help to pay back their debt.
I’d Rather See a Concert than Pay My Loan Many millennials aren’t paying back their student loans.
In 2016, 1.1 million graduates defaulted on their loans for the first time, yet their ability to make payments might not be the problem.
Nearly a third of students polled planned to use some of their student loan money to pay for their spring break trips, while 23 percent said they had used loans to purchase alcohol, and 6 percent said they used the money for drugs.

Repaying More Aid When Students Drop Out

Repaying More Aid When Students Drop Out

Yet because of student withdrawals during a recent fall semester, the system still had to return about $2.6 million in student aid to the federal government.
Under a GOP proposal in the U.S. House of Representatives, however, the system projects its bill would hit $8.1 million for that semester alone.
Critics of the GOP approach said the proposal identifies a real problem while offering a solution that’s even more troublesome.
The problem for colleges is that they would keep no federal aid money under the formula if a student withdraws before a quarter of the term is over.
So institutions get a simpler repayment system but one that could leave them shouldering more of the costs for late-semester withdrawals and all of the costs when a student withdraws early in the semester.
Over a full academic year, Box said, the Kentucky system would face $16-17 million in repayments thanks to the provision.
Demanding that colleges do more to keep federal funds, Box said, ignores the reality that community colleges are already doing everything they can to get students to complete the semester.
Form of Risk Sharing Asked about complaints from community college leaders regarding the Title IV repayments, a spokesman for Representative Virginia Foxx, the Republican from North Carolina who is chairwoman of the House Education and the Workforce Committee, referred to the committee report on the bill.
But I’m hopeful they have heard us and see the impact that this will cause.” For-profit colleges, which serve similar groups of students as community colleges, share the same complaints about Title IV repayments in the PROSPER Act.
The PROSPER Act dictates that colleges return grant aid first, then loans.

‘This is my future’: South Korean students are going wild for bitcoin, even as regulators crack down

‘This is my future’: South Korean students are going wild for bitcoin, even as regulators crack down

Eoh Kyung-hoon, leader of a club studying cryptocurrencies, attends a meeting at a university in Seoul, South Korea, December 20, 2017.
Regulators are worried about the market, with a leading official calling it a Ponzi scheme. ‘Pathological phenomena’ Driven in part by a dismal economic outlook – including an unemployment rate almost three times the national average – young South Koreans are flocking to virtual currencies despite the risks and warnings from officials, analysts say.
Members of a club studying cryptocurrencies, attend a meeting at a university in Seoul, South Korea, December 20, 2017. “Young people and students are rushing into virtual currency trading to earn huge profits in just a short period of time,” Prime Minister Lee Nak-yeon said in November. ‘I literally knew nothing about cryptocurrencies or the economy’ Younger investors have especially gravitated toward so-called “altcoins”, or virtual currencies other than bitcoin, which often trade at much lower values, analysts say. ‘A Ponzi scheme’ Intense competition for jobs in South Korea is likely helping to drive interest in virtual currencies among young South Koreans, especially as they see others reaping big gains, said Shin Dong-hwa, head of the Korea Blockchain Exchange.
Members of Cryptofactor, however, say they founded the club because of a lack of dedicated cryptocurrency classes on campus and see their efforts as a way to move beyond speculation to informed investing.
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The 11 college majors with the lowest unemployment rates

The 11 college majors with the lowest unemployment rates

But according to career site Zippia, which used US census data to estimate the unemployment rate for people 22 to 25 years old in various fields, there are several areas of study that make securing a job much easier.
Here are the college majors with the lowest unemployment rates.
Out of the six total engineering majors, including mechanical, chemical, and general engineering, civil engineering came with the lowest unemployment rate.
Civil engineers focus on designing and maintaining physical structures, such as bridges and roadways.
Biochemical Sciences — 4.22% Slightly more employable were people working in biomedical sciences, a branch of STEM that typically involves lab workers performing research and working on drug development and testing.
Zippia has found that among the 146 people in its Census sample, there were only six people who lacked jobs in teaching foreign languages or theater.
Animal Sciences — 3.97% This job deals with creating or refining therapies for animals, in addition to protecting them and studying their behaviors.
In 2013, nursing majors had the lowest unemployment rate in the US.
Special Needs Education — 3.11% There is high demand for people who are qualified to work with special-needs students.
Social Science or History Teacher Education — 1% Among the specialized forms of education that are in high demand, adult education is one that all but guarantees a job.

More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

The share of Americans at least 31 days late on loans from the U.S. Department of Education ticked up to 18.8 percent as of June 30, up from 18.6 percent the same time last year, new federal data show. About 3.3 million Americans have gone more than a month without making a required payment on their Education Department loans—up about 320,000 borrowers.
Kvaal attributed the last few years’ fall in delinquency rates from a high of 27.1 percent in 2013 to the stronger economy and to the Obama administration’s policies, including its expansion of generous government plans that let debtors make monthly payments based on their income, not on what they owe.
Under those income-based repayment plans, meant to help borrowers who can’t afford the typical monthly payment, even debtors with no income can remain in good standing on their loans, so long as they annually document their earnings.
Education Department officials point to two possible explanations.
Second, the Education Department’s loan portfolio could be looking worse because the best borrowers may have already paid off their loans.

It’s time to outlaw lunch shaming

It’s time to outlaw lunch shaming

It’s time to outlaw lunch shaming.
(CNN)It’s a practice so cruel, you probably never imagined it would happen.
Yet in nearly half of all US school districts, school officials are allowed to punish students — even withhold lunch — because a parent or guardian has fallen behind on paying their child’s school meal bill.
As kids across the country head back to school this month, we should ensure they are focused on the new friends, classes, and challenges that come with a new school year — but one of those challenges should not be dealing with humiliation at lunchtime.
And that’s why I’m taking steps to stop lunch shaming across the country.
New Mexico’s Hunger-Free Students’ Bill of Rights was drafted by a bipartisan coalition of state lawmakers and champions for our kids, including one state senator who was a victim of lunch shaming himself; while growing up in foster care, he often was forced to work for his school meal.
It explicitly prohibits schools from forcing kids to wear wristbands or hand stamps, requiring chores, or throwing a child’s meal away because their parent or guardian hasn’t paid a school meal bill.
These kids have done nothing wrong — and they shouldn’t be embarrassed in school because of a debt that they have no power to pay.
Instead of shaming kids who come from struggling households, we should be working to find solutions to end childhood hunger and to support families in need.
Every child who needs a school meal should get one — even if they don’t have the money to pay for it.

Inside Higher Ed Comment Policy

Inside Higher Ed Comment Policy

Student aid advocates didn’t find much to like in a House education appropriations bill released last week — lawmakers removed billions from the Pell Grant surplus while taking no significant steps to improve college access.
But educators could at least find consolation in the fact that the committee didn’t follow through on the drastic cuts to many aid programs proposed in the White House budget in May.
More significant for advocates is reconciliation language included in the resolution that calls for $203 billion in mandatory spending cuts over the next 10 years — $20 billion of that coming from programs overseen by the House education committee.
Those savings would come on top of cuts already made to education programs through the appropriations process.
And if the resolution passes, student aid groups say that would likely mean Congress adopts one or more of the drastic changes to student loan programs contemplated by the Trump budget — elimination of Public Service Loan Forgiveness, ending interest free undergraduate loans or changing income-based loan repayment plans.
The Republican budget resolution envisions more than $236 billion in cuts to mandatory spending for education programs over 10 years.
While the budget outline imagines a drastic change to student aid programs, it is in line with previous Republican budget plans offered by Speaker of the House Paul Ryan, the chair of the budget committee before becoming Speaker.
And Delisle argued that move wouldn’t make college less affordable for low-income students who have yet to enroll in college.
“Private loans by contrast could put some downward pressure on increasing tuition prices.” The House education committee, which will report back to budget writers with proposed cuts to mandatory programs, would likely choose from policy changes long discussed among Republicans, including those in the White House budget.
Policy changes to student aid programs through reauthorization of the Higher Education Act appear to be a distant possibility with the Senate preoccupied with confirmations, health care-legislation and other higher-priority matters.