Caitlin Lane

8/28/18

Student Loan Reading

Article: Arkansas Student Loan Debt at $9 Billion, Small Part of $1.9 Trillion in US

(https://talkbusiness.net/2015/08/arkansas-student-loan-debt-at-9-billion-small-part-of-1-19-trillion-in-u-s/)

Article: Student Debt is Worse for Women

(https://www.chronicle.com/article/Student-Debt-Is-Worse-for/244145)

Article: Wallet Hub

(https://wallethub.com/edu/best-and-worst-states-for-student-debt/7520/)

One obvious common theme across each of these articles was that the student loan crisis in the United States has reached in the trillions (be specific – it is about $1.4 trillion). Each article suggests that with each passing year, the crisis only seems to be going up and with no end in sight. None of the articles offered a suggestion of how to fix this problem which offers a vague inclination of impending doom. When do we draw the line? Another common theme between these three articles was that the debt largely had to do with gender and location.(again, which ones have it worse off? be specific)

In the first article it said that Arkansas was ranked 22nd worst state in regards to student debt. This was interesting for me as I am attending school here and had never thought about our state’s ranking. The third article also spoke about how a more urban location can have higher loan rates due to the surrounding areas significance such as New York City. Based off these readings, it is key that a student research their ideal university location in order to get a better understanding of what the going rate for a loan might exhibit in that region. There is also an umbrella theme that students research and be knowledgeable about why a rate might be higher in one state than another and how that can be used to their advantage.

Lastly, I found it very interesting how a person’s gender could determine if they have a higher student loan debt. In the second article it mentioned that women are given higher debt loads because they are more likely to go to a more expensive college or university as opposed to men. Again, I had no idea about this information and was shocked to find out and made me wonder why it was not common knowledge among undergraduate students. But one thing I would like to see in any future articles is updated data and information about the University of Arkansas. The latest recorded data in the first article was taken from 2013-2014 even though the number of undergraduate students has risen exponentially. (Good point)

Good post – just avoid writing in generalities and give us some specifics, like you did in the last paragraph. 5 of 5 points

Grant Lancaster

8/28

https://www.cnbc.com/2018/05/14/how-to-recoup-the-cost-of-college-in-less-than-3-years.html

https://www.ilnews.org/news/statewide/congressman-proposes-tax-breaks-for-businesses-that-help-pay-student/article_eee6af44-9b51-11e8-a8e3-9f7664a7ee1d.html

https://www.imperialvalleynews.com/index.php/news/national-news/14976-operators-of-student-loan-debt-relief-schemes-settle-ftc-charges.html

These three articles all discuss ways that students have attempted or could attempt to pay off their student loans. The first article presents a pragmatic and diligent approach, the second an optimistic suggestion and the final an example of fraudulent companies preying on desperate indebted students. (nice summary)

The first article (specify the article) offers the most realistic solution and, interestingly, seems the most well-researched. It suggests that students plan to attend college and work in a state that boasts a good return on investment for bachelor’s degrees. They list the five top states, emphasizing that students in these states should be able to pay off their loans in about three years. They also helpfully provide some data on other states, including what states have the worst return on investment. For example, why even go to college in Vermont? The main problem with this article’s solution to student debt is that it requires proactive action before the student starts college and assumes the student may move wherever they please for college.

The second article features a suggestion from an Illinois congressman that businesses aid debt-laden students by paying a portion of their debt each year, in the same way some businesses will compensate employees for a portion of tuition. This would be helpful because it allows a solution to debt that has already accumulated instead of making the student kick themselves for not planning ahead. It is a ‘now’ solution. Unfortunately, this is only a suggestion from a congressman who is probably mainly vying for re-election votes. It may take a long time for any program like this to be instituted at any businesses, let alone a large number of them. (And it will require some effort to get through Congress and be enacted into law)

The third article (specify the article) discussed the results of a court case filed against companies defrauding indebted students by promising them debt forgiveness and credit improvement in exchange for fees. It is ironic that the owners of the scam were unable to pay the amount of compensation required of them and are now indebted themselves. It would be interesting to see how many of these scams have been uncovered in recent years. How do students spot scams like this before they pour even more of their money out? If it sounds too good to be true, is it?

Nice writing and analysis. 5 of 5 points

http://time.com/money/5359103/student-loan-debt-payoff-lawyer-180000/

https://www.chronicle.com/article/Student-Debt-Is-Worse-for/244145

https://www.cnbc.com/2018/05/16/this-simple-trick-can-save-over-1400-on-your-student-loan.html

I was surprised- though not shocked- to read that women have more student debt than men. This is partially a result of the wage gap, but also due to the fact that women are encouraged to pursue higher paying careers. This creates an anomaly of sorts, however, as getting some of these higher paying jobs can require more schooling and therefore more debt.

This debt could be a serious deterrent from getting more expensive degrees. As mention in both  “I Paid Off $180,000 in Student Debt in 8 Years. Here’s How I Did It” and “Student Debt Is Worse for Women” both women mentioned this problem. Nicole, the lawyer, said she almost didn’t go on to law school because of how much debt it would inevitably put her in. This is a huge factor as to why women are are in more debt than men. 

I also learned from these articles that it’s very helpful to pay a little extra on your monthly payments when possible. This can reduce your amount of payments and get you to a debt free place sooner. Doing this can also lower your interest. .

Good post, could use a little more detail, such as the last item – how much do the extra payments make a difference? 4 of 5 points

https://www.cnbc.com/2018/05/16/this-simple-trick-can-save-over-1400-on-your-student-loan.html

https://www.chronicle.com/article/Student-Debt-Is-Worse-for/244145

http://time.com/money/5359103/student-loan-debt-payoff-lawyer-180000/

There was so much information spread out across all of the articles, but the three articles that I wanted to focus on addressing women and student loan debt and strategies to pay loans off (Smart – that is a major story). The truth is, or so it seems, that by the time an individual makes it to college and is in the position to take out loans more likely than not if that is what is standing in the way between you and getting a degree you will accept the loan. Not always do students understand the ramifications surrounding loans until graduation is over, real life hits, and it’s time to pay up.

I found that the articles that talked about actually managing the loans were very helpful. The CNBC article provided a very simple yet effective way to show how putting a little extra money toward the payment amount each month can really make a difference in the amount paid overall. Paying an extra $25 toward a $30,000 loan doesn’t seem like much until you realize that without that extra money you would have shelled out extra money.

The article on Time about Nicole Medham and how she paid off $180,000 in eight years showed one version of a how-to guide. Recent graduates don’t always have examples to look to and can find themselves overwhelmed. Medham shared tips that included living at home after graduation, even with a ‘good paying’ job.

The last article that I wanted to focus on was about the connection that women have with loans and loan repayments. The Chronicle of Higher Education made some very interesting points about why women are in the position that they are in and it made logical sense to me. Women tend to dominate in fields that tend to pay them less than their counterparts. Because of seemingly bottom lines like this women are not able to pay back their loans as aggressively as men are.

One of my main questions would have to be why doesn’t our university have more interactive informational sessions and sessions regarding how to make smarter money decisions to manage and alleviate loan debt? What ways can a college student begin to work toward being debt free while still in college? Very good question. 5 of 5 points

It is no question that the U.S. is in a state of student loan crisis. The three articles that I read regarding the crisis were all regarding the most and least student debt based on region. Specifically, I read Adam McCann’s “2018 Cities with the Most & Least Student Debt,” Kali McFadden’s “Places with the Most Student Debt” and Richie Bernardo’s “2017’s States with the Most and Least Student Debt.” I thought this was especially interesting to see how the various states and cities matched up based on the time each article was written and how the state of each region’s student debt crisis changed over the course of the articles.(Good. But what is the problem with comparing across cities like this?)

Each article addressed the obvious issue: Americans are in $1.5 trillion dollars of student loan debt. Each article also touched on the fact that each student debt rates are increasing rapidly. McCann’s article, in fact, states that the amount of students graduating with $50,000 or more in student debt has more than tripled since 2000 (what are these degrees and how many people are actually in that kind of a bind?). According to the same article, Loma Linda, California, is the city with the most student debt, with a median debt amount of $41,059. However, in Kali McFadden’s article, she quoted Washington, D.C. as the city that owes the most in student debt with one in two over the age of 25 having postsecondary education and the financial burden that comes with it. Bernardo’s article from 2017 also attributes the highest student debt rate to Washington, D.C.

Some questions I have moving forward in my research are how can we lower the rates of student debt? Is there a possibility that tuition rates could be lowered? If someone holds a steady job for an extended period of time, is there a forgiveness option? How does all this debt affect our country? Does it really matter that we have so much debt? How does debt affect a college student in the long run? Does the thought of student debt prevent certain people from attending college at all?

Excellent blog post and questions. Keep up the good work here. 5 of 5 points

https://wallethub.com/edu/best-and-worst-states-for-student-debt/7520/

https://www.chronicle.com/article/Student-Debt-Is-Worse-for/244145

http://time.com/money/5359103/student-loan-debt-payoff-lawyer-180000/

Post-graduation debt looks like it depends largely on decisions where to live, a focus of study and gender. (Good summary)

According to the Wallet Hub, students that wanted to take their studies to New York City ended up being in household debt because of the extremely high rent in the city. This also carries into mortgages after graduation when trying to find a permanent home. Even the higher wages do not make up for the cost of living.

The Chronicle of Higher Education stated that women tend to pick more emotional jobs, which do not pay as well equaling out to a deeper pocket of debt. They also speak up about their debt more than men do. This article states women are coming forward in this era and are hopefully rising to power, equal with men, in order to get that higher income to cease the endless debt.

Time Money tells the story of a woman that lived with her parents in order to pay off $180,000 in eight years. This could be a blessing if the home-life situation is healthy. (living at home to pay off debts is a blessing? Really?) She said her constant dedication to paying bills and increasing payment each month is how she did it.

I would like to see a story over the students that chose to live at home post-graduation and how it helps them save money, and how much money that is. Also, why there is such a negative stigma on living with your parents after college. (I agree with the first part of your question. The stigma of living at home is not a story for this class. 4 of 5 points – a post thin on detail and analysis)

Haley Ruiz

8/28/18

Student loan reading

A common tip I found in most of the articles: paying a little more than the minimum each month will pay off the loan faster and cost you less in interest. In addition to that, having an understanding of the type of loan you have and your repayment options is critical. That ensures you pay off the loans with higher interest rates first, like the lawyer suggested. (Good specific detail)

Some of the articles mentioned that loan servicers have different plans, such as a 10-year plan and a 25-year plan. Knowing your grace period before those plans are implemented is also important. Contributing what you can as early as you can, as little as it may be, will still be helpful in getting you debt free sooner.

There was a theme of suggesting that the student be knowledgeable and responsible about and with their finances in most of the articles as well. One resource the lawyer used was an excel spreadsheet that calculated how long it will take to pay off her student loans. That same resource could be used to help you live responsibly, like budgeting for your essentials. Another tip the lawyer had was to allocate some money to savings every month. Putting a little away for a long time adds up.

Something else the lawyer did to ensure her success was to get a professional degree in a field she seemingly excels in. A J.D. makes her a more competitive candidate for jobs in general, and if she was in the top of her law school class, she gets preference for big law firm jobs. A well-paying job out of college/graduate school ensures that you can start paying back your loans right away. Another smart move on her part was to live at home rather than pay for an expensive studio. She also cut out all the extras. She lived without for a time, but now she has disposable income. She lived below her means so that she could live comfortably in the future. That’s living responsibly.

Have students been taught salary negotiation? Do students feel like they can trust financial aid advisors, even though many feel as though they can’t trust their academic advisors? (great question) Do students think budgeting and not spending on nonessentials is important now (i.e. drinking at the bars every weekend but complaining about how much debt they have)?

https://www.cnbc.com/2018/05/14/how-to-recoup-the-cost-of-college-in-less-than-3-years.html

https://www.cnbc.com/2018/05/16/this-simple-trick-can-save-over-1400-on-your-student-loan.html

http://www.finra.org/investors/highlights/congrats-grads-now-time-to-think-about-debt

http://time.com/money/5359103/student-loan-debt-payoff-lawyer-180000/

Excellent post. Good questions. 5 of 5 points

I read Ephrat Livni’s “$1.5 trillion of student loan debt has transformed the American dream,” Wesley Brown’s “Experian: Arkansas among top states with students debt trouble; U.S. student debt ‘bubble’ nears $1.4 trillion,” and The City Wire staff’s “Arkansas student loan debt at $9 billion, small part of $1.19 trillion in U.S.” One of the most prominent topics, of course, was the ever-increasing national student loan debt. Throughout each of these articles, I saw the amount of debt grow from $1.19 trillion in 2015 to $1.5 trillion in 2018. (Good to see the specific details) This drastic increase has many concerned over not only the rising cost of higher education, but also the rising student loan defaults. Why is the cost of attending college increasing so much from year to year? Are schools doing enough to make sure their students are taken care of financially outside of paying for classes?

Another common subject was Arkansas’ place in the problem of student loan debt. According to The City Wire’s article, Arkansas ranked #22 in the country when measuring the amount of student debt by state. (what is the problem with these rankings?) Moreover, Brown said Arkansas’ average student debt is at least $31,000. This is due, in part, to the lottery scholarship program’s declining revenue; as the revenue decreases, so do the scholarship amounts. How can the state work to bring that revenue back up? In the 2013-2014 academic year, 64.3% of students applied for financial aid at the UofA, and about 40% received some amount. (Good but where did you get these stats?) Should the university try to give out more financial aid? Is it possible for them to give more aid?

Although there is cause for concern over the sheer size of the student loan debt in the country, these articles did also touch on a possible brighter side of the issue. Default rates are declining slowly in Arkansas, and, though many people may owe a lot of money to federal or private institutions, they are at least making their payments on time, as the percentage of late payments on loans has dropped. Is there some sort of reward system in place for people who pay on time or even early? If not, should there be, and what kind of incentives are possible?

Really well done. 5 of 5 points

Halie Brown

8/28//18

Reading Assignment

One of the common themes seem to be about the tremendous amount of both social and financial stress student loans put on current and former students. Former students, unlike former students from previous generations, are finding it more and more difficult to settle down, purchase a home and decreases the likelihood that former students pursue former student degrees according to the Quartz article by Ephrat Livni. (Good summary)

The wage gap might also affect the life of female former student students after college. Careers dominated by women tend to pay less (such as what?), but more women attend for-profit universities, and take out loans than men. Not only do former students have more difficulty settling into life after college, but female former students are at more of a disadvantage than their male peers, according to an article by The Chronicle of Higher Education by Juila Piper (a few details are needed to flesh this out)

Former students are also more likely to default on student loans as they get older, especially if they don’t graduate. Arts and humanities majors are more likely to default than those who graduate with a degree in business or STEM. Former students are also more likely to default if they come from a background with a low mean income, according to the article by Liberty Street Economics.

It would be interesting to see a story on low income students who take out student loans, how many services they have used on campus (what kind of services? I don’t follow – debt counseling?), and what, if any, plan they have been presented.

Halie – A good post but a bit vague. See comments with the need for some details throughout. 4 of 5 points

Megan Wilson

https://www.marketwatch.com/story/happy-birthday-americas-1-trillion-dollar-student-debt-problem-2018-04-25

http://time.com/money/5359103/student-loan-debt-payoff-lawyer-180000/

https://talkbusiness.net/2017/08/experian-arkansas-among-top-states-with-student-debt-trouble-u-s-student-debt-bubble-nears-1-4-trillion/

Three articles are on student loan debt. They all involve the growing student debt crisis. Student debt in the United States is over $1 trillion, (this figure is outdated. it is $1.4 trillion and growing. https://talkbusiness.net/2017/08/experian-arkansas-among-top-states-with-student-debt-trouble-u-s-student-debt-bubble-nears-1-4-trillion/)  making it harder for students to pay if off. It seems like the only reasonable way to pay it off is to live with your parents, buy nothing and save more than you spend.

The first article (which publication? be specific) writes about the growing student debt crisis is directly related to rising tuition over the last 20 years. A degree is necessary to get a decent job, but then you spend your life trying to pay back loans, even if it means changing your lifestyle. Which brings me into my next point, the article (which publication?) about how Nicole Medham paid off her law school student loans in less than 10 years.

She paid back over $180,000 in student loans by saving money, living at home and setting aside hundreds of dollars every month. Medham lives in New York, where the cost of living is higher than Arkansas. According to the last article, the average Arkansas student debt is $31,000.

Points 4 of 5