Creating Demand and Jobs by Reducing Student Debt Burdens
Our goal in this series is to offer job creation ideas that can fit squarely within the fiscal bounds of the political climate today in Washington. Some of our ideas will require additional federal spending, but all of our proposals are well within the financial means of the federal government. Others don’t cost anything. All would create jobs.
And jobs are sorely needed. The U.S. economy has gained more than 1.1 million jobs since the labor market hit bottom in September 2010. Yet, we still have almost 7 million jobs fewer than when the recession started in December 2007. In 2009, we laid out a set of initiatives that would generate strong job creation. But after taking aggressive action in 2009 to end the Great Recession and start the economy growing anew, policymakers in Washington today are unwilling to embrace major job creation initiatives.
This week, Center for American Progress Economic Policy Analyst Jordan Eizenga presents an idea to stimulate the economy and create jobs by relieving student debt burdens—an idea we believe could be achievable in Washington.
What if I told you Congress could reduce student debt burdens, inject billions of dollars into the economy, create jobs, and do so without it costing a fortune to the federal Treasury? Well, Congress can do just that by expanding and modifying the Department of Education’s existing student loan rebate program.
Currently, 65 percent of all college students take out some form of debt for education-related expenses. The average debt level of students at the time of graduation is over $24,000 . This amounts to average monthly loan payments of approximately $250 over 10 years. Clearly, these households are in a lot of debt, which is constraining spending and holding back our economic recovery.
The Department of Education offers an interest rebate program for borrowers who make their first 12 monthly payments on time to help reduce student debt burdens and promote on-time repayment. Currently, the program is only eligible for borrowers in the federal direct loan program and not for the millions of individuals who borrowed through other federal student loan programs. What’s more, its effect is relatively meaningless to borrowers because the rebate is applied over the life of the loan and not all at once, reducing monthly payments by less than $3 on average.[1]
Congress can provide an average increase of approximately $345 in disposable income for student debtors if it temporarily expands eligibility for the rebate program to nondirect student loans that it guaranteed and converts the rebate to an upfront, lump sum payment. And Congress could offer student debt holders who previously lost out on the rebate a second chance to receive it given the havoc the financial crisis wreaked on millions of Americans over the past four years.
Student Loan Debt Help - News
By modifying the Department of Education's existing student loan rebate program, Congress could help students and the economy. By Jordan Eizenga | June 29, 2011 Our goal in this series is to offer job creation ideas that can fit squarely within the
The Student Access Loan is a one percent interest loan Even with the loan designed to help undergraduate students who have applied for every type of aid but still have a gap in college funding, GSFC calls it a “last resort” loan.
closer to loan forgiveness for the Student Loan Ranger. That's right: We don't just talk the talk; we walk the walk and we pay the debt. Onto the Mailbag Express: As always, our responses are not meant to provide specific legal or financial advice.
“Getting a student loan may be the only way to fund university, but it's vital that you get clued up on the system. And when you graduate make sure you understand where you stand financially and how to avoid falling further into debt.” Help us make the
But many servicemembers, especially National Guard members had already racked up considerable student debt, often through the Federal Direct Student Loan program, which provides low-interest loans for students and parents to help pay for the cost of
Q&A: Will financial advisers help a new grad with no assets to ...
I am graduating from law school, and, contrary to what everyone says, most lawyers don’t make a lot of money. I have about $ 150,000 in student loans, and they are all over the place. Some are subsidized government loans with low, fixed interest rates. Some are private loans with high variable rates. I need to figure out which loans should be consolidated, how to get low monthly payments, and when I should start saving.
My question is: which financial advisers are the best for helping to get out of debt? Is there anyone who specializes in student loans?
Answers relevant to Cleveland, Ohio would be nice, but not necessary if it’s a big, national firm.
Best answer:
Answer by MR MONEY Most financial advisors specialize in growing your assets and planning how much you need to invest to reach certain goals. It sounds like you need advice on debt management and budgeting.
Check out some articles on CNN Money’s website, personal finance. There are articles under “Money 101″ that give you good advice on money management. Because you have debt instead of assets, a financial advisor would charge you roughly $ 2,500 per year to give you advice that you can figure out yourself.
Also, feel free to ask questions on this site. There are plenty of advisors like myself that will answer quick questions for you for free.
Add your own answer in the comments!
Be careful of conflicts of the adviser. In other words, he/she may work for ABC Financial Advisers and try to sell you securities thru their BAC Company they may be worried about making more money for themselves. You need someone that has YOUR best interest at heart, not their own.Check around with successful friends and acquaintances to get advice on the best adviser. Also, look up financial advisers on the Internet just to get an idea of the different levels. i.e. CFP (Certified Financial Planner), etc.
RT : I still say the gov should give student loan debt relief if they want to help the economy...
Student Loan Consolidation Rate – Getting the Low One to Help With Your Debt Repayments: Is a college degree you... 
Student Loan Consolidation Rate – Getting the Low One to Help With Your Debt Repayments: Is a college degree you... 
Student Loan Consolidation Rate – Getting the Low One to Help With Your Debt Repayments: Is a college degree you... 
Student Loan Consolidation Rate – Getting the Low One to Help With Your Debt Repayments: Is a college degree you... Student Loan Debt Help - Bookshelf
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