Student Loan Consolidation

Here’s How Much Your Student Loan Fees Cost You

Written by adminSeptember 4, 2019

Got student loans? Here are some hidden fees you might be unaware of.

When making a decision between federal and private student loans, most would-be borrowers assume that federal loans are typically the easiest option.

But most borrowers are not aware that federal loans have an origination fee that private loans don’t. What that means is that borrowers that borrow larger amounts at higher interest rates will end up paying more.

The National Association of Student Financial Aid Administrators reported that the federal government has charged almost $8.3 billion in origination fees since 2013, and almost one-third of that amount coming from parent borrowers.

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How Much Are Student Loan Origination Fees?

Origination fees are monies paid to offset a lender’s costs for issuing the loan. This fee is usually applied as a percentage of the total loan. These percentages are usually changed once a year on Oct 1.

The current origination fees for undergrads and graduate students are 1.062% for federal subsidized and unsubsidized loans. For federal PLUS loans for parents and graduate students these fees are at 4.248%.

These fees are usually taken from the loan before the funds are applied to the education costs. For example, if parents take out a PLUS loan of $16,500 which is the average amount as reported by the College Board. Taking into account the rate of 4.248%, roughly $15,800 of that loan goes to the school and $700 goes to the federal government.

Still Think That’s Fair?

Now even though you don’t use that $700, you still have to pay it back with interest. Over four years of undergraduate school, a borrower would owe over $2800 in fees alone. And this number only gets exponentially greater the larger the loan gets.

It must be surprising to borrowers to have to repay money they never received. “This is something that is unnecessary and unfair to students,” says Lori Vedder, director of financial aid at the University of Michigan, adding that “students and families are often confused when they find out they must repay money they never received.”

For PLUS loan borrowers this could seem especially off-putting, considering that PLUS loans have a higher interest rate than other federal loans. PLUS loan borrowers also have no aggregate maximum and can take out more, up to the cost of attendance.

This translates into higher origination fees. A PLUS loan if $13,950 at a 7.08% interest rate would result in an origination fee of $593. The opportunity cost of putting that towards things like textbooks will definitely make them think twice and even consider private loan options.

Private Loans Don’t Include Origination Fees – or Protections

As private loans become a potential alternative to borrowers, it’s pertinent to note that they come with lower interest rates than federal loans and no origination fees.

Vedder says that this could make sense in some cases for people who plan to take a PLUS loan. However, she cautions borrowers that even though private loans can offer savings, they lack certain protections that are built-in for federal loans.

These protections include options to forgive loans in certain situations as well as eligibility to apply for income repayment plans.

Legislation to Remove Fees

Federal loans provide borrower protections but they make the government money by charging these origination fees. These fees were once part of the Federal Family Education Loan (FFEL) program, when private lenders were used to help issue federal loans and charged these fees to subsidize lenders’ costs.

The FFEL program was terminated in 2010, but these fees continue to be charged, lining the government’s pockets.

Bipartisan legislation was introduced this year to eliminate these origination fees. Justin Draeger, president and CEO if NASFAA advises borrowers to write or call their representatives to support this change.

Draeger refers to the origination fees as “literally just an extra tax on needy student borrowers.” This doesn’t make sense for a public benefit program. Let’s make the effort to change that today.

For all other financial advice, feel free to reach out to the Financial Helpers at the number below. We’re always ready to help you.

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Written by adminSeptember 1, 2019

Student Loan Consolidation

Student loan debt is a major problem in this country. Millions of people are advocating for the government to step in and offer student loan forgiveness to help take care of the $1.53 trillion debt. There’s plenty of surveys and studies that found that this debt is impacting people’s lives directly. But the big question is whether or not they should actually do it.

This topic is controversial is being debated as we enter the 2020 election cycle. Most of the Democratic candidates have come out in favor of offering some type of student loan forgiveness. They hope to wipe out the entire debt (or most of it) while offering free college. Of course, nothing is ever really free, which is where the other part of the argument comes in.

President Trump hasn’t done much to help people struggling with student debt. In fact, he seems to be against helping anyone at all. He did help to expedite the student loan forgiveness program for disabled veterans, but for the rest of the able-bodied population, he feels that is not fair to put the burden on taxpayers. If you decided to go to college and take out a loan to do that, you’re expected to pay it back in full.

It’s difficult to tell where everyone is going to fall in line on this topic. Let’s take a real look at this topic from both sides and see the pros and cons of offering complete and total student loan forgiveness. If you’re sitting there was student loans, it’s a no-brainer for you. You definitely want the government to step in and wipe that out. But while we’re having the debate, we must be honest about the subject and realize there are several cons to offering it.

PRO: Helping Struggling Borrowers

This is the easy part of the debate. There are definitely people out there struggling under the weight of this problem. There are plenty of economic problems happening because of this debt. More young adults are living at home than ever before. They’re putting off major life decisions, such as getting married, having children, buying a home, and so much more. This is the heartbreaking part of the entire situation. People are just trying to make a better life for themselves.

CON: Not Everyone is in Need

We’re not $1.53 trillion in debt because of the lower or middle classes. There are millions of borrowers who were chasing after graduate and professional degrees. In order to afford that, they’ve taken out six-figure loans. There are many people who only have a few thousand dollars’ worth of student loan debt. This is especially true if they went to a community college for the first two years. When you consider that the largest bulk of the debt comes from people who ended up becoming doctors and lawyers, you can see that not all of it needs to be forgiven.

PRO: The Economy is Up and Down

It would appear as if the student loan debt problem really kicked off in the last decade. What else also happen in the last decade? The great recession. Everyone was going back to school to get a degree in the hopes that it would provide them with a better paying job. The unemployment rate during this time reached as high as 8%. That’s a massively high number of unemployed workers struggling to make it.

Schools use this to their advantage by promising massive hiring rates after graduating, but most of those stories were nothing more than average easements used to lure people back in. Of course, they couldn’t afford to go back to college because they weren’t working. This forced them to take out thousands of dollars in student loan debt.

CON: It’s Your Responsibility to Pay Back What You Borrow

If you took out student loan debt, you knew when you did that you are obligated to pay it back. You essentially borrowed money from the federal government so that you can go to school. You did that on your own. Why are so many people now trying to get out of paying their debt? Yes, we know that it’s causing some economic problems, but again that shouldn’t be put at the feet of everyone else.

Another thing happened during the great recession. Many companies were bailed out during the financial collapse. Billions of dollars were sent to companies who are essentially rewarded for their risky behavior. It taught them nothing and a massive burden was placed on the American people as our deficit double during this decade.

Written by adminAugust 28, 2019

Student Loan Consolidation

Yesterday, President Trump signed a massive executive order that ultimately forgives all student debt incurred by permanently disabled US veterans. While giving a speech at the American Veterans National Convention, he revealed that he would be signing the executive order to allow disabled veterans better financial security by not having to worry about their student loan.

Is not just the loans, either. People who obtain student loan forgiveness often still have to pay taxes on that loan. This Executive Order dictates that no veterans will have to pay any federal income tax for the loans that they had forgiven. Trump can only control the federal aspects of this forgiveness so he is also pressuring states to do the same.

“The debt of these disabled veterans will be completely erased,” Trump said. “That’s hundreds of millions of dollars of student loans debt for our disabled veterans that will be completely erased.”

On Twitter Trump wrote: “It was my honor to sign a Presidential Memorandum facilitating the cancellation of student loan debt for 25K of our most severely disabled Veterans. With today’s order, we express the everlasting love & loyalty of a truly grateful Nation. God bless our Vets, & God Bless America!”

Details of the Deal

The purpose and goal of this Executive Order is to allow disabled veterans to not have to worry about paying back their debt nor any federal income tax as a result of their forgiveness. By signing the order, Trump expedites the process. There have been other bills signed in the past that helps veterans with their student loan debt, but it was still very burdensome on disabled people who fought for our country.

The order takes away those burdens. Only around 20% of all disabled veterans had actually applied to have their student debt removed because the process so difficult and time-consuming. Now, the process will be made much simpler. They will qualify for what’s called Total and Permanent Disability Discharge, or TPD.

TPD is only for veterans who have a disability rating of 100% through the VA. This was a move that came not long after Trump appointed a long-time student loan executive to serve as the Consumer Financial Bureau’s new ombudsman who oversees the student loan debt issue. This hasn’t been an area that the president has tackled, but for the veterans he has come through for them time and again.

Student loan debt is a major talking point as we go into the 2020 election. Nearly every Democrat running has offered some sort of student loan forgiveness promise. The promises include everything from complete and total student loan debt removal to making college free for everyone.

Written by adminAugust 28, 2019

Student Loan Consolidation

Perhaps the biggest story in the news everyone should be paying attention to right now are the wildfires in the Amazon. The Amazon is known as the lungs of the world as it helps trap carbon and produces a large amount of the oxygen we breathe. No wonder so many people are incredibly concerned with the wildfire burning out of control.

As the G7 is underway in France, many of the leaders have announced that they will join in the efforts to help stop the fire. It’s going to take a lot of work to repair the damage, if anything can even be done at all. This is a major ecological disaster of tremendous proportions and it’s going to impact our planet for a long time. The devastation is widespread and continues to grow.

President Trump is one of the G7 leaders who announced that they would be helping out in the fight. The president wrote on Twitter: “Just spoke with President @JairBolsonaro of Brazil. Our future Trade prospects are very exciting and our relationship is strong, perhaps stronger than ever before. I told him if the United States can help with the Amazon Rainforest fires, we stand ready to assist! I told him that if the United States can help with the Amazon Rainforest fires, we stand by ready to assist!”

Greenpeace revealed that the cost is higher than just a forest that’s burning. The fires are claiming the lives of every type of wildlife that survives in the Amazon. “This is not just a forest that is burning,” said Rosana Villar of Greenpeace. “This is almost a cemetery. Because all you can see is death.”

Donations are Pouring In

The Amazon is important to the entire world. It’s not just that it’s the ‘lungs of the world’, but a large percentage of our pharmaceutical drugs are derived from plants that live exclusively in the Amazon. As many as 40 different types of plants make up 25% of the drugs we sell in the United States. These are medications like aspirin and taxol, a cancer treatment drug.

The cost of the wildfire can’t necessarily be totaled up just yet considering the fires are still burning, but surely there will be an economic cost to Brazil. It’s not just big pharma that’s going to feel the pressure. Brazil exports juices, tobacco, oils, and coffee that all come from the Amazon region. How these industries will be impacted is currently unknown.

Leonardo DiCaprio has donated $5 million via Earth Alliance to help cover the costs of putting the fire out and preserving the Amazon rainforest. Fires are used to clear the land to make room for farming. It’s these fires that are getting out of control and rapidly expanding. Fires aren’t uncommon in the region though, as lightning is frequent in this region of the world.

Either way, the cost is going to be catastrophic.

Written by adminAugust 28, 2019

Student Loan Consolidation

Many people have questioned whether canceling all student debt is the answer to the crisis going on right now. Currently in the United States, 44 million people owe $1.53 trillion. This is a crisis that is getting worse and is expected to hit the $2 trillion mark very soon. It’s causing a major problem in the lives of young adults who are struggling to make it.

A new survey conducted by Consumer Finances took a look at who was more impacted by the crisis and it turns out that young adults are being impacted more than anyone realized. Is forcing many millennials to move back home with their parents after they graduate college. This new analysis of the data finds that we overestimated exactly how much money these young adults are making after college.

As you can imagine, people living at home have more spending money than those who are struggling with their debt and living on their own. By living at home, they don’t have to worry about rent and other major bills because their parents are taking care of the finances. But, if they were living on their own, the data would reveal that the younger generation is poor.

Do We Have It All Wrong?

Matt Bruenig is the founder of a progressive think tank called the People Policy Project. Bruenig said in an interview that “the debate raging over whether recent proposals from Senators and Democratic presidential candidates Bernie Sanders and Elizabeth Warren unfairly benefit the well-off are on shaky ground.”

“If we’re going to basically talk about how fair the student-debt forgiveness plans are and your notion of fairness has to do with whether it is distributively equal,” Bruenig said. “You have known what the distribution is and this data source does not allow you to know this distribution very well.”

One of the biggest complaints about offering complete and total student loan forgiveness is that it would benefit many wealthy people. Not everyone going to college is poor or comes from a lower-class background. You have many Ivy League schools full of students with millionaire and billionaire parents who can afford to pay for their kid’s education.

It’s mostly the poorer students who are taking out student loans to afford to get a degree and make life better for themselves. So, the argument that wealthy people would benefit from student loan forgiveness might not have any place in reality. It would mostly impact the lower-class who would then have an easier time finding a job and moving out on their own after they graduate.

Presidential Candidates

So far, most of the Democratic candidates running for office in 2020 have offered their own plans and ideas for offering student forgiveness. Each plan is progressive and effectively helps young adults in this area. President Trump, on the other hand, has done very little to curb this problem.

He has recently signed an executive order making it easier for disabled veterans to get their student debt completely wiped away, but otherwise feels it’s unfair for taxpayers to wipe out a $1.53 trillion debt. He says if you take out student loans, that’s a decision you made and others shouldn’t have to pay for it. We’ll have to wait and see what the future holds for this growing problem.

Written by adminAugust 27, 2019

Student Loan Consolidation

It doesn’t seem to take much to force economy in a downward spiral. A lot of the great depressions and recessions of our economy happened in a single moment. The stock market can tank and bubbles burst and there’s really very little anyone can do about it. There are often a few indicators, but they aren’t always accurate.

Even if there is a recession, no one knows how bad it will be. It might not result in job cuts, but economic growth can slow down tremendously or even stop for a period of time. But if it is a bad recession, is your job at risk of being cut? Could you lose your position? Are you prepared for the next downturn to hit?

Make no mistake about it, the next recession is going to happen. The media is currently fueling speculation that a recession might hit soon, especially if the trade war doesn’t end in a timely manner. Let’s take a look at several indicators that would determine whether your job might be at risk.

Are You A New Employee?

Companies don’t necessarily go bankrupt during a recession, but if people are struggling and are not buying enough products, that means that business is going to slow down. When profits start going down, this is when bosses start getting really antsy and nervous. Jobs might be cut and layoffs happen when profits aren’t as strong as they should be.

Usually the first ones out the door are the newest hires, especially if you were just hired in the last three months. Companies spend a lot of money recruiting people, training them, and even offer a lot of perks to attract good workers. In the event of an economic downturn, these are the people who will lose their job first.

Recent College Graduates

If you have a bachelor’s degree or above, you’re more likely to keep your job. You’re more highly skilled than someone who came in off the street. But this factor is really determined by how long ago you graduated. Young college grads are most likely the very first to receive their pink slips. This is because they do not have as much work experience as someone else who has been there for several years.

Harry Holzer is an economist with the Brookings Institute and looked at the people who get hit the hardest during a recession. The answer is almost always young college grads. They have a degree and loads of student debt. This is what fueled the student loan debt to hit over $1.53 trillion mark during the Great Recession.

“Young people get hit the hardest during a recession and that will include young college grads. It will take them longer to find any job, and it will take longer for them to find the jobs they really like in terms of beginning a career,” said Holzer.

People who are new to the labor market “are most vulnerable to economic shock, by comparison, to people who are more established in their careers,” says Hamilton Project policy director Ryan Nunn. They “may have a more durable relationship with a particular employer and maybe can ride out the recession a little more easily.”

If you’re young, you have more concerns about keeping your job. Having a degree won’t save you when it’s time to make cuts. You are still green and need to gain more experience to be a safer choice to keep under their wings. Be diligent in the good times and you’ll thrive during the difficult times.

Written by adminAugust 27, 2019

Student Loan Consolidation

If you’ve ever met your significant other online, you’re part of a growing movement of people who are finding love the same way. According to a new survey, online dating has become the most popular way for couples to meet each other in the United States. This is effectively replacing what was once considered the traditional way of finding love.

As people are spending more time online for social networking, it’s not uncommon for them to find lots and start relationships with people who they met online. Facebook and other social media outlets are one way. Tinder and eHarmony are other ways. Apps, networks, and other forms of digital conversations are taking over how relationships are formed.

This is all thanks to a new study that was published by Michael Rosenfeld, a Stanford sociologist who looked at the data. This particular study was published officially this week but it looked at data compiled back in 2017. Rosenfeld found that as many as 39% of heterosexual couples met online. This is in contrast to only 22% of couples who met online in 2009.

Outpacing Traditional Forms of Meeting

39% might not seem like a lot, but it’s a number that is higher than other traditional forms of meeting someone. Online dating has become the most popular way to meet your significant other. Rosenfeld has been studying this topic for two decades and has watched very carefully the shift that’s taking place.

The more traditional method was being introduced to someone via a friend of family member. Meeting through a third person has declined quite a bit over the past few years. It’s the trust in the technology that has shifted the course. You get to know more about a person from online interactions rather than blindly being set up or meeting someone by happenstance.

“People trust the new dating technology more and more, and the stigma of meeting online seems to have worn off,” said Rosenfeld.

“In 2009, when I last researched how people find their significant others, most people were still using a friend as an intermediary to meet their partners,” he said. “Back then, if people used online websites, they still turned to friends for help setting up their profile page. Friends also helped screen potential romantic interests.”

Rosenfeld Never Thought This Would Happen

After many years of studying relationships and how people meet, Rosenfeld never thought he’d see the day where the more traditional way was ever supplanted. But it happened. It’s really our reliance on technology that has changed the way we do everything. It has impacted numerous industries over the years and dating is one of them.

“That’s an important development in people’s relationship with technology,” he said. “The rise of the smartphone took Internet dating off the desktop and put it in everyone’s pocket, all the time. Also, the online dating systems have much larger pools of potential partners compared to the number of people your mother knows, or the number of people your best friend knows. Dating websites have enormous advantages of scale.”

“Ultimately, it doesn’t matter how you met your significant other,” he said. “The relationship takes a life of its own after the initial meeting.”

Written by adminAugust 27, 2019

Student Loan Consolidation

There’s no doubt that President Donald Trump can’t stand our current trade situation. In fact, he’s rallied on what he terms ‘unfair trade practices’ since he first announced he was running. He’s mentioned China numerous times in his speeches, a country known for ‘dumping’, a practice used to grab a greater share of a particular market.

It’s no surprise to anyone paying attention that Trump would slap tariffs on imports to get the American economy rolling again. That’s exactly what he did this past week, adding a 25% tax on all imported steel and 10% to aluminum. The purpose of this tariff has a noble cause: to help give a boost to the American steel industry.

The way it works is simple. American steel costs more money to produce, considering we pay workers a fair wage compared to countries like China. If China can make steel and sell it cheaper, then industries will always choose Chinese steel over American. This hurts portions of the country that rely on the steel industry to survive.

By imposing a tariff on foreign steel, it becomes less affordable to American companies who have no choice but to go back to using American steel for creating everything from cars to machines to building materials. If more industries switch back to buying steel from the U.S., the increased demand means more jobs.

“I want to bring the steel industry back into our country. If that takes tariffs, let it take tariffs, OK? Maybe it will cost a little bit more, but we’ll have jobs,” President Trump said this week. The problem is, what should’ve been good news for the American steel industry, was bad news for the stock market, which plunged more than 500 points on March 1^st.

American Steel is Still Expensive

While no one is against a move that would potentially boost jobs and revive a dying industry, there are several reasons why Wall Street isn’t happy about this move. The first is the cost of American steel. Making foreign steel 25% more expensive does nothing to lessen the cost of industries now switching back to U.S. produced steel.

This means the price of steel is about to go up, and the consumers will bear the brunt of it. President Trump wants what he calls “free, fair, and smart trade”, but pushing the burden back on consumers might not be the smart way to go. This also threatens the stability of other industries.

Usually when a country imposes a strict tariff, those countries fight back with tariffs of their own. There’s nothing that will stop China from retaliating, and the threat of a trade war is too much for an economy that is still recovering. No one knows where this will go, but regardless of what happens, you can expect steel prices to rise over the next few years.

Written by adminAugust 20, 2019

Student Loan Consolidation

As student debt continues to rise dramatically in our country, more and more borrowers are getting fed up with the current system. Teachers in particular are so angry that they’re suing the federal government. Not only are they frustrated with their low pay, they also feel as if the current public service forgiveness program is broken.

The federal student loan forgiveness program was designed to give public service workers, like teachers, a leg up on paying off their student debt. Yet, as soon as the Trump administration took over, the vast majority of applicants have been turned down and offered no forgiveness.

Because of these frustrations, teachers all over the country are suing the Department of Education. One group in particular, the American Federation of Teachers, has stated that the student loan forgiveness program isn’t functioning properly and it desperately needs to be fixed. This is the second-largest teachers union in the country.

“The very agency that is supposedly the champion of our nation’s education system has failed to live up to its role in administering this Program,” asserted the lawsuit, which was filed in July.

Teachers Are Feeling the Heat

This is particularly difficult on teachers, as they are often expected to continue their education. Most have to take postgraduate degrees in order to maintain their teacher status. This combined with low pay and increasing tuition is putting teachers in a very difficult position. Many even feel embarrassed have student debt.

“Because the thing is, I went to school, I went to college, I wanted to become a teacher. I took loans. And now I’m paying $600, $700 a month right off the bat every month for my student loan… it’s a horrendous situation for them to be in,” said the teacher’s union.

On top of that, “everybody talks about it,” added Mulgrew. “You hear all the politicians talk about it. But the idea that they passed the student loan forgiveness federal program, and in reality, nobody gets to use it — that’s insane.”

Low Pay

Deciding to become a teacher is a very noble task. They really take a lot out of themselves to serve our community and our children with very little resources and even less pay. Nearly 65% of teachers have shared that they have student debt and it’s causing many problems in their lives.

“Teachers have a lower median income and are taking on student debt at a higher rate than the three other industries involved in our survey,” Kyle McCarthy, head of growth at Fishbowl told Yahoo Finance.

“On top of that, over 96% of teachers are spending their own personal money to provide underprivileged students with the school supplies they need, leaving teachers with even less disposable income,” he added. “It’s a good example of the growing wealth inequality in our society today.”

Written by adminAugust 12, 2019

Student Loan Consolidation

Currently in the United States, 44 million Americans owe $1.56 trillion worth of student loan debt. This is a number that is set to continually rise and hit the $2 trillion mark in the next few years. Everyone knows that were at a crisis level with student debt, yet colleges don’t care. They continue raising tuition through the roof and is forcing many young millennials to think twice about going to college.

TD Ameritrade worked with The Harris Poll to take a look at the impact of the student loan crisis and how it was affecting students today. This amount of debt is doubled only in the last decade. This is the first time we’ve really seen this change to where debt is accumulating more rapidly than it ever has before. In a short amount of time.

The pull over 3000 students from the youngest two generations, Gen Z who is entering college for the first time, and younger millennials who are nearing graduation. The study was called the 2019 Young Americans & College Survey. Looked at finding out whether there’s been a major attitude shift towards going to college. Of course, the answer is yes, there’s been a massive shift.

We used to believe that when she graduated high school you went on to college. Going to college was necessary and it was expected that you do so. Not going to college equated to making much less money and being one of the poorest Americans living paycheck to paycheck. There was no understating the value of a college education.

The Massive Shift

As the Great Recession hit the economy over the past decade, many millions of Americans found themselves without work. They thought would many people do when they graduate high school. They’re desperate to find work and felt that the only good, quality work out there required degrees. The problem is, colleges knew that people were desperate to make more money.

Many schools have been caught lying and making promises about job placement rates. They pushed ads into the American mainstream and it enticed millions of people to go back to school. When it was found that of the schools lied about their job placement rates to get more people in the door, that this meant that there are more people with outstanding student loan debt and no job to pay for it.

While this is happening, colleges are raking in billions and billions of dollars. They keep dramatically increasing the cost of tuition while siphoning off money from the government. It’s almost as if the entire education system decided to become crooked and value profit over anything else. The youngest generations are seeing this happen and are deciding not to stand for it.

Putting Off College

While college is still seen as a must after high school by most, it seems as if the shift is starting to take place. 25% of young students are deciding to put off going to college according to the survey. The main reason why this is happening? Cost. 1-in-5 don’t believe they’ll ever go to college. It’s not worth the investment for them.

Going to college is almost the equivalent of financing a brand-new car. You find yourself tens of thousands of dollars in debt and making payments, including paying attentional interest, for the next 10 to 20 years of their lives. This type of arrangement is hurting millions of lives, as many young adults are putting off making major life decisions, like getting married and having a baby. They simply cannot afford to do anything but live as cheaply as possible while paying off their student debt.

“There are some students who are saying a four-year traditional degree may not be for me,” Dara Luber, TD Ameritrade’s Senior Manager of Retirement, told Yahoo Finance’s YFI AM on Tuesday. “There’s always going to be a need for those who go to trade schools. So, there could be a shift in how you’re approaching life after high school.”

This study found that 20% of all young millennial’s out there have over $50,000 worth of student loan debt. The students are also expected to be paying off this debt well past the age of 50. That shows that there are less people able to pay their debt and more were going into default.

“More students are seeing the need to not only go to college, but I think part of the increase in the debt is also the need or the feeling that you need to go on to go to grad school to achieve the right job,” Luber said.

“They [parents] understand what it is to have to pay back those loans, and how much it could impact not only for themselves, but for their students, future retirement savings, being able to buy their first home, get married, and have children. All those downstream impacts of having to pay back their student loans when they get out of college,” Luber said.

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