Valuable insights from Lynn O’Shaughnessy
a nationally recognized college expert.
May 27, 2014
The Best College Loan for Students
As recently as the early 1990s, most students did not take out college loans. Today about two out of every three students borrow to pay for college due to the runaway cost of college. The typical student borrower is now leaving school with debt of $29,400. Just the outstanding federal college loan debt now exceeds credit-card debt. Is $29,400 a...
April 27, 2014
We Are Done Paying for College
Last month, my husband and I sent off our final college payment. Bruce and I made monthly payments for seven consecutive years for our daughter Caitlin and our son Ben, who will be graduating from college in May. We did not take out any loans to pay for college and neither did our children. Our daughter Caitlin took the picture...
August 7, 2013
Making Enormous Profits off College Loan Borrowers
Any day now President Obama is going to sign legislation that will at least temporarily lower the interest rates on federal student loans. This might sound like a welcome development, but it isn’t because the federal government will be continuing to make huge profits off parents and students who borrow. The legislation could eventually make the financial pain worse for...
August 9, 2012
Look Who Is Borrowing the Most for College
The unrelenting cost of college is hitting upper-middle-class families hard. According to a front-page analysis today in The Wall Street Journal, it’s these families who are experiencing the largest rise in college-loan debt. In its analysis, the newspaper categorized upper-middle-income as households with yearly incomes in the 80th to 90th percentiles that range from $94,000 to $205,000. Among families with...
November 3, 2011
States With the Highest and Lowest Student Debt
Student loan debt is at its highest level ever. That’s the conclusion of a new report released on Thursday by The Project on Student Debt. Two thirds of students in the class of 2010 graduated with college debt that averaged $25,250, which is the highest it’s ever been. Students mostly borrowed through federal loans, but at least 22% of the...
October 28, 2011
How to Avoid a Student Loan Disaster
Most of the teenagers who visit my college blog aren’t thinking yet about how they are going to come up with the cash to pay off any future student loans. High school students and their parents are more focused on getting into good schools. I don’t blame them, but payback time is inevitable. And that’s when it’s going to get...
June 23, 2011
The Nuts and Bolts of Stafford Loans
This is the time of year when colleges start sending their bills out to new and returning students. And that’s why this is also the time of year when parents and students begin inquiring about college loans. This is as good a time as any then to answer some questions about Stafford Loans, which are the most popular federal college...
March 25, 2011
Parents Borrowing for College
Are you a parent looking for a college loan? Most of the press attention is focused on college loans that students take out, but there are parent loans as well. Today, I’m going to focus on PLUS Loans and home equity lines. PLUS Loan For parents, the federal government offers PLUS Loans. At first blush, the terms won’t look so...
February 17, 2010
The $555,000 College Debt Mistake
Recently I wrote posts that cautioned parents and students not to take on too much college debt. Why am I being a nag? College loan debt can be toxic. My Exhibit A is a family practitioner in Columbus, OH, Michelle Bisutte, who finished medical school with $250,000 in debt in 2003. Today her college loan levels have swelled to $555,000....