Digging out from student loans - WRBL

Text Description

Digging out from student loans

Posted: Updated:

Student debt has reached an alarming benchmark. It now tops $1 trillion. Loans for higher education exceed all other consumer loans except mortgages. Two-thirds of college graduates carry a debt burden. Consumer Reports says that it is twisting the lives of young people and creating a drag on the economy.

Consumer Reports recommends getting government loans rather than loans from private lenders, such as banks. Government loans have advantages. You may have the right to a temporary deferment or a flexible repayment plan.

Students should only get loans from private lenders, including banks, as a last resort. Private lenders don't have to offer flexible repayment plans to students, and the loans may not come with fixed interest rates. So that can make them costlier, riskier, and harder to repay.

Other ways to minimize student debt:

            >Consider attending a state school.

            >Submit the federal loan application, called the FAFSA, as early as you can.

            >Borrow only what you really need, not the amount you qualify for.

Consumers Union, the advocacy arm of Consumer Reports, is calling for changes in current law so that students get standardized, easy-to-read information about their financial aid options, including grants and scholarships, before they commit to loans. Also, students should have the right to refinance their loans as circumstances warrant.  And private lenders should be required to offer flexible payment options, as the government now does.

Sarah Panko

Sarah is the anchor/ producer for News Three First Edition at 5/4 central time. She also brings you the latest Consumer Reports on the Nightwatch at 11/10 central. More>>

  • Most Popular StoriesMost Popular StoriesMore>>

  • Authorities: Man walks into sheriff's office, confesses to sexual abuse

    Authorities: Man walks into sheriff's office, confesses to sexual abuse

    Friday, April 18 2014 6:58 PM EDT2014-04-18 22:58:31 GMT
    Johnny Row BoltJohnny Row Bolt
    A 62-year-old Chambers County man was arrested on two counts of Sexual Abusecharges. Authorities with the Chambers County Sheriff's Office say Johnny Bolt, of Five Points, walked into the sheriff's office this week and confessed to sexually abusing a family member under the age of 12. They say he was arrested Thursday and made bond that same day.
    A 62-year-old Chambers County man was arrested on two counts of Sexual Abusecharges. Authorities with the Chambers County Sheriff's Office say Johnny Bolt, of Five Points, walked into the sheriff's office this week and confessed to sexually abusing a family member under the age of 12. They say he was arrested Thursday and made bond that same day.
  • 25th Infantry Division team wins 2014 Best Ranger Competition

    25th Infantry Division team wins 2014 Best Ranger Competition

    Monday, April 14 2014 11:25 AM EDT2014-04-14 15:25:38 GMT
    Winners: Rose & BergmanWinners: Rose & Bergman
    2nd Lt. Michael Rose and 2nd Lt. John Bergman won the 31st annual Best Ranger Competition at Fort Benning. Over the course of the competition, each ranger covered up to 75 miles with little or no sleep.
    2nd Lt. Michael Rose and 2nd Lt. John Bergman won the 31st annual Best Ranger Competition at Fort Benning. Over the course of the competition, each ranger covered up to 75 miles with little or no sleep.
  • Escaped inmate tased twice, jumps in lake during capture

    Escaped inmate tased twice, jumps in lake during capture

    Saturday, April 19 2014 2:01 PM EDT2014-04-19 18:01:28 GMT
    Grisset shows which way Adams ranGrisset shows which way Adams ran
    Darrin Adams got away from a Muscogee County prison detail last Friday. This came months after he escaped from the Lee County Detention Center in December and another Georgia prison in 1994. Lee County authorities found him late Wednesday night.
    Darrin Adams got away from a Muscogee County prison detail last Friday. This came months after he escaped from the Lee County Detention Center in December and another Georgia prison in 1994. Lee County authorities found him late Wednesday night.
Powered by WorldNow

1350 13th Avenue
Columbus, GA 31901

Telephone: 706.323.3333
Fax: 706.327.6655
Email: news@wrbl.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.