Student Loans At Banks

by Michael Biernacki

University Of Arkansas School Of Law – 2018

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My name isMichael Biernacki. I am a first year student at the University of Arkansas School of law. I graduated from the University of Texas at Austinwith degrees in Political Science and History. My goal is to help students and young professionals find workable solutions to today’s problems.

I hope my channel inspires people to push back against the inequality, prejudice, injustice and unfairness in our society.

We’ve gotten off track. Pockets of us have become dependent on government instead of each other. And we’ve forgotten how to take care of ourselves.

So now we’re going to reverse course

In this video, I’ll explain exactly what these things are and how they trap us. We’re going to look at ways to fix them.

As always guys, if you enjoyed this video please give it a Like and share if you want more. There are lots of awesome insights in here. Also if you haven’t already check out the previous videos in the series!

Check Out Our Other Channels:-

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Student Loans At Banks

Student loans have become the norm at banks and financial institutions everywhere. Most people get student loans to help pay for their college education; however, many students end up borrowing way more than they need to. In fact, some students borrow over $100,000 before graduation! However, these types of loans are not the only problem at banks today. Many banks actually charge outrageous fees and interest rates for their services. These fees may seem small, but they add up over time. To make matters worse, many students do not even realize how much money they owe to the bank until after they graduate and file for bankruptcy. That’s right, student loan debt can actually cause you to go bankrupt! If you have student loans, you should know what options are out there for paying back your debts.

According to the Consumer Financial Protection Bureau (CFPB), in 2011 alone student debt owed by Americans was more than $937 billion dollars! Now, think about that number for a second. Every year more than 1 million students graduate with debts exceeding $30,000 each. If you look at those numbers, you’ll notice something interesting. Out of all the graduates in America, almost half of them went to school at private colleges or universities. And if you take a closer look at the numbers, you’ll find that private schools tend to cost more money than public ones. So, in order to keep up with the rising costs of higher education, you might want to consider attending a private university instead of going to a state school. Private universities often offer lower tuition prices, making it easier for you to afford a college experience.

Unfortunately, most people who attend private universities don’t fully understand the kind of debt they’re signing up for. For example, if you finance a private university degree with federal student loans, you could end up owing upwards of $70,000 in total. On top of that, you’ll probably pay around 4% interest for your entire college career. On the other hand, if you choose to attend a state-funded institution, you could be stuck with tens of thousands of dollars in debt. Fortunately, there are ways to tackle your student loan problems. One of the best options for getting out of student loan debt is consolidation.

Consolidation helps borrowers save money by merging multiple loans into one. Borrowers are able to consolidate their student loans without worrying about having to refinance a different type of loan. When you consolidate your student loans, lenders combine your various loans into one new loan with a single payment schedule. For example, consolidating three different loans into one means you’ll only make monthly payments once per month instead of three times a month. Another benefit to consolidation is that you can qualify for a much lower interest rate. Since the lender already has access to your previous balances, he or she will likely offer you a low interest rate.

A good place to start looking for a consolidation plan is online. There are hundreds of companies offering student loan consolidation services, and many of them offer free consultations. You can visit websites like www.mystudentloans.com for more information.

6….

… Course Name: Fall 2016 Intro to Macroeconomics I Course Number: GEO1608A

Instructor: Dr. Robert C. Waring

Prerequisites: None

Learning Objectives: Students will learn the basic concepts of macroeconomics, including the difference between demand and supply curves, inflation, unemployment, and the business cycle. Each student will receive a copy of the textbook, Economics, edited by Mark Blaug.

The course will use lectures, readings, class discussions, homework assignments, quizzes, tests, and exams to provide a thorough understanding of the subject matter.

Class Notes:

Fall 2016 Intro to Macroeconomcs I, Instructor’s notes.

Student Loans At Banks

Student Loans at banks

Students who attend college often rely on student loans to help pay for their educational expenses. When students borrow money from financial institutions they have no idea what type of loan they will receive. Many times, these loans don’t carry any interest while others do charge high rates of interest. These two different types of loans can create problems for students since many times they confuse what kind of loan they received. Students may take out a private student loan thinking that they are borrowing money from a bank, only to find out later that they are actually getting a government-backed loan. Sometimes students will get confused about their federal student loans because they are not sure whether the loans are backed by the U.S. Department of Education or the Federal Family Education Loan (FFEL).

Private vs. Government Borrowed Student Loans

Private student loans are those that are taken out by individuals who want to borrow money from financial institutions. The borrowers often have to fill out paperwork and meet certain requirements to qualify for the loan. If the borrower fails to repay the loan, the lender can attempt to garnish wages, seize assets, file lawsuits, and even report the individual’s credit score negatively. On the other hand, federal student loans are offered by the federal government. There are not many restrictions placed on them. Because the borrower receives funds directly from the government instead of a lending institution, they are less likely to face legal actions if they fail to pay the debts back. However, they are still subject to garnishing of wages and seizure of property.

Direct Subsidized Loans

Direct subsidized loans are those that are given to low-income students from the United States Department of Education. These loans are federally guaranteed and provide funds directly to colleges and universities. In order to apply for direct subsidized loans, the student must first complete the Free Application for Federal Student Aid (FAFSA) free of cost. They must then fill out their FAFSA application and wait until it is approved before receiving the funds. If the student chooses to start repayment early, they will be responsible for paying interest on money borrowed. If the student does not begin repaying the debt until after graduation, they will be charged interest. However, once they graduate, the loans become fully forgiven.

Direct Unsubsidized Loans

These loans are not federally guaranteed and require little documentation prior to receiving funding. They generally are given to students with higher incomes than those who receive direct subsidized loans. To apply for direct unsubsidized loans, the applicant must first fill out the Free Application for Federal Work Study Program (FAFSA). After submitting this application, they should expect to wait approximately six months before receiving approval for funding. Once funded, the student can choose how much he/she would like to borrow. Unlike direct subsidized loans, direct unsubsidized ones are not eligible to be forgiven after graduation. Instead, the student must begin repaying the debt immediately.

Student Loans At Banks

Student loans at banks have increased tremendously over the past decade. In 2005-2006 alone student loan debt reached $9 billion. By 2009-2010 student loan debt hit $12 billion. Over 90% of students borrowed money from federal student loans, while most states offer their own plans. All these extra fees increase the cost of attending school. One out of three borrowers defaulted on their loans by 2012, and 1 in 10 were late on payments.

A lot of people receive these loans without planning ahead. Students often take out loans from friends, family, and even get them from credit cards. When they find themselves unable to pay back the loans, many of them end up having to take time off work or drop out of college entirely. This makes it harder for them to pay back the loans and puts them in a position where they may not be able to start their careers.

Another problem with student loans at banks is that the interest rates are much higher than any other type of debt. Interest rates on federal loans are currently at about 4%. If you compare that to student loans at banks, the interest rate can reach upwards of 8% or 9%. This makes borrowing for education incredibly expensive.

There was an attempt in Congress to address some of these problems. However, the bill never passed and the interest rates continue to rise. There still hasn’t been a proposal put forth that addresses the issue of student loans at banks. What we do know is that the U.S. government stands behind 100% of these loans if you go into default, meaning that the government will make sure that you pay what you owe on the loan.

Student Loans At Banks

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If you’re like many students, you couldn’t afford college tuition and didn’t have loans for school. But things are changing… with laws passed in Congress shutting down the student loan program.

For more on this, we go back to Philly.

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