Census data gathered for a report released by the U.S. Senate’s Joint Economic Committee found women working full-time earn $10,800 less per year than men. Over the course of a career, this adds up to a difference of almost $500,000. Research has found wage differences account for women taking longer to pay back their higher education debts. Women are also more likely to make unaffordable student loan payments each month. According to a study from the American Association of University Women (AAUW), female 2007-2008 graduates paid back 33 percent of their loans between 2009 and 2012. In comparison, men paid back 44 percent of their student loans between these years. A majority of women contribute more to their student loan payments than they can afford. The AAUW study found 53 percent of women made unaffordable payments between 2009 and 2012. In comparison, 39 percent of men made excessive payments during…
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More than 44 million Americans owe more than $1.3 trillion in student loans. Unfortunately, some of these borrowers are going to default. According to the Department of Education, the default rate for borrowers who entered repayment between 2012 and 2013 is 11.3 percent. Default is considered as being more than 270 days behind on student loan payments. Borrowers in default face several devastating consequences, such as wage garnishments, loss of eligibility for helpful repayment plans, and the interest and principal balance becoming immediately due. If this story sounds familiar, do not give up hope, because there are ways to bring your loans back into good standing. Get Your Student Loans Out of Default with A Loan Rehabilitation Program The first option for bringing your student loans back into good standing is to use the Education Department’s loan rehabilitation program. Requirements for rehabilitation vary depending on whether you have Direct, FFEL,…
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When for-profit schools operated by Corinthian Colleges shut down in 2015, the Department of Education announced instructions for many current and former students to receive tax-free discharges on their federal loans. Students eligible for the following two options do not have to pay taxes on loan forgiveness. Closed school discharge: Corinthian Colleges and its affiliated campuses shut their doors before many students could finish their degrees. Students enrolled at the time of closing, or who withdrew within 120 days of the closures, may be eligible for the closed school discharge. Borrower defense to repayment discharge: According to a federal judge, Corinthian Colleges misled students with false job placement rates and other statistics to encourage enrollment. The Education Department’s borrower defense to repayment rule allows victims of college fraud to receive loan forgiveness. Former students who receive either discharge will not be hit with a large IRS income tax bill. These…
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