Friday 29 July 2016
Tuesday 26 July 2016
Income Sensitive Repayment: the Forgotten Student Loan Plan
The Student
Loan talks a lot about the various repayment options available to student loan
borrowers. With most of the new income-driven plans, there's usually a caveat
that only federal direct loan borrowers are eligible for the plan, while
Perkins and federal family education loan borrowers are not unless they jump
through some hoops.
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There is a
plan, however, that's only available to FFEL loan borrowers: income-sensitive
repayment. While this plan has sort of fallen by the wayside with the creation
of income-based repayment – FFEL loans are eligible for income-based repayment,
but not the other income-driven plans – it could actually be the best plan out
there, especially if you're a borrower who has a finely tuned budget and a
payoff goal.
Here's why
income-sensitive repayment might be one of our favorite repayment plans: The
borrower can often pick his or her payment amount. That's right – you get to
pick.
The
regulations are fairly vague when it comes to income-sensitive repayment; this
means that the loan holders have some wiggle room as to how they offer this
plan to their borrowers. With that said, the Student Loan Ranger has found that
most handle the plan in a similar fashion.
Let's go
over some of the constants first. Regardless of your loan holder, the plan is
based on the borrower's gross monthly income, not adjusted gross income like
most other plans, from all sources. In contrast with the other income-driven
repayment plans, income-sensitive repayment is never based on a spouse's income
unless that spouse is a co-borrower on the loan. Borrowers applying for the
plan must send in proof of their gross income in the form of tax returns, bank
statements or pay stubs – most loan holders require the most recent months'
worth. From there the payment will be calculated based on this income, to an
extent.
Regulations
require that borrowers applying for income-sensitive repayment pay at least the
monthly interest accruing on the loan. If the payment is calculated lower than
that, the borrower will either be placed on a reduced payment forbearance or be
counseled that income-based repayment, with its limited interest subsidies, may
be a more productive option.
Income-sensitive
repayment can be used a total of five years and does not extend the term of the
loan like the other income-driven plans do. One other aspect of this plan to be
aware of is that regulations dictate that no single required payment amount may
be more than three times another payment amount under the plan. If your chosen
payment amount would result in such a situation, the loan holder may require
you to increase the payment or use a type of forbearance.
Here's where
things may vary depending on the loan holder, but most have the following
protocols. Once the borrower has established his or her monthly gross income,
he or she chooses a percentage of that income, generally between 4 and 25
percent, to be the required payment amount. A minimum payment of $5 is
required.
So, for
example, if your standard monthly payment is $500, which is too high for your
budget, and your payment under the income-based repayment plan is $200, and
your budget can handle a payment of $400, this may be the plan for you. Just
pick the percentage of your gross income that comes closest to that $400 per
month.
Note that
there's no prepayment penalty for federal Educational Loan, so another strategy might be to
take that $200 income-based repayment plan payment and pay extra every month.
While that works for some consumers, others may not have the financial
personality to maintain that type of discipline every month, and prefer that
the higher payment be required.
Also, paying
extra can result in a borrower's due date being pushed ahead, which can make
things difficult for those using an automatic debit payment tool or service.
Remember: If you choose an amount less than interest only, you're going to also
have to agree to a forbearance or income-based repayment rather than
income-sensitive repayment, which will likely result in capitalized interest,
but that result is still better than not paying anything at all. The more you
pay on your debt now, the less you'll pay in total interest later.
If you're
trying to find a way to decrease or increase your monthly payment amount, and
know exactly what you can afford, income-sensitive repayment may be the way to
help you find that perfect payment fit.
Source: https://educationloansinindia.wordpress.com/2016/07/26/income-sensitive-repayment-the-forgotten-student-loan-plan-2/
Monday 25 July 2016
Saturday 23 July 2016
The Almost Graduate: Part III of an Adult Learner’s Back-to-School Journey
Two and a
half years ago, I was contemplating going back to school for the first time in
a long time.
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After I
started my education journey, I dished out advice at the midway point of my
studies.
Today, I can
say that I have successfully completed the Minneapolis Community &
Technical College’s Screenwriting track in Cinema Studies. I’m a step closer to my associate degree.
There’s
still more to come for me. And you can start or redirect your own
back-to-school journey.
I don’t have
a career hinging on this degree. This
program was a passion project for me.
But while I was in it, especially at those busy times, I was more alert
and tuned in to my job. I made school
and homework it work with my schedule because all of it was important to me.
You might
want go back to school to start or move up in a career that requires a minimum
degree or education. The stories I write
in my Cinema Studies classes have a beginning, middle and an end. The same goes for planning your career.
Begin by
assessing where you’re at, what you have, and where you want to go. As I stated in my previous entry, there are
opportunities for credit for prior learning, financial aid, and Adult Basic
Education (ABE) classes.
When you’re
in the middle of it, you’re bound to face everyday challenges as you work,
study, and manage your family. I kept a
weekly schedule of what I needed to do, and when.
A “to-do”
list helped me look out for things on the horizon. Marking them off as
“complete” was a very good feeling to have, propelling me on to the next
task. I also included “me time” in order
to decompress from the work and school week.
Most of my
fellow college students were literally half my age! At school, I could have
easily slipped into an “I don’t belong” mentality. But we were all new students, all learning
the same things. Focusing on what we all
had in common kept me going throughout.
Check out
this Career wise comprehensive checklist to get a jump start your decision to
return to school and the challenges you might face.
Keep your
eye on the prize. What will it feel like when you’re finished? And then, before you know it …
The
end! Congratulations! You made it.
It was all worth it, wasn’t it?
For me, I made new friends and gained the respect of one of my instructors.
He’s given me internship and freelance assignments and has asked me to be a
tutor in the fall semester. These are
opportunities I never would have received had I not committed myself to the
program.
Truth be
told, I’m not quite done with my schooling.
After a few more cinema history classes next year I’ll earn a college
certificate and an A.S. degree. I’m
piecing it together, but I’m making it happen.
Think about
the next few years — where would you like to be in your career or Study loan? Start your own
story today!
Source: https://educationloansinindia.wordpress.com/2016/07/23/the-almost-graduate-part-iii-of-an-adult-learners-back-to-school-journey/
Friday 22 July 2016
Refinance Student Loans – Get Your Lowest Rate
Are
you tired of paying a high interest rate on your student loan debt? Are you
looking for ways to refinance your student loans at a lower interest rate, but
don’t know where to turn? We have created the most complete list of lenders
currently willing to refinance student loan debt.
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You
should always shop around for the best rate. Don’t worry about the impact on
your credit score of applying to multiple lenders: so long as you complete all
of your applications within 14 days, it will only count as one inquiry on your
credit score
Can
I Get Approved?
Loan
approval rules vary by lender. However, all of the lenders will want:
Proof
that you can afford your payments. That means you have a job with income that
is sufficient to cover your student loans and all of your other expenses.
Proof
that you are a responsible borrower, with a demonstrated record of on-time
payments. For some lenders, that means that they use the traditional FICO,
requiring a good score. For other lenders, they may just have some basic rules,
like no missed payments, or a certain number of on-time payments required to
prove that you are responsible.
If
you are in financial difficulty and can’t afford your monthly payments, a
refinance is not the solution. Instead, you should look at options to avoid a
default on student loan debt.
This
is particularly important if you have Federal loans.
Don’t
refinance Federal loans unless you are very comfortable with your ability to
repay. Think hard about the chances you won’t be able to make payments for a
few months. Once you refinance, you may lose flexible Federal payment options
that can help you if you genuinely can’t afford the payments you have today.
Check the Federal loan repayment estimator to make sure you see all the Federal
options you have right now.
If
you can afford your monthly payment, but you have been a sloppy payer, then you
will likely need to demonstrate responsibility before applying for a refinance.
But,
if you can afford your current monthly payment and have been responsible with
those payments, then a refinance could be possible and help you pay the debt
off sooner.
Is
it worth it?
Like
any form of debt, your goal with a student loan should be to pay as low an
interest rate as possible. Other than a mortgage, you will likely never have a
debt as large as your student loan.
If
you are able to reduce the interest rate by re-financing, then you should
consider the transaction. However, make sure you include the following in any
decision:
Is
there an origination fee?
Many
lenders have no fee, which is great news. If there is an origination fee, you
need to make sure that it is worth paying. If you plan on paying off your loan
very quickly, then you may not want to pay a fee. But, if you are going to be
paying your loan for a long time, a fee may be worth paying.
Places
to Consider a Refinance
If
you go to other sites they may claim to compare several student loan offers in
one step. Just beware that they might only show you deals that pay them a
referral fee, so you could miss out on lenders ready to give you better terms.
Below is what we believe is the most comprehensive list of current Education loans refinancing
lenders.
You
should take the time to shop around. FICO says there is little to no impact on
your credit score for rate shopping as many providers as you’d like in a single
shopping period (which can be between 14-30 days, depending upon the version of
FICO). So set aside a day and apply to as many as you feel comfortable with to
get a sense of who is ready to give you the best terms.
Source:
https://educationloansinindia.wordpress.com/2016/07/22/refinance-student-loans-get-your-lowest-rate/
Wednesday 20 July 2016
President Obama's horrible, terrible legacy on student loans
When he announced his candidacy in 2007, Barack Obama looked
like he could be the one to finally stand up to the student lending
system. He was one of only two members
on the Senate Health, Education, Labor and Pensions (HELP) committee not to
have taken money from the Sallie Mae PAC.
In this position he was privy to HELP Committee and other reports detailing a broad swath of
illegal and deceptive activities by the lenders, the universities, and even the
Department of Education.
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His rhetoric about making college "affordable"
sounded great. The deletion of most
every standard consumer protection (like bankruptcy and statutes of
limitations) from student loans had caused a hyper-inflationary market, and a
systemically predatory lending system that was lives and livelihoods of
millions of people. The nation's student loan debt had skyrocketed to $450
billion, and the Department of Education had actually begun turning a profit on
defaults.
So when Obama was elected, largely due to overwhelming
support from young people, it was assumed that he would make things right. But
he did nothing to bring back any standard consumer protections. His administration did nothing to curb the
predatory collection powers of the student lending system. College prices increased faster than
previously, and today the average undergraduate is now leaving school with
$35,000 in debt, up from about $17,000 when Obama announced.
By the time Obama leaves office next year, the nation will
have added $1 Trillion to its student debt tab.
What the Obama administration did do was great for the
federal government, not the students.
Obama federalized the system to where the government now
profitsimmensely from both interest on loans it makes directly to students, and
defaults. To say that the federal government now sits atop the most predatory
lending system in our nation's history is not an understatement.
The various repayment programs that promise forgiveness are
cruel jokes, administered in bad faith by a Department of Education that has
zero desire or intentions of forgiving any loans. I estimate that fewer than 15% of those
signing up for these programs will actually make it through. The rest will be expelled owing far more than
when they entered.
Obama's Consumer Financial Protection Bureau (CFPB) was
designed so as to give it essentially no jurisdiction over federal student
loans. The CFPB busies itself only with
private student loans, which at least have statutes of limitations, and are
covered under Fair Debt Collection Practices, and Truth in Lending laws
(federal loans are not). So the CFPB is
no help. Meanwhile, Obama's lawyers
fight furiously behind the scenes to keep bankruptcy protections gone from
student loans in order to protect their cash cow.
This all happened on Obama's watch. He cannot avoid accountability for what is
shaping up to be among the largest financial catastrophes this country has ever
seen. His pleasant disposition does nothing to mitigate the cruel infliction
of such massive harms upon the very citizens who put him into office.
President Obama still has 6 months left. There are 3 good bills in Congress right now
that would at least return uniform bankruptcy rights to Study Loans - something
that that the founding fathers called for-ahead of the power to declare war,
form a military, and coin currency when they gave power to Congress in the
Constitution. Obama could get any one of
these bills moving (I would recommend HR 449, since it has bipartisan support).
If Republicans in Congress were serious about reining in the
powers of the federal government, they would not only join in these efforts-
but lead on this critically important task.
Source: https://educationloansinindia.wordpress.com/2016/07/20/president-obamas-horrible-terrible-legacy-on-student-loans/
Tuesday 19 July 2016
Monday 18 July 2016
How Arbitration Helps, Hurts Defrauded Student Loan Borrowers
A few weeks
ago, the Student Loan Ranger summarized the Department of Education's recently proposed draft rules that
would make it easier for defrauded student loan borrowers to have a portion or
all of their federal student loans discharged.
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Within that
same draft rule, the Department of Education also proposed some additional
changes that are intended to help protect students and the federal taxpayer by
increasing transparency, installing some financial protections and ensuring
that consumers have multiple avenues for potential relief if something should
go wrong.
These
changes will also make it easier for those who pay for education expenses out
of pocket or with private student loans to obtain relief if their school
misrepresents itself or educational outcomes.
Arbitration
is a process where claimants have agreed to have a third party rule on their
dispute. The draft rule would in some cases prohibit schools that are
participating in the federal direct loan program from using mandatory
predispute arbitration.
Although, as
we discuss below, predispute arbitration can be harmful to consumers, not all
arbitration or mediation is bad. Once finalized, the draft rules will only
bring possible relief to those students who financed their higher education
with federal student loans.
However,
defrauded students have often paid for a portion of their expenses out of
pocket or through private or state loans. Because the discharge rules don’t
allow for recovery for those amounts, arbitration or legal proceedings may be
students' only way to possibly receive reimbursement in cases of school fraud
or misrepresentation.
The Trouble
With Predispute Arbitration Clauses
In recent
years, some industries, including educational institutions, have begun
inserting mandatory predispute arbitration clauses in their contracts with
consumers. Since 2011 when the Supreme Court affirmed the use of such clauses,
hundreds of higher education institutions have added them, or similar
restrictions, to the enrollment contracts students are required to sign to
attend.
The Consumer
Financial Protection Bureau recently found that such clauses are especially
prevalent in the consumer finance area – with almost half of all credit card
accounts subject to mandatory predispute arbitration clauses.
Courts often
encourage arbitration as a way to save costs for both the claimants and the
court system in cases of routine disputes, especially those that arise between
businesses. Opponents of such clauses claim that mandatory arbitration often
favors the business that required the clause in the first place.
Some
arbitration clauses, for example, require the hearing to be held in a location
that may be convenient for the business but inconvenient to the consumer. In
addition to these travel costs, some consumers may incur hundreds of dollars in
filing fees just to initiate the process.
In the
higher education world, the school often pays for or at least chooses the
third-party arbitrators, making it difficult to prevent bias if the arbitrator
has the possibility to obtain a repeat customer.
The other
problem with these clauses is that they can cost the consumer many of their
rights to bring any future disputes to court, effectively preventing many
class-action suits.
Due to their
very nature, though, class-action suits can put the consumer on more equal
ground with the business because they consolidate resources and the potential
evidence related to multiple claims with the same complaint. Class-action suits
can also be an effective way for consumers to pursue relief when the same
conduct or behavior has harmed them.
If
finalized, the draft rule would prevent a school from forcing students to use
arbitration or an internal process in cases where students feel they have a
case that the school violated state laws in relation to the students' federal
direct loans or the educational services the school provided.
However,
because of the Department of Education's limited authority, the rule would not
prevent a school from requiring arbitration and prohibiting participation in a
class action lawsuit for other types of claims.
The Case for
Arbitration
As we
mentioned above, the Student Loan Ranger wants to be clear that not all
arbitration or mediation is bad. In fact, in many cases, arbitration between
two parties who are on equal footing can be a much more reasonable and even
fairer option than going through the often lengthy and expensive court process.
Many
businesses choose to use a mutually agreed-upon arbitrator to resolve a dispute
after it arises to avoid the costs of litigation. And many states encourage
such action to relieve the burden of these cases on the court system.
This is why
we support that the draft rule does not prevent arbitration across the board
but rather ensures that arbitration can only be used if both parties are
agreeable to it.
Even then,
the draft rule would require schools to communicate such cases of voluntary
arbitration to the Department of Education to ensure the department is aware of
any potential borrower defense claims, even if the borrowers never file for
discharge.
Proponents
of mandatory arbitration clauses argue that prohibiting the clauses will put
many schools out of business due to increased legal expenses. Draft rule
supporters, though, point out that a majority of nonprofit colleges and
universities don't have such clauses and they seem to be doing just fine.
Regardless
of how the Department of Education finalizes the draft rule, the trend for
mandatory predispute arbitration clauses in higher study loan may be waning. In
May 2016, Apollo Group – the University of Phoenix parent company – announced
it would no longer use these clauses with students. We hope this is just the
beginning of other schools following suit.
Source: https://educationloansinindia.wordpress.com/2016/07/18/how-arbitration-helps-hurts-defrauded-student-loan-borrowers/
Wednesday 13 July 2016
Understand Student Loan Forbearances, Rehabilitation Payments
The Student
Loan likes to give readers the tools they need to manage their student loan
debt in an educated way. Understanding student loan vocabulary is one of those
tools.
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Loan
language can be complicated. In fact, when it comes to student loan repayment,
mixing up just one word – or even a variation of the same word – can cost you.
That's the
case with two seemingly unrelated subjects: forbearances and involuntary
payments. We hope you never need to use either; but in case you do, make sure
you take advantage of the right version of each.
Discretionary
vs. Mandatory Forbearance
As we have
previously discussed, forbearances are tools available on many federal student
loans and some private student loans that allow borrowers to postpone payments
if they are in a financial pinch. Almost any option, though – except letting
loans default – is usually better than using forbearance.
That said,
forbearance can be a valuable tool if borrowers' student loans are at risk of
going past due or defaulting.
When we
refer to forbearance, we're generally talking about discretionary forbearances
– these are given at the loan holders' discretion.
All loan
holders have different criteria – although they are usually lenient – and
different lengths of time they allow borrowers to utilize these tools. The
average time is a total of three years over the life of the student loan.
Excessive
debt forbearance, though, is another type of forbearance that might come in
handy if lenders refuse borrowers' requests for a discretionary forbearance.
This is also a mandatory forbearance, which means if borrowers are eligible,
loan holders are required to give it.
Borrowers
whose federal student loan payments add up to 20 percent or more of their gross
monthly income qualify for excessive debt forbearance. They may request this
forbearance for a year at a time for a total of three years over the life of
the loan.
The benefit
of this option is that borrowers can opt to pay a lower payment during this
period instead of no payments at all; paying at least the interest is always a
good idea.
To apply for
excessive debt forbearance, borrowers should complete this form and submit it
to all of their federal loan holders.
Involuntary
vs. Voluntary Payments
A long time
ago, the Student Loan Ranger heard a tenured, well-respected member of the
higher education industry say that, for some borrowers, default is just part of
the process. We've learned over the years that, unfortunately, this is
absolutely true.
Borrowers
get overwhelmed or don't realize the many free resources – not the least being
their loan holder – that can help them manage their federal student loans and
prevent them from defaulting.
Because
default happens, Congress created a student loan rehabilitation program. In a
nutshell, this program allows borrowers to make nine consecutive, voluntary
payments to get their loan out of default and in good standing, lower the
collection costs and remove the default from their credit report.
The problem:
Many defaulted borrowers don't fully understand what the voluntary payment is.
They assume that garnished wages are helping them complete the rehabilitation
program.
If borrowers
are in default and the loan holder is garnishing their wages, tax refund,
Social Security or other federal payments, rehabilitation will help stop those
garnishments.
However,
those garnishments do not count as voluntary payments for rehabilitation
purposes. This is the case even if borrowers decide not to appeal the
garnishment order.
Only
payments in the amount that the borrowers and their loan holders have agreed to
and that the borrowers send in on time every month – no postdated checks –
count as voluntary payments for loan rehabilitation. During the time they are
working toward the nine voluntary payments, the garnishments will continue.
Once borrowers
make their fifth on-time payment, the wage garnishment order will be rescinded
from their employer. After they complete rehabilitation and their Study loan is again in good
standing, other garnishments will also stop.
Source: http://www.usnews.com/education/blogs/student-loan-ranger/articles/2016-07-06/understand-student-loan-forbearances-rehabilitation-payments
Thursday 7 July 2016
5 Industry-Specific MBA Specializations
MBA specializations are available in areas as wide and
varied as the career ambitions of the students they target. Depending on the
business school, you might also see specializations referred to as
concentrations or as tracks that can be taken, through elective course
offerings, within the confines of a traditional MBA program.
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With these nuances in mind, TopMBA.com recently took an
in-depth look at six of the most popular MBA specializations out there,
together with examples of how a top business school teaches that particular
topic of specialization.
Here now are five MBA specializations that are most commonly
associated with preparing its graduates to work, or advance, in a specific
industry. The list features concentrations in finance, healthcare, luxury
management, nonprofit management and entrepreneurship. Entrepreneurship is
included on this list because, although startups formed by MBA graduates may
fall into any number of industries, making a decision to start and run a
business (and therefore to live the life of a full-time entrepreneur) is akin
to deciding on a career in a particular industry. Once again, examples of how a
leading business school approaches the topic are outlined. Read on to learn
more…
1. Finance
A finance MBA specialization is designed to help you advance
your finance career or to transition into a finance role. London Business
School offers a concentration built around a corporate finance core and a
selection of 20 different electives. While the corporate finance core looks at
the management of company finances and the frameworks used to make financial
decisions, the electives available include courses on mergers, private equity
and one entitled: ‘Distressed Investing’. The idea behind the electives is that
students can customize their finance courses to a specific area of focus. An
internship within the finance industry after the first year of the MBA program
and a faculty-supervised consulting project are among the program’s applied
learning, or experiential, opportunities.
2. Entrepreneurship
An entrepreneurship MBA specialization helps students start
businesses and act upon their ideas. At IE Business School, entrepreneurship is
not offered as a specialization but is “integrated from front to end in the
International MBA Program”, in the words of program director, Steven Thompson.
Critical entrepreneurial concepts and theories are introduced as part of the
program’s core curriculum, with subsequent access to the school’s startup and
venture lab initiatives offering students the chance to work on their own
business ideas. IE also offers approximately 12 entrepreneurship-themed
electives, with the aim of providing students with a roadmap for launching
their own companies.
3. Healthcare
A healthcare MBA is designed for students who want to work
in various areas of the healthcare industry, including: Healthcare delivery;
insurance and health benefits; pharmaceuticals; medical devices and other
healthcare technology. The healthcare management concentration at the
University of Michigan’s Ross School of Business, for example, builds on
research and course offerings not only from Ross, but also from the wider
university.
In order to accommodate the diversity of student interests
around the field of healthcare, the concentration has no mandatory courses.
Instead, students are simply required to fulfill a set amount of credits
through their choice of healthcare-related courses, at least a quarter of which
must be obtained from courses offered outside of Michigan Ross (for example,
those available at the university’s public health and public policy schools).
Students can also receive credit for a healthcare-related Multidisciplinary
Action Project.
Action-based learning is an emphasis in this healthcare
management concentration as, indeed, is now so often the case with MBA programs
available at leading business schools. At Ross, one healthcare elective sees
students embark on a collaborative project with healthcare organizations in
less-developed countries. Another focuses on a week in Washington DC during
which students meet with health policy experts working both inside and outside
of government.
4. Luxury management
A luxury management MBA specialization is tailored for those
who wish to take on senior roles with luxury brands and companies. Specialized
luxury management MBA programs and concentrations have emerged because of the
specific skillset sought by employers in this industry.
In addition to elective courses in the subject area, MBA
students at HEC Paris can take certificates that are sponsored by the luxury
groups Kering and LVMH. The school has now been offering MBA electives in the
area of luxury management for six years and emphasizes its location in the
French capital as an ideal environment for studying the luxury business. One
case in point is HEC Paris’ ability to call on partnerships with the
aforementioned luxury groups as well as companies such as Porsche and Gucci (a subsidiary
of Kering).
Read more about the study of luxury brand management at
MBA-level in New York and Milan
5. Nonprofit management
“’Confluence’ is the new byword of the social impact sector.
Whereas commerce and charity were once viewed as separate streams of endeavor,
now the streams are flowing together - creating a stronger current and new
channels of activity and opportunity,” states David Stolow, faculty director of
the MBA specialization in public and nonprofit management at Boston University’s
Questrom School of Business.
The Questrom School’s Public and Nonprofit (PNP) MBA program
aims to address the juncture at which business and management fundamentals can
be used to create social value. It does this by exploring issues relating both
to private enterprise and nonprofits, as well as governmental organizations.
The curriculum covers the entire usual Education Loan for MBA terrain,
but with an ultimate goal of finding solutions to social problems as well as
organizational success. The program also considers the ways in which for-profit
corporations can create social value and, indeed, about half of its graduates
are said to progress to post-MBA jobs at blue chip companies, such as Nike and
IBM.
More specifically, students in Questrom’s specialization
study the same core courses as their ‘traditional’ MBA classmates, before
taking electives that are focused on social value, for example, ‘Marketing
Social Change’, ‘Leading the Mission-Driven Organization’, and ‘Social
Entrepreneurship’. There are also opportunities for students to test their
skills in the industry through, for example, consultancy projects and
participation in relevant conferences and case competitions.
Source: https://educationloansinindia.wordpress.com/2016/07/07/5-industry-specific-mba-specializations/
Wednesday 6 July 2016
Monday 4 July 2016
MBA Application Deadlines for a 2017 Start: The US Midwest
The Midwestern US is home to three of the country’s top
business schools: Chicago Booth, Kellogg and Michigan Ross. The third
installment of TopMBA.com’s 2017 US MBA application deadline series includes
round one dates for these three sought-after schools as well as other business
schools based across the states of Illinois, Michigan and Indiana that had
published their MBA application deadlines by the time of writing.
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The earliest MBA application deadline on this list is the
deadline for Chicago Booth – September 22.
Application deadlines for business schools in Illinois
Three Chicago-area schools have released their MBA
application deadlines: Chicago Booth, Kellogg and Loyola University Chicago’s
Quinlan School of Business.
Chicago Booth’s round one MBA application deadline stands at
September 22 this year. The decision notification date is December 8, 2016.
Kellogg’s round one deadline has been bumped up by a single
day, to September 21, compared to last year’s deadline of September 22.
Loyola University Chicago’s Quinlan School of Business has
the same application dates every year in order to keep things consistent. The
application deadline for the fall quarter is July 15, and would actually allow
admitted candidates to start the program in late August 2016.
Application deadlines for business schools in Michigan
Michigan Ross’ round one application deadline is October 3
2016 and decisions are released on December 16.
Over at Michigan State University’s Broad College of
Business, early round applications are due by October 2 2016, with an ensuing
round one application deadline of November 6.
Application deadlines for business schools in Indiana
At the University of Indiana’s Kelley School of Business,
this year’s round one deadline is October 15, 2016.
Elsewhere in Indiana, Butler University’s Lacy School of
Business has the same three Education Loan for Mba application
deadlines each year: April 1, August 1 and December 1. Each deadline falls
three to five weeks before the start of their respective semesters.
Source: https://educationloansinindia.wordpress.com/2016/07/04/mba-application-deadlines-for-a-2017-start-the-us-midwest/
Saturday 2 July 2016
2 Situations That Don't Qualify for Student Loan Forgiveness
Borrowers aren't eligible for student
loan forgiveness just because they're struggling to make payments.
Occasionally,
the Student Loan Ranger dips into our mailbag to answer your questions. When we
do this, we try to identify different topics that are important to you. One
topic our readers ask about more than any other is student loan forgiveness.
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This is
understandable – student loan forgiveness eliminates your remaining federal
student loan balance, meaning you no longer have to pay. Of course, many
borrowers are happy to get rid of their loans without paying them, and we are
happy to help eligible borrowers do so.
However,
student loan forgiveness only applies in certain situations. This is primarily
for those working in specific fields, such as public service, teaching or
medicine. Borrowers who find themselves in difficult situations, including
total and permanent disability, may also have their federal student loans
discharged.
We often
receive questions from borrowers who are struggling to make their payments or
who have been paying their student loans for years whether they qualify for
student loan forgiveness. Unfortunately, though, neither situation qualifies.
1. I can't
afford my payments: Monthly loan payments can burden borrowers. For some, this
means choosing between student loans and more pressing bills – such as rent,
mortgage, car payment. Opting for the latter is certainly justifiable.
Such
financial hardship won't qualify you for student loan forgiveness. But it might
qualify you for a significantly lower payment under an income-driven repayment
plan option. Each year, these repayment plans look at your income, family size
and debt balance to customize your payment amount, which could be as low as
zero dollars per month.
One added
benefit of income-driven repayment options is that they forgive your balance
after 20 or 25 years of eligible payments, depending on which plan you qualify
for. This isn't the immediate reprieve borrowers hope for – it won't be full
forgiveness, despite the despite the promises some companies make – but it is
something.
If you can't
afford payments under an income-driven repayment plan, you may be able to pause
your federal loan payments altogether with a deferment or forbearance. Although
these options may increase the total amount you owe, they could help you avoid
an even costlier outcome: student loan default.
Anytime you
have difficulty with your monthly payments, contact your loan holder and
discuss what options may be available to you.
2. I have
been paying long enough: While some millennials may hope for a debt-forgiveness
bailout, we receive many questions from borrowers who have been repaying their
debts for years or even decades
Some have
covered their original amount borrowed; others have barely made a dent after
years of accrued interest. Regardless of their path, these borrowers have
reached a similar destination: They want to know if they have paid either
enough or long enough to qualify for student loan forgiveness.
Unfortunately,
there is no overarching statute of limitations on federal student loan
repayment. When you take on a student loan, you agree to pay the amount you
borrowed plus interest – no matter how long that takes. As mentioned
previously, some repayment plans may forgive your remaining balance after a set
number of years of eligible payments, but it's also possible to repay your loan
in full before reaching that point.
If you are
in this situation and are struggling with your payments, you can use the
options we mentioned above. If you're in good financial shape, consider
aggressively prepaying your student loan. Although you can't directly pay a
chunk of your principal balance, you can overpay your monthly amount to limit
interest costs and more quickly shrink the amount you owe.
Student Loan in India forgiveness
is alluring but also regulated and restricted. However, other programs can help
you manage your payments, including even paying off your remaining balance in
the future. Investigate and take advantage of legitimate options that help you
with your student loans.
Source: https://educationloansinindia.wordpress.com/2016/07/02/2-situations-that-dont-qualify-for-student-loan-forgiveness/
Friday 1 July 2016
Defrauded Student Loan Borrowers May Soon Have Discharge Options
In 2015, the
Corinthian College conglomerate collapsed after federal officials found that
the school had fraudulently inflated its job placement rates. The Department of
Education sanctioned Corinthian while further investigations continued, at
which point the school filed for bankruptcy, essentially leaving U.S. taxpayers
with possibly tens of millions of dollars in federal student loans.
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In response,
the Department of Education is undertaking a negotiated rulemaking procedure to
clarify definitions and a process for borrower defense to repayment, an old and
rarely used rule. This rule provides federal student loan borrowers with relief
if their school violates certain state laws. Note that this rule is separate
from the eligibility and process currently in place for students affected by
the Corinthian situation.
Earlier this
month, the Department of Education released the draft version of the rule for
public review and comment, with the final version expected to be published no
later than Nov. 1, 2016, with an effective date of July 1, 2017, although some
aspects of the rule could be implemented sooner.
Although
this is only a draft, here is an overview of how this rule is shaping up to
provide relief for defrauded borrowers. Note that rules cannot be made
retroactively, so new and existing loans will have different eligibility
requirements.
Discharge
Eligibility for Direct Loans Made Prior to July 1, 2017
The draft
borrower defense to repayment rule maintains the existing eligibility
definition only for direct loans made prior to July 1, 2017. To be potentially
eligible for full or partial discharge under the existing rule, borrowers will
need to show that the school violated state law in relation to their federal
student loans or in the education it provided – or didn't provide – them. In
most cases, this state law means the state's consumer protection laws, which
are usually outlined on the local attorney general's website.
One example
of a violation that may fall under this particular eligibility definition is a
school stating that its job placement rate is 100 percent for a particular
major when the actual rate is much lower. Another is a school advertising that
students who complete a certain credential at the school will be eligible for
certain employment but, in reality, the courses do not fulfill the necessary
licensing requirements for that field.
Examples of
circumstances that don't fall under this discharge eligibility include
slip-and-fall accidents on campus, allegations of sexual harassment and most
grade disputes.
In most
cases, borrowers must submit applications directly to a special unit that the
Department of Education created to review these applications. If applicable,
that same unit will pursue the schools for restitution of the discharged funds.
It's
important to note that, in most cases, whether the Department of Education can
or will pursue a school for restitution on these discharges has no bearing on
borrowers' chances of the department approving their discharge application.
With that
said, again in most cases, the majority of the evidence will have to prove the
borrowers' claims, which in some situations may be difficult for consumers to
prove unless the school has already faced some legal or other action or if the
Department of Education already has evidence in its files that support the
borrowers' claims.
Discharge
Eligibility for Direct Loans Made on or After July 1, 2017
Although the
process for discharge is the same for new borrowers, the eligibility for
discharge under the draft rules is much broader.
Under the
proposed rule, borrowers may be eligible for full or partial discharge if they
can show that a court found that the school violated state or federal law; that
the school committed a breach of contract; or that the school or a
representative of the school substantially misrepresented something – such as
cost, employability or the education provided – that the students reasonably
relied on when deciding to attend the school or remain at the school.
For both
older and newer loans, borrowers can apply for discharge at any time, as long
as they have an outstanding loan balance. If they also want to seek a possible
refund for payments they already made, borrowers in most cases will need to
make the claim within about six years of when the violation occurred. For
claims made based on court findings of state or federal law violations, there
is no statute of limitations.
Discharge
Eligibility for Federal Family Education Loan Program or Other Federal Loans
In general,
potentially eligible borrowers will face a much larger hurdle for discharge
under certain federal loan programs, such as the Federal Family Education Loan
Program. However, we won't go into the details on why there's differences
between the programs here.
To make a
discharge claim for these federal loans, borrowers must prove that the school
violated state law and that the school and the lender had a referral
relationship. Most consumers will have a difficult time proving this,
especially considering that, at best, these Student Loans in India are at least six years old now.
In
recognition of this challenge, the Department of Education is proposing to
allow FFEL, Perkins and other federal loan borrowers to consolidate into the
direct loan program if they can show that they would be eligible for full or
partial discharge under the direct loan eligibility definition.
We realize
that many of our readers will fall into this federal loan category. However,
since the rule is currently only a draft and full details remain unclear, we
will wait to discuss this further when the details have been clarified.
Source: https://educationloansinindia.wordpress.com/2016/07/01/defrauded-student-loan-borrowers-may-soon-have-discharge-options/
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