Data from the National Postsecondary Student Aid Study (NPSAS) (National Center for Education Statistics) show that the majority of students are turning to loans to finance college, and debt levels are escalating. Thirty-nine percent of student borrowers now graduate with unmanageable levels of debt, meaning that their monthly payments are more…

During a symposium on ensuring student loan repayment, writers were recording best practices and ideas for improvements in student loan programs. The chapters of this handbook are organized in the same way that the symposium discussions occurred. Chapter 1 summarizes recent trends in student loan defaults and the general themes that emerged during…

This hearing was held to consider whether the student loan programs of the Department of Education place tax dollars at risk. In his opening remarks, Representative John L. Mica (Florida) pointed out that for nearly 10 years, the U.S. General Accounting Office has labeled these programs as a high risk for fraud, waste, abuse, and mismanagement. In…

This publication explains what federal student financial aid is and what types of student aid are available. Two introductory sections present: federal student aid at-a-glance (what it is, who gets it, and how to get it) and finding out about student aid. The first section presents general information on the following subjects: student…

A brochure describes how student loan default can cause permanent damage to an individual's financial future. and how to prevent default. A student loan is a legal promise. In exchange for help funding one's education, a promise is made to repay the education loan. The promise is made by signing a Promissory Note for any funds borrowed. Loan…

This report compares the borrowing patterns of two cohorts of bachelor's degree recipients and examines their debt burdens (defined as monthly payments as a percentage of monthly salary income) a year after they graduated, using data from the 1993/94 and 2000/01 Baccalaureate and Beyond Studies. The participants in these studies were first…

Colleges must investigate financing options before they are needed by their students and be ready to help students find new and creative ways to fund their education. Tax-exempt financing options, new sources of loan capital, cooperative arrangements with state agencies, and new federal aid are among the possibilities to explore. (Author/MSE)

A court ruling in the Girardier v Webster College case, that a college or university may validly refuse to issue transcripts to former students who have not repaid their educational loans and who have discharged those obligations through bankruptcy, is discussed along with some related cases. (Author/MLW)

This article analyzes "skyrocketing" student debt levels, discussing debt burden, borrowing trends among student subpopulations, and why debt is increasing. It asserts that to reverse these trends, particularly among low-income and minority families, Congress must increase grant aid, lower the cost of borrowing to students, and make repayment less…

The rule of 78 is used by banks and loan companies to compute the amounts due when installment loans are paid early. Describes an unexpected case of negative amortization when the rule is applied. Presents an actual problem and discusses the case. (YP)

A survey administered to student loan recipients at their exit interview provided information about their characteristics (college of graduation, gender, race, grade point average, and age), post-graduation plans, anticipated annual income, estimated time for loan repayment, total debt, and monthly payment. (MSE)

Data from three national databases were used to investigate the relationship between college student characteristics and college characteristics and patterns in loan repayment and default. Analysis suggested that repayment/default behavior can be predicted by precollege, college, and postcollege characteristics of individual borrowers but not by…

Discusses the mathematics involved in comparing the purchase of an automobile with cash versus with a loan. Investigates two scenarios: (1) if a loan is taken out and the cash price is invested at a fixed rate, and (2) if cash is paid and monthly payments are invested over the period of the loan. (MDH)

This article summarizes the current pattern of finance of higher education in Ghana, gives a brief history of student loans in Ghana, and describes a new program, which is administered by the Social Security and National Insurance Trust and is expected to result in a higher rate of loan repayment. (Author/DB)

A proposed change in federal student loan policy from providing loans through lending institutions to providing loans directly to students is of enormous importance to higher education, with major implications for colleges and universities. There are powerful arguments pro and con. Institutions must ensure they and policymakers understand the…