April 29, 2024

Bucks Blog: New Tool Helps Evaluate Student Loan Options

Worried about paying back your student loans? The federal Consumer Financial Protection Bureau now offers an online “student debt repayment assistant” tool that can help you evaluate possible options.

The tool doesn’t actually accept applications for changes to your loans. But by asking four basic questions, it provides a guide to the steps you can take to explore various alternatives.

The tool first asks if you have federal (government) loans, nonfederal (private) loans or a combination of both. The answers are important because that determines what options are available. If you aren’t sure, the tool links to the National Student Loan database, where you can search for loans made to you and determine if they’re federal or private.

The database also provides the name of the loan servicer — the company that collects your payments — if you don’t know. That is also important because ultimately the tool advises you to call your servicer (which may be different from the company that originally made the loan). The tool explains the various options for you to ask about, like a deferment or a forbearance, and the pros and cons of each.

The site also explains the Department of Education’s “income-based repayment” option, which can limit monthly payments on federal student loans (but not private loans) if your debt is high compared with your income.

The tool provides a chart with estimated payments based on income and family size, and provides a link to a calculator on the Education Department’s Web site that can more precisely estimate what your monthly payment would be under such a plan.

Neither the consumer bureau’s chart, nor the Department of Education calculator, has been updated to reflect President Obama’s proposal, announced on Wednesday, to reduce the income-based repayment cap to 10 percent of income, for some students graduating next year and thereafter. Rather, they still reflect the current cap of 15 percent. A spokeswoman for the Education Department said its calculator will be updated after the president’s proposal goes through the necessary regulatory review process.

If you try the tools, let us know in the comments section if you find them helpful.

Article source: http://feeds.nytimes.com/click.phdo?i=6e1cfe13e1eb01c0b3f30b9a553fc21d

Bucks Blog: A One-Page Form to Compare College Aid Offers

Click to expand.consumerfinance.govClick to expand. (pdf)

In its latest effort to simplify consumer finance, the new federal Consumer Financial Protection Bureau has teamed up with the Department of Education to create a one-page financial aid “shopping sheet.”

The idea here is that a single sheet of basic information would help students and their families better understand the amount of financial aid they qualify for, and compare aid packages offered by different colleges and universities before deciding which school to attend.

The draft sheet (you can see it here; the agencies want public feedback on the format, and what changes would make it better) would help make the costs, and risks, of student loans clear before students have enrolled. It outlines the student’s total estimated debt and monthly loan payments after graduation.

Raj Date, who is leading the bureau, said in a statement that student loans can help make lives better by helping people access education. “But in these tough economic times,” he said, “the stakes have never been higher for students and their families to clearly understand the costs and risks of student loans.”

Student loans in the United States now appear to be the biggest source of household debt after mortgages. In part, that’s because more students are going to college, but it’s also because tuition is increasing.

The draft form includes the total cost of attendance, including tuition, fees, and other expenses; a clear distinction between scholarships, which don’t have to be repaid, and loans; a list of the different federal loans available to the student; the total estimated student loan debt at graduation; and the estimated monthly debt payments after graduation.

The bureau is also offering a new tool to help students who may be struggling to repay their college debt evaluate possible options.

Take a look at the form and the tool, and let us know what you think in the comments section.

Article source: http://feeds.nytimes.com/click.phdo?i=c0b911387e88a8ccf872c0c788aa36f1

Teachers and Students Mark Banned Websites Awareness Day

New Trier High School in the Chicago suburbs surveyed students about blocked Web sites after loosening its own Internet filters this year. And in New York City, students and teachers at Middle School 127 in the Bronx sent more than 60 e-mails to the Department of Education to protest a block on personal blogs and social media sites.

These were some of the efforts marking the first Banned Websites Awareness Day, organized by the American Association of School Librarians as an offshoot of Banned Books Week.

Carl Harvey, the association’s president, said that as more schools had embraced online technologies, there had been growing concern over schools that block much of the Internet.

But some school leaders and education advocates have argued that the Internet can be a distraction in the classroom, and that blocking social media is also a way to protect students from bullying and harassment at school.

“I think students should have unfettered access to the library,” said William Fitzhugh, editor of The Concord Review, which publishes history papers written by high school students, adding that many children already spend too much time on the Internet.

Phil Goerner, a Silver Creek librarian, said the focus on banned Web sites encouraged students to wrestle with the thornier issues of censorship. He asked his students to consider whether schools should block sites espousing neo-Nazi or racist ideas. “It makes them think about it in deeper ways than if they were just to say, ‘No, don’t block it,’ ” he said.

Mr. Goerner said he decided to organize the graffiti debate as a reminder to students that censorship takes away a person’s voice or, in this case, online privileges. Silver Creek unblocked many social media sites, including Facebook and Twitter, two years ago after recognizing that they could provide learning opportunities, he said.

Similarly, New Trier High School stopped blocking many sites this year after teachers voiced concerns that the filtering had grown oppressive.

Entire categories of Web sites had been blocked, including those that involved games, violence, weapons, even swimsuits, said Judy Gressel, a librarian. “It just got to the point that it became hard to conduct research,” she said, adding that students could not read sites about, say, military weapons for a history paper.

Deven Black, a librarian at Middle School 127 in the Bronx, also said that filters had blocked a range of useful Web sites. YouTube and personal blogs where educators share resources can have value, he said. “Our job is to teach students the safe use of the Internet. And it’s hard to do that if we can’t get to the sites.”

New Canaan High School, in Connecticut, cut off all access to Facebook, YouTube and Twitter just for the day to show solidarity with schools without access.

“It’s not even lunchtime, and I’m already dying,” said Michael DeMattia, 17, a senior, who carries a laptop to school.

In his Advanced Placement Biology class, where lab groups have created a Facebook thread to collaborate and share data, he could not log in. In honors comparative literature, his classmates were unable to show a YouTube video during a presentation.

The Internet, Michael said, has “made cooperation and collaboration inside and outside of class much better and faster,” adding, “It’s really has become an integral part of education.”

Article source: http://feeds.nytimes.com/click.phdo?i=90ce9d76b9f1501c9278b27863e6b3ca