If you're struggling to make your monthly student loan payments on your measly first-job salary, you're not alone. The good news is, the government is taking notice -- and changing the game to make sure monthly payments don't cripple college grads. Even better, whatever you haven't paid off after 25 years may be forgiven. With this new option, instead of calculating ...

Several grass-roots groups were established on Facebook in early 2009 calling for the cancellation of all student loan debt under the theory that this will stimulate the economy. Most noteworthy is the group Cancel Student Loan Debt to Stimulate the Economy (see also www.forgivestudentloandebt.com) founded by Robert Applebaum, a New York attorney. This group has grown to have more than 220,000 ...

If a child does not qualify for the free or reduced-price school lunch program, can they still qualify for federal student aid? —Y.P. Yes. Students who don't qualify for the free or reduced-price school lunch program can still qualify for federal student aid and should submit the Free Application for Federal Student Aid (FAFSA). The FAFSA added a question about the ...

The US House of Representatives is considering legislation to overhaul the federal education loan and grant programs. The Student Aid and Fiscal Responsibility Act of 2009, nicknamed SAFRA, will increase funding for federal student aid programs and simplify the Free Application for Federal Student Aid. These changes will implement several of President Obama's campaign promises. Switch to 100% Direct Lending Starting ...

President Obama proposes to cap student loan payments at 10% of discretionary income as part of a package of proposals outlined by the White House Task Force on Middle Class Families on January 25, 2010. Debt would also be forgiven after 20 years in repayment. This proposal would enhance the income-based repayment plan which was enacted by Congress as part of ...

This year more than ever, the economy is making it more difficult for families to pay for college. The number of financial aid applications is up more than 10% over last year. Lenders are suspending loan programs and tightening credit standards. Families are concerned -- really concerned -- about obtaining loans and paying for college. Add in the possibility of job ...

The American Recovery and Reinvestment Act of 2009, also known as the stimulus bill, includes major increases in student aid funding for the 2009-10 academic year. It includes the largest dollar increase ever in the maximum Pell Grant and significantly expands the Hope Scholarship tax credit. It also increases funding for the Federal Work-Study and AmeriCorps programs. The legislation was signed ...

The US House of Representatives approved the student loan and health care reform legislation on Sunday night, March 21, 2010, by a vote of 220 to 211. No Republicans voted in favor of the legislation. The US Senate is expected to pass the legislation within about a week. The student loan bill will end the federally-guaranteed student loan program, where banks ...

Is your financial aid advice featured in The New York Times? Didn’t think so. Mark Kantrowitz, is nationally recognized as an often quoted leading financial aid expert. With degrees from M.I.T., Carnegie-Mellon and more quotes than Webster’s, he is the financial aid guy’s financial aid guy. Here’s his advice for these tough times. Kantrowitz strongly encourages families to save 1/3 of ...

I'm having problems with my financial aid. I'm a single mother of one. My daughter is almost three years old and will be attending daycare this semester. I've been going to college for two years and will receive my associates degree soon with a cumulative GPA of 3.7. I will continue my education at another college this fall, and again I'm ...

Congress is proposing to allow borrowers to discharge private student loans in bankruptcy. Under current law, education loans are not dischargeable in bankruptcy except in extreme circumstances. The US Bankruptcy Code at 11 USC 523(a)(8) requires borrowers who want to get a bankruptcy discharge for their student loans to demonstrate in an adversary proceeding that repaying their student loans "would impose ...

Why should I fill in the FAFSA, opening up my financial life, when I know today that it will not get any aid for my children's college educations? We are not independently wealthy with millions in salary and savings, but we intend to have the kids compete for merit based, essay or other subjective determinants for college awards and scholarships. — ...

Suppose you've made the required payments on all your loans and want to use some extra money to pay off your debt quicker. How do you choose which loan to pay off first? There are two main strategies for accelerating the repayment of debt. One involves paying down the loan with the highest after-tax interest rate first. The other, popularized by ...

I am a high school junior and an Upward Bound scholar. I do not have any way to pay for college and I really want to attend. How do I apply for financial aid? What are the requirements? Do I have to pay for anything? What advice do you have for me if I do receive financial aid? — Alexis M. ...

Fastweb partnered with Maguire Associates, a firm that specializes in market research, analysis and predictive modeling for colleges and universities, to evaluate the impact of the economy on college choices by high school seniors and their parents. Initial surveys were sent in February and March 2009 to identify the initial selection of colleges. Follow-up surveys were sent in May 2009 to ...

Several universities that we have visited have stressed the importance of getting you FAFSA completed in January. If we don't have all of our financial and tax information yet, how can we complete the application that early? — Claudia G. The Free Application for Federal Student Aid (FAFSA) should be submitted as soon as possible after January 1. While the federal ...

Income-based Repayment Who: 1.6 million borrowers since 2008 with at least one loan in 2012 or later, generally borrowers whose total federal student loans exceeds their annual income What: Reduces cap on monthly loan payments by a third, from 15% of discretionary income to 10%, and forgives the remaining debt in 20 years instead of 25 When: Starts in 2012 ...

I have twin daughters going to college in the fall. The annual tab (for both girls) after scholarships will be $58,000 in loans per year for four years. We have saved $47,000 for the first year and anticipate being able to save about $12,000 per year to apply towards payments over the three remaining years. This leaves us looking for loans ...

I am a single parent of three children. One is a junior in college, the middle child will be attending college next year. I have always completed the FAFSA for my oldest daughter, claiming her as my dependent. Her father and and I have split the cost of out-of-pocket expenses. This past year, however, her father took me back to court ...

Sallie Mae and Gallup just released the results of a survey of how American families save for college. The survey found that most parents are continuing to save for college despite the economy and that saving for college slightly trails saving for retirement. More than 9 in 10 of the parents (92%) think that it is likely or very likely that ...