$1 Trillion Student Loan Debt Widens Us Wealth Gap

He explained: I needed a bit of extra money. My bank refused to extend my overdraft and I didnt want to go to my parents so I ended up using a short-term loan firm. It was just a disaster. The reason Smart-Pig.com is different he says is because it cares about the people it lends money to. As well as running a series of competitions with monetary prizes, a main feature of the company is the 10-day grace period it offers to those whose official payments are delayed. He said: I was slapped with lots of extra fees when I missed my repayment I really could have done with 10 days to resolve that hiccup without incurring a charge. Despite graduating in law, 24-year-old Shreiffs entrepreneurial flare was evident from an early age when he picked up trinkets from markets on family holidays to Morocco and sold them online for a profit on his return. He said: It was a little hobby and a lot of fun but it really set the business side of me going. Now two years old, Smart-Pig is going from strength to strength. <br>Source: <a href='http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546&#039; >http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546</a&gt;

The $1.1 trillionin student loan debt has become a real burden on the economy, contributing to the yawning chasm of U.S. wealth disparity, and dwarfing most other types of debt. For the year between the last quarter of 2012 and the end of 2013, student loan debt grew more than any other. This worries just about everyone with the young people actually shouldering the debt fretting the most. More debt = less wealth They have good reason to worry about the future. <br>Source: <a href='http://www.fool.com/investing/general/2014/04/05/the-11-trillion-student-debt-burden-is-paralyzing.aspx&#039; >http://www.fool.com/investing/general/2014/04/05/the-11-trillion-student-debt-burden-is-paralyzing.aspx</a&gt;

If you graduate with a B.A. or doctorate and you get the same job at the same place, you make the same amount of money, said William Elliott III, director of the Assets and Education Initiative at the University of Kansas. But that money will actually mean less to you in the sense of accumulating assets in the long term. Graduates who can immediately begin building equity in housing or stocks and bonds get more time to see their investments grow, while indebted graduates spend years paying principal and interest on loans. The standard student loan repayment schedule is 10 years but can be much longer. The median 2009 net worth for a household without outstanding student debt was $117,700, nearly three times the $42,800 worth in a household with outstanding student debt, according to a report co-written by Elliott last November. About 40 percent of households led by someone 35 or younger have student loan debt, a 2012 Pew Research Center analysis of government data found. <br>Source: <a href='http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/&#039; >http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/</a&gt;

<img src='http://www.chooseterm.com/wp-content/uploads/2013/05/student-loan-hate.jpg&#039; />

3 Dumb Student Loan Myths That Can Bankrupt Smart Borrowers – Forbes

And its been estimated that roughly 50% of borrowers can qualify for some type of student loan forgiveness program. You just have to look. The most common student loan forgiveness programs are students who pursue the following careers: The Military Volunteer Work Medical Workers If youre considering entering these fields, see what programs you could qualify for. Even partial student loan forgiveness is free money. Myth #2: The Government Isnt Flexible With Student Loan Payments So, your six months of deferment are up on your student loan, and you get your first bill. You look at it and think, How am I ever going to repay this? But you dont realize there are other options available. <br>Source: <a href='http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/&#039; >http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/</a&gt;

Our View: homepage Student loan debt harms futures

We also asked Deborah Fox, head of Fox College Funding in San Diego, to provide insight and advice. If you have more questions about paying for college, send them to walter.hamilton@latimes.com or leave them in the comments section below. Question: My 17-year-old daughter will be applying to colleges at the end of the current semester. Since I'm 67 years old, I am concerned about being able to afford sending her to the college of her choice. Since my income is fairly high right now, I'm concerned that she won't qualify for financial aid, and a scholarship is long shot. What would be the best way for me to ensure that her education is paid for? <br>Source: <a href='http://www.latimes.com/business/money/la-fi-mo-student-loans-financial-aid-college-20140401,0,5531215.story&#039; >http://www.latimes.com/business/money/la-fi-mo-student-loans-financial-aid-college-20140401,0,5531215.story</a&gt;

Q&A on paying for college: Financial aid, loans, FAFSA confusion – latimes.com

We want those who have student debt to pay off the loans. To forgive the debt is not an ethical solution. But this is a national crisis that is harming the ability of the young to start saving early in their lives. Pensions are mostly a thing of the past. It's critical that young Americans save and enjoy the benefits of compounded interest. <br>Source: <a href='http://www.standard.net/stories/2014/04/03/our-view-student-loan-debt-harms-futures&#039; >http://www.standard.net/stories/2014/04/03/our-view-student-loan-debt-harms-futures</a&gt;

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