While we try to publish about five new articles each week on HSH.com, last week’s snow storm put a little crimp in our schedule. The result: twice as many articles published this week on HSH.com.
Let’s take a look at the fresh content on our home page:
As parents, should your top financial priority be saving for your child’s college education — or for your own retirement? Parental instincts will always tell you to put your child’s need before your own, but in this case they may be wrong.
Financial expert Clark Howard says always remember this: “There are no scholarships for retirement.”
Along with their diplomas, many college students are graduating with debt. According to a study by Sallie Mae, the nation’s largest provider of student loans, the average amount of credit-card debt among graduating seniors rose to $4,100 last year from $2,900 in 2004. The study also found that nearly 85% of students have at least one credit card.
Why target college students? College-age students represent a credit-card company’s dream come true: Read the rest of this entry »
There’s an ongoing battle on Capitol Hill over the future of student loans. President Obama is pushing to replace private lenders with direct government loans. The Congressional Budget Office (CBO) estimates that direct lending could save $94 billion over the next 10 years.
It’s easy to understand how critics may feel that this is just another measure by the new president to expand governmental control. The plan, which could eliminate a majority of the private industry, would undoubtedly change the landscape of how student loans are distributed. Private lenders feel the government is seeking to capture their profits: Read the rest of this entry »
In a major announcement made this morning, the Federal Reserve has begun to construct some relief for Main Street — finally! As credit conditions worsened in September and seemingly ground to a halt in October, consumers suddenly found themselves unable to pull credit from anywhere. The Fed announced this morning the creation of the Term Asset-Backed Securities Loan Facility (TALF) that will “lend up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS” to increase the issuance of debt designed to free up money for credit cards, auto loans, student loans, and small business loans:
The Fed hopes the plan will create liquidity in the market for securities backed by the receivables from such loans, which in turn would encourage originators of consumer loans to restart lending to individuals.
Shopping for student loans could negatively affect your credit score. Consumers who comparison shop auto and home loan rates over a brief period of time won’t notice a drop in their credit score. So why are student loan shoppers’ credit scores being docked for searching for the best rates?
When college financial aid officers got into trouble last year for accepting gifts from lenders, the moral of the story was clear: You could easily overpay for your student loan by simply borrowing from a college’s recommended lender without first shopping around.
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
