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Who is on the hook for student loans?

Parents often ask what options their student has for loans that don’t require a co-signer. The answer: very few other than federal direct student loans. A quick review: undergraduate education loans come in three broad types: Direct student loans: These are federal loans for undergraduate students, with an annual borrowing limit ranging from $5,500 for first-year students to $7,500 for…

Tuition is On Sale!

Last year, private nonprofit colleges discounted tuition at record rates: the average tuition discount rate was 53.9% for first-time undergraduates. That means that among this year’s college freshmen, for every $1,000 of list price tuition, only $461 was actually paid, according to initial data from NACUBO. While the pandemic certainly increased colleges’ need to discount tuition to bring students to…

How Much Can You Contribute to a 529?

That title was a trick. I’m actually going to write about how much you should contribute to a 529 first. Lately I’ve heard versions of the same question again and again: After a year of no travel, eating out or other activities, people are sitting on extra cash that they want to direct towards college. Many are wondering what’s the…

Free Community College– Act Fast!

Many states offer free community college to some or all residents. But there’s some fine print that makes timely action necessary. Most states require students to apply for free community college during their senior year of high school. By now, most college-bound seniors have a pretty good sense of what their plans are, and those plans might not include community…

Student Loan Interest Rates for 2021-22

Now that the May Treasury auction has taken place, student loan interest rates for the 2021-2022 school year are set. This year’s yield on the 10-year treasury was 1.684%, up about 1% from a year ago. Since student loan interest rates are fixed markups from the May treasury yield, that means student loan interest rates will go up about 1%…