...The only safe way to acquire student loan debt is if you can predict the future economy, job market, and housing market. Students are forced to spend money they do not have and cannot predict to have in four years. In my case, obtaining student loan debt derailed my career and life goals. In 2008 when I graduated from the University of California Los Angeles, I was thrown into one of the worst recessions since the 1930s Great Depression. There were hiring freezes, cut backs, and downsizing. This meant there were more experienced workers than me who were now applying to the same jobs that I was applying to. I could not find a job, but I still needed to pay off the $20,000 in loans that were acquiring interest. I was not in a great position and...
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...people who can no longer pay their creditors get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. Most cases are filed under the three main chapters of the bankruptcy code. They are Chapter 7, Chapter 11, and Chapter 13. Federal courts have exclusive jurisdiction over bankruptcy cases. This means that a bankruptcy case cannot be filed in a state court. Below is a high-level summary on each bankruptcy code: Chapter 7 – Liquidation under the bankruptcy code: The chapter of the Bankruptcy Code providing for "liquidation," ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.) Chapter 11 - Reorganization under the bankruptcy code: The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) Chapter 13 – Individual debt adjustment: The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) To some extent, Chapters 11 and 13 are similar. Both...
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...Rising Student Loan Default Rate: The Next Financial Crisis in the United States Rebecca Richards QBT1 - Language and Communication: Research October 1, 2012 Rising Student Loan Default Rate: The Next Financial Crisis in the United States Introduction Higher education is an important resource for career focused people here in the United States. In order to attend college, most students have to take out loans in order to cover the cost of attending. However, the rising rate of student loan defaults has recently become a serious issue that needs to be addressed. Economists agree that the rising amount of student loan default can prove to be a good indicator when seeking to predict future payments on student loans (Ismail, Serguieva, & Singh, 2011). Recent studies have shown that the growing rate of student loan default on higher education loans could cause another financial crisis in the United States because the loans are government backed, the cost of higher education is on the rise, and unemployment rates are on the rise preventing repayment. Taking on student loans can feel like and endless cycle of entrapment to the borrowers and they are often left with the belief that they have no other choice than to default on their loans. It is impossible to say with 100% certainty where the culpability lies for this unfolding crisis. One point of view is that the students may be at fault for not fully understanding the magnitude of the debt they are taking on...
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...today’s society. Many students in the United States tend to focus on their studies and work hard to receive good grades. Most importantly, the financing of most student’s post-secondary education tuition has become difficult in today’s economy due to the costs. According to American Progress, “a recent study by Georgetown University’s Center on education and workforce found that at current levels of production, the U.S. economy will have a shortfall of five million college-educated workers by 2020.” (Bergeron & Martin). This shows that the cost expense of college causes five million college educated workers to decrease. Five million people who do not have a post-secondary degree due...
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...universities (About Harvard College). During the early 19th century, smaller colleges were founded to help young men transition from rural farms to urban occupations. Prestigious colleges at the time became more exclusive by concentrating on the children from wealthy families, ministers and a few others. Those prestigious colleges and universities are still very exclusive today mainly due to their expensive tuition. Students who attend these colleges are generally from wealthy families, have scholarships for high academic achievements or graduate with extremely high loan debts. In the early 20th century, junior colleges or now known as community colleges were created to prepare students for the final two years of college. Later in the 20th century state colleges were created to provide higher education at a lower tuition cost. Due to the rise of community and state colleges, students now have the opportunity for higher education, and college became part of the American dream for both students and their parents. Over the past, half a century students have been working diligently to prepare for college with the hopes of graduating with a degree that will provide them with the career of their dreams and to earn large incomes. Slowly, over time the cost of tuition in community colleges, state colleges, and prestigious universities have increased. So at what point do we say that the American dream has become too expensive? In the early 1990’s new types of...
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...Roebuck vs. Wal-Mart and Quality Furniture Company cases have been dropped. Approach Although it is not possible to do this precisely, the financial statement analysis discussion is more coherent, we believe, if it is built around Illustration 13-1. The theme is that the financial statement proxy for shareholder value is return on investment, and the ratios help explain why a given return was not satisfactory (if it was not), or at least identify the areas that need investigation. As with Chapter 8, the amount of attention given to this chapter depends on whether or not the students are taking or will take a course in finance. In such a course, they will, of course, deal considerably more with financial statement analysis than is contained in this introductory treatment. When a finance course is given, we do not assign the chapter, but suggest only that students skim through it. Students should not get the impression that there is one “best” list of ratios to be memorized. Although the 24 given in Illustration 13-3 could be expanded still further, in practice the analyst will select the ratios most appropriate for a given industry setting. Cases Genmo Corporation is a “backwards” case in which students deduce the financial statements of General Motors Corporation from the ratios. Amerbran Company (B) is a case involving straightforward calculation of ratios. Identify the Industries--1996 is a case showing companies in the different industries can have...
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...HECS-HELP Commonwealth supported places information for 2016 IMPORTANT The Australian Government has proposed changes to the higher education system. It is important that current and future students understand how these changes may affect them. Visit www.studyassist.gov.au for up-to-date information on these proposed changes. www.studyassist.gov.au YOU MUST READ THIS BOOKLET BEFORE SIGNING THE COMMONWEALTH ASSISTANCE FORM BELOW. WHEN YOU SIGN YOUR FORM, YOU DECLARE THAT YOU HAVE READ THIS BOOKLET AND THAT YOU ARE AWARE OF YOUR OBLIGATIONS AS A COMMONWEALTH SUPPORTED STUDENT AND UNDER HECS-HELP. Request for Commonwealth support and HECS-HELP form If you do not submit a form or finalise your payment by the census date you risk cancellation of your enrolment as a Commonwealth supported student (your institution may have set an earlier administrative date for this deadline—check with your institution). USING THIS BOOKLET • As you read through, you will notice that certain terms are highlighted in pink. These terms are defined in the glossary. • If you have a specific question after reading this booklet, the contacts list at the end of this booklet will help you. • More information is available at www.studyassist.gov.au. IMPORTANT NOTE: The Department of Education and Training has endeavoured to ensure that the information in this publication is consistent with the Higher Education Support Act 2003 (the Act) and guidelines made...
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...once the Free Application for Federal Student Aid (FAFSA) is completed and an EFC or Estimated Family Contribution is assigned. The EFC for a student determines how much Pell Grant funding they qualify for. Pell Grant funds adjust due to EFC calculations for a student and the number of courses a student is enrolled in each term. Students with a zero EFC qualify for maximum Pell funds each term. With the number of Pell eligible students increasing and the majority of them receiving automatic zeros regulations are critical. “A student can receive a zero...
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...Introduction to Student Loan Debt, with Information on Important Related Subjects Contact Author Start Your Own SelectedWorks Notify Me of New Work Available at: http://works.bepress.com/richard_serlin/15 Introduction to Student Loan Debt With Information on Important Related Subjects By Richard Serlin Student loan debt has become an extremely important issue in recent years. There are several key reasons for this. First, the amount of student loan debt taken on has skyrocketed to unprecedented levels. At public universities the percentage of students graduating with over $40,000 in student loan debt increased 18 fold between 1993 and 2004 – even using constant, inflation adjusted, dollars. In 1993 only 0.3% of all graduating seniors had student debt of greater than $40,000 (in 2004 dollars). By 2004 5.4% did. One-fourth of all public university graduating seniors in 2004 had student loan debt greater than $22,821. Half had student loan debt greater than $15,471. Median student loan debt increased by 108% between 1993 and 2004, and even adjusting for inflation it increased by 58%. Those obtaining graduate degrees can finish with over $100,000 in student loans. This debt is especially serious given that it is virtually impossible to discharge in bankruptcy. It would take a tragedy akin to being full body paralyzed in an accident to get it discharged under the current rules. On top of this, people must often cope with these unprecedented student debt...
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...Literature This part of the study includes reading in literature and studies which have bearings on the present study. This covers the discussion on the sex, age, program and the financial literacy of STA in terms of savings, budgeting and spending. Financial literacy is mainly used in connection with personal finance matters. The majority of college students do not budget their money. Researchers, educators, and policy makers would generally agree that lack of financial knowledge and skills have contributed to the latest economic and financial crisis (Klapper & Panos, 2011). Hogarth (2002) described the consistencies in behavioral terms, stating that individuals who are financially literate are: 1) knowledgeable,...
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...Chapter 7 Bankruptcy Chapter 7 Bankruptcy is a “liquidation form of bankruptcy under federal law (Twomey & Jennings, 2014, p. 747)”, in which one can convert property into money to pay a debt or to satisfy other financial responsibilities (Twomey & Jennings, 2014, p. 747). Consumers, such as Andy, must exhibit their inability to repay their debt, as well as, satisfy the requirements outlined in a “means test” in accordance with The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCA) (Twomey & Jennings, 2014, pp. 748-749). A Chapter 7 Bankruptcy “means” test is performed by the state in which one is filing for bankruptcy. In shaping his voluntary decision, in which Andy petitions the court and files for a Chapter 7 Bankruptcy on his own accord, Andy’s “means” testing would be determined by the state of Florida’s median family income. If Andy’s disposable income is equal to or less than Florida’s median family income, then Andy could move forward to petition the court for Chapter 7 Bankruptcy. For the purpose of this case study, we will use the median income for Orange Park, Florida and consider Andy’s household to be 1 since it is not known if Andy claims his dependent child on his federal income taxes. The Bankruptcy Means Test Calculator for Orange Park, Florida (Clay County) calculated Andy’s median income at $2222.22 monthly based on his annual salary of $40,000. In Clay County, Florida the median income for one member household is $3445.00...
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...April 9, 2014 Assignment 3 The Double Edge Sword Known As Student Loans Higher education should not be a privilege but a right; it should not be exclusively for the privileged. Not so many years ago the idea of seeking a college degree was optional. There were many jobs available in the United States that one could produce enough earnings to support a family. They were referred to as middle class jobs, however, due to some poor decisions made by our government those jobs are no longer available and the middle class is gone. Factories have moved to other countries and goods are produced cheaper there and imported back into this country ergo, we have become a country that no longer produces textiles, steel, or electronics, just to name a few. Most jobs that are available are in the service industry, namely cooks, retail sales and waitressing which do not produce a livable wage. To provide a service that will sustain a family, one must seek higher education; this is no longer an option, but a necessity. With the middle class now gone, the only way to fund higher education is with grants and loans. Grants typically do not provide enough funds to cover books and tuition unless the student lives with their parents; unfortunately student loans area double edge sword. Education, like everything else continues to rise in cost disproportionately with income. For most students taking a loan is the only way to achieve their academic goals. This decision should never be taken...
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...college education. Some type of secondary education should be encouraged but a four year college degree should not be pushed upon high school students. Obstacles such as mindset, wants for trade work or specialty careers, and debt leads students away from the idea of a college education. In many situations this high level schooling is not necessary. College is not solely a test of intelligence, therefore when watching for college standard abilities seeing your child developing self-management skills and study habits should be viewed as accomplishments. Creating this hardworking mindset will more greatly benefit the student than acing all his/her high school tests. ““Children only have so much time in a day,” Redford explains. "There is definitely a point of diminishing returns when it comes...
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...College tuition rates have increased dramatically in the past few decades. It has become one of the fastest-rising costs, with tuition raising about 200-400%, depending on the type of institute - whether it is public or private. In the U.S., students have collected over $1.4 trillion in student loan debt, with the average student having a debt of $38,000, not including the interest rates they are required to pay while they work off that debt (Fay). These costs can deter those that are graduating from high school from going to college, feeling that higher education is out of reach or that college is not worth the price. To persuade and assist those who want to create a better future for themselves, it is important that these extreme costs and the inflation of tuition rates be decreased, and students are no longer paying additional unnecessary costs. Earning a college degree can be considered necessary towards a quality life and sometimes even survival. Fay states, “A college graduate can expect to make about $1.3 million more than high school graduates over the course of their working lives.” Even those that are able to earn their degree might...
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...2012-13 to $8,893 in 2013-2014. In 2013-14, the percentage increase in tuition fee prices for out-of-state students was 3.1% which was slightly higher than that for state residents at public four-year institutions. There was an increase from $12,887 to $13,310. The $110 increase in average tuition and fees for full-time students in a public two-year colleges reflected a 3.5% increase from $3,154 in the years 2012-2013 to $3,264 in 2013-14. The $1,105 increase in average published tuition and fees for full-time students at private nonprofit four-year institutions reflected a 3.8% increase from $28,989 in 2012-13 to $30,094 in 2013-2014 (“Trends in Higher Education”). Furthermore, between the years 2001 to 2011, at least a third of states experienced funding cuts. During the recent recession in 2008, total public funding for higher education has declined by 14.6 percent (O'Shaughnessy). Consequently, the escalating cost of college tuition has threatened educational opportunities for prospective college students. Free college education has been an ongoing debate between families, students, and politicians. One of the key factors in the social and economic development of a country is education. There are different opinions on whether college education should be free or not. Many claim that education is a right and should be free while others claim that students who are...
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