Tag Archive for student loans

What We Need: Student Education, Not Student Debt

A college degree is a product. Students pay a fee in the form of tuition and they receive an education. That education is a ticket to a better life in the form of higher earnings, or at least it always has been. College professors and administrators have bristled when I opine that their “product” should be viewed in terms of future earning potential. They would rather focus on the intrinsic value of education. UnfortuUniversity Student Begging with Mortar Board - Education Costsnately the ever-increasing cost of their product forces us to look beyond the intrinsic and seriously consider extrinsic value. Only with this information in hand can a student and his/her family make a wise choice about where to go to school, how much to pay for the degree, and what the future prospects will be for the graduate.

Some very disturbing statistics that I recently learned when I attended a community conversation bring into specific relief the need for a deeper consideration of the value of a college education:

  • In Oregon alone students borrow between $1.3 and $1.5 billion dollars in student loans each year.
  • Student loans amount to $1.2 Trillion in the United States.
  • Each year students in our country will take out $100 Billion in new student debt.
  • The state of Oregon provides only 11% of state college and university expenses the rest must be made up with tuition.

These numbers are staggering. It disturbs me to think what this level of debt means to the future of our country. I, therefore, ask: What is the value of a college degree in terms of life earnings? This is simplistic of me, however. One needs to understand other elements to even begin to fully answer the question.

The Payscale organization has developed a chart called College ROI that may help. Here is a link to the chart: http://www.payscale.com/college-roi/. Before signing onto a lifetime of debt students should at least consider some of the statistics. The chart provides some choice details such as graduation rates, the “ticket price” with and without financial aid, and how much debt the average student has when s/he leaves school. These and other considerations are important when trying to determine the value of an education from a particular college.

Students need to be well armed before entering the battlefield of college. They need many arrows in their quiver and understanding the value of their education is an important one.

Anne Lee
Director of OperationUniversity Student Begging with Mortar Board - Education Costs

Student Loan Consolidation- Part II the Dispute Letter

Student Loan Consolidation- Dispute Letter

It’s been a long time since I’ve had to write a dispute letter, but I’m quite experienced in it since I worked in collections for several years. I finally had some time today to sit down and sift through the notices I’ve received over the last several months regarding my student loan consolidation. Unfortunately the more I dug into the paperwork the more it scared me how unorganized they were during this whole process. In March they sent me a notice telling me that they were planning to complete the consolidation 09/01/10, but that they sent it in 02/25/11. They didn’t bother to call the previous loan company to get a new payoff amount since I had still been making my regular monthly payments. It’s important that anytime you are doing a consolidation, refinance or any type of loan change that you continue to make your regular monthly payments on time.

I sifted through all of the paperwork and tried to outline as clear as possible my situation of them receiving a refund from my previous service provider, which then caused my principle balance to go down and somehow caused my payment to go up.

Some important things to know about sending dispute letters:
• Always send dispute letters via certified mail and save the delivery receipt,
• Send the notice to multiple departments if you think it will help,
• Send copies of any documents you are referring to,
• Document and cite names and dates of conversation you have had with the company,
• Clearly state the problem and what you want to know or what your suggested resolve is, and
• Be sure to follow up!

I will be sending the disputer letter out today. I’m sending it to the processing center Texas and the Consolidation Department in Kentucky. Cross your fingers on my getting a response.