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Posts tagged ‘college education’

Borrower Beware: Accepting Student Loans

college debtAs President Obama signs an order to cap student loan payments at 10 percent of monthly income for an additional 5 million borrowers, here are some eye-opening facts from the New York Fed on how little Americans understand about the impact of student loans. 

The survey covered 1,029 people, including those with and without debt. Only 28 percent of respondents knew that if student loans aren’t repaid, the U.S. government can garnish wages, withhold Social Security payments and tax refunds, and report the debt to credit bureaus. Even more people—35 percent—incorrectly thought the government couldn’t do any of those things or said they didn’t know what the government could do. Only 37 percent of those surveyed knew that students loans are extremely hard to shed in bankruptcy, a reality that differentiates student loans from other debts, such as mortgages and credit cards. Read more here…