Elizabeth Warren has introduced a bill that would expand food stamps for low-income college students

The mention of “food” and “college students” together might conjure up images of bustling dining halls and late-night snacks. Temple University’s Hope Center for College, Community and Justice surveyed nearly 86,000 college students from 123 schools and found that nearly half are “food insecure.” By adding students who receive Pell Grants and independent students to this list of SNAP eligible students, Warren and Lawson’s bill could expand access to a huge swath of U.S. college students. The Dep


The mention of “food” and “college students” together might conjure up images of bustling dining halls and late-night snacks. Temple University’s Hope Center for College, Community and Justice surveyed nearly 86,000 college students from 123 schools and found that nearly half are “food insecure.” By adding students who receive Pell Grants and independent students to this list of SNAP eligible students, Warren and Lawson’s bill could expand access to a huge swath of U.S. college students. The Dep
Elizabeth Warren has introduced a bill that would expand food stamps for low-income college students Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: abigail hess
Keywords: news, cnbc, companies, qualify, students, education, college, food, pell, warren, elizabeth, stamps, lowincome, bill, introduced, expand, student, snap, receive


Elizabeth Warren has introduced a bill that would expand food stamps for low-income college students

The legislation would also lower SNAP’s current work requirement for college students to 10 hours per-week and require the Department of Education to inform low-income students about their potential SNAP eligibility.

On Wednesday, Senator Elizabeth Warren and Congressman Al Lawson introduced The College Student Hunger Act of 2019 , which would expand SNAP benefits (or “food stamps”) to include Pell Grant-eligible students and “independent students,” such as those who are in foster care, who are veterans or who are homeless.

The mention of “food” and “college students” together might conjure up images of bustling dining halls and late-night snacks.

“As more and more students struggle to pay for college, 30% may be going hungry,” Warren tweeted. “Students shouldn’t have to choose between paying tuition and eating.”

Lawson echoed Warren in a statement. “The significant increase in college tuition over the last decade has forced students to make a choice between buying food or paying for books and housing expenditures. This bill will help to relieve some of that financial burden for them.”

Temple University’s Hope Center for College, Community and Justice surveyed nearly 86,000 college students from 123 schools and found that nearly half are “food insecure.”

The survey found that 45% of respondents often or sometimes worry that they do not have money to buy food, worry that their food will run out before they have the money to buy more or that they can’t afford balanced meals. A 2018 U.S Government Accountability Office report found that there are roughly 2 million college students in the U.S. who qualify for SNAP benefits but do not receive them.

Currently, SNAP eligibility varies from state to state, but most non-disabled college students between the ages of 18 and 49 do not qualify unless they meet requirements beyond traditional measures like income. For instance, some low-income students who have a disability or who are caregivers to a dependent household member can qualify for SNAP.

By adding students who receive Pell Grants and independent students to this list of SNAP eligible students, Warren and Lawson’s bill could expand access to a huge swath of U.S. college students. The Department of Education reports that 32% of undergraduate college students receive Pell Grants, and roughly half of all undergraduate college students are considered independent, meaning they do not receive financial support from their parents.

And a college student’s struggle to afford food can have a significant impact on their education. Today, just 60% of first-time full-time students earn a bachelor’s degree in six years, according to the National Center for Education Statistics. “We can see very strong relationships between these issues and the chance that a student will get good grades so they keep their financial aid, to make it to the next semester, to make it to graduation,” Sara Goldrick-Rab, professor at Temple University, and founder of the Hope Center, told CNBC Make It.

She also says that students who experience food and housing insecurity during college are less likely to excel after graduation, and therefore less likely to keep up with their student loan payments. “If you’ve been food insecure and or homeless for a period of college, the chances that you’re okay and you’re going to be a good employee are much smaller.”

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Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: abigail hess
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How going cash-only helped this 23-year-old pay off $20,000 in debt in one year

Paying with paper instead of plastic helped Kristy Epperson eliminate $20,000 in student loan and car loan debt in just one year. Every month, Epperson started withdrawing money from her checking account to cover spending categories like dining out, groceries, and gas. The debt-free celebration: Spruce up her homeWhile in debt-elimination mode, Epperson promised herself she’d spruce up her lawn once she finally zeroed out her student loan debt. Kristy Epperson’s lawn, before and after she hired


Paying with paper instead of plastic helped Kristy Epperson eliminate $20,000 in student loan and car loan debt in just one year. Every month, Epperson started withdrawing money from her checking account to cover spending categories like dining out, groceries, and gas. The debt-free celebration: Spruce up her homeWhile in debt-elimination mode, Epperson promised herself she’d spruce up her lawn once she finally zeroed out her student loan debt. Kristy Epperson’s lawn, before and after she hired
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Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: sofia pitt
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How going cash-only helped this 23-year-old pay off $20,000 in debt in one year

Paying with paper instead of plastic helped Kristy Epperson eliminate $20,000 in student loan and car loan debt in just one year. After earning her bachelor’s degree in nursing from Wright State University in 2017, Epperson owed about $16,000 in student loans from multiple borrowers with interest rates of between 3.6% and 6.8%. She also had roughly $4,000 left on her car loan, at an interest rate of 4.2%. Even as Epperson began slowly chipping away at that debt, she managed to achieve another financial goal: homeownership. She was able to buy a place in Dayton, Ohio, with only 5% as a down payment. Becoming a homeowner forced her to take a hard look at her expenses and reevaluate her spending habits — which made her more determined to wipe out her student loan and auto debts. “If something happened, if I lost my job, I’d have no way to pay my bills,” Epperson tells Grow. “I needed a better long-term plan.” In addition to getting a second job as a substitute teacher, which brought in an extra $100 to $300 a month, Epperson created an expense spreadsheet and began tracking her purchases to help her pay down debt faster. She used her Instagram page, @DebtFreeAtTwentyThree, to share her setbacks, strategies, and accomplishments.

The anti-debt strategy: Cold, hard cash

Epperson’s expense tracking showed her one key problem area: credit card use. “I would look at my credit card bill and not even remember some of the charges,” she says. “I was eating out a lot, buying new clothes at Target, shopping on Amazon.” So she ditched the credit cards. “I felt using cash would hold me accountable,” she explains.

Every month, Epperson started withdrawing money from her checking account to cover spending categories like dining out, groceries, and gas. Once she ran out of the money she had allocated to a specific expense, she stopped spending on that category. If Epperson overspent in a category, she would borrow from another. That meant making spending sacrifices: “One month my friends were all going to a Kenny Chesney concert and I didn’t have the money left that month, so I couldn’t go,” she says. When paying in cash wasn’t an option—like when she had to make purchases online—Epperson says she used a credit card and paid off the balance immediately with the money in her checking account to avoid racking up more debt. Once Epperson’s friends realized she was turning down plans, they tried to be accommodating to help her save: Epperson and her friends started taking advantage of Dayton’s great hiking trails, hosting game nights, and all chipping in to buy groceries and cook dinner together.

The debt-free celebration: Spruce up her home

While in debt-elimination mode, Epperson promised herself she’d spruce up her lawn once she finally zeroed out her student loan debt. “Looking out the window and imagining the yard I wanted motivated me to stick to the budget,” she says. Hiring a landscaper was one of the first moves she made after paying off her student loans earlier this summer.

Kristy Epperson’s lawn, before and after she hired a landscaper as part of her celebration of paying off student loan debt.

The opportunity: An emergency fund

Now that Epperson is free of her student and auto loan debt, her midterm goal is to save up enough to buy a new car using cash, and to replace her hand-me-down TV. But first, she says, her priority is to build up a six-month emergency fund. So far, she has nearly a third of what she needs saved up. Epperson says she plans to keep up with her cash budgeting strategy. In fact, she hasn’t used her credit cards in months. Do you have an inspiring story about how you paid down debt? Email us at getgrowing@cnbc.com. The article How Going Cash-Only Helped This 23-Year-Old Pay Off $20,000 in Debt in One Year originally appeared on Grow by Acorns + CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: sofia pitt
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Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college

“If you’re in that realm, you’re going to have problems in the long-run.” It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future. But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college. “If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, tha


“If you’re in that realm, you’re going to have problems in the long-run.” It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future. But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college. “If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, tha
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Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: abigail hess
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Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college

“You really want to be mindful that you’re not crossing that threshold of payments that are just going to crush your income because they’re taking up, say, 20, 30% of your monthly paycheck,” he says. “If you’re in that realm, you’re going to have problems in the long-run.”

It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future.

“As students look at the equation for how much they should borrow when they go to college, they ought to be thinking of the total debt that they take on as not being more than 10 to 15% of what their earnings are going to be when they leave college,” says Horn.

But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college.

The cost of attending college today is a daunting prospect. According to the College Board’s 2018 Trends in College Pricing Report , from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two-year and private non-profit four-year schools, and many students use some kind of student loan to finance their degrees.

Students should think about what they want to study, research how much graduates at a given school in that major make, and not take on more than 10 to 15% of that amount in debt.

For example, according to PayScale, the average salary for an individual with a Bachelor of Engineering degree from New York University is about $91,296 per year. That means a student could plan to take on up to $13,694 (roughly 15% of their projected future salary) in loans to finance this degree.

However, the average salary for a worker with a Bachelor of Social Work degree from New York University is about $50,008 per year, so based on Horn’s recommendation, students should only take on about $7,501 in loans. Additionally, many social work opportunities require students to earn additional accreditation such as a master’s degree, and students should consider these costs as well.

Of course, this math is dependent on a student having a clear understanding of what they plan to pursue after college, something that can be challenging for many young people. Other factors students need to consider include a school’s reputation for graduating successful alumni, as well as its rate of on-time graduations.

“If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, that’s probably a reasonable investment,” says Horn. “If you’re going to a bottom-third law school, a question you ought to be asking yourself is, ‘Is this worth it?’

“The most crippling debt is when you don’t complete. If [students] don’t complete, it can be crippling because they’re not going to have the wage bump from getting that college credential and so you’re going to be earning roughly as much as someone with a high school diploma is, but you have taken out $10,000 in debt.”

Horn emphasizes that debt totals have a significant impact on the financial lives of borrowers.

“Paying not just the debt back but also the interest on top of it, that can be really punishing to make the books work as you’re trying to think through raising a family, owning a home maybe in the future and other life decisions.”

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Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: abigail hess
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How student loans are making some people abandon their dreams

Every day the 27-year-old comes home from his job as a supervisor at a big-box retailer and heads right to his bedroom. He was thrilled — until he saw his monthly student loan bill. Instead of following his dreams, he now works as a supermarket manager (where he makes a higher salary than he would as a trainer) and lives at home. “He thinks his life is over,” O’Mara said. “He’s 27, and he thinks his life is over.”


Every day the 27-year-old comes home from his job as a supervisor at a big-box retailer and heads right to his bedroom. He was thrilled — until he saw his monthly student loan bill. Instead of following his dreams, he now works as a supermarket manager (where he makes a higher salary than he would as a trainer) and lives at home. “He thinks his life is over,” O’Mara said. “He’s 27, and he thinks his life is over.”
How student loans are making some people abandon their dreams Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: annie nova
Keywords: news, cnbc, companies, making, abandon, job, kantrowitz, hes, dreams, loans, debt, life, field, thinks, student, florida, omara


How student loans are making some people abandon their dreams

Mary O’Mara is worried about her son.

Every day the 27-year-old comes home from his job as a supervisor at a big-box retailer and heads right to his bedroom. He doesn’t emerge until the morning. “He just sleeps,” O’Mara, 62, said. “He’s so depressed.”

That’s because his life wasn’t supposed to unfold this way.

At Rutgers University, he majored in marine science and minored in environmental protection policy. On internships, he traveled to Barbados and fought to protect turtles from poachers; in Key West, Florida, he nursed sick dolphins back to health. “From a child, he loved the ocean,” O’Mara said. “He’s a really smart kid.”

When he graduated college, he was offered a position in Florida, training dolphins. He was thrilled — until he saw his monthly student loan bill. It was more than $1,000.

Instead of following his dreams, he now works as a supermarket manager (where he makes a higher salary than he would as a trainer) and lives at home.

“He thinks his life is over,” O’Mara said. “He’s 27, and he thinks his life is over.”

Student loans are having a perverse effect: The very debt that’s taken on to allow someone to pursue their ambitions can later morph into a burden that requires them to ditch those plans and grab any job that will just pay the bills.

More than half of people who owe $55,000 or more in student debt say they took a job outside of their field, compared with 29% of those with no debt, according to new research by Mark Kantrowitz, publisher of SavingforCollege.com.

“It’s absolutely ironic,” Kantrowitz said. “You go to a more expensive college, supposedly the best in your field, but take on too much debt, so you can’t work in your field because of the need to repay the debt.”


Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: annie nova
Keywords: news, cnbc, companies, making, abandon, job, kantrowitz, hes, dreams, loans, debt, life, field, thinks, student, florida, omara


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Many high school students don’t understand how the college financial aid process works

Students’ knowledge of the financial aid process is “shockingly low.” That’s the takeaway from a new study by ACT, which in April 2018 surveyed about 1,200 high school students who were registered to take the standardized test. Yet most students don’t understand the basic workings of financial aid, which includes grants, scholarships, work study and loans. More than 70% of students didn’t know that loans from the government for undergraduate students are subsidized, meaning interest doesn’t accr


Students’ knowledge of the financial aid process is “shockingly low.” That’s the takeaway from a new study by ACT, which in April 2018 surveyed about 1,200 high school students who were registered to take the standardized test. Yet most students don’t understand the basic workings of financial aid, which includes grants, scholarships, work study and loans. More than 70% of students didn’t know that loans from the government for undergraduate students are subsidized, meaning interest doesn’t accr
Many high school students don’t understand how the college financial aid process works Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: annie nova
Keywords: news, cnbc, companies, student, loans, college, study, financial, process, didnt, center, high, aid, economic, dont, know, students, understand, school, works


Many high school students don't understand how the college financial aid process works

Students’ knowledge of the financial aid process is “shockingly low.”

That’s the takeaway from a new study by ACT, which in April 2018 surveyed about 1,200 high school students who were registered to take the standardized test.

Regardless of economic background, most families pointed to price as a very important consideration in choosing a college. Yet most students don’t understand the basic workings of financial aid, which includes grants, scholarships, work study and loans.

More than 70% of students didn’t know that loans from the government for undergraduate students are subsidized, meaning interest doesn’t accrue on them while the student is enrolled in college.

Most students also didn’t know that student loans can be repaid on an “income-driven ” plan, in which their monthly payments are capped at a percentage of their income.

Another recent study by the National Center for Education Statistics found that just 11% of ninth graders can correctly estimate the tuition and fees for one year at a public four-year college in their state. Around 57% overestimated the costs, and 32% underestimated them.

“The findings highlight an urgent need for more financial literacy-specific interventions, especially in light of the economic stakes at hand,” said Jim Larimore, chief officer for ACT’s Center for Equity in Learning.


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: annie nova
Keywords: news, cnbc, companies, student, loans, college, study, financial, process, didnt, center, high, aid, economic, dont, know, students, understand, school, works


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Democratic candidate Pete Buttigieg calls for national service plan that offers student debt relief

Democratic presidential candidate Pete Buttigieg on Wednesday proposed a plan to dramatically expand service opportunities for America’s young adults while offering them financial incentives such as debt relief. “A New Call to Service” aims to create a network of 1 million national service members by 2026, Politico and other outlets reported. The South Bend, Indiana, mayor’s plan combines opportunities for service with financial benefits for young adults who could be eligible for student debt fo


Democratic presidential candidate Pete Buttigieg on Wednesday proposed a plan to dramatically expand service opportunities for America’s young adults while offering them financial incentives such as debt relief. “A New Call to Service” aims to create a network of 1 million national service members by 2026, Politico and other outlets reported. The South Bend, Indiana, mayor’s plan combines opportunities for service with financial benefits for young adults who could be eligible for student debt fo
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Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: elizabeth myong, annie nova
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Democratic candidate Pete Buttigieg calls for national service plan that offers student debt relief

COLUMBIA, SC – JUNE 22: Democratic presidential candidate South Bend, Indiana Mayor Pete Buttigieg addresses the crowd at the 2019 South Carolina Democratic Party State Convention on June 22, 2019 in Columbia, South Carolina.

Democratic presidential candidate Pete Buttigieg on Wednesday proposed a plan to dramatically expand service opportunities for America’s young adults while offering them financial incentives such as debt relief.

“A New Call to Service” aims to create a network of 1 million national service members by 2026, Politico and other outlets reported.

Buttigieg, who will introduce the plan today in Iowa, said it was prompted by his own service in the U.S. Navy Reserve, which taught him valuable skills such as how to engage with people of differing views.

“National service can help us to form connections between very different kinds of Americans, as was my experience in the military,” Buttigieg said in a statement. “I served alongside and trusted my life to people who held totally different political views.”

The South Bend, Indiana, mayor’s plan combines opportunities for service with financial benefits for young adults who could be eligible for student debt forgiveness, vocational training and hiring preference.

The plan targets high schools, community colleges, vocational schools and historically black colleges and universities, as well as young adults ages 16 to 24 who are not working or attending school, Politico reported.

The initiative would increase the ranks of national service members to 250,000, more than tripling the existing 75,000 positions, which would cost $20 billion over 10 years, according to AP. It’s unclear how those and other costs of the program would be covered.

Through the plan, Buttigieg would fund existing groups such as Americorps and create new types of organizations akin to Climate Corps, Community Health Corps and the Intergenerational Service Corps.

The ultimate goal is to create a pipeline for up to 4 million high school students who would take part in the programs annually.

Previously, presidential candidate Seth Moulton released his own “National Service Education Guarantee,” a plan focused on the 33.4 million Americans between the ages of 17-24. His plan would also offer financial incentives such as supplemental college tuition and vocational training.

Buttigieg’s plan offers a new approach to attack student debt, an issue that other candidates for the Democratic nomination have also taken on. Sen. Bernie Sanders, I-Vt., announced a plan to forgive the country’s $1.6 trillion in student loans, and Sen. Elizabeth Warren, D.-Mass., suggested legislation that would eliminate $50,000 in student loan debt for each of 42 million Americans.

The Buttigieg campaign did not immediately respond to CNBC’s request for comment.


Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: elizabeth myong, annie nova
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6 simple things every college student should avoid spending money on

“Most campuses have good public transportation systems, so if you can avoid taking a car, that’s going to save money on insurance and the cost of parking.” But schools often offer a wide range of housing options, and students can save money by choosing wisely. Extra semestersThe biggest thing that college students can do to save money is graduate on time. Students should avoid wasting money on extra years of college by planning their path to graduation early. Don’t miss: Graduating in 4 years or


“Most campuses have good public transportation systems, so if you can avoid taking a car, that’s going to save money on insurance and the cost of parking.” But schools often offer a wide range of housing options, and students can save money by choosing wisely. Extra semestersThe biggest thing that college students can do to save money is graduate on time. Students should avoid wasting money on extra years of college by planning their path to graduation early. Don’t miss: Graduating in 4 years or
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6 simple things every college student should avoid spending money on

Attending college is more expensive than ever before. According to the College Board’s 2018 Trends in College Pricing Report, from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two-year and private non-profit four-year schools. Fortunately, there are several steps that students can take to cut costs and make sure that their college experience pays off — without giving up coffee. College finance consultant Kathy Ruby tells CNBC Make It that for most students, starting college is their “first step towards financial independence.” That means students need to learn what not to waste money on. “There are decisions that you can make that are going to make a difference in what [students and families] end up having to pay,” she says. Here are six costs college students can avoid overspending on:

Kevin Dodge | Getty Images

Cars

Sure, having a car on campus may make you popular when someone wants you to pick up late-night snacks or to chauffeur them to the airport, but these requests can quickly feel like you are being used for your ride. On top of that, having a car is expensive. “Don’t take a car to college. It is one of the biggest expenses for students,” says Ruby. “Most campuses have good public transportation systems, so if you can avoid taking a car, that’s going to save money on insurance and the cost of parking.” The American Automobile Association (AAA) estimates that the costs of owning and operating a car is $8,469. Factors like gas, insurance and parking can make the costs of bringing a car to college add up. According to Affordable Schools and Discover, parking on colleges campuses can range anywhere from $40 to $2,500 per semester. While extreme rates like $2,500 per semester are rare, there are many colleges that charge more than $1,000 a year. A parking pass for a full-time student costs $752.26 a semester at Columbia University and $668 a semester at Boston College.

Overpriced textbooks

“Students think about tuition when they enroll in a course,” Michael Hansen, CEO of education company Cengage, tells CNBC Make It. “But textbook costs are often unexpected, and that makes it even more stressful.” According to a survey of 1,651 current and former college students by Cengage, 85% say that textbook and course material expenses are financially stressful, and 43 percent say they have skipped meals in order to afford these costs. “Historically what happened is the industry, including us many years ago, made a mistake in thinking, ‘Oh, we have a lot of pricing power because faculty decide what to teach with and the student has to pay for it,'” says Hansen. “Over time, the industry just ratcheted up the prices — sometimes 10 percent, twice a year — and that led to an unsustainable model.” The biggest step students can take to save money on textbooks is consult with their local librarian to see if they can borrow their books from their library or a nearby one. If renting is not an option, textbook comparison sites such as BookFinder.com, SlugBooks and Campusbooks.com help students search their required reading by title or ISBN and allow them to see which outlet offers the cheapest price for a given text. Once they have purchased or rented a textbook, students can further lower their costs by sharing with a classmate. While it is illegal to make photocopies of a textbook, there’s nothing wrong with splitting textbook custody. By taking turns with the textbook, students can reduce their costs significantly.

Storage

In the United States, self-storage is a $38 billion industry. According to Curbed, approximately one in 11 Americans pays an average of $91.14 per month to store their belongings with a self-storage company. Since college students often move several times throughout their college careers and typically leave campus during the summer, it makes sense they’d be tempted to take advantage of these kinds of services. But students can save serious cash by not paying for storage. Instead, students can try to keep their belongings on campus to a minimum, transport them back home over the summer or make a connection with a person who lives nearby and is willing to store their belongings for free.

Maskot | Getty Images

Swanky housing

The College Board estimates that students at public universities spend an average of $10,800 on room and board each school year. But schools often offer a wide range of housing options, and students can save money by choosing wisely. “Many colleges have variable housing prices. A nicer, newer apartment-style living situation is going to be more expensive than the traditional two-person dorm,” says Ruby. “The more roommates you have, the better.” It may sound like fun to live in the nicest dorm on campus all by yourself, but your wallet will thank you when you graduate with less debt to pay off just because you had a classic college dorm room for four years. Plus, having roommates is a great way to build a community and make friends.

Credit cards

One of the biggest traps that students can fall into in college is amassing credit card debt. Students should arrive on campus with one credit card on hand and a plan for paying off their balance each month. John Ganotis, founder of CreditCardInsider.com, recommends the Capital One Journey Student Credit Card to CNBC Make It. Students should be particularly wary of wasting money on flashy highly-advertised cards. In 2009, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act banned banks from aggressively marketing credit cards and financial products on college campuses, but this regulation does not stop banks from actively pursuing college students. “There are regulations that are still in effect, but students still need to do a little bit of homework,” Suzanne Martindale, a consumer finance expert and attorney for Consumers Union, tells CNBC Make It. She explains, “A lot of times these companies have marketing deals with the campus that make them look like the ‘school approved’ product, but it doesn’t necessarily mean that the school has made sure that those products are in fact the best products for their students.”

Extra semesters

The biggest thing that college students can do to save money is graduate on time. According to the National Center for Education Statistics, just 40 percent of first-time full-time students earn a bachelor’s degree in four years, and only 59 percent earn their bachelor’s in six years. This means that millions of Americans are forced to pay for extra years of tuition, and some are taking on thousands of dollars in debt without a diploma to show for it. Bill Gates says these dropout rates are “tragic.” Students should avoid wasting money on extra years of college by planning their path to graduation early. Map out what classes you will need to take in order to earn your diploma on time, make an appointment with your dean and find a professor who is willing to guide you. By staying on track, students can save thousands of dollars on the cost of college. Like this story? Subscribe to CNBC Make It on YouTube! Don’t miss: Graduating in 4 years or less helps keep college costs down—but just 41% of students do


Company: cnbc, Activity: cnbc, Date: 2019-07-01  Authors: abigail hess
Keywords: news, cnbc, companies, simple, students, car, student, textbook, credit, money, things, spending, avoid, save, costs, campus, college


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Student loan borrowers with cancer are supposed to get a break from their bills. That’s not happening

Mazza, who was diagnosed with stage 4 colon cancer in April, has been unable to access the cancer deferment. At the end of January, the agency asked the Office of Management and Budget to conduct an emergency review and approval of its cancer deferment form. Source: Peter TannerTanner, an information technologist from Florida, was grateful to learn Congress was offering a reprieve for student loan borrowers with cancer. Tanner called Mohela, his student loan servicer, in February to request that


Mazza, who was diagnosed with stage 4 colon cancer in April, has been unable to access the cancer deferment. At the end of January, the agency asked the Office of Management and Budget to conduct an emergency review and approval of its cancer deferment form. Source: Peter TannerTanner, an information technologist from Florida, was grateful to learn Congress was offering a reprieve for student loan borrowers with cancer. Tanner called Mohela, his student loan servicer, in February to request that
Student loan borrowers with cancer are supposed to get a break from their bills. That’s not happening Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-29  Authors: annie nova
Keywords: news, cnbc, companies, nelnet, education, deferment, servicer, loans, peter, cancer, borrowers, happening, supposed, student, loan, thats, break, bills, department


Student loan borrowers with cancer are supposed to get a break from their bills. That's not happening

Peter Mazza, his wife, Megan, and their three children. Mazza, who was diagnosed with stage 4 colon cancer in April, has been unable to access the cancer deferment. Source: Peter Mazza

That is correct information, that the deferment application is not yet available. However, we would still like to contact us if this is something you may qualify for. We will flag your account, and send you the application as soon as it become available! — Nelnet (@Nelnet) June 17, 2019

Mazza, a lawyer for the Justice Department who lives in California, called his student loan servicer Nelnet in June to request that he get a break from his monthly $245 bill throughout his medical care. After around 10 frustrating phone calls with the servicer — where he said he was often given inaccurate information about the deferment — Mazza was finally told by Nelnet that it couldn’t offer him the cancer deferment until the Department of Education issues a form for him to fill out to prove his condition. “It’s such a tortured path,” Mazza said. “And at the end, there’s still no satisfaction.” Nelnet did not respond to a request for comment. The Department of Education appears to be taking steps to create and issue an application for the deferment. At the end of January, the agency asked the Office of Management and Budget to conduct an emergency review and approval of its cancer deferment form. However, the law had been on the books for four months by then.

It sounds like Congress wanted to do a good thing – and I feel like I’m not even getting half of what they intended. Peter Tanner

The Department of Education also required a 60-day comment period on the form, a seemingly longer timeline than necessary, Kantrowitz said. “The department could have required only a 30-day comment period, or even a 15-day comment period,” Kantrowitz said. Liz Hill, press secretary at the Department of Education, said the agency has established an interim process that allows borrowers to stop making payments on their loans as it works to implement the law passed by Congress. She also asked for borrowers running into issues to contact them at StudentAid.gov/feedback. “The department is committed to supporting students who are undergoing cancer treatments and are struggling to repay their student loans,” Hill said. Throughout the last year, Peter Tanner has spent weeks in the hospital, had three abdominal surgeries and lost more than 70 pounds. He has stage 4 bowel cancer and $15,000 in student debt.

Peter has stage 4 cancer. His student loans are still due. Source: Peter Tanner

Tanner, an information technologist from Florida, was grateful to learn Congress was offering a reprieve for student loan borrowers with cancer. His medical expenses have already forced him to take out a home equity loan on his house and lean on his credit cards. Tanner called Mohela, his student loan servicer, in February to request that his loans be put into the new deferment. He was put on hold multiple times, he said, and then delivered the bad news: “The bottom line they gave me was, ‘We don’t have an official application from the U.S. government,'” Tanner, 40, said. “‘Until we get that, we can’t enroll you in this program.'” In the meantime, he said, he was told the servicer would put his loans into a temporary forbearance, during which his payments would be paused but interest would continue to collect on his debt. “It sounds like Congress wanted to do a good thing – and I feel like I’m not even getting half of what they intended in the law,” Tanner said. A spokesperson for Mohela said that implementing a new deferment is complicated and that this timeline was not unusual. He said the form would be released soon and eligible borrowers would have any interest that accumulated on their loans waived. Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade association that represents student loan servicers, said he expects a final form and guidance from the Department of Education “very shortly.” The delayed rollout of the deferment is due to the fact that the law was effective at time of enactment, Buchanan said. “When Congress makes changes, historically they have provided a window of time for implementation,” he said. “That was not the case with the cancer deferment, which poses real challenges.” Yet there was likely a reason the provision didn’t come with a lag time, Kantrowitz said, “Cancer patients can’t wait.” Julie Roberts, a pediatric speech language pathologist from Ohio, owes more than $80,000 in student loans and has stage 4 breast cancer. In January 2018, she called her servicer, American Education Services, to request that her loans be placed into the cancer deferment. Roberts spoke to multiple people at AES but none of them seemed to understand the new option. She was told the bill had not yet passed and that she didn’t qualify for it — both of which are not true.

Julia Roberts’ GoFundMe account. Here’s the address: https://www.gofundme.com/tkxp88-stage-4-breast-cancer-single-mom Source: Julie Roberts


Company: cnbc, Activity: cnbc, Date: 2019-06-29  Authors: annie nova
Keywords: news, cnbc, companies, nelnet, education, deferment, servicer, loans, peter, cancer, borrowers, happening, supposed, student, loan, thats, break, bills, department


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Democrats’ student debt forgiveness proposals likely to resonate more in blue states

Democratic presidential hopeful Bernie Sanders has proposed wiping out all $1.6 trillion of outstanding student loan debt in the U.S., while rival Elizabeth Warren has called for canceling $640 billion of the debt. Voters in blue states stand to have more debt forgiven under these plans than those in red states, according to an analysis by CNBC. For example, the average student loan borrower in Maryland owes close to $40,000, compared with around $26,000 in North Dakota. College affordability is


Democratic presidential hopeful Bernie Sanders has proposed wiping out all $1.6 trillion of outstanding student loan debt in the U.S., while rival Elizabeth Warren has called for canceling $640 billion of the debt. Voters in blue states stand to have more debt forgiven under these plans than those in red states, according to an analysis by CNBC. For example, the average student loan borrower in Maryland owes close to $40,000, compared with around $26,000 in North Dakota. College affordability is
Democrats’ student debt forgiveness proposals likely to resonate more in blue states Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: annie nova john w schoen, annie nova, john w schoen
Keywords: news, cnbc, companies, warren, loan, likely, democrats, sen, forgiveness, states, resonate, proposals, york, college, blue, presidential, student, debt, ross


Democrats' student debt forgiveness proposals likely to resonate more in blue states

Democratic presidential candidates New York City Mayor Bill De Blasio (L-R), Rep. Tim Ryan (D-OH), former housing secretary Julian Castro, Sen. Cory Booker (D-NJ), Sen. Elizabeth Warren (D-MA), former Texas congressman Beto O’Rourke and Sen. Amy Klobuchar (D-MN) take part in the first night of the Democratic presidential debate on June 26, 2019 in Miami, Florida.

Democratic presidential hopeful Bernie Sanders has proposed wiping out all $1.6 trillion of outstanding student loan debt in the U.S., while rival Elizabeth Warren has called for canceling $640 billion of the debt.

Voters in blue states stand to have more debt forgiven under these plans than those in red states, according to an analysis by CNBC.

For example, the average student loan borrower in Maryland owes close to $40,000, compared with around $26,000 in North Dakota.

The data make sense considering blue states have “expensive colleges and workforces that are high skilled and highly credentialed,” said Andrew Ross, director of American Studies at New York University and an expert on debt.

Still, Ross said, it can be people with smaller balances that are more negatively impacted overall by outstanding debt. For example, if a student never graduated college, s/he may have less debt than others but more repayment difficulties because the lack of a degree makes it a challenge to find a decent paying job.

College affordability is an issue everywhere in the country, said Mark Kantrowitz, a student loan expert. “All members of Congress are feeling pressure to do something about the student loan problem.”

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Indeed, a Politico/Morning Consult poll found that more than half of Americans say student debt is “a major problem” for the country.

Yet while Republicans and Democrats are in agreement that student debt has to be addressed, “Democrats have been far more willing to invest in college affordability and to offer students relief from existing debt burdens,” said James Kvaal, president of the Institute for College Access & Success.

While the prospect of a debt jubilee is nowhere to be found in the Republican agenda, Ross said, “that’s not to say it wouldn’t appeal to GOP voters.”


Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: annie nova john w schoen, annie nova, john w schoen
Keywords: news, cnbc, companies, warren, loan, likely, democrats, sen, forgiveness, states, resonate, proposals, york, college, blue, presidential, student, debt, ross


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83% of non-homeowners say student loans are the reason they can’t afford to buy

And for many, student loan debt might be to blame. In its 2019 Home Affordability Report, home co-investment company Unison found that 83% of non-homeowners said student debt is the reason they can’t afford to buy a home right now. “Student loans are the fastest growing source of debt for U.S. households,” Lulic says. “Since 2007, student loan debt has grown three times faster than auto loans and 150 times faster than mortgages. ” But for the 2017-2018 school year, that average had risen to $9,9


And for many, student loan debt might be to blame. In its 2019 Home Affordability Report, home co-investment company Unison found that 83% of non-homeowners said student debt is the reason they can’t afford to buy a home right now. “Student loans are the fastest growing source of debt for U.S. households,” Lulic says. “Since 2007, student loan debt has grown three times faster than auto loans and 150 times faster than mortgages. ” But for the 2017-2018 school year, that average had risen to $9,9
83% of non-homeowners say student loans are the reason they can’t afford to buy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: emmie martin
Keywords: news, cnbc, companies, nonhomeowners, 83, loan, times, afford, school, cant, buy, say, increase, reason, lulic, student, faster, debt, loans, report


83% of non-homeowners say student loans are the reason they can't afford to buy

Fewer young people are buying houses than their parents and grandparents did at the same age. And for many, student loan debt might be to blame.

In its 2019 Home Affordability Report, home co-investment company Unison found that 83% of non-homeowners said student debt is the reason they can’t afford to buy a home right now. Generally, they’re delaying buying a house by around seven years because of it, the report found.

That’s especially true for millennials: “A recent study by the Federal Reserve found that every $1,000 increase in student loan debt causes a 1 to 2 percentage point drop in the homeownership rate for student loan borrowers during their late twenties and early thirties, ” Miron Lulic, founder and CEO of financial comparison site SuperMoney, tells CNBC Make It.

It’s not surprising, given the rising cost of higher education. “Student loans are the fastest growing source of debt for U.S. households,” Lulic says. “Since 2007, student loan debt has grown three times faster than auto loans and 150 times faster than mortgages. ”

For the 1987-1988 school year, students at public four-year institutions paid an average of $3,190 in tuition, according to College Board’s “Trends in College Pricing 2017” report. But for the 2017-2018 school year, that average had risen to $9,970 — a nearly 213% increase.


Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: emmie martin
Keywords: news, cnbc, companies, nonhomeowners, 83, loan, times, afford, school, cant, buy, say, increase, reason, lulic, student, faster, debt, loans, report


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