By CityTownInfo.com Staff
April 16, 2009
According to the New York Times students who borrow for college graduate with an average debt of $22,700. The recent stock market losses have not only made it harder for families to pay for college, but reduced university endowments that underwrite scholarships and grants. The financial problems are making students and their families increasingly nervous. Kevin McKinley is a financial planner that helps students and parents save for college. He received his first-ever referral from a psychotherapist who thought his patient could reduce anxiety not by therapy, but by seeing a financial professional. "That's not something that happens when the markets are doing well," Mr. McKinley says. One way to help save for college; use credit cards that reward the customer with refunds into a 529 college savings account.
The Chattanooga Times Free Press covers the Obama administration's proposal to eliminate subsidies to private banks for the purpose of encouraging them to make student loans. A revamp, the administration says, would save $94 billion that would go to needy student borrowers and could help even more people go to college. The federal government would contract for administrative services but keep the related job numbers intact. Sallie Mae has already brought back 2,000 loan administration jobs that were outsourced to overseas call centers in 2007.