For Student Loan Borrowers in Default, Redemption Just Got Easier

AS college campuses prepare for a new academic year, revised federal rules now in effect should make it easier to return student loans in default to good standing. The new rules, which became official July 1, help define what is a “reasonable and affordable” monthly payment for borrowers working to get troubled loans back on track through a rehabilitation process. Under the rules, payments must be calculated in a way that takes into account...

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Tax Credits for College Can Help Ease Costs

With all the worries about rising college costs, lower- and moderate-income families should keep in mind that there are federal tax benefits that can help ease the financial burden of getting an education. For instance, there are two tax credits available that can lower your tax bill while you, or your child, are in school. The American Opportunity Tax Credit lets you reduce your tax bill by up to $2,500 per student for the first four...

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Navigating the Thickets of Student Loan Counseling

As a former student loan borrower himself, President Obama has more than a passing familiarity with the complexities of higher education finance. But in a little-noticed bit of comment last year in an interviewwith David Karp, the founder of Tumblr, he issued some pointed criticism of the advice that students get on the way into college. “Frankly, universities don’t always counsel young people well when they first come in,”...

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Paying for College and Learning a Lesson for Life

Roger Koester at his home in Golden, Colo. Decades ago, he taught families in the Chicago area how to apply for financial aid and curb graduation debt. CreditMatthew Staver for The New York Times When it came time to apply for college in the fall of 1988, my parents and I didn’t know the first thing about the financial aid process. But my mother, a veteran personal shopper who has always had a knack for figuring out just who to call to solve...

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Students who must borrow to help pay college tuition will get a little bit of a break in the coming school year. Starting July 1, the rate on new undergraduate loans made under the federal Stafford program will fall to 4.29 percent, down from 4.66 percent for loans issued in the last academic year. The new rates apply to both subsidized loans, based on financial need, and unsubsidized loans, which are made regardless of financial need. “It’s...

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Judges Rebuke Limits on Wiping Out Student Loan Debt

On a typical day in her last job, Janet Roth left home at 4 a.m. each day and drove 40 miles to a tax preparation office in Glendale, Ariz. When she finally got back home, she had less than an hour before starting her 6 p.m. shift decorating cakes at Walmart. She worked until midnight, giving her just a few hours to sleep before starting all over again. Ms. Roth, 68, worked in many jobs over the years, but she never made quite enough...

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