What college costs — and what it's worth
What college costs — and what it's worth
With tuition costs rising and student debt weighing many Americans down, how valuable is higher education in this day and age? The answer is complicated. On average, people with a college degree earn much more, and there's social benefits, too. But it doesn't pay off for everybody, and with AI encroaching on white-collar work, the decision becomes even trickier. Drew Goins, Molly Roberts and Heather Long talk about college's true value and which alternatives deserve more investment.
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39 minutes ago
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Can I pay off my student loans with a personal loan?
More than 40 million Americans have student loan debt. And, depending on when you took out your loans — and, in the case of private loans, your credit score at the time — you could have a double-digit interest rate. If you're struggling with your debt, the idea of using a personal loan to pay off your student loans can be appealing. Personal loans are readily available, and you can apply and get your loan funds in as little as one day. But using a personal loan to pay your student loans is more complicated than it may seem. Few lenders allow it; even if you find a lender that permits it, there are significant downsides to this approach, and there are likely better alternatives. When you take out any debt, including a personal loan, you have to sign a loan agreement. This document outlines the terms of the loan, including the rates and fees associated with it and any restrictions. Most lenders have a list of prohibited uses for loan funds. For example, many personal loan lenders prohibit using the money for gambling, investing, or business expenses. They typically also forbid the use of personal loans for education expenses or to refinance existing student loans. There are some lenders — usually smaller companies or credit unions — that do offer personal loans that can be used for educational expenses or to pay down student loan debt, but they tend to be harder to find. It's easy to see why personal loans are attractive. They're unsecured, so you don't have to worry about collateral, you can receive the loan funds as soon as the same day you apply, and, if you have good credit, you could qualify for a relatively low interest rate. However, the perks of personal loans fall short when compared to student loans. Even if you find a lender that allows you to take out a personal loan to pay off your student loans, think twice before submitting your loan application. Using a personal loan to pay off student loan debt is rarely a good idea for the following reasons: With student loans, origination or disbursement fees tend to be low. Private student loans rarely have these fees, and the disbursement fee on federal loans is either 1.057% or 4.228% (varies based on loan type). Origination fees are more common (and more expensive) with personal loans. Of the 12 personal loan lenders we looked at, eight of them charged origination fees, and the fee could be as high as 10% of the loan amount. Student loans tend to have lower interest rates than other forms of debt. While federal student loans start at 6.39% in the current school year, private student loans are available at rates as low as about 3%. By contrast, personal loan rates start around 6% and can be as high as 35% — significantly more than the maximum annual percentage rate (APR) on student loans. Depending on the type of student loan you have and the repayment plan you choose, you could have anywhere from five to 25 years to repay your student loans. Longer repayment options can give you a more affordable monthly payment, making it easier to stay on track with your payments. Personal loans tend to have much shorter repayment periods. While we did find a few lenders that offer loan terms of 10 or 12 years, the majority of lenders had a loan term maximum of just five years, so you'd have a much higher monthly payment amount. Read more: How to choose the right personal loan term length Personal loans are unsecured, but that doesn't mean there aren't consequences if you fall behind on your payments. Lenders can charge late fees, report missed payments to the credit bureaus, send your account to collections, or take you to court and sue you for what you owe. If you can't afford your payments, there are few hardship options. Student loans have more borrower protections. With federal student loans, you may be eligible for alternative payment plans or deferment to temporarily pause your payments. And, with private loans, many lenders have their own financial hardship programs to help borrowers dealing with things like unemployment or major medical expenses. Federal student loans don't have minimum credit or income requirements, but personal loans are much stricter. You usually need a reliable source of income and good to excellent credit to qualify for a personal loan. Otherwise, your application will be denied, or you may only be approved for a high, double-digit interest rate. Read more: How to get approved for a personal loan As you repay your student loans, you can deduct the interest that you pay on both federal and private student loans on your taxes. You can deduct the lesser of $2,500 or the actual interest you paid, helping to reduce your tax bill. If you use a personal loan to pay off your student loans, your payments aren't eligible for that tax deduction, so you'll lose that perk. You may have considered using a personal loan to pay off your student loans if you're behind on your payments and need to pay off the loan fast to get out of default. Or, perhaps you wanted to pay them down to reduce your monthly debt payments. Whatever the case may be, there may be other options that are a better fit for your needs: Private student loan borrowers with high-interest rates If you have high-interest private student loans and want a lower payment or reduced interest, student loan refinancing may be for you. You take out a loan to pay off your existing debt, and, based on your credit, you may qualify for a different loan term or interest rate. You could qualify for a lower rate and save money or choose a longer loan term to reduce your payment amounts. Federal student loan borrowers who can't afford their payments The standard repayment plan for federal loans is 10 years with fixed monthly payments. If your payments are too high under that plan, an IDR plan could be a useful option. These plans base your payments on a longer loan term and calculate your payment amount using a percentage of your discretionary income. Read more: Can you change your student loan repayment plan? Federal student loan borrowers who defaulted on their loans and those who can't afford their payments If you have several federal student loans and are struggling to remember all of their payment due dates and payment amounts — or, if you have older federal student loans that aren't eligible for programs like income-driven repayment (IDR) — consolidating your loans with a Direct Consolidation Loan is one potential solution. With a Direct Consolidation Loan, your federal loans are combined into one, and the interest rate on the new loan is based on the weighted average of your current debts. You can choose a new loan repayment term — Direct Consolidation Loans have terms as long as 30 years — and a new repayment plan to get a more affordable payment amount. Because Direct Consolidation Loans are federal loans, your loans stay within the federal loan program, and you're still eligible for borrower protections like IDR plans and forbearance. You can submit a loan consolidation application online. Federal student loan borrowers who defaulted on their loans For borrowers who default on their federal loans, loan rehabilitation is one way to get their debt back in good standing. With loan rehabilitation, you work with your loan servicer to come to an agreement. You commit to making nine voluntary, reasonable, and affordable monthly payments (often less than your current payment amount), and make nine payments on time during a 10-month period. You can apply for an IDR plan online. This article was edited by Alicia Hahn.
Yahoo
an hour ago
- Yahoo
In the news today: Trump's tariffs remain in effect, Canadians critical of Israel
Here is a roundup of stories from The Canadian Press designed to bring you up to speed... Trump's tariffs to stay in effect amid appeal A federal appeals court agreed on Tuesday that U.S. President Donald Trump's sweeping global tariffs will remain in place while a case is heard — extending an emergency stay granted after a lower court found the devastating duties unlawful. The United States Court of Appeals for the Federal Circuit found "a stay is warranted under the circumstances." It provides a temporary victory for the Trump administration as it hits its first legal barriers for realigning global trade. "The Trump administration is legally using the powers granted to the executive branch by the Constitution and Congress to address our country's national emergencies of persistent goods trade deficits and drug trafficking," said White House spokesman Kush Desai in an emailed statement Tuesday. "The U.S. Circuit Court of Appeals' stay order is a welcome development, and we look forward to ultimately prevailing in court." Poll suggests Canadians critical of Israel A new poll suggests that nearly half of Canadians believe Israel is committing genocide in Gaza almost two years after the current conflict began. In a survey conducted last weekend, the polling firm Leger asked Canadians and Americans a series of questions about the conflict in the Gaza Strip. The polling comes as the federal government is under pressure to take concrete steps to condemn Israel's actions in Gaza and the West Bank. Leger asked respondents whether they "agree or disagree that Israel is committing genocide in the Gaza Strip" based on how they "define what constitutes a genocide." Feds look to boost weak summer jobs market The federal government is moving to shore up a historically weak summer job market for students — even as one economist argues tough employment prospects for young people suggest broader softness in the job market. Statistics Canada shone a light on the difficult employment prospects for students heading back to school this fall in its May jobs report last Friday. Roughly one in five returning students aged 15 to 24 was unemployed in May, the agency said. The last time the jobless rate for students was this high outside the pandemic was in May 2009. Also on Friday, the federal government announced an expansion of the Canada Summer Jobs program, which offers wage subsidies to businesses hiring young people for seasonal work. Concern in Canada after U.S. vaccine panel fired Canadian doctors and scientists say Robert F. Kennedy Jr.'s firing of an immunization advisory committee south of the border is worrisome. On Monday, the U.S. health and human services secretary — a longtime anti-vaccine advocate — said he will appoint new members to the scientific group that advises the Centers for Disease Control and Prevention about vaccination. Angela Rasmussen, a virologist at the University of Saskatchewan, said Tuesday that the move will foster more false anti-vaccine beliefs, not only in the U.S. but also in Canada. "It creates a culture in which anti-vaxx beliefs are more accepted and challenged a lot less. And also it creates an environment where there's an alternative to an evidence-based recommendation framework," she said. N.S. miners strike a century ago still resonates During Nova Scotia's storied 300-year history of coal mining, one deadly riot in 1925 proved to be pivotal for workers' rights in Canada. One hundred years ago today, William Davis — a 37-year-old Cape Breton coal miner and father of nine — was shot to death by a special constable hired by the British Empire Steel Corporation (BESCO) — a monopoly mine owner that had repeatedly turned to violence to end strikes over poor wages and unsafe working conditions. "William Davis's story highlights the many sacrifices that those unionized workers made when they stood up against oppression," says Danny Cavanaugh, president of the 70,000-member Nova Scotia Federation of Labour. "It serves as a reminder of a historic struggle that workers faced to secure their rights." Davis's death on the outskirts of New Waterford, N.S., commemorated every year in Nova Scotia on June 11, was the painful culmination of a long series of strikes and chaotic skirmishes. CRTC holds hearing on internet choice Canada's telecommunications regulator is expected to hear today from major providers and consumer advocacy groups at a hearing on shopping for internet services. Wednesday marks Day 2 of the four-day hearing, which is part of a CRTC consultation launched in December on how to help consumers shop for home internet plans following complaints it was difficult to compare their options. The regulator is considering a requirement for providers to display relevant information — such as price and speed — through a standardized label, similar to nutrition labels on food products that contain serving size and calorie data. The Canadian Telecommunications Association industry group, along with Telus Corp., Bell Canada and internet accessibility advocacy group OpenMedia are scheduled to present today. --- This report by The Canadian Press was first published June 11, 2025 The Canadian Press
Yahoo
6 hours ago
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CGTN: China-U.S. trade talks in London receive positive market reception
With the first meeting of the China-U.S. economic and trade consultation mechanism set to continue in London on Tuesday, CGTN publishes an article discussing the significance of the highly anticipated talks and the global expectations surrounding them. The article also highlights China's attitude and stance on the trade talks, stressing the importance of China-U.S. cooperation in achieving mutually beneficial outcomes. BEIJING, June 10, 2025 /PRNewswire/ -- The first meeting of the China-U.S. economic and trade consultation mechanism is set to continue on Tuesday in London with a second day of talks. The gathering of key officials from the world's two largest economies is widely seen as a crucial step in easing tensions between the two countries, sending a positive signal to the global economy. The highly anticipated trade talks come just days after a phone call between Chinese President Xi Jinping and U.S. President Donald Trump. They are aimed at implementing the consensus reached by both leaders and continuing to foster dialogue and cooperation in economic and trade fields. Chinese Vice Premier He Lifeng is leading the Chinese delegation in London, while U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are heading the U.S. team. Severe economic repercussions The London talks are a direct outcome of the Geneva discussions in May, when both sides agreed to pause the escalating tariffs and establish a consultation mechanism to continue negotiations. The Geneva meeting featured the first face-to-face talks between senior officials from both nations since the U.S. imposed hefty tariffs on China in April, and China retaliated with robust countermeasures. The tariff hikes have not only hurt the global supply chain, but also harmed the U.S. economy, driving up costs, reducing consumption and increasing the risk of economic recession. A Harris Poll conducted for Bloomberg News in late May revealed that many Americans are tightening their belts, a recent survey by Bank of America showed that allocations to U.S. assets are at their lowest levels in nearly two decades, and multiple sources, including U.S. Bank, JP Morgan and the International Monetary Fund, have suggested a 40 percent chance of a U.S. recession. Cooperation is the only way out Given these concerning economic repercussions, Xi has stressed that dialogue and cooperation are the only correct choice for the two countries. He hailed the Geneva talks as an important step forward in resolving disputes and urged the two sides to make good use of the economic and trade consultation mechanism and seek win-win results in the spirit of equality and respect for each other's concerns. The Chinese side is sincere about this, and at the same time has its principles, Xi said. The positive market reactions mirrored Xi's remarks and reflected growing optimism about the easing of China-U.S. trade frictions. Following the leaders' phone talks, shipping demand surged, leading to a spike in freight rates, and U.S. stock indices saw substantial gains, with the S&P 500, Nasdaq and Dow Jones all experiencing significant increases. Wu Zewei, a special researcher at Sushang Bank, said the London talks are expected to boost the prospects for bilateral cooperation. He stated that though the negotiations in London will not be easy and require in-depth discussions, the Geneva talks have laid a strong foundation for cooperation and the recent phone call between the two heads of state has provided direction for future negotiations. "The cooperation between China and the U.S. has significant potential. In the future, both countries can still achieve mutual benefit and win-win outcomes, fostering shared prosperity and creating a better life for their peoples," said Wu. View original content: SOURCE CGTN Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
