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If you have student loan debt, you might also need life insurance

If you have student loan debt, you might also need life insurance

Finance
Taking out a life insurance policy as a new college graduate may not be top of mind, but it's worth exploring if you have student loans. Some of that debt can live on, even if you die."That's not something that college-age students and their parents tend to think about," said Betsy Mayotte, director of consumer outreach and compliance for American Student Assistance, a nonprofit focused on higher education financing.Four in 10 student borrowers now owe at least $ 20,000 at graduation, double the share from a decade ago, according to a new report from the Consumer Financial Protection Bureau. Over the same period, the number of those owing at least $ 50,000 has more than tripled, from 5 percent to 16 percent of borrowers.If a relative or friend has co-signed on a student loan for you, and y...
Percentage of college graduates owing $20,000 in student loan debt doubles in 10 years

Percentage of college graduates owing $20,000 in student loan debt doubles in 10 years

Finance
As college costs rise and incomes fail to keep pace, the problem of student loan debt has become exponentially worse.Now, nearly half of student loan borrowers owe at least $ 20,000 when they graduate, double the share a decade ago, according to a recent report by the Consumer Financial Protection Bureau. Meanwhile, the percentage of borrowers who owe $ 50,000 or more has tripled over the same time period.More from College Game Plan:The first steps to repaying your student debtThree ways to avoid the financial death spiral of defaulting on your student loansThis student debt strategy can save you more than $ 18,600Fewer are also paying down their debt within five years, the report said."People are taking on more student debt later in life, and having a tougher time paying it back," CFPB di...
SBI-led banks order forensic audit of Videocon’s accounts as a precursor to debt recast

SBI-led banks order forensic audit of Videocon’s accounts as a precursor to debt recast

Finance
MUMBAI: A SBI-led consortium of lenders has ordered a forensic audit of Videocon Industries' accounts to find out whether the company foundered because of adverse business conditions or financial mismanagement, said two people with knowledge of the matter. The move is preliminary to the start of debt restructuring after Videocon defaulted on loans worth Rs 43,000 crore, they said. KPMG, one of the Big Four audit firms, will conduct a thorough inspection of the accounts of the group, which has interests that range from television manufacturing to oil exploration in Africa. Loan recast proceedings under the Insolvency and Bankruptcy Code (IBC) could be kicked off once KPMG finishes its report. "Lenders and promoters are now looking at restructuring of the loans and before they go ahe...
Tata Industries raises Rs 250 crore via corporate bonds to refinance debt

Tata Industries raises Rs 250 crore via corporate bonds to refinance debt

Finance
MUMBAI: Tata Industries, the holding company for new-age businesses at Tata Group, raised Rs 250 crore by selling corporate bonds to Birla Sunlife Mutual Fund, Aditya Birla Finance and Kotak Mutual Fund as it looks to refinance existing debt and spend on general business purposes. Tata Industries issued 2,500 nonconvertible debentures (NCDs) of the face value of Rs 10 lakh each, according to documents seen by ET. Kotak Mutual Fund and Birla Sunlife Mutual Fund subscribed to Rs 100 crore worth of NCDs each while Aditya Birla Finance subscribed to Rs 50 crore worth of NCDs. ICICI Bank was the sole arranger of the private placement. "We do not share information on such matters. Suffice it to say that, from time to time, Tata Industries raises funds as part of its ongoing activities," a Ta...
Yes, student debt is delaying homeownership

Yes, student debt is delaying homeownership

Finance
How to talk to your kid about paying for collegeCollege grads have claimed for years that they were putting off buying a home because of student debt. Now, there's strong proof that their loans really have pulled down homeownership rates. About 32% of those in their 20s owned a home in 2007, but that's fallen drastically to 21% in 2016. While the poor labor market and memories of the housing bubble certainly played a role, student debt can explain up to 35% of the decline, according to a report from the Federal Reserve Bank of New York released Thursday. If it sounds small, think of it this way: about half of Americans don't go to college and some of those who do aren't dragged down by student debt. The results suggest that the rise in college costs will result in "weaker spending and w...