Student loans: How graduates, families should be thinking about debt

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With student loan payments set to resume starting October 1, the average U.S. borrower is expected to be making an average payment of $500 per month. Soon-to-be graduates are now carefully considering their career paths and job options in order to better prioritize paying off their student loan debt. Wells Fargo Head of Advice & Planning Michael Liersch and Linda Nicholas, NYU's School of Professional Studies Student Financial Services Director, sit down with Yahoo Finance Live to discuss borrowers' longer-term financial sustainability of paying off student loans and whether this type of debt is worth taking on. 'Sometimes there's this 'golden ticket' effect that people have,' Liersch explains. 'Where they think they're going to invest in themselves and then after they invest in themselves, they're going to somehow have this outsized earning potential. And I think we need to reframe that here in the United States of America.' 'Oftentimes, we see that schools with a higher tuition sticker price offer more in terms of scholarships and financial aid than a lower or moderately priced institution,' Nicholas says on the financial aid packages colleges can offer. 'So, I think it's easy to pit different schools against one another, but I think that... if [students are] interested in a program [and] if they see a program as a successful, well-known, reputable program, apply and then compare the financial aid offer.' Click here to watch more of Yahoo Finance's special coverage 'Student Loans: Smarter Strategies.'

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Student loans: How to avoid 'predatory' lendingWith student loan payments set to restart in October, many borrowers are starting to hear from 'predatory' lending companies. So what is predatory lending and how can you avoid it? Student Defense Vice President and Chief Counsel Dan Zibel and Boies Schiller Flexner Partner Adam Shaw join Yahoo Finance Live to break down everything you need to know about 'predatory' lending as part of the weekly series 'Student Loans: Smarter Strategies.' Zibel noted that 'if it sounds too good to be true, it usually is too good to be true.' The Student Defense Vice President also discussed the push by the Biden administration to assist students who have been defrauded by institutions. Zibel explained, 'There is a process in the law known as borrower defense ... where borrowers who took out Federal student loans can apply to get their loans forgiven from the Federal government.' Shaw broke down the recent Navient lawsuit, which resulted in a $198 million settlement for borrowers who filed for bankruptcy. Shaw said, 'Everybody thought that student loans of all stripes persist through bankruptcy, but in fact certain private student loans do not persist through bankruptcy.'
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UAW strike, govt. shutdown, student Loans: GDP growth faces triple threatAuto workers gearing up for a strike, a potential government shutdown, and student loan payments resuming are coinciding and could all spell trouble for the U.S. economy. EY Chief Economist Greg Daco joins Yahoo Finance to break down the overhang these headline events and recent inflation data can have on GDP growth and consumers.  When asked about the ongoing, and potential, strikes Daco explained: 'There is a direct effect on employment. There is a direct effect on spending, and there is also a direct effect on the regions that are affected that are dominated by those sectors, in this case, the automotive sector in the midwest.'
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Student loans: Could filing for bankruptcy be best for borrowers?Student loan repayments are set to restart in October. What should U.S. borrowers know concerning where to find relief and what to avoid? Yahoo Finance's Rachelle Akuffo and Ronda Lee are joined by Student Defense Vice President and Chief Counsel Dan Zibel and Boies Schiller Flexner Partner Adam Shaw to talk about the 'predatory' nature of many private student loan companies and the for-profit colleges that partner with them. Zibel notes many accredited universities attract potential students by promising them opportunities and easy access to funding through private loans. Shaw encourages U.S. borrowers to reassess their finances and even consider whether “bankruptcy is right for them because there may be a path there now that was not there before.” Click here to watch more of Yahoo Finance's special coverage 'Student Loans: Smarter Strategies.'
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DoorDash stock dips on downgrade, student loans resumingDoorDash (DASH) shares tick lower this morning after a downgrade by MoffettNathanson analysts citing the resumption of student loan payments in October. Yahoo Finance Live assesses the coming impact of student loans on services like DoorDash as U.S. borrowers attempt to cut back on spending.
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Companies to offer 2024 graduates student loan payment benefitsWith October 1 — the date for student loan repayments to restart — right around the corner, members of the class of 2024 are already deciding their career paths around financing loan payments.Handshake Chief Education Strategy Officer Christina Cruzvergara joins Yahoo Finance Live to break down how various industries are offering younger workers benefits packages to help pay off student loan debt.“Different organizations are structuring it differently,” Cruzvergara explains. “For some, it's about, once you've given a certain number of years and investment in the company, they are willing to… start paying a portion of your student loan.” Click here to watch more of Yahoo Finance's special coverage 'Student Loans: Smarter Strategies.'
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