Son secretly took out huge student loans in parent's name

The U.S. Department of Education will now change the interest rates and retroactively apply the new rates to loans taken out since student loan relief July 1. The change is expected to only take a few days to implement. Congress has imposed caps on how high these rates can go in future years: 8.25 percent for undergraduates, 9.5 percent for graduate students and 10.5 percent for PLUS loans. Although the rates are not expected to hit those caps in the next decade, congressional estimates show the rates could get close to the caps. Source:

Answer: Because they were married for more than 10 years, your daughter should qualify for spousal benefits, which can equal up to half of her ex's benefit at his full retirement age. That amount would be permanently discounted if she applies before her own full retirement age (which is 66). The ex's marital status doesn't matter, although your daughter's does. If she remarries, she will lose access to spousal benefits as a divorced spouse. This is just one of the ways that spousal benefits differ from survivor's benefits, which are based on 100% of the earner's benefit and which widows and widowers can receive even if they remarry after age 60. Source:,0,5493313.column

Signing student loan deal into law, Obama says job is not done on college affordability

One factor thats sometimes overlooked is gift aid. Gift aid is a term for scholarships and grants that a school and government give to needy students. It does not include work study earnings and loans. Exploring ways to get gift aid can help trim that debt load from the outset. When considering ways to pay off debt, look critically at offers of debt relief. Some companies demand big initial fees plus monthly costs to find government programs that you can use for free. Source:

Congress OKs cheaper student loans

It has provisions for rates to go higher in coming years. As House members debated the bill, many Republicans took credit for the deal. They noted that the Senate version wasn't much different from their own student loan bill, which linked rates to the bond markets. "My colleagues and I have been fighting for months for a long-term market-based solution that will serve students and taxpayers, and the legislation before us today will do just that," said Minnesota Republican John Kline, who runs the House education panel. Related: Student loan horror stories The new rule doesn't apply to loans that students get from private lenders. It only affects Stafford loans, which are made by the U.S. Source:

Understanding student loans

Joe Courtney, D-Conn.; and Rep. John Kline, R-Minn. CAPTION By Associated Press, WASHINGTON President Barack Obama signed into law Friday a measure restoring lower interest rates for student loans, pledging the hard-fought compromise would be just the first step in a broader, concerted fight to rein in the costs of a college education. Encircled by lawmakers from both parties in the Oval Office, Obama praised Democrats and Republicans alike for agreeing finally on what he called a sensible, reasonable approach to student loans even as he cautioned that our job is not done. Feels good signing bills. I havent done this in a while, Obama said, alluding to the difficulty hes faced getting Congress, particularly the Republican-controlled House, to approve his legislative priorities, such as gun control and budget deals. Source: