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Department of Education Launches Interactive Student Loans Tool
By Catherine Groux
Posted July 16, 2012 01:11 PM
The DOE recently created a tool that helps students make smarter financial decisions.A 2011 press release from the U.S. Department of Education (DOE) shows that as the cost of college continues to rise, so does the percentage of students who default on their loans. In fiscal year 2009, about 8.8% of students whose first loan repayments were due between October 1, 2008 and September 30, 2009 defaulted on their loans, up from 7% the previous year.
To help students make sound financial decisions, the DOE recently created a resource called the Financial Awareness Counseling Tool, according to the department's official blog. When students use this online tool, they are given easy-to-understand information about their various loan options, as well as helpful financial aid tips.
However, one of the most useful parts of the program is that it clearly outlines students' expenses. Using the tool, individuals can enter the amount of each of their loans, along with their other expenses, including housing, tuition and fees, books and supplies, and transportation. Once the website receives this data, it tells students what their total expenses are throughout the year and helps them determine the best strategy for repaying their loans without defaulting.
According to the DOE, the tool is only a small portion of the Obama Administration's efforts to make it easier for students and their families to understand their options when it comes to paying for college.
