The U.S. Department of Treasury, the U.S. Department of Education and Inuit Inc. have joined forces to create the Repayment Estimator, an application designed to help alleviate the fears of those who have student loan debt.
According to University of Mississippi Director of Financial Aid Laura Diven-Brown, approximately 16,594 Ole Miss students received some kind of financial aid in the 2012-13 school year. Of that number, 7,856 students received federal undergraduate loans, totaling about $55,666,999.
Diven-Brown said she thinks the Repayment Estimator was designed to help college students make better financial decisions.
She cited it along with College Navigator, a comprehensive application that helps potential college candidates find and choose the best college for them, as tools to help college-bound students make clearer college decisions. Financial information is included in College Navigator’s resources for finding the best college.
“Financial aid administrators are very supportive of any tools that help our students manage their debt and set themselves up for financial success,” she said.
“We want them to be well-informed. It is true that not all borrowers utilize loan repayment plans that are tied to income — and in some cases this is merely because people do not know they are available. But if borrowers are finding it difficult to make the standard monthly payments, these options may help them avoid default.”
Intuit Inc. owns TurboTax, a well-known tax preparation software that guides users through their tax return. During the upcoming filing season, the program will display a banner advertisement that features the new Repayment Estimator.
The banner links to the estimator, which allows current and former students to look at ways of lowering their monthly student loan payments through an income-driven plan.
The Repayment Estimator is the result of the joint efforts of President Barack Obama, the Department of Treasury, the Department of Education and TurboTax. These institutions came together as part of the president’s College Affordability Initiative to develop the financial program.
According to ed.gov, the initiative is an “ambitious new agenda to combat rising college costs.” The Obama administration points to collaboration between government and private corporations as the next big step in this agenda.
Jalen Neal, a sophomore political science major and community assistant at the Luckyday Residential College, is curious about the Repayment Estimator.
“(The Repayment Estimator) sounds interesting,” Neal said.
“Not saying I would use it, but I would definitely give it the time of day, check it out, see what it’s all about. If I’m interested, I’ll maybe give it a shot, maybe not.”
Freshman English major Emma Jennings said she thinks the government should provide students with financial information earlier in the process.
“I think the government’s resources should be spent on students before they even take out loans,” Jennings said.
”It should educate them on the costs and benefits and help them find scholarships and grants before they even have to take out loans.”
For more financial information about Ole Miss, visit nces.ed.gov/collegenavigator. To use the Repayment Estimator, visit studentaid.gov/repayment-estimator.
— Walter Lyle
wmlyle@go.olemiss.edu
