Drowning in Debt graphic by Estelle Shumann. Student Loan Borrowers Dazed and Confused by Servicer Shuffle. A little-known legal provision forces the federal government to award contracts to qualifying nonprofit student loan servicers, putting them in charge of managing millions of loans.
The shuffle has thus far caused problems for some borrowers. The Department of Education has been transferring large batches of federal student loans to new loan-servicing companies [1] — leaving in the lurch some borrowers who are suddenly encountering problems with their loans, such as payments that are mysteriously adjusted up [2] or down [3]. The switch, which has been going on for months and will ultimately include millions of loans, is mandated by a little-known provision tucked into the 2010 healthcare overhaul. Pushed by a consortium of nonprofit student loan companies, the provision forces the DOE to use nonprofit loan servicers. But at least in the short run, the switch has caused problems. Baeck is [4] not [5] alone [6]. Now, two years later, borrowers are experiencing the effect of the law. Student Debt Poll: Current Students Confident They'll Be Able To Repay Loans, SIFE USA Finds. Student debt leaves plenty to be depressed about, but a new poll finds people who have loans overwhelmingly remain optimistic.
According to a new poll of SIFE USA members released by Wells Fargo, 71 percent of students who borrowed money to attend college feel confident that the cost of their education will be worth it. The poll found 71 percent feel confident they'll be able to repay their debt, and 78 percent of students would rather borrow money than not attend college. Earlier this week, Pew Research Center released a study finding a record number of households have student debt and the number is higher among young people.
In 2001, 26 percent of households under age 35 had student debt, but that number is up to 40 percent now. The Education Department's data shows student loan defaults are on the rise as well. The students in the poll who feel college is worth it, despite their debt, have some data to back it up. Jubilee USA: HOME. Romney Blasts Student Loan Relief Plan As ‘All Sorts of Free Stuff’ At a rally in Manchester, New Hampshire today, Mitt Romney was asked about his plan to tackle the nation’s exploding student debt crisis.
In response, Gov. Romney said, essentially, that it was not the government’s job to get involved. “It is very tempting as a politician to say, ‘ You know what, I will just give you some money. FACT SHEET: "Help Americans Manage Student Loan Debt" The White House Office of the Press Secretary For Immediate Release October 25, 2011 The Administration has made historic investments in Pell Grants and the American Opportunity Tax Credit to help make college more affordable for millions of current and future students.
While college remains an excellent investment for most students, debt may discourage some potential students from enrolling, keeping them from getting the skills they need to compete in the global economy. President Obama, Mitt Romney Address College Financial Aid, Student Loans On Campaign Trail. During a campaign stop in Manchester, N.H. on Monday, presumptive Republican presidential nominee Mitt Romney was asked by a college student what he would do if elected to address the student debt crisis.
Romney responded voters shouldn't expect him to boost Pell grant awards or help pay off student loans. "It is very tempting as a politician to say, 'You know what, I will just give you some money. Column: The student loan crisis that can't be gotten rid of. The Unconstitutional 40 Years War On College Students. Lobbyists' trillion dollar revenge on nerds Originally posted at Reuters You have probably mentally catalogued the student loan crisis alongside all the other looming trillion dollar crises busy imperiling civilization for the purpose of enriching the already rich.
But it is different from those crises in a few significant ways, starting with the fact that the entire student loan business is arguably unconstitutional. You don’t have to take it from me: a preeminent bankruptcy scholar made precisely this argument under oath before Congress. In December 1975, when Congress was debating the first law that made student loans non-dischargeable in bankruptcy, University of Connecticut law professor Philip Shuchman testified that students “should not be singled out for special and discriminatory treatment,” adding that the idea gave him “the further very literal feeling that this is almost a denial of their right to equal protection of the laws.” Student Debt Crisis: #ListenToTheMillion. Business - Andrew G. Biggs - The Truth About College Aid: It's Corporate Welfare. Recent economic research suggests that colleges siphon off a significant portion of federal education aid rather than lowering costs to students Reuters President Obama is holding thinly-veiled campaign events at college campuses around the country touting his plan to retain low interest rates on federal student loans.
Amidst the debate over whether a temporary 3.4 percent interest rate passed in 2007 should be retained and, if so, how to pay for it, a far more important question has been ignored: State grant aid goes increasingly to the wealthy - College, Inc. Posted at 10:49 AM ET, 05/15/2012 May 15, 2012 02:49 PM EDT TheWashingtonPost State grant and scholarship programs for college students increasingly favor students who aren’t needy, according to a new report.
Performer John Legend visits college hopefuls at Duke Ellington School for the Arts.
Affordability. PSLF. Forgive Student Loan Debt. Income Based Repayment. Debt Collection. Default. Interest Rates. Delinquency. Sallie Mae. Trillion Dollar Mark & Gen Info. Minorities & Loans. Occupy. Unemployment. Cuts in Funding.