Student Loans News

Fixed Interest Rate
May, 9, 2012
The academic year of 2012-13 is bringing with it a new avenue of college financing. This week Sallie Mae announced that it will be offering fixed-rate private student loans. The new fixed-rate options are going to be available to both undergraduate and graduate students at degree-granting institutions on May 21, 2012. The interest rates will start at 5.75 percent and they will come with no origination fees. Private student loans typically come with variable interest rates that are re-evaluated once a year. Those variable rates can fluctuate up and down, emitting an air of uncertainty.
Gavel Silhouette
May, 2, 2012
A George Washington University Law School graduate is suing Citibank, Discover and The Student Loan Corporation, which is a subsidiary of Discover, for allegedly deceiving borrowers with fake interest reduction programs, according to ABC News. Justin Kuehn, 29, claims he was a victim of a scheme in which his student loan provider told him he would receive lower monthly payments due to an interest rate reduction. While Kuehn did see lower monthly payments, it wasn’t until later that he learned that his interest wasn’t reduced, but instead the amount of money being put towards his principal was what his provider reduced.
House of Representatives
Apr, 27, 2012
The House of Representatives met today to vote on a GOP-sponsored bill that would keep the interest rates on federal student loans from doubling come July 1, 2012. Lawmakers passed the student loan bill with a 215-195 vote, approving it to be forwarded to the Senate for a vote. But the White House and most Democrats oppose the bill because Republicans hope to pay for the $5.9 billion cost to keep the student loan interest rates from rising by taking money from President Obama’s health care program.
Capitol Hill at Night
Apr, 26, 2012
There’s a harsh debate occurring on Capitol Hill right now, and one that will undoubtedly heat up even further tomorrow when the House votes on a bill that will keep student loan interest rates from doubling. Federal student loans have had their interest rates artificially capped at 3.4 percent by legislation passed in 2007. But the legislation is set to expire on July 1, 2012, which has students, graduates, and parents paying close attention to what our lawmakers will do. If the legislation expires, the federal student loan interest rates will double, landing at their original 6.8 percent that they would be at without a cap.
Political Party Agreement
Apr, 24, 2012
The political party leaders appear to unanimously agree on the issue of student loans, as both of the party front runners have announced their support for extending the interest rate legislation that is scheduled to expire on July 1, 2012. With the number of students borrowing student loans closing in on 60 percent, both democrats and republicans have announced that they believe the interest rate reduction should be extended.
JPMorgan putting stop to student loans
Apr, 17, 2012
JPMorgan Chase, the largest bank in the U.S., announced that it will stop originating private student loans for non-customers beginning on July 1, 2012, according to Bloomberg. Customers must have a relationship with JPMorgan in the form of a deposit, loan or credit card if they hope to secure a private student loan from the bank. While no new non-customers will be given student loans, those with existing financing from the bank will continue to be serviced.
Student debt bomb
Apr, 16, 2012
Recent reports revealed the student loan delinquency rate doubled between 2005 and 2009, spurring some experts to issue new warnings of an impending “student loan debt bomb.” One of those experts is the National Association of Consumer Banking Attorneys (NACBA), according to the Des Moines Register. NACBA argues that growing debt, rising defaults, and struggling economy have all contributed to this sharp uptick in defaults. They warn that borrowers’ inability to repay their college financing may affect the entire economy as a whole.
Man crushing debt
Apr, 10, 2012
A rising online bank claims it will crush student loan debt through its new reward program. The online bank is called SmarterBank, which was created by the financial aid firm SimpleTuition. SmarterBank is offering free checking accounts, free debit cards, ATM access at 40,000 locations, and online bill pay services. But the really interesting offer from the online bank is a program called SmarterBucks, which lets users accrue rewards through normal spending. The rewards can then be put towards existing student loan debt.
Student loan protesters
Apr, 4, 2012
Police pepper-sprayed as many as 30 students at Santa Monica College after demonstrators who gathered in protest over high-priced courses tried to push their way into a trustees meeting. Students at the community college were angry because most of them were barred from sitting in on the meeting due to the size limitation of the venue. After their request to have the meeting moved to a larger facility was denied, they began to enter the small venue by force. “Let us in, let us in,” shouted protesters in a video posted online, according to The Associated Press. “No cuts, no fees, education should be free.”
Apr, 3, 2012
The year of 2012 is bringing it with it reports of more jobs and larger paychecks, which is great news for graduates carrying student loans. This optimistic news is exactly what student loan borrowers who have been losing hope need to hear. As one student interviewed by CNNMoney said, “I worked really hard, and, you know, paid so much for an education, just the idea of going out into the work force and not being able to secure something is very scary to me.” But this year’s reports are showing that more of our indebted youth may find careers in their fields of study.