Student Loans News

Avoiding student loan crisis
Mar, 30, 2012
While the nation’s student loan debt has pushed passed the $1 trillion mark, passing total credit card debt, and even slowly gaining on the outstanding mortgage debt, some sources say there’s no reason to panic. Despite the fact that more than 50 percent of graduating students leave college with outstanding debt, a CNNMoney article claims experts aren’t scared this debt is creating another financial bubble. “I don’t think it’s a bubble,” Mark Kantrowitz, a publisher for Finaid.org, told CNNMoney. “Most students who graduate college are able to repay their loans.” But Are They?
Mar, 23, 2012
While protests rage on and students plead with lawmakers to ease their student loan burdens, the last thing the younger generations want to hear is that college costs may again be on the rise. The California State University Board of Trustees received horrible news regarding the impact that state funding cuts would have on their institutions. If a November ballot fails to be passed, the Cal State system could lose up $200 million in funding for the 2012-13 academic year, reported the LA Times.
Text books filled with student loan debt
Mar, 22, 2012
When the totals for both private and federal student loans are combined, the nation’s outstanding debt rises above the $1 trillion mark, according to a post by the Consumer Financial Protection Bureau (CFPB). “It appears that outstanding student loan debt hit the trillion dollar mark several months ago,” said Rohit Chopra, the student loan ombudsman for the CFPB. Additionally, the total student loan debt continues to rise at a steady rate, with students borrowing over $117 billion last year in just federally-backed financing alone. The Nation’s Recovery May be Affected
Student loan countdown
Mar, 19, 2012
Unless Congress acts soon, students will see the interest rate on federally subsidized Stafford loans increase from 3.4 percent to 6.8 percent. This doubling of student loan interest rates will be the result of legislation setting an interest rate cap expiring come July of this year.
Student Loan Complaint Box
Mar, 9, 2012
The Consumer Protection Bureau (CFPB) opened their website up to receive borrowers’ complaints on student loans. The CFPB recognizes that there are problems with the student loan industry. While federal student loans offer many opportunities to alleviate high monthly payments, financing front private institutions usually do not offer options similar in nature. The CFPB hopes the public’s personal stories and honest complaints will shed light on what needs to be corrected, particularly when it comes to private student loans, which often escape government oversight and regulation.
Man stressed over student loans
Mar, 5, 2012
The student loan default rate may be much higher than studies have shown, said the Federal Reserve Bank of New York on Monday. The Fed originally reported the student loan default rate right around 14.4 percent. That number was derived from the 5.4 million defaulters from the 37 million current students and graduates who are currently carrying college loans. But researchers are saying that percentage is misleading.
Rejected stamp
Feb, 20, 2012
As the nation’s student loan debt quickly approaches $1 trillion, it’s no wonder why the low interest rates on home mortgages aren’t providing the expected boost in home sales that experts initially predicted.   Roshell Schenck, a Ph.D graduate with a degree in pharmacy currently earns an annual salary of six-digits, but can’t qualify for a home loan to provide shelter for her daughter and herself, reported Bloomberg. Despite the fact that she makes $125,000 a year, she has more than $110,000 in student loan debt, which is putting a real strain on her income and potential borrowing opportunities.  
Percentage sign with an up arrow wrapped around it
Jan, 25, 2012
Unless Congress acts very soon, the interest rates assigned to federal student loans are scheduled to double this summer.   Due to a 2007 law that enacted interest rate reductions for undergraduate subsidized Stafford loans, government-backed student financing is currently offered at an interest rate of 3.4 percent. But that law is scheduled to expire this year, which will result in the interest rate doubling, propelling them to a level that hasn’t been seen since 2007: a discouraging 6.8 percent.  
Woman crossing her fingers behind back
Jan, 19, 2012
The Illinois attorney general, Lisa Madigan, has filed suit against Westwood College. The for-profit higher education institution, which has four Chicago-area campuses, has drawn the attorney general’s ire as a result of misleading students and offering “false promises.”  
Man with ball and chain around ankle
Jan, 11, 2012
A survey commissioned by FICO expresses concern over the growing instability of the student loan market, and predicts future student loan delinquencies to weight the U.S. economy down.   Now that student loan debt has overtaken credit card debt with a total $750 billion outstanding, FICO’s survey revealed 67 percent of respondents expect delinquencies to rise.  

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