Student Loans News

Graduate giving speech at podium
Dec, 28, 2011
Arne Duncan, the U.S. Secretary of Education, gave a speech at the Fayetteville State University Winter Commencement about the importance of obtaining a college education in today’s economy and job market.   Using Michelle Obama as an example, he explained how she had people telling her “not to reach too high” due of the odds stacked against her: poor test scores, her gender, and because she was from the south side of Chicago.  
Judge holding gavel and legal book
Dec, 26, 2011
For lawyers in Washington D.C., a program called the Loan Repayment Assistance Program (LRAP) has always served as an aid to help pay off student loan debt. But for the first time since its creation, LRAP is unable to pay off eligible lawyer’s monthly loan debt.   LRAP provides aid in the form of payment towards monthly student loan bills for lawyers who work to alleviate poverty in underprivileged areas. When LRAP began in 2007, the average amount of student loan debt their eligible applicant’s had was $92,000. Today, the average amount is $119,000.  
Endless row of stick figure people in a line
Dec, 20, 2011
As more and more international students cross our nation’s borders to pursue a degree at our universities, the motives of foreign student recruiters are being questioned.   Higher education recruiters usually come in the form of an agency or company that is designed specifically for locating students and persuading them to attend a particular institution. Once that student relocates, acquires student loans, and pays the school its costs for tuition, the recruiters get a portion of the check—much like a finder’s fee.  
Man being arrested
Dec, 14, 2011
Washington D.C. council member Harry Thomas settled a lawsuit brought against him by the Justice Department for outstanding student loans of $16,000.   Acquired in 1983 and 1984, Thomas (D-Ward 5) had suit filed against him in 2005 for nearly $16,000 in student loan principal and interest along with another $4,000 for attorneys’ fees.  
Man falling down over a hurdle
Dec, 13, 2011
Last month, the Occupy Student Debt (OSD) campaign launched, and cause enormous vibrations in the media world. Articles and news stories erupted, some expressing support and others in opposition to the radical pledge this group was trying to fulfill.   What exactly was this pledge? To rally the masses of students and graduates who are in debt as a result of student loans, and collectively default on their payments.  
Percentage sign, with center line a down arrow
Dec, 2, 2011
Wells Fargo announced Thursday that they will be offering lower interest rates on student loans. But their rates are still nearly half a percent higher than federal student loans.   As reported by The Associated Press, Wells Fargo’s basic undergraduate student loan rates dropped from 7.75 percent to 7.24 percent. That decrease is significant, but doesn’t even come close to 6.8 percent federal loan boast.   The new, lower rate is also only available to those with pristine credit scores. For those students (or parents) who have bad credit, the bank’s loans can carry rates of nearly 14 percent.  
Raised protesting fist
Nov, 28, 2011
On November 21, 2011, the Occupy Wall Street movement mounted an attack against the student loan industry. The “Occupy Student Debt” (OSD) campaign has pledged if they gather support, participants en masse will refuse to make payments on their student loans.   According to the OSD’s website, their protest is built on a pledge to stop making payments on student loans once one million people have signed their online form. This pledge is justified by four principles listed on the OSD’s site.   The OSD asks supporters to sign their pledge if they believe in just one of the following:  
A green and red apple combined together
Nov, 17, 2011
Between January 1 and January 30, 2012, the U.S. Department of Education (department) will offer Special Direct Consolidation Loans, which are designed to help borrowers manage their debt by grouping federal student loans into a single bill with a single payment.   This special short-term consolidation opportunity is available to those who have both:
Hands reaching out offering assistance
Nov, 16, 2011
The Consumer Financial Protection Bureau (CFPB) recently released an automated advice system for student debt on their website. This debt assistant asks borrowers questions about their student loans and financial situation in order to provide them with helpful information on how they can effectively repay their debt.   After determining what kind of loans a borrower has, the student debt repayment assistant offers such advice as:
Graduate cap and diploma
Nov, 7, 2011
President Obama recently announced his proposal to reduce the sometimes excruciatingly high monthly payments current students and recent graduates owe on the loans used to pay for their education. Recognizing the importance of education in a global economy, president Obama said in a news release, “until Congress does act, I will continue to do everything in my power to act on behalf of the American people.”