The U.S. Senate on Wednesday gave final approval to a compromise budget bill that sets federal funding levels for the rest of this fiscal year and next year. Lawmakers passed the deal on a 64-36 vote and sent it to President Obama, who supports the measure and is expected to sign it into law. Read more...
‘Skin in the Game’ on Loans
By Michael Stratford. A group of Senate Democrats announced Thursday a new push to provide student loan borrowers with more protections and hold colleges more accountable for loan defaults. In a call with reporters, Senators Richard Durbin of Illlinois, Jack Reed of Rhode Island and Elizabeth Warren of Massachusetts highlighted a package of new and existing proposals aimed at reducing the burden of student debt. Read more...
Up to 40% of new student loans may never be repaid
Politicians: Ignore the Millennial Student Loan Crisis at Your Own Risk
By Adam Levin. Though politicians fall all over themselves when it comes to voters in my age bracket and even older (that's almost impossible to comprehend), a new survey by Harvard's Institute of Politics shows a growing class of discontented, registered voters who agree that there is one major issue among them regardless of party affiliation: that class is millennials, and that issue is student loan debt. More...
Haverford May Abandon Loan-Free Packages for Many Students
Haverford College officials are backing away from a pledge to ensure no students are forced to borrow money to attend the private liberal arts college. College administrators told students this week they are looking to do away with their six-year-old “no loan” pledge to some students – mostly its students from upper middle class households. The new plan still has significant protections for needy families in lower income brackets: Families making less than $60,000 will still not have to take out loans and no family should have to borrow more than $12,000 over four-years, which is far less debt than the average debt-bearing student. (The median family income in the United States is about $51,000). Read more...
Treasury loan book calculations ‘omit £1.7 billion’
By . The Treasury’s stated plan to fund expansion in student places by the sale of loans omits £1.7 billion in lost repayments arising from the sell off.
Andrew McGettigan, author of The Great University Gamble, who spotted the omission, claimed on his blog that the Treasury’s “back of the envelope calculations missed basic facts about financial assets”.
The Treasury said the omission of the lost graduate repayments from its calculations was “for reasons of commercial sensitivity” (the government is yet to agree any sale of the loans). Read more...
University places restriction lifted and funded by student loans sell-off
By Randeep Ramesh. Chancellor says end of 'cap on aspiration' funded by selling loan book, but critics question sustainability of annual £700m needed. English universities will be able to take as many students as they want from 2015, after the chancellor said the limit on places would be abolished – leaving critics to question how the expansion would be funded in the long-term, with potentially damaging implications for the arts and humanities. More...
Nelnet, Inc. commences fixed price cash tender offer for notes of Nelnet Education Loan Funding, Inc.
Nelnet, Inc. (NYSE: NNI) (the "Company") announced today that it has commenced a fixed price cash tender offer for any and all outstanding Series 2004‑2 senior auction rate student loan asset‑backed notes and Series 2004‑2 subordinate auction rate student loan asset‑backed notes (collectively, the "Auction Rate Notes") of Nelnet Education Loan Funding, Inc. (the "Issuer"), that are identified in the table below, for the consideration described in the table below (the "Notes Consideration"). More...
21000ème article sur le blog / Debt
By Matt Reed. A new report on student loan debt from The Institute for College Access and Success is generating quite a bit of press with its statistics on student loan burdens. The headline claim is that “Seven in 10 college seniors who graduated in 2012 had student loan debt, with an average of $29,400 for those with loans.“
The report goes on to name (and shame) high debt colleges and high debt states, and to contrast them with the presumably more honorable low-debt colleges and states. It ends with a note on for-profit colleges, saying that too few of them report anything close to the amount of data needed for meaningful comparisons. Read more...
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Average Student Debt Climbs, Again
By Michael Stratford. The average debt that borrowers of student loans had at graduation continued to rise last year, climbing to $29,400 for the class of 2012, according to a new report released Wednesday by the Institute for College Access and Success (TICAS). This year's figure, based on TICAS calculations of federal data collected every four years, is up by more than 25 percent compared with the group's $23,450 estimate for the class of 2008. Read more...