Loans Back in the Spotlight
By Libby A. Nelson. When President Obama made a speech from the Rose Garden on Friday about student loans, it seemed like history was repeating itself. The same thing happened at this time last year: with weeks to go before a scheduled increase in the student loan interest rate, the issue turns into a high-profile political fight. As Obama acknowledged: “If this sounds like déjà vu all over again, that’s because it is.”Last year, the interest rate on newly issued subsidized Stafford student loans -- loans that are available only to students with financial need, and that don’t accumulate interest while students are enrolled in college -- was scheduled to double to 6.8 percent on July 1. Read more...
Senate Stalemate on Student Loan Interest Rate
Two dueling bills to avert an increase in the interest rate for new, subsidized federal student loans July 1 both failed to advance in the Senate on Thursday, illustrating the divide between the parties on how best to avoid the rate hike. Read more...Issue bonds for postgrad loans, says report
By Elizabeth Gibney. Groups of universities could raise funding for postgraduate student loans by issuing bonds, a report by the thinktank CentreForum has suggested. The certificates of debt, which guarantee repayment plus interest at a later date, could be used to source money from financial markets for loans, says the study entitled Postgraduate education: better funding and better access. Read more...Extend part-time loans, IPPR report to urge
By , Elizabeth Gibney. Ministers should extend student loans to many more part-time students to remedy a “crisis” in recruitment, a thinktank commission is set to recommend. Led by Nigel Thrift, vice-chancellor of the University of Warwick, the Institute for Public Policy Research’s Commission on the Future of Higher Education will call for sweeping changes to stop the steady decline in part-time students since 2010 when it publishes its final report on 10 June. Read more...Elizabeth Warren's loan bill offers a lifeline to America's indebted students
Student Debt 2013: Can Vocational Education Solve it?
By Melanie Breault. To tackle the unemployment crisis in Europe, memoranda has been signed between Germany and Greece, Italy, Latvia, Portugal, Slovakia, and Spain to set up vocational education systems. Is it time for the U.S. to visit the idea of vocational education too?
Germany and Austria — the two European countries with the lowest youth unemployment rates — have dual-education systems where they combine part-time apprenticeships with formal schooling. The way it works is: Any students not interested in, or not qualified for, university can sign up for a program where they spend part of the week working for a firm that pays them one third of a trained workers salary, and the other half of the week learning the theory and practice of their interested occupation as well as other general subjects. Read more...
First student loan scheme bill passes second reading
ByTunde Fatunde. A bill to create a student loan scheme – called a Higher Education Bank – has passed a second reading in the national assembly and is expected to be approved soon. As expected, there was jubilation among students over the scheme, which is unprecedented in Nigerian higher education. Student beneficiaries would receive sufficient funding to pay for their higher education and would begin repayment two years after finishing their studies. However, some lecturers called for caution regarding the loan scheme’s implementation. Read more...Escalating student loans bill sparks call for 'cheap' degrees
Wilson College Details Unusual Loan-Buyback Program
By Lawrence Biemiller. Wilson College has released details of an unusual debt-buyback offer that is one of the keys to a plan its trustees adopted in January in an effort to attract more students and keep the tiny Pennsylvania liberal-arts institution in business. Under the offer, the college will pay back up to $10,000 of a student’s federal Stafford student-loan indebtedness if the student earns a degree at Wilson within four years, participates in new financial-literacy programs the college will offer, and takes part in “activities and community services that would benefit the Wilson College community.” Read more...