When it comes to private student loans, it’s hard to avoid getting the runaround

That leaves $260 a month to spend or save — if that, since these are all very rough back-of-the-envelope figures and could easily understate the true costs of living — and many of our recent graduate’s friends won’t be so lucky. Only 39% of current student loan borrowers are actively paying off their loans and haven’t fallen behind. The rest (that would be the delinquent 15% of our under-30 borrowers) might be looking at our $30,000-a-year grad and thinking, “Maybe I should’ve gotten that degree instead.” Debt weighs more heavily on people who have lesser means to repay. There are mechanisms to delay student loan repayment, but unlike all other forms of debt, the only way out is to pay off the loan. The $322 billion in outstanding student loan debt weighing down the under-30 age group might not mean as much to you as the roughly $1 trillion in total student-loan debt weighing down the entire country, but in nearly every case, the debt of older Americans is at least backed by experience, which is worth a leg up in a tough job market. A quarter of all delinquent student loans are held by people under 30, and once the penalties start it can quickly become a death spiral without the option of bankruptcy web site to clear the slate, or the opportunity for professional advancement and greater earnings to make up the difference.
Source: http://www.fool.com/investing/general/2013/08/25/the-student-loan-bubble-is-creating-a-generation-o.aspx

The Obamas carried these debts for the first 25 years of their marriage. The president and the first lady also racked up $40,000 each attending Harvard Law School. Including undergraduate loans, the Obamas owed a combined $120,000 after college. They did not settle their debts until 2004, when Obama signed a $1.9 book deal to write The Audacity of Hope. He was also elected to the U.S. Senate that year.
Source: http://dailycaller.com/2013/08/27/its-personal-obamas-carried-120000-student-loan-debt-for-decades/

Parents face the student loan double whammy

The New York Federal Reserve, which tracks the data, reports that student loan debt is the only form of consumer debt that has grown since the peak of consumer debt in 2008. What’s more, the amount owed in student loans is now greater than both auto loans and credit cards, making student loan debt the largest form of consumer debt outside of mortgages. It’s all driven by relentless increases in the cost of tuition at a time when the country is struggling with sky high unemployment. Americans 50 to 59 years old owed $112 billion in student loan debt at the end of 2012, according to the New York Fedup from just $34 billion in 2005. And there are a lot of them.
Source: http://www.cnbc.com/id/100984688

And it is that corruption which has stemmed the future of this nation and all who have invested in it. Exposure is seen as Congress and others refuse to attend to the matters declaring the need for changes in financing infrastructures. To build any future we need to remove this corruption, and secure the means for individuals to gain from their ideas, not secure the idea of corporations buying legislative security. Removing the debits individuals have will not change the matters on its own, economics involves an exchange and if someone removes even a portion of resources it will affect all others. The need then to secure the legislative security for the same individuals becomes paramount to long-term survival and means to assure economic resources remain fluid. The fact corruption exist today, shows there are funds being taken out of the system already, this has to stop to allow more economic resources are made available.
Source: http://www.examiner.com/article/economics-presidential-forgiveness-of-student-loans-part-1

Student loan rates will feed federal profits

That move places the responsibility of student borrowing almost entirely in the hands of the federal government and out of the hands of state government. As a father, I see the growing burden that could be placed on the shoulders of my children. As a student-loan payer, I have firsthand knowledge about our own education mortgage. As a lawmaker, I search for solutions across the higher-education system to better prepare students for careers, while at the same time putting them in a position to afford both their lifestyles and student loan payments after graduation. The conversation in Washington, D.C., seems to be centered on interest rates. We should remind ourselves that this ainterest rate debaclea is a crisis created by federal government action, or more accurately, its inaction.
Source: http://triblive.com/opinion/featuredcommentary/4576037-74/student-loan-education

Economics: Presidential forgiveness of student loans Part 1

Markets open in 7 hrs 18 mins When it comes to private student loans, it’s hard to avoid getting the runaround Consumer Reports Fri, Aug 23, 2013 2:00 PM EDT Print The start of a new college year is here, but a report on private student loans from the Consumer Financial Protection Bureau that highlights disturbing news about the problems students are having with lenders and loan servicers puts a damper on this exciting time for students nationwide. When students try to get basic information about their private loan accounts, they often get the runaround: Payments may be credited late or unevenly, record keeping is poor, and customer service is lousy. The most frequent complaint from students is that they are given few options to refinance or modify repayment for a better deal. Those findings (PDF) by the CFPB, unfortunately, are similar to those in a fall 2012 report . Students frustrations with their loan servicers sound all too much like the problems weve seen in the mortgage servicing business, where borrowers often cant get the straight answers and critical information they deserve. Outstanding student debt in the U.S.
Source: http://finance.yahoo.com/news/comes-private-student-loans-hard-180000068.html

Rethinking student loans

News outlets across the country were abuzz yesterday after the New York Times revealed a plan by the Obama White House to givea series of highly publicized speeches addressing the student loan debt crisis aimed at making colleges more accountable and affordable by rating them and ultimately linking those ratings to financial aid.Obama is crisscrossing New York and Pennsylvania in an effort to highlight the student loan crisis and suggest a number of solutions he hopes to implement some via executive action, others through legislative compromise (ha!) with the GOP: A draft of the proposal, obtained by The New York Times and likely to cause some consternation among colleges, shows a plan to rate colleges before the 2015 school year based on measures like tuition, graduation rates, debt and earnings of graduates, and the percentage of lower-income students who attend. The ratings would compare colleges against their peer institutions. If the plan can win Congressional approval, the idea is to base federal financial aid to students attending the colleges partly on those rankings. Unfortunately, the amount Obama is able to accomplish is tied to the willingness of Congressional Republicans to work with the president at crafting legislation, no easy task. But Alec McGillis of The New Republic offers some hope that bipartisan compromise might be possible, noting that, when Republicans do rise against Obamas cost-control plan as another example of heavy-handed big government, they should be aware that his plan has firm roots in George W. Bushs White House. Meanwhile, at New York Magazine, Jonathan Chait suggests that the GOPs hatred of the Affordable Care Act another traditionally conservative policy proposal could serve as a blueprint for how Congressional Republicans might oppose Obamas new education agenda: Finding ways to get the government to spend less on education sounds pretty conservative.
Source: http://www.salon.com/2013/08/23/the_hidden_truth_about_student_loans/

The hidden truth about student loans

Making that profit stay shifted a lot of the burden onto parents and graduate students, Thompson said. “Unfortunately, this is a permanent change,” she said. Sen. Carl Levin, D-Michigan, said he voted for the plan because it promised relief to students, at least in the short term. “We stopped the increase in interest rates,” he said Wednesday.
Source: http://www.usatoday.com/story/news/nation/2013/08/25/student-loan-rates-will-feed-fed-profits/2696241/

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