Student Loan Deal Passes Senate

The mortgage-style loans, which were taken out by students who began courses between 1990 and 1998, have been sold to a debt management consortium for 160 million. Universities Minister David Willetts said the private sector was best placed to collect the outstanding debt Credit: PA Wire Universities Minister David Willetts said the move represents “good value for money”, and would enable the Student Loans Company to concentrate on administering more recent loans. NUS president Toni Pearce said it was “extremely concerning” that the public would be subsidising a private company to make a profit from public debt. More top news
Source: http://www.itv.com/news/update/2013-11-25/student-loans-worth-nearly-900m-sold-off/

“The private sector is well placed to maximise returns from the book which has a deteriorating value. The sale will allow the Student Loans Company to focus on supplying loans to current students and collecting repayments on newer loans. Borrowers will remain protected and there will be no change to their terms and conditions, including the calculation of interest rates for loans. But as noted in a HuffPost UK blog earlier this week, speaking to a parliamentary select committee last June, universities minister David Willetts told MPs: “In the letter that every student gets there are some words to the effect that governments reserve the right to change the terms of the loans.” Toni Pearce, President of NUS, said the move was “incredibly problematic” and would affect everyone who had taken out a student loan. This announcement is extremely concerning and is one that will see the public subsidising a private company making a profit from public debt, which is incredibly problematic,” she said. The impact of this sale wont only affect borrowers, but will affect everybody. “The simple fact is that having these loans on the public books would be better off for the government in the long run.
Source: http://www.huffingtonpost.co.uk/2013/11/25/student-loan-book-sold-160m-government_n_4336301.html?ir=UK+Politics

“The private sector’s expertise makes it well-placed to collect this debt and the sale will also help the Student Loans Company (SLC) to concentrate on providing loans to current students.” The low recovery rate on the 1990s loans means the sale price is likely to be only in the tens of millions of pounds, reflecting the distressed nature of the debts, people close to the situation said on Sunday. The deal will come at a sensitive time, just weeks after Royal Mail was floated with a valuation of 3.3bn. On Wednesday, Royal Mail will present its maiden results as a listed company, while Vince Cable, the Business Secretary, will make a further appearance before the BIS Select Committee amid allegations that the postal operator was sold too cheaply. http://www.obamastudentloanforgiveness.net The Government insisted that bidders for the 900m loan portfolio, which was given the codename Project Ariel, would be assessed against a strict set of criteria, although it did not say publicly what these would be. It added that the terms and conditions for borrowers whose loans were included in the sale would not change.
Source: http://news.sky.com/story/1173070/student-loans-ministers-to-unveil-900m-sale

But there are those who say this is a bad way to measure and predict what loans cost the government. They like something called “fair This summer, Congress directed the Government Accountability Office to conduct a study on the true cost of the federal student loan programs.value accounting,” which they say does a better job of factoring in the cost of collecting delinquent or defaulted loans and looking at the risk taken by the government when it lends out money. They say there is actually little to no profit. In his call with reporters this summer, Duncan did not get into which method of accounting he prefers, just that he believes the government isn’t running the student loan system in order to make money, but rather to help students afford college. Debt’s effect on economy Prospective students tour Georgetown University’s campus in Washington, D.C., in July. (Photo: File photo by Jacquelyn Martin, AP) The large debt numbers have sparked concerns about impact that debt is having on the nation’s economy.
Source: http://www.usatoday.com/story/news/nation/2013/11/25/federal-student-loan-profit/3696009/

The loans, which were taken out between 1990 and 1998, are likely to be sold for significantly lower than their market rate. Universities Minister David Willetts announced plans to sell the loans in March, saying the “mortgage-style” student loans will “allow us to reduce public debt and maximise the value of one of the government’s assets. A fresher at Manchester university browses books at a secondhand stall. Student loans from 1990 to 1998 will be sold to a private debt collection agency on Monday “The private sector’s expertise makes it well placed to collect this debt and the sale will also help the Student Loans Company to concentrate on providing loans to current students.” Many whose loans will be included in the sell-off took to Twitter on Sunday evening to voice concern about the plans to sell the loans to a debt collection agency. I wish there was a way I could stop them selling off the student loan book, it’s lunacy. Loooooooonacy!
Source: http://www.huffingtonpost.co.uk/2013/11/24/student-loans-sell-off_n_4333887.html?ir=UK+Universities+%26+Education

What many borrowers don’t realize is that credit card debt, even gambling debt, can be discharged in bankruptcy, but not student loans. The government will take your tax return, disability check, even your social security to get that money back. “Over 120,000 individuals did not get their social security checks because of their student loan debt,” said Cathy DeWitt Dunn, a financial planner. She advises students to look at community college, stay in state and take online courses to save money. “No one has sat down with these kids to tell them this is the impact of what is going to happen to you,” DeWitt Dunn said.”This money is so easy to come by.” The Striblings are taking advantage of one government option — an income-based repayment program where they pay a percentage of their salary for the next 25 years. In the end, they will pay taxes on the balance.
Source: http://www.myfoxdfw.com/story/24067269/college-graduates-struggle-with-student-loan-spiral

Full-time students starting at a publicly funded university in the U.K. for the 2013-2014 academic year paid an average of almost 8,500 pounds , or close to $13,500, according to the U.K.’s Office for Fair Access. Students in the U.K. can borrow loans for both tuition and living expenses from the government-run Student Loans Company, and approximately 958,000 students did during the 2011-2012 school year, according to an annual report from the company. On average, students borrowed close to $10,200 during that time frame.
Source: http://www.huffingtonpost.com/2013/11/20/student-loan-debt-around-the-world_n_4299782.html

The Responsible StudentLoan Solutions Act was primarily designed to reset student-loan interest rates at the 91-dayTreasury bill level, with an add-on percentage determined by the secretary of educationto cover program administration and borrower benefits. Under the plan, interest rates forneed-based, subsidized federal loans would be capped at a maximum of 6.8 percent. Ratesfor unsubsidized and parent loans would be capped at a maximum of 8.25 percent. The Responsible Student Loan Solutions Act would also give the secretary of educationthe authority to reissue federal Stafford and PLUS loans at the same lower interest rateplus a markup for the cost of servicing. Under the bill, administrative costs can equal amaximum of 0.5 percent of the loan principal. Federal Student Loan Refinancing Act, proposed by Sen.
Source: http://www.americanprogress.org/issues/higher-education/report/2013/11/21/79821/resetting-the-trillion-dollar-student-loan-debt-problem/

government to help finance a college education. Students can apply through their university financial aid office. The loans are limited to no more than $5,500, for a mix of subsidized and unsubsidized loans for the freshmen year and $7,500 for juniors and above. On July 1, the interest rate on subsidized Stafford loans doubled from 3.4% to 6.8%. The rate hike affected 7.4 million students.
Source: http://money.cnn.com/2013/07/24/news/economy/senate-student-loans/index.html

Forex Marketplace Now Open For Business: New Arena For All That Is Forex-related

SAB has gained from strong demand in developing economies in the past five years, as consumers have traded up from home-brewed alcohol to branded beer. Emerging markets make up around 75% of the company’s earnings. First-half net profit rose 8.5% to $1.71 billion from $1.58 billion. Net producer revenue–which includes sales from joint ventures–increased to $13.79 billion from $13.67 billion, in line with market expectations. “We have continued to deliver on the potential of our businesses in both developed and developing markets,” said Chief Executive Alan Clark.
Source: http://www.marketwatch.com/story/sabmiller-warns-forex-depreciation-will-hit-profit-2013-11-21

Acting as the eBay of the forex world, Forex Marketplace provides a user-friendly, virtual venue where forex professionals can purchase, or offer for sale, anything that is of interest to their counterparts in the industry. Starting with forex-related domains, Forex Marketplace expects to further expand to other areas in the industry and to enable the buy and sale of professional services, platforms, brokerage services, companies, information, equipment and more. As of today, Forex Marketplace offers domains that can host forex companies, binary options companies, trading firms, and other market professionals. The list of available domains appears in full, and the search window can help you find the best domain for your company. If you need any advice or recommendations, check the Featured Domains section. For all other categories, using Forex Marketplace will be as easy as it is with domains.
Source: http://forexmagnates.com/forex-marketplace-now-open-for-business-new-arena-for-all-that-is-forex-related/

Dmitri Chavkerov of Forex Peace Army Advises Traders To Become Lean and Mean Forex Trading Machines To Become Successful in Forex

central bank would maintain its ultra-easy monetary policy for as long as needed. Bernanke said late on Tuesday that officials wanted evidence of durable job growth before scaling back the Fed’s bond-buying stimulus, adding that interest rates were likely to remain near zero for a considerable time after the asset purchases end. A mixed set of U.S. economic data, on the other hand, provided no clue as to when the Fed will eventually here. reduce its asset purchases, with a fall in consumer prices in October largely offsetting a faster-than-expected rise in retail sales.
Source: http://www.reuters.com/article/2013/11/20/markets-forex-idUSL2N0J51PK20131120

“I used to run a lot when I was younger. One time, before I was about to go to another city in order to run a marathon, some chubby guy with a bunch of new age ideas asked me whether I have a goal for that marathon. I told him that I want to run it under 3 hours and 30 minutes. He asked me whether I could win the marathon with such time.
Source: http://www.bizjournals.com/prnewswire/press_releases/2013/11/19/PH19190

Experts Offer Advice About Paying Off Those Dreaded Student Loans

Graduates need to request the benefit when they enlist and must turn down the GI Bill. Military repayment assistance only applies to federal loans, which can be a point of confusion for some service members, he says. “The forms signed by new members of the military were not at all clear on this point,” he says. “While there have been some improvements, I still hear from veterans who are upset about it.” Additional federal benefits are available for service members directly in the line of fire. Troops stationed in hostile areas that qualify for special pay “do not have to pay interest on Direct Loans made on or after October 1, 2008, for up to 60 months,” according to the Department of Education , and those injured while serving may be able to have all of their federal student loans discharged.
Source: http://www.huffingtonpost.com/2013/11/11/student-loan-relief-service-members_n_4254872.html

Are There Any Programs to Help With My Federal Student Loans?

And then have some fat, which tastes really good, and have a little fun, Brady said. 5. Spend smartly and avoid incurring more debt. Interest accumulates quickly, so try to pay more than the required monthly payment. Increasing your income certainly wont hurt either.
Source: http://www.deseretnews.com/article/865590273/Experts-offer-advice-about-paying-off-those-dreaded-student-loans.html?pg=all

However, if interest rates were to spike, the bill makes provisions to cap the rates. Loans for undergraduates will be capped at 8.25% and for graduates at 9.5%. Over 10 years, the interest rates the government collects on student loans is expected to raise $715 million. It will go toward reducing deficits. Student loan interest rates could double The bill won support from Senate Republicans. However, left-leaning Democrats and student groups opposed the bill for hiking rates in coming years.
Source: http://money.cnn.com/2013/07/24/news/economy/senate-student-loans/index.html

Unknowingly signed up for 300 term conditions in 2007. I have been paying $325/month since 2007 and the balance is visite site still what the principle balance was in 2007. My beginning balance was $43000 and i still owe this amount. My loans have been sold multiple times and i am now with Sallie Mae. The only concession Sallie Mae has offered to reduce my debt and pay off my loan quicker is a .25% decrease in interest by setting up direct payments with Sallie Mae through their website.
Source: http://www.wral.com/are-there-any-programs-to-help-with-my-federal-student-loans-/13099507/

Stocks Are Cheap, Only Up 10% Since 2007: Ron Baron

Twitter joins a hot sector of the stock market, despite Thursday’s declines. After early struggles, Facebook stock has surged in the past few months after revealing significant growth in its mobile numbers. Year-to-date, Facebook has posted an 80.7% gain. Meanwhile, LinkedIn has skyrocketed in value, with shares vaulting from $101.21 on this day last year to over $220.
Source: http://www.usatoday.com/story/tech/2013/11/07/tech-stocks-twitter/3463963/

2 economy. A report that showed strong growth in Chinese exports last month was not enough to counter investor caution. In early European trading, Britains FTSE 100 slipped 0.5 percent to 6,664.52 and Germanys DAX fell 0.6 percent to 9,024.79. Frances CAC 40 slid 0.8 percent to 4,248.22. U.S.
Source: http://www.washingtonpost.com/business/world-stocks-head-lower-as-investors-turn-focus-to-us-jobs-data-amid-fed-taper-fears/2013/11/08/2000dc10-4857-11e3-95a9-3f15b5618ba8_story.html

And the stock market is up 20 or 30 percent. From 2007, it’s up maybe 10 percent. People say how much it’s up, but it’s only up from where it crashed.” As for valuations, he said on “Squawk Box” that at the height of the Internet bubble “in 1999 the stock market was selling for 33 times earnings.” Stocks are now selling for around 14 times, he said. “They’re cheap on stock valuations alone.” The Baron Capital chairman and CEO formed the investment company that bears his name in 1982. It currently has $23.8 billion in assets under management.
Source: <a http://www.todayhotstocks.com/ href=’http://www.cnbc.com/id/101182217&#8242; >http://www.cnbc.com/id/101182217

1. It was Southeast Asia’s worst performer on the week, dropping 3.5 percent, the biggest since Aug. 23. Stocks in Singapore fell 0.8 percent on the day to the lowest close in more than three weeks while Malaysia inched down 0.1 percent, both posting modest weekly loss. Vietnam ended down 0.3 percent, but was up 0.3 percent on the week after two weeks of declines. Indonesia inched down 0.2 percent and was an outperformer on the week, up 1 percent, after strong private consumption in the third quarter and government’s plans to boost foreign investment lifting hopes on current account balance.
Source: http://uk.reuters.com/article/2013/11/08/markets-southeastasia-stocks-idUKL3N0IT0Q620131108

Twitter set a price of $26 per share for its initial public offering on Wednesday evening and will begin trading Thursday under the ticker symbol TWTR in the most highly anticipated IPO since its Silicon Valley rivals Facebook 2012 debut. By Associated Press, NEW YORK Twitter popped, but the rest of the market dropped. Twitter wowed investors with a 73 percent surge on its first day of trading Thursday. The broader market, however, had its worst day since August as traders worried that the Federal Reserve could cut back on its economic stimulus.
Source: http://www.washingtonpost.com/business/stocks-hold-near-records-after-us-economic-growth-accelerates-investors-await-twitters-debut/2013/11/07/555a4980-47be-11e3-95a9-3f15b5618ba8_story.html

Forex Strategy Video: The Top Eurusd, Spx, Dollar Risk Is Still The Taper

Analysts were caught off guard since the consensus had been for a drop to 59.8 from Septembers 60.3. The UK PMI surveys are signalling a stronger recovery than that envisioned by the Bank of England earlier in the year, meaning that the BoEs projections for economic growth and employment are likely to be revised upwards in its November Inflation Report. In the August report, the UKs central bank expected annual growth of 1.4 percent for 2013, whereas Markits analysis of the correlation between the All-sector PMI and change in GDP posits that 2013 growth will be at least 1.6 percent. Markit added that the strong PMI surveys suggest quarterly economic growth of 1.3 percent, up sharply from 0.8 percent between July and September (see left chart below). The Composite PMI Index indicates that new business rose at a record pace and employment growth surged to an all-time high in the surveys 14-year history.
Source: http://invezz.com/news/forex/6568-forex-gbpusd-climbs-above-1-point-60-on-record-uk-allsector-pmi

Dollar Retreats To Start Busy Forex Week

Reserve Bank of India (RBI) had provided a special dollar swap window to Indian Oil, Hindustan Petroleum and Bharat Petroleum in late August in order to shore up the rupee. RBI Governor Raghuram Rajan has said that until the public sector companies fully return to the market it couldn’t be described as having stabilised. The market expects the window to be withdrawn in the next few weeks, which could bump up demand for US dollar by more than $400 million a day. Dealers expect a gradual return so that the market can absorb the demand for dollars and there is no sudden exchange rate movement. The window was introduced on August 28, when the rupee hit its record-low of 68.85. “We expect OMCs to begin buying dollars in a calibrated fashion,” Yes Bank chief economist Shubhada M Rao told ET.
Source: http://economictimes.indiatimes.com/markets/forex/return-of-oil-companies-to-forex-market-could-unsettle-rupee/articleshow/25238551.cms

Economists expected a third-quarter increase of 0.6%. New Zealand’s unemployment rate fell to 6.2% in the third quarter from 6.4% in the prior quarter. Economists expected a third-quarter reading of 6.3%. Statistics New Zealand added that New Zealand’s labor cost index was unchanged at 0.4% last quarter. Economists expected a third-quarter reading of 0.5%.
Source: http://www.nasdaq.com/article/forex-audusd-modestly-higher-after-trade-data-cm296949

“We expect the ECB to soon make clear its intentions regarding arresting deflation concerns,” analysts at Barclays Capital wrote in a note to clients. “We anticipate a looser monetary stance to be adopted at the December meeting, but the ECB’s intentions to be aired ahead of it. We remain short EUR via a put spread.” A notable performer overnight was sterling, which gained strongly after data showed the UK services sector expanded at its fastest pace in 16 years. Sterling rose 0.5 percent to $1.6063 and hit a one-month high against the euro, which slid to 83.94 pence .
Source: http://www.reuters.com/article/2013/11/05/markets-forex-idUSL3N0IQ60420131105

The ‘Taper’ headlines seem to have abated recently, but this important fundamental theme will return to the forefront on key event risk (NFPs, policy speeches) just when technicals are threatening breakouts. Alone this eventuality has direct implications for the dollar, but its true influence comes through its potential impact on general risk trends. And, there are few other market contingencies that have the level of authority over this elemental dynamic of the financial system. In today’s Forex Strategy Video, we discuss: why the Taper is important; how it impacts the broader markets; what to watch for and how it can influence our trades.
Source: http://www.dailyfx.com/forex/video/technical_analysis/2013/11/05/Forex_Strategy_Video_The_Top_EURUSD_SPX_Dollar_Risk_is_Still_the_Taper.html

Prior to last weeks Fed meet, the dollar bears had been expecting U.S. policymakers to have a more pessimistic click here. view of their own economy. Some investors were looking for the U.S. to downgrade its economic outlook after the shutdown on Capitol Hill and the budget impasse that followed. The FOMCs statement played it safe, and in turn, it allowed investors betting the dollar would fall much further to be closed out.
Source: http://www.forbes.com/sites/deanpopplewell/2013/11/04/dollar-retreats-to-start-busy-forex-week/