Student Loan Debt’s Identity Crisis

Doing so will provide the proper incentive for lenders to negotiate in good faith on their unsecured loans. 7.) Ensure that all student loan-servicing and collections companies comply with all consumer protection laws. Education borrowers deserve the same protections as any other class of consumer-borrower, especially when it comes to the Fair Credit Reporting and Fair Debt Collection Practices acts. 8.) Establish a universal standard for the processing of student loan remittances that records borrower-payments on the dates they are received and applies that cash in this order: first to interest, second to principal and third to any unpaid fees (such as for a prior late payment). And should the value of the remitted payment exceed the amount thats currently due, the fourth step in the cash-application process should be to credit that excess against the remaining loan balance, unless the borrower explicitly directs the servicer to issue a refund or offset a future loan payment.
Source: http://www.foxbusiness.com/personal-finance/2014/01/23/10-ways-to-fix-student-loans-in-2014/

There’s a Better Way to Securitize Student Loans

And it also really matters whether they owe the federal government or whether they have private student loans. More students have been defaulting in this bad economy, just as more people are defaulting on all of their loans. HEADLEE: All right. Well, let’s kind of pick apart your answer there. Let’s talk first about the difference between somebody who owns – gets student loans from the government and those who get a private loan from, say, a bank.
Source: http://www.npr.org/2014/01/21/264526781/the-hard-truth-about-defaulting-on-student-loans

Related Articles The Department of Education Set to Consider Changes to Parent PLUS Loans The plan is wrapped into the Obama administration’s goal to make college more affordable and tries to attack a nagging problem: the low FAFSA completion rate for disadvantaged college applicants. ED is considering the development of a FAFSA application program interface (API) that would, in a yet-to-be-specified way, help users deal with this document which is only available at FAFSA.gov and the ED Website. It’s also an opportunity for software developers and others in the IT space to get a piece of some vendor action. ED officials are expected to issue a formal request for information on how the API might be developed through third-parties for “key education data, programs and frequently used forms,” including the FAFSA. The ED’s assistant deputy secretary for innovation and improvement, James Sheldon, told Datapalooza conferees that a FAFSA API would be useful in expanding the way students, families and others use the form.
Source: http://www.mainstreet.com/article/moneyinvesting/education-planning/student-loan-debts-identity-crisis

Education Department Teams With Treasury, Intuit to Help Student Borrowers

The Obama administration is making good on part of its promise to increase college affordability, as two federal agencies are partnering with the financial and tax software company Intuit to raise awareness of income-driven student loan repayment options, the Department of Education announced Friday. President Barack Obama announced in August, as part of his higher education agenda, that his administration would Obama federal student loans work to raise awareness about different student loan repayment options. In the same speech, Obama proposed a plan to tie federal financial aid to colleges’ performance on measures of quality and outcomes. [ READ: Student Loan Default Rates Rise for Sixth Year ] During tax filing season, the Department of Education, the Department of the Treasury and Intuit plan to feature a banner on Intuit’s TurboTax Online software that would redirect borrowers to the Department of Education’s “Repayment Estimator,” which helps users choose between several income-driven repayment options, according to a release. “While the Obama administration is working to expand access to higher education and make earning a college degree more affordable, rising levels of student debt mean that we must continue to provide student borrowers with the tools they need to successfully repay their loans,” Treasury Secretary Jacob Lew said in a statement. “Tax filing season is an opportunity for borrowers to take a big-picture look at their personal finances and check their eligibility for repayment options, including income-driven plans, and enroll in one that meets their family’s needs.” Student borrowers often struggle to repay their loans after graduating, but just slightly more than 10 percent of all federal loan borrowers are enrolled in some type of income-based repayment plan, according to the Consumer Financial Protection Bureau.
Source: http://www.usnews.com/news/articles/2014/1/24/education-department-teams-with-treasury-intuit-to-help-student-borrowers

The Hard Truth About Defaulting On Student Loans

Proposed watchdog group, to be detailed in Gov. Cuomo’s budget, would subpoena 13 firms offering debt relief from student loans. By Michael Virtanen,Associated Press / January 21, 2014 Earlier this month, New York Gov. Andrew Cuomo delivered his annual State of the State address in Albany, N.Y. In his budget proposal Tuesday, Jan.
Source: http://www.csmonitor.com/Business/Latest-News-Wires/2014/0121/Student-loans-Cuomo-to-set-up-NY-watchdog

I’m Frugal But My Student Loans Are Too Expensive

I was better off before I ever got a so-called, better education. And I know I am not the only one. Randall Click here to get my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. Subscribe now. Dear Randall, Thank you for writing to me for advice. Student loans are a terrible debt when you consider about 75 percent of people with student loans never graduate and just have the massive debt weighing them down.
Source: http://www.wral.com/i-m-frugal-but-my-student-loans-are-too-expensive/13322191/

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