Understand Calls for Loan Repayment Reform

[Explore how employers can help with student loan payments .] In fiscal year 2012 alone, the government disbursed $112 billion in federal loans. The vast majority of these loans will be paid in full with interest, which is why the Congressional Budget Office projects that the federal government will make a massive profit of more than $184 billion in the next 10 years. Far from being financially explosive, the forgiveness ultimately earned by the small percentage of borrowers expected to complete 10 years of qualifying public service will probably be just a drop in the gigantic bucket of student loans. The authors also assert there is nothing to stop every graduate school from including all of their graduates in an LRAP, not just those who commit to public service careers, by taking advantage of the 20- or 25-year forgiveness in income-driven repayment plans. However, they provide no evidence that schools are planning to do this, and the Student Loan Ranger finds it far-fetched that schools would embrace such a logistically difficult and ethically and legally questionable scheme or that the Department of Education would allow them to do so. [Learn which law degrees have the best return on investment .] Based on these arguments, the authors propose capping Public Service Loan Forgiveness at $30,000 and instituting an aggregate limit of $75,000 for all federal loans.
Source: http://www.usnews.com/education/blogs/student-loan-ranger/2013/08/21/understand-calls-for-loan-repayment-reform

Student loan deal passes Senate

You must have a partial financial hardship to be eligible for IBR. … IBR started in 2009. * Income Contingent Repayment, as described by the Department of Education : This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse’s income if you’re married), family size, and the total amount of your Direct Loans.
Source: http://www.theatlantic.com/politics/archive/2013/08/the-white-house-wants-to-help-you-make-smaller-student-loan-payments/278948/

The White House Wants to Help You Make Smaller Student-Loan Payments

Congress should move to make some student loans dischargeable in bankruptcy. Given the persistent myth of the young borrower declaring bankruptcy at the start of his or her career, it is understandable that no one wants to be seen as opening the floodgates to potential abuse. The way to approach this issue, however, is to establish clear and public standards for what we at the Center for American Progress refer to as Qualified Student Loans, or loans that cannot be easily discharged in bankruptcy, which has been done for other types of financial products as a way to identify safer financial products. Qualified Student Loans would include loans, both federal and private, that have reasonable repayment conditions such as low interest rates and access to favorable forbearance, deferment, and income-based repayment options. These loans would also be qualified based on the successful track records of the institutions and programs receiving the proceeds as a way to ensure that these are programs thatby virtue of their graduate employment ratesgive graduates a reasonable chance to repay.
Source: http://www.americanprogress.org/issues/higher-education/report/2013/08/20/72508/how-qualified-student-loans-could-protect-borrowers-and-taxpayers/

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

The speech reunited Obama with one of his most supportive constituencies students and the 52-year-old president reminded his audience he only finished paying off his college loans while he was in his 40s. The US Federal Reserve has estimated that there is nearly one trillion dollars in outstanding college debt in the United States. In 2011, the average outstanding amount of student loan debt for each graduate was $23,000 dollars. Obamas return to his role as champion of the middle classes, a focus-group tested message that worked to great effect last year, comes ahead of looming budget battles with Republicans. The president and Republicans on Capitol Hill will wage their latest bitter contest over the shape of next years budget and a requirement to raise the governments borrowing limit.
Source: http://news.in.msn.com/international/obama-tackles-student-loan-crisis

Obama tackles student loan crisis

Our counseling agencies know that borrowers with student loan debt challenges typically have other challenges and are in need of other supportive services. The MortgageKeeper platform puts these resources within reach for our counselors to provide comprehensive solutions and directly provide borrowers easy access. More information about the Student Loan Alliance can be found at http://www.studentloanalliance.org . About the Student Loan Alliance The Student Loan Alliance (SLA) is a nonprofit organization focused on developing long-term solutions to address the student loan crisis with a key focus on leveraging independent nonprofit counselors as trusted advisors. Alliance members deliver efficient counseling and timely assistance by implementing best in class systems and processes. The student loan crisis affects many households across the country and SLA is committed to addressing the crisis by promoting partnership, developing effective outreach and awareness campaigns, and providing streamlined education and counseling. About MortgageKeeper Referral Services: MortgageKeeper Referral Services is the only platform dedicated to connecting consumers to best-in-class local resources. Trusted by top servicers and housing counseling agencies, our applications power more than 3,500 referrals a day in 160 markets throughout the United States.
Source: http://www.sfgate.com/business/press-releases/article/Student-Loan-Alliance-SLA-Partners-with-4750970.php

Student Loans: The New Calculation

They [the Dreamers] have already spent good money on their education and training and they should be empowered to use those skills to further their careers and better their lives, says Founder Casey Wallace. But Piglt is not just for individual Dreamers and Believers. Educational institutions and organizations (both for- and non-profit) can use Piglt as well. There are so many wonderful educational organizations that are unfortunately very underfunded, lacking alumni participation, and in of need assistance; from elementary school and beyond. Weve created the perfect solution to help anyone fundraise, build community, and improve the lives of people everywhere, says Founder Vidya Chokkalingam. If youre looking for the best and easiest way to raise money for your present or past education, network with members from your alma mater, or are looking for find qualified candidates with specific skills, Piglt is the answer. About the founders: Piglt was co-founded by its CEO Casey Wallace and CTO Vidya Chokkalingam.
Source: http://www.seattlepi.com/business/press-releases/article/Solving-the-Student-Loan-Crisis-Piglt-Campaigns-4752997.php

Solving the Student Loan Crisis – Piglt Campaigns are Live

CAP’s report notes that as the share of college students taking out student loans continues to rise, the share of borrowers in default has also increased in recent years in correlation with rising unemployment rates. Currently, more than 7 million borrowers are in default on federal or private student loans, according to the Consumer Financial Protection Bureau. Only 4 in 10 federal loan borrowers are currently paying back their debt , with many others view site… either still in school, in a six-month grace period, or in programs designed to help distressed borrowers. “We also need to keep in mind with the student borrower, there is the parent borrower or grandparent borrower,” said Joe Valenti, the report’s other co-author and director of asset building at CAP. “There is a surprising number of older Americans who have this debt.” Indeed, parents over 60 are the fastest growing debtors , borrowing either to pay for their own education or to help finance their family’s college expenses.
Source: http://www.huffingtonpost.com/2013/08/20/bankruptcy-student-loans_n_3782816.html

Bankruptcy Should Be An Option For Some Student Loans: Report

Finance Fri, Aug 23, 2013, 6:15 PM EDT – U.S. Markets closed Student Loans: The New Calculation By Kimberly Rotter | Manilla.com Tue, Aug 20, 2013 9:01 AM EDT iStockphoto President Obama is expected to sign new student loan legislation any day now. But what does it all mean? The change enacts market-based interest rates for federal student loans, and lowers rates for borrowers immediately. The legislation will link interest rates on Stafford loans along with graduate and PLUS loans (Parent Loan for Undergraduate Students), to that of the 10-year Treasury note.
Source: http://finance.yahoo.com/news/student-loans-calculation-130109975.html

Student Loan Alliance (SLA) Partners with MortgageKeeper Referral Services to Provide Broad Resources to Distressed Borrowers

The total includes about $165 billion in outstanding private student loan debt. That may seem like a small piece of the pie, but private student loans stand out because they can come with variable rates that may be significantly higher than federal loans. Plus, federal student loan borrowers who are struggling with low wages and other setbacks can seek deferrals and flexible repayment programs, while the private loan borrower doesnt have the legal right to such choices. To help struggling private student loan borrowers, Consumers Union, the policy and advocacy arm of Consumer Reports, is asking policymakers and regulators to put two key reforms in place: Flexible repayment. Private lenders should offer income-based repayment plans to borrowers. Borrowers who demonstrate financial hardship, due to high debt balances and modest wages, should be allowed to repay a reasonable percentage of their income in order to stay current. Refinancing options.
Source: http://finance.yahoo.com/news/comes-private-student-loans-hard-180000068.html

How Qualified Student Loans Could Protect Borrowers and Taxpayers

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

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