Links in “Student Loans”
- Some Schools Not Fans of Proposed Student Borrowing Limits
Legislation would limit student borrowing to $30,000 a year, with an overall cap of $150,000. Some schools are not fans of the proposed limits. [9/8/15]
- Paradox: Student Borrowers Who Owe the Most Least Likely to Default
Why? Because the biggest student borrowers tend to become the highest earners. Median debt for lawyers is $141,000 and for doctors is $162,000. [9/2/15]
- CFPB to Students: Better Shop Around
CFPB warns students that just because a bank account may be marketed to them with their college's logo on it, it doesn't always mean it's a good deal for them. [8/28/15]
- CFPB Goes After Nation’s Top Student Lender
Navient, which processes more student loan payments than any firm in the country, is under investigation for allegedly overcharging borrowers and numerous dodgy practices, such as the way its debt-collection unit treats distressed debtors and how its loan-servicing operation interacts with borrowers. [8/25/15]
- Why Student Lending Might Be America’s Next Big Crisis
A report from the NY Federal Reserve Bank reveals that as of June 30th seriously delinquent student loans increased to 11.5% from 11.1% at the end of the previous quarter. This may not seem like a significant increase; however, only about 50% of student loans are in repayment; the balance are still in deferral status. If the delinquency rate is applied to only those loans in repayment, the actual delinquency rate becomes 23%. [8/24/15]
- Grad School Debt: Student Debt on Steroids
Though they make up only 14% of the number of students in higher ed, grad school students hold about 40% of the $1.2 trillion in student debt, with six-figure debts becoming much more common. [8/19/15]
- CFPB Wants to Know About Income-Based Student Loan Repayment
The CFPB is surveying student loan servicers about their efforts to "make sure student loan borrowers have the information they need to stay on track." The bureau pledges that responses are voluntary, and that it may make responses public, but will not identify specific market participants." [8/19/15]
- Clinton’s Debt-Free College Plan’s Potential Impact on Banks
One of the planks of Hillary Clinton's plan on college affordability is to revamp the federal student-loan program, including lowering rates and capping payments at 10% of discretionary income. [8/11/15]
- Matz Responds to Student Loan Investigation Request
In a letter to a group of advocacy organizations, NCUA Chair Debbie Matz responded that the agency has no enforcement authority over CUSOs and other third parties that may be engaged in predatory lending. The advocacy groups had expressed concerns about loans issued through ITT Educational Services. However, Matz pointed out that all seven credit unions involved in this program had ended their relationship in 2012 following a warning from NCUA. [8/10/15]
- CFPB, Servicemembers, Student Loans: The Perfect Storm
The CFPB releases a report of more than 1,300 complaints from military borrowers having trouble with their student loans. [7/8/15]
