This is straight from today's White House Press Breifing:
... recent credit market conditions have raised concerns in the student loan market among parents and some college students, and so the administration has been taking steps to prepare for the approaching student loan peak season of applications in July and August. Today Secretary Spellings, Secretary Paulson and Director Jim Nussle sent a letter to members of Congress urging prompt action to get the Department of Education authority to purchase federal family education loans to better ensure the availability for the upcoming academic year.
The House recently passed a bill to provide this authority, and we urge the Senate to act promptly on the bill. Implementing this authority will take time, so it is imperative to move this legislation without delay if this authority is to be used in the upcoming school year. We do not want to see any students unable to attend universities this year because of the credit crunch, and that's why we are taking appropriate steps now to confront that challenge should it arise.
Larry Warder of Department of Education has been quoted saying:
"This has to be ready by July." ... in time for the peak time this year for student loans.
Showing posts with label Industry News. Show all posts
Showing posts with label Industry News. Show all posts
Wednesday, April 23, 2008
Monday, February 04, 2008
Chase cuts rates and fees
Here's something to consider if you're currently shopping around for a student loan. According to Reuters:
Chase Education Finance said it will waive the origination fee on Stafford loans and the 1 percent default fee on Stafford, Parent PLUS and Grad PLUS loans.
It said it will also reduce the interest rate on all three loans by one-tenth of a percentage point if it makes, services and retains the loans.
Chase Education Finance said it will waive the origination fee on Stafford loans and the 1 percent default fee on Stafford, Parent PLUS and Grad PLUS loans.
It said it will also reduce the interest rate on all three loans by one-tenth of a percentage point if it makes, services and retains the loans.
Thursday, January 31, 2008
Sallie Mae Update
Sallie Mae is tightening its belt and will "no longer provide loans to students with sub-prime credit scores." (Source: collegiatetimes.com)
"As a result of the impact of the College Cost Reduction and Access Act and the deterioration of the credit markets, Sallie Mae is discontinuing certain non-standard private education loan programs," said Tom Joyce, senior vice president of Sallie Mae's corporate communications.
"We are also in the process of adjusting our underwriting criteria and pricing of our private education loans to reflect the current financing and market conditions."
Sallie Mae is also laying off 350 people (3% of their workforce) and looking to reduce their costs by 20% in the next two years.
"As a result of the impact of the College Cost Reduction and Access Act and the deterioration of the credit markets, Sallie Mae is discontinuing certain non-standard private education loan programs," said Tom Joyce, senior vice president of Sallie Mae's corporate communications.
"We are also in the process of adjusting our underwriting criteria and pricing of our private education loans to reflect the current financing and market conditions."
Sallie Mae is also laying off 350 people (3% of their workforce) and looking to reduce their costs by 20% in the next two years.
Friday, December 21, 2007
End of the year news
AACRAO.com has reported on year end Omnibus bills that Congress has passed.
Concerning education financial aid:
In addition, Democrats were able to secure funding for several favored programs President Bush hoped to eliminate. Supplemental Educational Opportunity Grants (SEOG), Perkins Student Loan, and the Leveraging Education Assistance Programs (LEAP) will all be spared, although their budgets will be significantly tighter than in fiscal year 2007.
Concerning education financial aid:
In addition, Democrats were able to secure funding for several favored programs President Bush hoped to eliminate. Supplemental Educational Opportunity Grants (SEOG), Perkins Student Loan, and the Leveraging Education Assistance Programs (LEAP) will all be spared, although their budgets will be significantly tighter than in fiscal year 2007.
Tuesday, October 09, 2007
Average Student Debt
The 2006 Average Student Debt report is out and the winners are ...
The top 3 best states: Hawaii ($11,758), Utah ($12,807), and Kentucky ($15,406).
The bottom 3 worst: District of Columbia ($27,757), New Hampshire ($24,800), and Vermont ($24,839). This makes sense because the New England area has the highest tuition rates as well.
The national "average" yearly tuition in 2006 was right at $10,000. That's $40K for an "average" college education. Have your financial plan in order before approaching Sallie Mae. I know in my last post I said student loans "can" be considered good debt.
Still, having a realistic financial plan to pay off your student loan may be more important than getting a good enough SAT score to get into college in the first place. A wrong choice at such a tender young age entering school can financially ruin you for life.
There are many horror stories out there of people being in $100K+ debt because they under estimated the long term cost of their loans.
The top 3 best states: Hawaii ($11,758), Utah ($12,807), and Kentucky ($15,406).
The bottom 3 worst: District of Columbia ($27,757), New Hampshire ($24,800), and Vermont ($24,839). This makes sense because the New England area has the highest tuition rates as well.
The national "average" yearly tuition in 2006 was right at $10,000. That's $40K for an "average" college education. Have your financial plan in order before approaching Sallie Mae. I know in my last post I said student loans "can" be considered good debt.
Still, having a realistic financial plan to pay off your student loan may be more important than getting a good enough SAT score to get into college in the first place. A wrong choice at such a tender young age entering school can financially ruin you for life.
There are many horror stories out there of people being in $100K+ debt because they under estimated the long term cost of their loans.
Thursday, January 11, 2007
First 100 Hour Plan for the Democrats
Check out this U.S. House of Representatives Vote Schedule for January.
http://www.student-loan-blues.com/wp-includes/images/100hourscalendar.pdf
Cutting student loan interest rates is due for a vote next Wednesday on January 17th !
http://www.student-loan-blues.com/wp-includes/images/100hourscalendar.pdf
Cutting student loan interest rates is due for a vote next Wednesday on January 17th !
In memory of Robert T. Stafford
Former Sen. Robert T. Stafford, R-Vt., who was such a champion of the federal student-loan program that his colleagues eventually named it in his honor, died Dec. 23 at the age of 93.
Mr. Stafford, who chaired the Education, Arts, and Humanities Subcommittee of the Senate Labor and Human Resources Committee from 1981 to 1987, was known as a moderate lawmaker and a strong advocate for education and the environment. He had a close working relationship with then-Sen. Claiborne Pell, D-R.I., the namesake of the primary federal student-grant program in higher education ...
(Source: Education Week)
Backdating Stock Options
While not necessarily illegal, the unethical practice of backdating stock options for "favorable grant dates" has been uncovered at Affiliated Computer Services Inc. CEO Mark King and CFO Warren Edwards were sent walking after an investigation found they had backdated stock options.
The entire business world is now facing this issue and many high profile executives have been put out on the street because of it. It is of no surprise that a student loan company has faced the same problem.
Source: Sun-Sentinel
The entire business world is now facing this issue and many high profile executives have been put out on the street because of it. It is of no surprise that a student loan company has faced the same problem.
Source: Sun-Sentinel
Friday, September 29, 2006
The Five-Point Plan for Fair Loan Payments
The Department of Education has put out a call to the public asking for rule change ideas to help ease the growing student debt problem. The Project on Student Debt has come up with the Five-Point Plan for Fair Loan Payments. Go check them out. Here is a summary of their proposal:
1) Limit student loan payments to a reasonable percentage of income.
2) Recognize borrowers with children have less income available for student loan payments.
3) Protect borrowers from high interest charges when they face hardship situations.
4) Cancel remaining debts when borrowers have made regular payments for 20 years.
5) Simplify the application process for hardship deferrals and other repayment options.
If you believe this is the proper way to tackle to problem, let your voice be heard by following this link and signing the petition letter to the Department of Education.
1) Limit student loan payments to a reasonable percentage of income.
2) Recognize borrowers with children have less income available for student loan payments.
3) Protect borrowers from high interest charges when they face hardship situations.
4) Cancel remaining debts when borrowers have made regular payments for 20 years.
5) Simplify the application process for hardship deferrals and other repayment options.
If you believe this is the proper way to tackle to problem, let your voice be heard by following this link and signing the petition letter to the Department of Education.
Subscribe to:
Posts (Atom)