Working families who’ve saved, sacrificed and borrowed to go to college or send a family member are struggling to meet the demands of their student loans. Now those folks who feel like they’re drowning in debt from getting an education and training that makes them more productive—and makes the United States more competitive—are being targeted by so-called debt relief companies.
The U.S. Department of Education Office of Inspector General just released a scathing audit report on the department’s Office of Federal Student Aid’s (FSA's) handling of contracts with private companies that collect defaulted federal student loans.
Post-secondary students and their parents are in for a treat as they begin financial preparations for the coming school year.
Under the Bipartisan Student Loan Certainty Act, signed into law last summer, just as new federal student loan rates were set to double, student loan interest rates are now tied to financial markets, which means as the financial markets get stronger interest rates will get higher.
Sen. Elizabeth Warren introduced a bill today to allow borrowers to refinance their outstanding student loan debt. The Warren bill is an excellent step toward easing the crushing $1.2 trillion student loan debt borne by graduates and reducing barriers to higher education for working families.
The Center for American Progress (CAP) recently released the outline of a proposal for the Obama administration’s plan to make college more affordable. The rating system it puts forth essentially amounts to a "Race to the Top" for postsecondary and higher education institutions, something school faculty and working families have been concerned about from the get-go. Race to the Top/No Child Left Behind has resulted in further defunding of public schools serving disadvantaged students while already better-resourced schools have been able to further their lead. This has widened the achievement and opportunity gaps between children of the working class and their more privileged peers from affluent families.
Election Day is behind us now (someone please tell Rep. Allen West [R-Fla.]), and there’s plenty to be happy about. Nov. 6, 2012, brought a wave of victories for working families and the defeat of some seriously scary candidates backed by billionaires and their deep pockets.
Fix the Debt bills itself as a “non-partisan movement to put America on a better fiscal and economic path.” However, the group touts a non-specific tax plan that members are calling “Simpson-Bowles Plus,” a plan that cuts Social Security and Medicare benefits, guts tax credits and benefits that many working families rely on, widens tax incentives for corporations to offshore jobs and lowers tax rates for corporations and the wealthy. Basically, it’s a wish list for millionaire CEOs!