Student loan borrowers are trying to do the responsible thing by paying off their loans but are being punished with high interest rates.
When you take out a mortgage or car loan, you can refinance the loan to get a better interest rate. With student loans, however, you’re stuck with the interest rate set by Congress, even though that rate is high enough to produce massive profit beyond the costs of operating the student loan program. And that's just not fair.
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.
Sallie Mae, the United States’ largest student lender, got a wake-up call at its annual meeting on June 25, when more shareholders voted “for” than voted “against” the AFL-CIO’s stockholder proposal, calling for full disclosure of all company spending on lobbying in Washington, D.C., and each of the 50 states.
The Brookings Institution, looking at data from 2010, has issued a report claiming the student debt issue isn’t as bad as people think. Using Federal Reserve data on households headed by 20- to 40-year-olds, they conclude that horror stories of people struggling with student debt are exaggerated. Problem is, more current data suggest student debt is more serious than Brookings suggests.