Generation I.O.U.
Heather joined a panel of education, policy and financial experts this week to help find prescriptions for what is ailing a generation burdened by student loan debt. Watch the summit, sponsored by Yahoo! Finance and Yahoo! News, and tell us what you think.
Medical School A’int Cheap
The Student Doctor Network, a non-profit educational website, announced earlier this month the results of its second annual user survey, which covers the impacts of student debt and the future of health care. Polling its membership of current and future health care providers including physicians, dentists, pharmacists and psychologists, the Student Doctor Network asked its members a number of questions based upon each respondent's educational level, while covering a variety of topics important to pre-health students (undergraduates), health…
House to Vote Tomorrow on Bill that Would Make Student Loans More Expensive
The House of Representatives is scheduled to vote tomorrow, May 23, on House Resolution 1911. Under the bill, sponsored by U.S. Reps. John Kline and Virginia Foxx, new federal student loans would have variable interest rates set using the following formula: Stafford loans (subsidized and unsubsidized): 10-year Treasury Note plus 2.5 percent, capped at 8.5 percent. PLUS loans (graduate and parent): 10-year Treasury Note plus 4.5 percent, capped at 10.5 percent. Students and families would end up paying even more for student loans…
Mothers Like Low Interest Rates for Student Loans
President Obama and House Republicans seek a long-term fix to the federal student loan rate problem. Without Congressional action, subsidized Stafford federal student loan rates will double to 6.8% on July 1. Last year, Congress extended the deadline that would have mandated federal interest rates to rise from 3.4% to 6.8%, effectively punting the issue down the road one year. Here is a brief summary of the four proposed solutions on the table: 1. President Obama's Fiscal Year 2014 Budget Request: Employs a market-based solution for setting…
Student Debt Threatens Home Ownership, Entrepreneurship, and Retirement Savings
In a recent OpEd on Politico.com, Rohit Chopra, student loan ombudsman for the Consumer Financial Protection Bureau, noted that the skyrocketing rise of unmanageable student debt is draining all aspects of the broader economy. Consider this: Student loan borrowers are far less likely to qualify for mortgages, thereby delaying home ownership and the establishment of separate households. In 2011, 2 million more Americans in the 18-34 age group lived with their parents than in 2007. Moody’s Analytics estimates that each…
