56 Organizations Join in Opposition to Senate Bill that Fails to Protect Student Borrowers
Washington, D.C. -- Moments ago, Young Invincibles joined 55 other organizations in submitting a letter to Senate leadership in opposition to the Safely Back to School and Back to Work Act released yesterday. Young Invincibles led this effort with Americans for Financial Reform, the Center for Responsible Lending, the National Consumer Law Center (on behalf of its low-income clients), and the Student Borrower Protection Center. In the letter, organizations signing the letter contend, “Although simplifying the FAFSA and establishing clear…
Student Loans and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
Borrowers closely tracking the student loan news are likely to have heard many contradictory things as a result of the rapidly changing government response to the COVID 19 crisis. On March 13, 2020, the Executive Branch suspended interest on federally held student loans and announced that borrowers could suspend payments temporarily by requesting administrative forbearance. Shortly after, the Senate proposed additional student loan relief provisions. Ultimately, on Friday, March 27th, the Coronavirus Aid, Relief, and Economic…
Dept of ED Throws Consumers Under the Bus
The Department of Education barely bothers to pretend it has the best interests of student loan borrowers in mind anymore. In announcing its intent to cut the Consumer Financial Protection Bureau out of federal student loan servicing oversight, ED admits that it is declawing the CFPB because the CFPB had the nerve to actually handle borrower complaints. How dare it? In a half-hearted attempt to spin its obviously anti-consumer announcement, ED asserts that the CFPB's efforts on behalf of borrowers add "confusion".…
Cost estimates for Income-Driven Repayment plans are unreliable
For the fiscal year 2017 budget, the Department of Education (ED) estimated that Income-Driven Repayment (IDR) plans will cost $74 billion. Actual costs will depend on how many borrowers participate in IDR plans and how much (or how little) those borrowers earn over time. After reviewing how ED produces its cost estimates, the Government Accountability Office (GAO) criticized aspects of ED’s methodology and concluded that ED’s cost estimates are not reliable. GAO found that ED’s methods may both over- and under-state actual…
Direct Loan interest rates to be half percent lower for 2016-17
Not exactly thrill worthy but better a tiny bit lower than any higher, am I right? Federal Direct Student Loans 2016-2017 Interest Rates (For Loans First Disbursed on or After July 1, 2016 and Prior to July 1, 2017) Loan Type Borrower Type Index/10-Year Treasury Note Add-On Fixed Intrest Rate Direct Subsidized Loans Undergraduate Students 1.710% 2.05% 3.76% Direct Unsubsidized Loans Undergraduate Students 1.710% 2.05% 3.76% Direct Unsubsidized Loans Graduate/Professional Students 1.710% 3.60% 5.31% Direct PLUS Loans Parents of Dependent Undergraduate…
