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.
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…
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…
House Republicans’ Student Loan Interest Bill Actually Not That Bad
Minnesota Congressman John Kline (R-MN), the Chairman of the House Education and the Workforce Committee, and Virginia Foxx (R-NC), Chairwoman of the Subcommittee on Higher Education and Workforce Training, co-introduced legislation yesterday to tackle the upcoming student loan interest rate hike by returning to variable interest rates on student loans. The Smarter Solutions for Students Act, otherwise known as H.R. 1911, seeks to tie the federal student loan interest rate to a market-based interest rate (similar to the plan put forth by President…
TICAS Offers Clever Solutions to Make College More Accessible
There are lots of different kinds of student loans. Repayment options and forgiveness provisions are confusing for even the most informed. This past week, our friends at the Institute for College Access & Success, a nonprofit organization that works to make higher education more available and more affordable, released a report with recommendations including: reforms to simplify the federal aid application process, ways to streamline federal loan repayment options, improvements to student loan counseling, and methods to help borrowers in…
