New Federal Data on College Costs is Released
The Department of Education published a new report yesterday on student financial aid, including the average price of attendance at the Nation's public & private colleges and universities. [Drum roll please....] Private colleges and universities are more expensive than their public counterparts... GASP! Actually everyone pretty much already knew that, but the numbers are still sobering for student loan borrowers. Want to go to a four-year college or university with your state's name in its title? That will most likely…
Sen. Harkin Report Blasts For-Profit Colleges
Yesterday, U.S. Sen. Tom Harkin (D-IA), chairman of the Health, Education, Labor, and Pensions Committee, confirmed what Heather has been warning students about for a number of years - For-Profit Colleges are a risky investment for borrowers and account for more than half of all student loan defaults, according to Mr. Harkin's report. Wrapping up a two-year investigation into for-profit colleges, Sen. Harkin blasted the industry for "...overwhelming documentation of exorbitant tuition, aggressive recruiting practices, abysmal…
Private Student Loans Boom & Bust: Consumer Financial Protection Bureau Report
I have a generally low opinion of private loans, as they are typically risky and expensive for borrowers. Unfortunately, higher education is so expensive that many of us cannot cover the costs of our dream school while still avoiding private student loans. The Consumer Financial Protection Bureau (CFPB) today released the most comprehensive study of private student loans we’ve seen, including a large set of quantitative and qualitative data. The study was informed by data provided by lenders in the marketplace, existing…
New Student Loan Regulations Introduce ICR-A
The Department of Education today published proposed regulations implementing a better, faster, and stronger repayment option for student loan borrowers. Formerly known as President Obama’s Pay As You Earn initiative, it shall now be known by the absurdly non-descriptive name of ICR-A. [sigh] In spite of the stupid name, the new repayment option ROCKS (if you can get it…) There is fine print of course, but here’s the gist: Annual payments are capped at 10 percent of “discretionary income” (IBR’s…
Credit Suisse’s Top U.S. Economist Explains Current Student Loan Crisis in 9 Charts
Neal Soss, Credit Suisse's leading U.S. economist recently published a report entitled, "A Lesson on Student Loans," in which he laid out the current student loan crisis in nine charts. "In the past few years, the volume of student loans has increased dramatically, reaching almost $1 trillion by the end of Q1 2012," wrote Soss. "Student loans outstanding have surpassed credit cards and auto loans as the second largest form of consumer debt, following mortgages." This much we've known for some time. What is troubling…
