Private-Loan Reliance Worries Colleges
|
|
- Godfrey Terry
- 8 years ago
- Views:
Transcription
1 Print: Private-Loan Reliance Worries Colleges - Chronicle.com 1 of 4 6/10/2008 9:26 AM Private-Loan Reliance Worries Colleges By PAUL BASKEN From the issue dated June 13, 2008 At many colleges across the nation, as administrators fret about the effects of a worsening economy, students arriving this fall will get more help securing jobs and more advice on paying for their educations. Some students will even find colleges willing to cut their tuition bills. Yet as banks tighten standards for private college loans, families and institutions remain uncertain about whether such incremental steps will be enough to keep large numbers of students from bailing out. The threat may be greatest at smaller private institutions, where limited enrollments and relatively high tuitions can magnify budget stresses. "At this point, it hasn't hit us too hard," said Thomas G. Ball, director of financial aid at Grove City College, in Pennsylvania. "But down the road, it's hard to say." Public alarm over the much-ballyhooed student loan "crisis" may be fading with last month's announcement by Education Secretary Margaret Spellings of a rescue package for loan companies, created after Congress sought to provide safeguards for students, institutions, and lenders. Yet that package was designed only to encourage banks to stay in the federally subsidized loan system. Largely untouched by the federal bailout is the less-regulated and quickly expanding market in private loans, which banks issue to students without government subsidies or repayment guarantees. That lack of government protection means many students and their families, as economic conditions worsen, may face greater restrictions and costlier terms as they seek private loans to cover gaps left by federal loans. And that dynamic, industry experts are warning, could quickly translate into problems for many colleges, especially those already struggling to help their students pay their bills. "There are an awful lot of those families who have depended on debt to finance the costs of college," said James H. Day, a principal at Hardwick-Day, a Minnesota company that provides advice to colleges on enrollment. "And they're going to have some problems." That could quickly turn into problems for colleges, Mr. Day said. "This is one of those crises that's not going to be visible until it is." Use of Private Loans Grows As college costs continue to outpace inflation, private loans made up 24 percent of total education loans in , up from 6 percent a decade ago, according to the College Board. College leaders are clearly aware of the potential for problems. Financial-aid directors and enrollment managers at many institutions say they monitor the credit markets closely and are devising plans to help their students cope with tougher economic conditions.
2 Print: Private-Loan Reliance Worries Colleges - Chronicle.com 2 of 4 6/10/2008 9:26 AM Some institutions already acknowledge emerging problems, with officials reporting the need, for instance, to accept lower-performing students to meet enrollment projections. Yet most aid directors and enrollment managers contacted for this article said so far they were expanding existing student-assistance programs rather than creating new ones, and none described seeing conditions that warranted any emergency-type measures. "We are not looking at any radical solutions to the credit crunch," said Mr. Ball, of Grove City College. Grove City, with about 2,500 students, may be in a better position than many small colleges, having renounced the federal loan program 12 years ago after the Presbyterian institution waged a court battle over its right to set its curriculum free of government interference. The college has held down its price, which will be $18,514 this coming academic year for tuition, fees, and room and board, compared with an average of $32,307 charged by private four-year colleges this past academic year. Meanwhile, Mr. Ball said, the college has arranged private student loans through a prominent local bank and built a nationally ranked career-placement office. Other small-to-medium-size private colleges are also taking a wait-and-see attitude before making any drastic changes in operations. Some of them, such as Mount Holyoke College, in Massachusetts, say their strong national reputations help them continue to attract students even in the face of cost pressures. "We're not feeling right now that it could be a big problem for us," said Kathryn P. Blaisdell, director of student financial services at Mount Holyoke, which will charge $48,686 in tuition, fees, and room and board for the coming academic year. When its students graduate, they carry an average debt of about $24,000. The trends in lending are not all bad. In some cases, college officials said they had found that banks were lowering their rates on private loans when the student had a co-signer with a strong credit history. Even colleges that do not enroll large numbers of affluent students describe seeing only limited examples of banks toughening their policies on private loans. Also, the rescue legislation approved by Congress that gives Ms. Spellings the authority to offer aid to the loan companies increased the amount students can borrow under the federal program by $2,000, further reducing the need for students to pursue private loans. Undergraduates will now be allowed to borrow up to $5,500 in federally subsidized loans in their freshman year, $6,500 as sophomores, and $7,500 each year after that. Colleges Watch Competition At Green Mountain College, in Vermont, which charges $35,000 in annual tuition and residential expenses, administrators expect to lose more students than usual this year to lower-priced competitors, said Sandra C. Bartholomew, dean of enrollment. In response to the tough economic conditions, the college will expand its financial counseling and direct more of its institutional grant aid to high-performing students, Ms. Bartholomew said. At the same time, college officials see little indication of problems that are specifically tied to the loan crunch itself. "There could be some issues, but right now we haven't really seen any," Ms. Bartholomew said. Elsewhere, Saint Mary's College, in Indiana, where students this fall will pay $37,150 in tuition, fees, and room and board, is helping its students find jobs on the campus, said Kathleen M. Brown, the college's director of financial aid. The institution is also working harder to make students aware of their total debt load, in part to encourage them to take advantage of such job opportunities, added Daniel L. Meyer, vice president for enrollment management. Nevertheless, the college, like Green Mountain, still has not seen any effects from the crunch in student lending, Ms. Brown said. Early Danger Signs Emerge
3 Print: Private-Loan Reliance Worries Colleges - Chronicle.com 3 of 4 6/10/2008 9:26 AM One institution that does acknowledge harm due to recent changes in private-loan availability is the Savannah College of Art and Design, which enrolls about 9,000 students. The college charges $34,266 in tuition and room and board, with students taking out a total of $26-million a year in private loans and leaving the institution with an average debt of about $28,000. To help students cope with such costs, the college distributed about $55-million in institutional scholarships this past academic year, up from $39-million the previous year, said Scott Linzey, vice president for enrollment management. But the college doesn't expect to be able to sustain that level of aid this coming year, and it already sees a slight decline in the average SAT score of its incoming class, said Pamela E. Rhame, senior vice president for recruitment. College officials are considering ways they might limit that trend by better focusing the aid they can offer, through tactics such as matching merit-based scholarships offered to students in neighboring states, Mr. Linzey said. The college also plans on "being much more public" about the availability of such scholarships, he said. Some for-profit institutions, which enroll students year-round, have already begun preparing for reductions in private loan availability. They include the Corinthian Colleges chain, which is now more discerning in admissions, works harder to find jobs for its graduates, and provides its own guarantees of student-loan repayment, said Trace A. Urdan, an education-industry analyst with Signal Hill, an investment firm. Tougher conditions on private loans could also affect community colleges. A report in April by the Project on Student Debt found that more than one million community-college students, a disproportionate number of them members of minority groups, are not able to get government-subsidized loans because their institutions do not participate in the federal program. In general, however, community colleges and their students should not be alarmed by problems in the private-loan market, said David S. Baime, vice president for government relations at the American Association of Community Colleges. Students at community colleges that don't participate in the federal program "are generally discouraged from borrowing altogether," Mr. Baime said. And for others, any decline in the availability of private loans "is a relief, because now the students are receiving better terms and conditions by taking out federal loans," he said. Over all, the responses of colleges don't yet appear to match the potential size of the problem, said Mr. Day, whose company advises institutions on their responses to crises in areas of financial aid and enrollment management. The credit problem that colleges will have to help their students face is greater than just the tougher conditions on private loans and includes families coping with the loss of equity as home values decline, he said. Assuming that one-quarter of all borrowing against home-equity lines of credit is used to pay for college, the shrinking of home values in recent months means the U.S. system of higher education has just lost about $30-billion in potential income, Mr. Day said. Public colleges are not immune, even if the effects of the credit crunch are most pronounced at the less selective of the private institutions, he said. Some public colleges have also prepared to mitigate potential problems. Northwest Missouri State University is expanding a program that now places more than 1,100 students in jobs across the campus. The jobs, many of which were previously handled by professional staff members, even include writing speeches for the campus president, Dean L. Hubbard. The program, which began three years ago, lets students earn as much as $43,000 during their four years of study, while saving the university about $6-million a year in salaries and benefits, Mr. Hubbard said. But Mr. Day said that such an example of preparation for an economic crisis in the fall appears to be the exception. "When this hits, if it hits the way a lot of people think it will hit, it's likely to be really across sectors and across institutions, in a way that just doesn't see the effect visited upon a few unfortunate losers," Mr. Day said. "I think there's a lot of losers."
4 1 of 4 6/10/2008 9:27 AM From the issue dated June 13, 2008 Rising Tuition and Clever Marketing Drive Growth of Private Loans As students unwittingly forgo cheaper borrowing, Congress tries to steer them toward federal loan programs By KELLY FIELD The scene: a fast-food drive-through. Two guys waiting to order their food wonder how they're going to come up with thousands of dollars to pay for their college tuition. Suddenly a voice emerges from the plastic cowboy next to their car. "You both just need to Think," says the cashier over the intercom. With Think Student Loans, she continues, you can borrow up to $40,000, have it sent to you in as little as five business days, and you don't have to pay a cent until six months after you graduate. "Six months?" ask the incredulous students. "Nothing," she reiterates. "Now drive through, and I'll give you the number to call." The advertisement, which was viewed hundreds of times on YouTube, is one of dozens of pitches for private loans appearing on the Internet, television, and radio. Like the Think ad, most of them promise fast, easy money and no payments until six months after graduation. Some advertise interest rates at the low end of an undisclosed range. What the ads often fail to mention is that federal loans offer the same grace period, more repayment options, and almost invariably better interest rates. That omission may help explain why one in five private-loan borrowers forgoes less-expensive federal loans, even though many are eligible for them, advocates for students and consumers say. They complain that the private lenders' ads deliberately blur the lines between federal and private loans, tricking borrowers into taking on more-expensive private debt. For borrowers, the consequences can be costly. While interest rates on federal loans are fixed, now at 6.8 percent, interest rates on private loans vary. The rates, based on market conditions and borrowers' credit ratings, often reach double digits. And while federal loans can be discharged through bankruptcy, it's almost impossible for borrowers to wipe out private-loan debt if they run into financial trouble. Now, with private lending growing 10 times as fast as federal lending, Congress is taking steps to educate borrowers about the differences between federal and private loans. Last year the U.S. House of Representatives passed a bill to reauthorize the Higher Education Act that would require private lenders to provide borrowers with multiple disclosures about terms and conditions and notify them that they may qualify for lower-cost federal loans. The bill, which is being reconciled with the Senate's version, would also require private lenders to obtain from a borrower's college certification of his or her enrollment status and cost of attendance before issuing any loan funds.
5 2 of 4 6/10/2008 9:27 AM Supporters of the legislation say those provisions would help borrowers distinguish between private and federal loans and give financial-aid offices an opportunity to counsel their students to exhaust their federal eligibility first. They say colleges are often unaware when their students take out loans marketed directly to consumers, because private lenders are not required to certify private loans with the borrowers' institutions. Few lenders oppose the disclosure requirements, but the certification proposal has them divided. Companies that market their loans through colleges tend to support the changes, arguing that more openness could help restore borrowers' confidence in the wake of a yearlong investigation into conflicts of interest in the student-loan industry. But direct-to-consumer lenders, whose business could suffer if colleges start warning students off their loans, argue that certification could reopen the door to some of the abuses uncovered in the investigation, like the practice of aid administrators steering students to preferred lenders. Some lawmakers, including the chairman of the Senate education committee, Edward M. Kennedy, Democrat of Massachusetts, and the leaders of the Senate banking committee, have voiced similar concerns. Negotiators continue to work on a compromise. Meanwhile, members of Congress and Andrew M. Cuomo, New York's attorney general, are turning up the heat on federal regulators, accusing them of being lax in their oversight of the private-loan industry and urging them to crack down on misleading advertising. Private Lending Proliferates Last year, borrowers took out $17-billion in private loans, more than 10 times as much as they did a decade earlier, according to the College Board. During the same period, federal borrowing less than doubled. (See chart.) Until recently most private loans went to graduate and professional students. But over the last decade, as college costs have risen and state and federal aid has lagged, a growing number of undergraduates have begun turning to private loans to fill the gap. In 2004 undergraduates made up 83 percent of all private-loan borrowers, says a report by the Institute for Higher Education Policy. The majority of those undergraduates took out private loans only after they reached the annual federal-loan limits. But 20 percent of borrowers who were dependent on their parents and 25 percent of independent borrowers did not take out federal loans at all, even though many of them would have been eligible. Researchers offer several explanations for why some students shun federal loans. In some cases, students may be wary of providing financial information to the federal government, or they may consider the federal application process too difficult. A recent analysis by the American Council on Education found that half of the borrowers who took out private instead of federal loans in 2004 did not file the Free Application for Federal Student Aid. In other cases, the borrowers may just be confused. A recent report by the Consumers Union, publisher of Consumer Reports, found that students and parents could not identify the best-priced loan or explain how loan-repayment obligations could affect a student's future career and financial decisions. The report criticized colleges, high schools, lenders, and other groups for taking a "scattershot" approach to educating families about how to pay for a college education. While a few colleges, like Barnard College and Colorado State University, counsel students individually before certifying their private loans, efforts to educate borrowers vary widely across institutions, and many colleges offer little more guidance than a list of recommended lenders. In a 2007 survey that the National Association of Student Financial Aid Administrators conducted among its members, only a quarter of respondents said they gave students in-depth counseling about alternative loans before they borrowed. In some cases, colleges may not even be aware that their students are taking out private loans. Financial-aid officers who responded to the Nasfaa survey estimated that up to a quarter of private loans made to their students
6 3 of 4 6/10/2008 9:27 AM were issued without the aid officers' knowledge. The bill before Congress would change that, requiring lenders to go through the financial-aid office to get to the borrowers. It would also require colleges to inform borrowers of their remaining eligibility for federal loans before providing students with information about private loans. Those changes could help borrowers like Deborah Olszewski's two daughters, who took out private loans to attend New York University after consulting with the college's financial-aid office. Ms. Olszewski says she assumed the loans were federal and was horrified to discover they carried an interest rate of 13 percent. But opponents of certification, including some companies that offer private loans, worry that financial-aid offices will steer students toward lenders that have offered their institutions perks. "It's predictable that they will pick lenders on their preferred-lender list or ones they have arrangements with," said Karin Pellman, a spokeswoman for MyRichUncle, a direct-to-consumer lender that has angered many financial-aid advisers by running ads that question their integrity. Justin Draeger, a spokesman for Nasfaa, said that while individual financial-aid officers "may have a private opinion on lenders and loan programs, that doesn't mean we don't administer them professionally." While the bill would require colleges to certify loans from all lenders or risk losing their eligibility to award federal aid, it does not specify how quickly they must do so. Theoretically, colleges could certify some loans immediately and drag their feet on others, raising the chances that their students will borrow from a favored lender. But the bill has built-in safeguards, too. Under language added to the measure in response to the student-loan scandal, colleges would be barred from accepting gifts from lenders or participating in "revenue sharing" agreements, which give colleges a portion of the profits on loans taken out by their students. Those provisions would help "protect students from any questionable relationships that keep them from getting the loan of their choice," said Rachel Racusen, a spokeswoman for Rep. George Miller, the California Democrat who is chairman of the House education committee. Despite those assurances, some lawmakers remain wary of certification. They worry not only about steering but also about the bottlenecks that could occur during peak processing periods. Certification is among the issues still under discussion as House and Senate negotiators hash out a compromise. Cracking Down Meanwhile, Mr. Cuomo and federal lawmakers are putting pressure on the Federal Trade Commission and other agencies to step up their oversight of the largely unregulated private-loan industry. The Federal Trade Commission, which polices deceptive marketing, has never taken action against a private student-loan company for misleading or fraudulent advertising. A year ago, the agency dismissed a complaint by the United States Student Association against EduCap, a private lender, saying the agency could not take action because nonprofit groups do not fall under its jurisdiction. At a hearing before the Senate banking committee a year ago, Mr. Cuomo, who spearheaded the investigation into conflicts of interest in student lending, accused the trade commission and other agencies of failing to protect student borrowers from deceptive marketing and similar abuses. He likened the private-loan industry to the "the Wild West of the college-loan business." Two months after that hearing, Secretary of Education Margaret Spellings convened a meeting with the leaders of the trade commission, the Treasury Department, and several other federal agencies to coordinate federal oversight of private lending. The group has met periodically since then, and the Education Department and trade
7 4 of 4 6/10/2008 9:27 AM commission are preparing to publish educational materials that seek to protect students and parents from deceptive advertising, a department spokeswoman said. In March the Department of Education, which has no existing authority to regulate private loans, published "Federal Aid First," an online and print brochure with information about the differences between federal and private student loans. The department has also begun its own marketing campaign, running a series of public-service ads publicizing the availability of federal student aid. Meanwhile, investigations into the marketing of private loans continue. The Government Accountability Office is looking into whether nonprofit lenders abuse their tax-exempt status and engage in deceptive marketing. And Mr. Cuomo, who served subpoenas to 33 lenders in October, continues his inquiry into whether direct-to-consumer lenders have misled borrowers into taking out private loans. Section: Students Volume 54, Issue 40, Page A24 Copyright 2008 by The Chronicle of Higher Education Subscribe About The Chronicle Contact us Terms of use Privacy policy Help
Despite Legislation, Parties Disagree on Whether Student-Loan 'Crisis' Has Ended
05/05/2008 Despite Legislation, Parties Disagree on Whether Student-Loan 'Crisis' Has Ended Fearing an election-year nightmare of students unable to find college loans, the Bush administration and Congress
More informationPrivate Loans to Finance Postsecondary Education - The Public Perception
American Association of State Colleges and Universities A Higher Education Policy Brief April 2008 The Public Realities of Private Student Loans By Thomas Harnisch, Research Associate The use of private
More informationSAFEGUARDING YOUR FUTURE. One Student Loan at a Time
SAFEGUARDING YOUR FUTURE One Student Loan at a Time 1 Overview Table of Contents 2 As tuition costs skyrocketed and thousands of students struggled to pay off enormous debt, New York State Attorney General
More informationSTATE OF NEW YORK ATTORNEY GENERAL ANDREW M. CUOMO
STATE OF NEW YORK ATTORNEY GENERAL ANDREW M. CUOMO TESTIMONY UNITED STATES SENATE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS Washington, D.C. June 6, 2007 I thank Chairman Dodd, Ranking Member Shelby,
More information1/17/2012. The Honorable Richard Cordray Director, Consumer Financial Protection Bureau 1500 Pennsylvania Ave, NW Washington, DC 20220
1/17/2012 The Honorable Richard Cordray Director, Consumer Financial Protection Bureau 1500 Pennsylvania Ave, NW Washington, DC 20220 Dear Mr. Cordray, On behalf of the National Association of College
More informationNonprofit Colleges Have Their Own Concerns About New Federal Rules
Chronicle of Higher Education July 8, 2010 Nonprofit Colleges Have Their Own Concerns About New Federal Rules By Jennifer Gonzalez Washington For-profit colleges have been at the center of heated debate
More informationStudent Loans Know Your Options
Student Loans Know Your Options Sam Hewitt Director, Political & Grassroots Advocacy, GRPP Samuel J. Hewitt Sam Hewitt is the director of political and grassroots advocacy at the American Speech-Language-Hearing
More informationStudent Loans. The State of Lending in America & its Impact on U.S. Households. Sonia Garrison. December 2012
Student Loans The State of Lending in America & its Impact on U.S. Households Sonia Garrison December 2012 Center for www.responsiblelending.org Responsible Lending 105 Student Loans An Introduction to
More informationTestimony of. Luke Swarthout, Higher Education Advocate United States Public Interest Research Group (U.S. PIRG)
Testimony of Luke Swarthout, Higher Education Advocate United States Public Interest Research Group (U.S. PIRG) Senate Committee on Banking, Housing and Urban Affairs June 6 th, 2007 U.S. PIRG is the federation
More informationA. The President proposed adding money to the Pell Grant program, which was running a deficit, by eliminating Perkins Loans.
Dr. Dave: The President s budget adds money to the Pell grant program, but cuts money for student loans. On balance, do students win? Do the states have a role in this? A. The President proposed adding
More information11/24/2008 School's Out? Business New Haven. With families finding it ever-harder to borrow, area colleges look for creative financing alternatives
School's Out? Business New Haven Page 1 of 5 CT Business News Journal CT Data Engine Real Estate Data Employment New Companies Education Crime E-mail this link to a friend School's Out? With families finding
More informationReview of Public Comments about Private Student Loans
Student Aid Policy Analysis Review of Public Comments about Private Student Loans David Levy, Margaret Carothers and Mark Kantrowitz 1 July 27, 2012 The Consumer Financial Protection Bureau (CFPB) received
More informationNOTICE NO. 1. Notice Mandated By Section 342(b)(1) and 527(a)(1) of the Bankruptcy Code PURPOSES, BENEFITS AND COSTS OF BANKRUPTCY
NOTICE NO. 1 Notice Mandated By Section 342(b)(1) and 527(a)(1) of the Bankruptcy Code PURPOSES, BENEFITS AND COSTS OF BANKRUPTCY The United States Constitution provides a method whereby individuals, burdened
More informationSTUDENT LOAN SWINDLE 1
STUDENT LOAN SWINDLE 1 Student Loan Swindle: Corrupt Student Loan Industry Cries for Government Intervention Katsiaryna Stserynzat John Jay College of Criminal Justice March 14, 2011 STUDENT LOAN SWINDLE
More informationUSING CREDIT WISELY AFTER BANKRUPTCY
USING CREDIT WISELY AFTER BANKRUPTCY Copyright April 2011, Legal Aid Society of Hawai`i All rights reserved. These materials may be reproduced. However, under no circumstances are persons receiving these
More informationNOTICE NO. 1 Notice Mandated by Section 342(b)(1) and 527(a)(1) Of The Bankruptcy Code:
Mandatory Bankruptcy Disclosures The following mandatory disclosures are required under Section 527 and 342 of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. NOTICE NO. 1
More informationNATIONAL POLICY AGENDA TO REDUCE THE BURDEN OF STUDENT DEBT
NATIONAL POLICY AGENDA TO REDUCE THE BURDEN OF STUDENT DEBT November 10, 2014 Since 2005, The Institute for College Access & Success (TICAS) and its Project on Student Debt have worked to reduce the risks
More informationThree Maryland Policies to Address College Affordability Concerns: What Does the Research Say?
Three Maryland Policies to Address College Affordability Concerns: What Does the Research Say? Daniel Klasik & Caroline Titan February 2014 Over the past thirty years the cost of higher education has risen
More informationFASFAA Graduate & Professional Initiatives Committee. Debt Management as a Revenue Builder
Debt Management as a Revenue Builder The Misconception Many key college administrators believe Debt Management initiatives only benefit the student Key college administrators believe that Debt Management
More informationRichard Nemeth, Esq. Nemeth & Associates, LLC 526 Superior Ave., East Suite 1120 Cleveland, OH 44114-1410 216/502-1300 rnemeth@ohbklaw.
Richard Nemeth, Esq. Nemeth & Associates, LLC 526 Superior Ave., East Suite 1120 Cleveland, OH 44114-1410 216/502-1300 rnemeth@ohbklaw.com To: Honorable Jim Hughes, Chairman Senate Financial Institutions
More informationUsing Credit to Your Advantage
Hands on Banking Using Credit to Your Advantage Credit Reports, Credit Scores and Dealing with Debt The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the
More informationRegulatory Practice Letter November 2012 RPL 12-20
Regulatory Practice Letter November 2012 RPL 12-20 Private Student Lending - CFPB Reports Executive Summary The Bureau of Consumer Financial Protection ( CFBP or Bureau ) recently released two reports
More informationMs. Johnson. Sincerely, Dr. Philip R. Day, Jr. NASFAA President and CEO
Docket No. R1353 Attn: Jennifer J. Johnson, Secretary Board of Governors of the Federal Reserve System 20 th Street and Constitution Ave. NW Washington, DC 20551 Ms. Johnson I am writing on behalf of the
More informationPrivate Loan Guide. Apply for free, federal and state financial aid programs:
Private Loan Guide Private loan basics Private student loans are non-federal loans. You should only borrow private loans to fund your education as a last resort. Do all of the following before you consider
More informationAn Insider's Guide to Student Loans
An Insider's Guide to Student Loans Credit is tighter now, but if you need to borrow money for college, someone will lend it to you. Here's what students (or their parents) should consider before signing
More informationTestimony of Robert Geremia Teacher, Washington Teachers Union and American Federation of Teachers
Testimony of Robert Geremia Teacher, Washington Teachers Union and American Federation of Teachers Senate Committee of Banking, Housing, and Urban Affairs Financial Institutions and Consumer Protection
More informationNew Report on Student-Loan Data Finds Debt Loads Burdensome for Many Graduates
http://chronicle.com/daily/2002/03/2002030804n.htm (FULL TEXT OF REPORT BEGINS ON PAGE 5) Friday, March 8, 2002 New Report on Student-Loan Data Finds Debt Loads Burdensome for Many Graduates By ALEX P.
More informationHow to Play the College Financial- Aid Game
WALL STREET JOURNAL ARTICLE FROM APRIL 17, 2015. How to Play the College Financial- Aid Game Here are tips for deciphering financial-aid letters and finding the best deal ENLARGE At Stanford University,
More informationTEN LOOPHOLES THAT CAN STOP FORCLOSURE FAST
TEN LOOPHOLES THAT CAN STOP FORCLOSURE FAST Copyright Notice All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical. Any
More informationGive Your Students An Education On How To Pay For One BRINGING SALT TO YOUR SCHOOL
Give Your Students An Education On How To Pay For One BRINGING SALT TO YOUR SCHOOL 1 A degree is an investment you make in yourself. (And probably the best one you ll ever make.) Percent Returns 20 15
More informationK.4 Using Credit Wisely After Bankruptcy
Appx. K.4 K.4 Using Credit Wisely After Bankruptcy Beware of Credit Offers Aimed at Recent Bankruptcy Filers Disguised Reaffirmation Agreement Carefully read any credit card or other credit offer from
More informationCredit Cards and Consumer Debt
214 Massachusetts Ave. N.E, Washington D.C. 20002 (202) 546-4400 www.heritage.org CONGRESSIONAL TESTIMONY Credit Cards and Consumer Debt Testimony before Subcommittee on Commercial and Administrative Law
More informationBANKRUPTCY SOME FREQUENTLY ASKED QUESTIONS AND ANSWERS
BANKRUPTCY SOME FREQUENTLY ASKED QUESTIONS AND ANSWERS 1 You should file for bankruptcy only after carefully deciding that bankruptcy is the best way to deal with your financial problems. This pamphlet
More informationAdministration Home News Administration
Page 1 of 5 Administration Home News Administration February 3, 2013 For-Profit Colleges Take a Step Back to Regroup By Goldie Blumenstyk A rash of TV commercials the University of Phoenix's "Let's Get
More informationIn Tuition Game, Popularity Rises With Price
Page 1 of 6 December 12, 2006 In Tuition Game, Popularity Rises With Price By JONATHAN D. GLATER and ALAN FINDER COLLEGEVILLE, Pa. John Strassburger, the president of Ursinus College, a small liberal arts
More informationThe default rate leapt up because:
The financial crisis What led up to the crisis? Short-term interest rates were very low, starting as a policy by the federal reserve, and stayed low in 2000-2005 partly due to policy, partly to expanding
More informationBankruptcy may make it possible for you to:
A decision to file for bankruptcy should be made only after determining that bankruptcy is the best way to deal with your financial problems. This brochure cannot explain every aspect of the bankruptcy
More informationNASFAA TASK FORCE REPORT PUBLIC SERVICE LOAN FORGIVENESS
NASFAA TASK FORCE REPORT PUBLIC SERVICE LOAN FORGIVENESS The National Association of Student Financial Aid Administrators (NASFAA) provides professional development for financial aid administrators; advocates
More informationWHY FILE FOR BANKRUPTCY IN NEW JERSEY?
WHY FILE FOR BANKRUPTCY IN NEW JERSEY? TRAVIS J. RICHARDS SOUTH NEW JERSEY BANKRUPTCY ATTORNEY Deciding to file for bankruptcy is not an easy decision. Most people struggle with the decision to file for
More informationPell Grants in New York City - The Consequences
UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON GOVERNMENT REFORM MINORITY STAFF SPECIAL INVESTIGATIONS DIVISION SEPTEMBER 2006 FEDERAL STUDENT FINANCIAL AID IN NEW YORK CITY PREPARED FOR REPS. ANTHONY
More informationThank you for your attention to these issues. Higher Ed, Not Debt
December 17, 2014 Dear Governor Brewer, On behalf of current and former Everest and WyoTech students in your state, we write to ask that you and your administration, through the Board for Private-Post
More informationHow do I get good credit?
Slide 1 Credit The information provided in this e-course is intended for educational purposes only and does not constitute specific advice for you as an individual. When evaluating your particular needs,
More informationTrends in Higher Education Series. Trends in College Pricing
Trends in Higher Education Series Trends in College Pricing 2006 Introduction This report, based on the College Board s Annual Survey of Colleges, provides up-to-date information on tuition and other expenses
More informationStudent Debt: Bigger and Bigger. By Heather Boushey. September 2005
cepr Briefing Paper CENTER FOR ECONOMIC AND POLICY RESEARCH Student Debt: Bigger and Bigger By Heather Boushey September 2005 CENTER FOR ECONOMIC AND POLICY RESEARCH 1611 CONNECTICUT AVE., NW, SUITE 400
More informationAlways Ask Questions Before you Retain a Bankruptcy Attorney
Always Ask Questions Before you Retain a Bankruptcy Attorney Deciding to file bankruptcy is a stressful time. You're about to turn your life upside down in order to eliminate debt that you can't pay. Because
More informationRefinancing Student Loans 101
Student Debt Refinancing Student Loans 101 Everything you need to know about how Congress could help millions of American borrowers, boost the economy, and tackle our student debt crisis. Sarah Audelo
More informationFacts and Figures on the Middle-Class Squeeze in Idaho
Facts and Figures on the Middle-Class Squeeze in Idaho For hard-working, middle-class families all over the country, life during the Bush presidency has grown less affordable and less secure. President
More informationInvest in Education By Scott Niederjohn
By Scott Niederjohn Education as Human Capital Investment takes many forms. One form is the development of human capital the knowledge, skills, health, and values that individuals possess. People develop
More informationSTUDENT LOAN DISCHARGEABILITY
STUDENT LOAN DISCHARGEABILITY IN CHAPTER 7 BANKRUPTCY IN NEW JERSEY TRAVIS J. RICHARDS SOUTH NEW JERSEY BANKRUPTCY ATTORNEY Student loan debt is a major problem in the United States. At this time, college
More informationu n i t f i v e Credit: Buy Now, Pay Later To use credit wisely you need to know oming soon to a what s really
Unit Five Credit: Buy Now, Pay Later To use credit wisely you C need to know oming soon to a what s really mailbox near you credit card offers! involved. If you haven t started receiving them already,
More informationKnee Deep in Debt. Self-help
Knee Deep in Debt Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car? You're
More informationPrivate Loans: Who s Borrowing and Why?
Private Loans: Who s Borrowing and Why? Private Label Borrowing by Students Outside of the Federal Loan Programs April 2003 By Kate Rube Thanks to Ivan Frishberg, Alison Cassady, Liz Hitchcock, and Jen
More informationConsumer Credit Counseling: Credit Card Issuers' Perspectives *
Consumer Credit Counseling: Credit Card Issuers' Perspectives * Mark Furletti September 2003 Summary: On Friday, May 23, 2003, the Payment Cards Center hosted a workshop led by collections managers from
More informationProtecting Your Investment
Protecting Your Investment Understanding Home Financing and Avoiding Foreclosure Massachusetts Attorney General Consumer Hotline One Ashburton Place Boston, MA 02108-1518 (617) 727-8400 or (617) 727-4765
More informationFederal Student Loan Debt: 1993 to 2004
Issue Brief June 2005 Federal Student Loan Debt: 1993 to 2004 University officials, lenders, and policy makers typically monitor annual federal student loan volume (the number of loans made and the total
More informationThe For Profit College Challenge
The For Profit College Challenge By Ariel Sankar Bergmann For profit colleges have a different organizational structure than community colleges, public universities or non profit private schools. The Higher
More informationManaging High Levels of Debt
STUDENT MODULE 13.1 BANKRUPTCY PAGE 1 Standard 13: The student will evaluate the consequences of bankruptcy. Managing High Levels of Debt Montana and Carolina could not wait to graduate from high school
More informationFrom The Wall Street Journal Colleges Cut Prices by Providing More Financial Aid
From The Wall Street Journal Colleges Cut Prices by Providing More Financial Aid By RUTH SIMON Private U.S. colleges, worried they could be pricing themselves out of the market after years of relentless
More informationStudent Loan Market Trends Is College Worth It. Presenter: Kelly Savoie, Director Business Development April 2016
Student Loan Market Trends Is College Worth It Presenter: Kelly Savoie, Director Business Development April 2016 Agenda This presentation is an overview of trends in the industry and the value of a college
More informationBetween Financial Balance and Bankruptcy. Better options for consumers struggling to manage unsecured debts
Between Financial Balance and Bankruptcy Better options for consumers struggling to manage unsecured debts November 25, 2008 Introduction Debt-ridden consumers are struggling in today s difficult economic
More informationNew Book Accuses Education Dept. of Fudging Numbers on Student- Loan Defaults
GOVERNMENT New Book Accuses Education Dept. of Fudging Numbers on Student- Loan Defaults By Kelly Field JANUARY 22, 2016 Champion for Success Mary Lyn Hammer, a default-management expert, says the department
More informationTABLE OF CONTENTS. Introduction...3 What is Debt Consolidation?...5. Debt Consolidation Program Processes...19
TABLE OF CONTENTS Introduction...3 What is Debt Consolidation?...5 A) CHAPTER 13 B) WHAT DEBTS ARE ADDRESSED? Debt Consolidation Program Processes...19 A) DEBT MANAGEMENT PROGRAM B) DEBT SETTLEMENT PROGRAM
More informationTESTIMONY OF BARRY R. WIDES DEPUTY COMPTROLLER FOR COMMUNITY AFFAIRS OFFICE OF THE COMPTROLLER OF THE CURRENCY BEFORE THE
For Release Upon Delivery 10:00 a.m., April 15, 2008 TESTIMONY OF BARRY R. WIDES DEPUTY COMPTROLLER FOR COMMUNITY AFFAIRS OFFICE OF THE COMPTROLLER OF THE CURRENCY BEFORE THE COMMITTEE ON FINANCIAL SERVICES
More informationA Guide to Financial Aid 2016-17. The bottom line and how to pay for it.
A Guide to Financial Aid 2016-17 The bottom line and how to pay for it. The Financial Aid Basics We re glad you are interested in attending Anderson University. Perhaps you have already received your acceptance
More informationIndiana University Student Loan Debt Initiatives
1 Reauthorizing the Higher Education Act: Ensuring College Affordability June 3, 2015 Indiana University Student Loan Debt Initiatives James Kennedy Associate Vice President University Student Services
More informationTable of Contents. Money Smart for Adults Curriculum Page 2 of 21
Table of Contents Checking In... 3 Pre-Test... 4 What Is Credit?... 6 Collateral... 6 Types of Loans... 7 Activity 1: Which Loan Is Best?... 8 The Cost of Credit... 9 Activity 2: Borrowing Money Responsibly...
More informationWHAT BANKRUPTCY CAN T DO
A decision to file for bankruptcy should only be made after determining that bankruptcy is the best way to deal with your financial problems. This brochure cannot explain every aspect of the bankruptcy
More informationTHE DEBT SETTLEMENT TRAP: THE #1 THREAT FACING DEEPLY INDEBTED AMERICANS
THE DEBT SETTLEMENT TRAP: THE #1 THREAT FACING DEEPLY INDEBTED AMERICANS Already struggling with home foreclosures, harsh bank and credit card fees, and other major financial challenges, America s most
More informationCounseling Courier. Financial Aid
Financial Aid As you continue to hear back from colleges and universities and evaluate your options, we wanted you to have some additional information on how to help finance this investment. This information
More informationCoping with debt. Self-help. Dealing with debt collectors. Managing your auto and home loans. Developing a budget. Contacting your creditors
Coping with debt Having trouble paying your bills? Getting collection notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?
More informationCHAPTER 13 CASES IN NEW JERSEY
CHAPTER 13 CASES IN NEW JERSEY STUDENT LOAN AFTER BANKRUPTCY TRAVIS J. RICHARDS SOUTH NEW JERSEY BANKRUPTCY ATTORNEY Are you struggling to pay student loans? If so, you are not alone. According to an article
More informationYOUR CONCERNS ABOUT FILING BANKRUPTCY IN NEW JERSEY
YOUR CONCERNS ABOUT FILING BANKRUPTCY IN NEW JERSEY TRAVIS J. RICHARDS SOUTH NEW JERSEY BANKRUPTCY ATTORNEY When I meet with a person for the first time to discuss bankruptcy, he or she usually has several
More informationFinancial Solutions For Families
COLLEGE LITERACY ACADEMY A Family Guide On Paying For College Financial Solutions For Families Understanding How To Pay For College (Second Edition) Copyright 2010, 2011 By: Educational Literacy Center
More informationA Guide to Student Loan Consolidation
A Guide to Student Loan Consolidation Introduction If you are reading this, you probably have student loan repayment fast approaching. Fortunately, you have options for repaying your student loans. One
More informationAnd as their needs changed over the years, so has PHEAA in order to best meet those needs regardless of the challenges.
2015 House Appropriations Hearing PHEAA Testimony - Submitted James Preston President & CEO March 12, 2015 Mr. Chairman, members of the Committee and staff - on behalf of our Board of Directors, our nearly
More informationFINANCIAL ASSISTANCE. Federal Financial Aid Administered by the U.S. Department of Education
FINANCIAL ASSISTANCE The school may, from time to time, provide the student with (a) information on federal, state and private education loans and grants, and other student financial aid (collectively,
More informationThank you for the opportunity to join you today to discuss such an important and urgent topic: the
Testimony of Gary Wiltz Senate Committee on Health, Education, Labor and Pensions Subcommittee on Primary Care and Aging Hearing on Addressing Primary Care Access and Workforce Challenges: Voices from
More informationCREDIT BASICS About your credit score
CREDIT BASICS About your credit score Your credit score influences the credit that s available to you and the terms (interest rate, etc.) that lenders offer you. It s a vital part of your credit health.
More informationIVA debt deals scandal
IVA debt deals scandal People struggling with their finances are being wrongly led to believe that individual voluntary arrangements (IVAs) are the panacea of debt. In fact, there is growing evidence that
More informationCredit Repair Made Easy
Credit Repair Made Easy A simple self help guide to credit repair By Don Troiano Introduction My name is Don Troiano and I spent over 15 years in the mortgage industry. Knowing how to guide customers in
More informationWhat is the difference between a Debt Settlement Plan
Debt Resource Guide N 2 What is the difference between a Debt Settlement Plan and Bankruptcy? CareOne Team Members 2 3 I m struggling with my debt. Do I have options? I don t want a one-size-fits-all solution.
More informationAbout your credit score. About FICO Score. Other names for FICO Score. http://www.myfico.com/crediteducation/creditscores.aspx
http://www.myfico.com/crediteducation/creditscores.aspx About your credit score Your credit score influences the credit that s available to you and the terms (interest rate, etc.) that lenders offer you.
More informationJanuary, 2015. Assessing the feasibility of creating a SELF Loan Refinancing Program
January, 2015 Assessing the feasibility of creating a SELF Loan Refinancing Program 1 Authors Marilyn Kosir SELF Loan Manager Tel: 651-355-0600 Marilyn.Kosir@state.mn.us Danette Jerry Financial Services
More informationDisruption in student loan market means students may have to search harder for funding
Page 1 of 3 Disruption in student loan market means students may have to search harder for funding By MARCY GORDON, Associated Press February 20, 2008 WASHINGTON - The supply of education loans is shrinking
More informationWHAT IS THE DIFFERENCE BETWEEN CHAPTER 7 AND CHAPTER 13?
NEW JERSEY BANKRUPTCY WHAT IS THE DIFFERENCE BETWEEN CHAPTER 7 AND CHAPTER 13? Because the Difference Between Chapter 7 and Chapter 13 Can Have Serious Consequences for a Client Who Files the Wrong Case,
More informationThe Top Seven Financial Pitfalls Every Homeowner Facing Foreclosure Must Avoid
The Top Seven Financial Pitfalls Every Homeowner Facing Foreclosure Must Avoid The foreclosure process is perplexing, even for those experienced in real estate. Real estate agents, attorneys, mortgage
More informationHow To Get Rid Of Student Loans And Debt
Statistics on Student Loans / Debt Generation Debt: Erasing Student Loans and Debt Guy Kendall-Freas NEA Member Benefits OH/KY/WV Regional Office 1217 Monterey Dr Mansfield, OH 44907 888-749-7380 Gkendall-freas@neambcom
More informationStudent Loans. A straight forward guide to managing your student loans.
Student Loans A straight forward guide to managing your student loans. Management Starts Early A college education is part of the American dream. Unfortunately, for most Americans, it s one part of the
More informationHigher education has never been more expensive.
Charts You Can Trust Drowning in Debt: The Emerging Student Loan Crisis by Erin Dillon and Kevin Carey July 9, 29 Note: Recently announced technical changes in the measure of student loan amounts in the
More informationPresident Obama Announces New Efforts to Improve Access to Credit for Small Businesses
President Obama Announces New Efforts to Improve Access to Credit for Small Businesses Improving access to credit by small businesses is a crucial step in supporting economic recovery and job creation.
More informationConsumer Credit Counseling. Knowing Your Options A Briefing for Individuals Contemplating Bankruptcy
Consumer Credit Counseling Knowing Your Options A Briefing for Individuals Contemplating Bankruptcy Part 1 Overview You are contemplating bankruptcy and probably have a number of questions. Is bankruptcy
More informationAppendix A Statement of Facts
Appendix A Statement of Facts Executive Summary. The United States Attorney s Office for the Western District of Virginia, the Office of the Special Inspector General for the Troubled Asset Relief Program
More informationWilliam D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower s Rights and Responsibilities Statement
Important Notice: This Borrower s Rights and Responsibilities Statement provides additional information about the terms and conditions of the loans you receive under the accompanying Master Promissory
More informationWhy Massachusetts is creating its own student debt counseling unit
Why Massachusetts is creating its own student debt counseling unit By Danielle Douglas-Gabriel November 24 at 2:17 PM Despite the millions of dollars the federal government pays student loan servicers
More informationMEFA s Guide to Paying for College
MEFA s Guide to Paying for College Congratulations! The waiting is over, and your student has received college acceptance letters. Now what? Deciding which college or university to attend isn t always
More informationHow To Stop Mortgage Fraud In Minster
OFFICE OF THE ATTORNEY GENERAL STATE OF MISSOURI Doug Ommen Consumer Protection Division Missouri s 2007 Mortgage Fraud Task Force Created in Department of Insurance, Financial Institutions and Professional
More informationTestimony of Charmaine N. Mercer, PhD Vice President of Policy, Alliance for Excellent Education Before the U.S. House of Representatives Committee on Education and Workforce Keeping College Within Reach:
More informationNFCC Kicking Into Action in Missouri - The New Challenge
FINAL Remarks of Susan C. Keating Interagency Consumer Complaint Conference Financial Education: What s New in Outreach and Education Kansas City, Missouri April 16, 2009 I m pleased to be here today along
More informationVIRGINIA CAREER COLLEGE ASSOCIATION
VIRGINIA CAREER COLLEGE ASSOCIATION Virginia Career College Association Volume XVI, Issue 3 Inside this issue: VCCA SCHEV Meet Regarding Diploma Mills Transfer Committee Meets Imagine America Releases
More informationEconomic Outlook 2009/2010
Economic Outlook 29/21 s Twenty-Eighth Annual Forecast Luncheon Paul R. Portney Dean, Professor of Economics, and Halle Chair in Leadership Marshall J. Vest Director Economic and Business Research Center
More information