by Jeff Sovern Here, an op-ed by people from Ohio State, Catherine Montalto, Associate Professor of Consumer Sciences, and Anne McDaniel , Senior Associate Director there. Excerpt: [D]ata from our study showed over half of student loan users tried to borrow as little as possible (52 percent). Additionally, 38 percent considered the total amount of debt that […]
Category Archives: Student Loans
The U.S. Department of Education yesterday outlined a series of enhanced protections and customer service standards to guide the future of federal student loan servicing practices. The policies were outlined in a memorandum to Federal Student Aid (FSA) and developed in consultation with the Department of the Treasury and the Consumer Financial Protection Bureau. The […]
by Jeff Sovern Allison posted yesterday about the National Financial Capability Study. GW Business School professor Annamarie Lusardi has a Wall Street Journal essay titled So Much Student Debt, So Much Ignorance, about what the Study, which she co-authored, shows about student debt. An excerpt: The latest NFCS data find that about one-in-five loan holders […]
This weekend, the Times ran a pair of pieces that laid out other ways to handle student loans. In America Can Fix Its Student Loan Crisis. Just Ask Australia, Susan Dynarski wrote about how other countries deal with student loans. Here's an excerpt: [T]here is no student debt crisis in Sweden, because payments are spread out […]
by Jeff Sovern The current issue of Consumer Reports cover reads "I kind of ruined my life by going to college." Consumer Reports teamed with RevealNews.org to cover student loans. You can read the RevealNews.org coverage here. Here's the upsetting beginning: A generation ago, Congress privatized a student loan program intended to give more Americans access […]
In a speech February 25 at the CFPB's Consumer Advisory Board meeting, CFPB Director Richard Cordray identified nine "key areas where we hope to make substantial progress over the next two years." He also noted, however, that "these goals do not capture all of the important work we are doing." The nine goals are: First, […]
Frank A. Pasquale III of Maryland has written Democratizing Higher Education: Defending and Extending Income-Based Repayment Programs, Loyola Consumer Law Review (Forthcoming). Here is the abstract: This article addresses many critiques of income-based repayment programs for student loan debt. These programs are not helping many of the students they were designed to aid. Their terms […]
Here. Excerpt, reporting on a study by Lendedu: When Lendedu talked to 477 undergraduate and graduate students at three Bay Area campuses, it found that just 6 percent of them knew how long they would be repaying the debt. Only 8 percent knew the interest rate on their loan. * * * More than 90 percent of the […]
So says the American Banker here. In particular, the bill would apply to student debt owned or guaranteed by the government.
Here. Excerpt: Under Grassley's legislation, all students who are going to take out a federal loan to help pay for college would have to undergo counseling that would include an estimate of how much the student will likely make upon graduating versus their loan debt. Students would also look at potential options for scholarships or […]