Here are the best articles from around the web this week talking about student loans…
For the week ending Friday July 26, 2013
Student Loan News:
1. Senate passes student loan deal:
The Senate passed legislation Wednesday that would make it less expensive for college students to borrow money to pay for classes, housing and books. But interest rates could soon start climbing.
The proposal, that passed by 81 votes to 18, would link interest rates on federal student loans to the financial markets. That means student loans for the next few years would have lower interest rates. Higher rates would come in later years if the economy improves as expected.
Liberal Democrats opposed the White House-backed proposal as a bait-and-switch measure that would lure in new borrowers. Republicans supported the measure and helped the bill win passage. The bill is similar to one the House has already passed. Read more: http://www.foxnews.com/politics/2013/07/24/senate-set-to-finish-work-on-student-loan-deal/
2. Secrets Of A Student Loan Consultant:
Ever since he was a kid, John Smith knew that his calling was in medicine. But while Smith didn't have to struggle with the ubiquitous “What am I going to do with the rest of my life?” question, the newly minted M.D. has struggled to pay off his high-interest-rate student loans.
The problem? Although Smith never missed a payment on his student loans, he was frequently unable to make the entire monthly minimum payment. And whenever he asked his lender to consider renegotiating that amount, the answer was no—and the lender eventually turned his account over to a collections agency that began making threatening calls to his dad, who’d co-signed the loans. Look at more: http://www.forbes.com/sites/learnvest/2013/07/24/secrets-of-a-student-loan-consultant/
3. Democrats Divided on Student Loan Interest Rates:
Democrats have mostly walked in a straight line behind the Obama Administration, rarely showing party divisions which have plagued the GOP in recent years. But this week when it comes to student loans, the White House and Republicans are united, and it's Senate Democrats who are divided.
“It is really interesting that the emphasis around here is always around Republicans being divided. In this case, [Democrats] are divided right down the middle,” says Sen. Bob Corker, R-Tenn. “It's interesting that the White House, House Republicans and Senate Republicans and some Democrats are united around this issue.” Browse more: http://www.usnews.com/news/articles/2013/07/24/democrats-divided-on-student-loan-interest-rates
Student Loan Blog Posts:
1. Wheels on student loan deal turn despite discord:
The Senate passed bipartisan legislation Wednesday that will tie the student loan interest rate to the financial market in an effort to mend loan rates that doubled this month, despite division among Democrats.
“This compromise is a major victory for our nation’s students,” said President Barack Obama in a statement. “It meets the key principles I laid out from the start: it locks in low rates next year, and it doesn’t overcharge students to pay down the deficit.
“I urge the House to pass this bill so that I can sign it into law right away, and I hope both parties build on this progress by taking even more steps to bring down soaring costs and keep a good education – a cornerstone of what it means to be middle class – within reach for working families”. Original article: http://thedailycougar.com/2013/07/24/wheels-on-student-loan-deal-turn-despite-discord/
2. Bernie Sanders Stands His Ground To Protect Students From Terrible Loan Bill:
Sen. Bernie Sanders called out the White House today for leaving out the part of the Senate’s student loan compromise bill that will raise interest rates on borrowers.
The White House released a fact sheet about the compromise today that went heavy on the soft sell, “Under the compromise plan, nearly 11 million borrowers will see their interest rates decrease on new loans after July 1, 2013. About 8.8 million undergraduate borrowers will see their rates on new loans drop from 6.8 to 3.86 percent, and about 1.5 million Graduate Unsubsidized Stafford borrowers will see their rates drop on new loans from 6.8 percent to 5.41 percent. And over 1 million Grad Plus and Parent PLUS borrowers will see their rates on new loans drop from 7.9 percent to 6.41 percent—the first reduction in years.” Discover more: http://www.politicususa.com/2013/07/23/bernie-sanders-stands-ground-protect-students-terrible-loan-bill.html
3. Student Loan Deal Set To Increase Borrowing Costs, Swell Government Profit:
A bipartisan Senate accord supported by the White House to overhaul the federal student loan program is forecast to boost government profit and increase borrowing costs in the coming years, leading student groups and some Democrats to denounce the deal.
The compromise, reached by eight senators and blessed by the White House on Thursday, would result in an immediate reduction in borrowing costs under the federal student loan program temporary savings that would be paid by graduate students and parents beginning in 2015, according to estimates derived from the White House’s most recent budget update. Full article: http://www.huffingtonpost.com/2013/07/18/student-loan-deal_n_3619833.html