Here are the best articles from around the web this week talking about student loans…
For the week ending Friday June 21, 2013
Student Loan News:
1. Casey Comes out Swinging to Stop Student Loan Rate Increase:
With less than two weeks left before federal Stafford loan interest rates are set to double, U.S. Senator Bob Casey is speaking out against allowing the rates to increase.
Part of the 2007 College Cost Reduction and Access Act included provisions to artificially lower the 6.8 percent student loan interest rate to 3.4 percent over four years, which was extended last year. That extension is set to expire on July 1, which would cause interest rates to essentially double overnight. Main site: http://www.politicspa.com/casey-comes-out-swinging-to-stop-student-loan-rate-increase/48920/
2. Senate Republicans hit back on student loans:
Senate Republicans are hitting back in the blame game over imminent student loan rate increases, with the National Republican Senatorial Committee set to launch attacks Democrats for failing to act on the matter.
The NRSC plans to send releases slamming seven senators and three congressmen running for the upper chamber for not supporting the Republican plan to avoid a doubling of interest rates. Democrats have already attacked the GOP for not backing their own fix. Read more: http://thehill.com/blogs/ballot-box/senate-races/306765-senate-republicans-hit-back-on-student-loans
3. Arne Duncan to visit Hill on student loans:
Education Secretary Arne Duncan and National Economic Council Director Gene Sperling will huddle with Democratic senators on Thursday to seek a way to prevent student loan rates from doubling in less than two weeks.
Senate Majority Leader Harry Reid (D-Nev.) said he’s been working feverishly over the last 24 hours with four other Democratic caucus members on crafting a bill that can pass the Senate with 60 votes. Reid is working with a group that spans the ideological spectrum and includes: Jack Reed (R.I.), Elizabeth Warren (Mass.), Joe Manchin (W.Va.) and Angus King (I-Maine.) . Check out: http://www.politico.com/story/2013/06/arne-duncan-to-visit-hill-on-student-loans-92987.html
Student Loan Blog Posts:
1. Democrats Looking to Compromise on Student Loans:
Senate Democrats will meet Thursday with Education Secretary Arne Duncan and top Obama economic adviser Gene Sperling at their weekly policy luncheon to discuss a potential compromise on student loans.
Senate Majority Leader Harry Reid, D-Nev., announced the meeting with administration officials on Tuesday, just one day after senators involved in forging the potential deal met in his Capitol suite with Democratic leaders. Among the lawmakers involved in the Senate Democrats’ efforts on the issue are freshman Elizabeth Warren of Massachusetts, Joe Manchin III of West Virginia and Democratic-leaning independent Angus King of Maine. If Congress fails to strike a deal by July 1, subsidized Stafford student loan rates are set to double from 3.4 percent to 6.8 percent. More outline: http://blogs.rollcall.com/wgdb/democrats-looking-to-compromise-on-student-loans/
2. Lawmakers Trying To Halt The Rise Of Student Loan Rates:
Pressure is building for thousands of college students who could soon be paying more for school loans — a lot more, if Congress doesn’t act soon.
House Republicans are calling for the Senate to approve a bill the House passed last week. It would keep the interest rates on federal student loans from doubling. Details here: http://minnesota.cbslocal.com/2013/06/18/lawmakers-calling-for-flexible-interest-rates-for-student-loans/
3. How To Profit From The Federal Student Loan Collapse:
We are in the era of gargantuan, almost inconceivable debt figures. We hear them all the time on the news. $16T in Federal debt, $100T in unfunded Federal liabilities and $7.77T in Federal Reserve funded bank bailouts in 2008. $600T in total global counterparty derivatives exposure, and that's just the low estimate. These are all mainstream media sources, not tinfoil hat sites.
Obviously these numbers are too big to synthesize any meaningful investment advice from them, so I'd like to set them aside and deal with a much smaller, though still gargantuan number we've all been hearing about as well. That is the over $1 trillion student loan debt hovering over millions of college students and graduates. More explanation: http://seekingalpha.com/article/1507642-aspen-group-how-to-profit-from-the-federal-student-loan-collapse
PayMyStudentLoans.com Around The Web: