Here are the best articles from around the web this week talking about student loans…
For the week ending Friday May 24, 2013
Student Loan News:
1. Overdue Student Loans Reach Record as U.S. Graduates Seek Jobs:
Overdue student loans reached an all-time high as students struggle to find work after college, according to a government report renewing alarms about the rising burden of higher-education debt.
Eleven percent of student loans were seriously delinquent — at least 90 days past due — in the third quarter of 2012, compared with 6 percent in the first quarter of 2003, according to the report by the U.S. Education Department. Almost 30 percent of 20- to 24-year-olds aren't employed or in school, the study found.
The research is being released amid concern in Congress and President Barack Obama’s administration about rising college costs and $1 trillion in outstanding student loans, the largest category of consumer debt besides mortgages. Borrowers say the burden is affecting their choice of jobs and their ability to buy homes and get married. Understand more: http://www.bloomberg.com/news/2013-05-23/overdue-student-loans-reach-record-as-u-s-graduates-seek-jobs.html
2. Student loan defaults rising despite a way out:
Although levels of household debt have steadily receded in the U.S. since the housing bubble burst, Americans are conspicuously falling behind in one area — student loans.
The number of people who are at least 90 days late on student loan payments has jumped 3.2 percent in only two years, rising from 8.5 percent in 2011 to 11.7 percent today, according to a recent study by the New York Federal Reserve. Get every information: http://www.cbsnews.com/8301-505123_162-57585366/student-loan-defaults-rising-despite-a-way-out/
3. Obama threatens veto of House student loan plan:
President Barack Obama on Wednesday threatened to veto legislation by House Republicans that would avert a doubling of student loan interest rates on July 1 but allow them to vary with the markets going forward.
The White House issued the warning a day before the full House was scheduled to vote on the bill. Leaders from both parties expected the legislation to pass the House over the objections by Obama and many fellow Democrats, who argued that the lower rates would give way to higher ones later. Study more: http://www.newsobserver.com/2013/05/22/2910755/obama-threatens-veto-of-house.html
Student Loan Blog Posts:
1. Federal Direct Student Loans Up Nearly Fivefold Under Obama:
Shortly before Congress enacted the Obamacare law in March 2010, then-House Speaker Nancy Pelosi famously said, “We have to pass the bill so that you can find out what is in it.”
When President Obama ultimately signed the Health Care and Education Reconciliation Act — one of the two bills comprising Obamacare — he gave a speech celebrating one of its surprises: language that terminated the Federal Family Education Loan (FFEL) program that allowed federally guaranteed student loans to be made in the private sector with private capital, thus giving the Federal Direct Student Loan (DL) program a monopoly over these loans. Visit Now: http://townhall.com/columnists/terryjeffrey/2013/03/20/federal-direct-student-loans-up-nearly-fivefold-under-obama-n1543373/page/full
2. Obama Student Loan Policy Under Scrutiny As Congress Tackles Student Borrowing Costs:
Congressional Democrats have pounced on a nonpartisan government report showing the Department of Education this year is forecast to earn a record $51 billion profit off student borrowers, denouncing the Obama administration and urging for structural reforms.
Members of the House of Representatives including George Miller (D-Calif.), John Tierney (D-Mass.) and John Yarmuth (D-Ky.) cited news reports in The Huffington Post that highlighted the Tuesday estimate by the Congressional Budget Office, which showed that the Education Department was forecast to report higher earnings this year than Exxon Mobil and nearly as high as those of the four biggest U.S. banks by assets combined. Read more: http://www.huffingtonpost.com/2013/05/17/obama-student-loan-policy_n_3294026.html
3. Gillibrand Wants Fixed Interest Rates For Federal Student Loans:
Sen. Kirsten Gillibrand is proposing new legislation to give students a bit of a break as they try to pay off their school loans.
The Federal Student Loan Refinancing Act would let current students and graduates refinance their federal student loans, known as Stafford loans, at a fixed 4-percent interest rate.
The interest rate on Stafford loans is set to double to 6.8 percent in July, if Congress does not act to prevent it. More Details: http://www.ny1.com/content/top_stories/182348/gillibrand-wants-fixed-interest-rates-for-federal-student-loans