Here are the best articles from around the web this week talking about student loans…
For the week ending Friday May 31, 2013
Student Loan News:
1. What Sallie Mae's Split Says About Student Loans:
Student loan giant Sallie Mae announced a major change to its model today. It will split its growing, private student loan business from its shrinking government-backed loan servicing business.
The company will turn itself into two, separate publicly traded entities: An education loan management business and a consumer banking business “to unlock value and enhance long-term growth potential.” Details here: http://www.forbes.com/sites/halahtouryalai/2013/05/29/what-sallie-maes-split-says-about-student-loans/
Student Loans
2. Student Loan Delinquency Rate Hits New Record High:
37 million Americans currently have outstanding student loans, and the delinquency rate on those student loans has now reached a level never seen before. According to a new report that was just released by the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent. That is a brand new record high, and it is almost double the rate of a decade ago. Total student loan debt exceeds a trillion dollars, and it is now the second largest category of consumer debt after home mortgages. The student loan debt bubble has been growing particularly rapidly in recent years. According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003. That is a staggering figure. Millions upon millions of young college graduates are entering the “real world” only to discover that they are already financially crippled for decades to come by oppressive student loan debt burdens. Large numbers of young people are even putting off buying homes or getting married simply because of student loan debt. Original article: http://etfdailynews.com/2013/05/30/student-loan-delinquency-rate-hits-new-record-high/
3. Obama to hit GOP on student loans:
President Obama on Friday will call on Congress to prevent student-loan interest rates from doubling, the White House announced, saying a Republican plan to keep costs down “does not meet the test.”
Obama spokesman Jay Carney said the president would join college students at the White House, hoping to stoke an issue featured prominently on the campaign trail in 2012.
“While we welcome that House Republicans have paid some attention to this issue this year, their proposal unfortunately does not meet the test,” Carney said. Visit now: http://washingtonexaminer.com/obama-to-hit-gop-on-student-loans/article/2530762
Student Loan Blog Posts:
1. The Student Loan Delinquency Rate In The United States Has Hit A Brand New Record High:
37 million Americans currently have outstanding student loans, and the delinquency rate on those student loans has now reached a level never seen before. According to a new report that was just released by the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent. That is a brand new record high, and it is almost double the rate of a decade ago. Total student loan debt exceeds a trillion dollars, and it is now the second largest category of consumer debt after home mortgages. The student loan debt bubble has been growing particularly rapidly in recent years. According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003. That is a staggering figure. Millions upon millions of young college graduates are entering the “real world” only to discover that they are already financially crippled for decades to come by oppressive student loan debt burdens. Large numbers of young people are even putting off buying homes or getting married simply because of student loan debt. Full article: http://theeconomiccollapseblog.com/archives/the-student-loan-delinquency-rate-in-the-united-states-has-hit-a-brand-new-record-high
2. Delinquent US student loans hit record high, with over $100 billion past due:
The number and value of overdue student loans has reached an all-time high in the US as nearly a third of 20- to 24-year-olds are currently unemployed, according to a report by the Department of Education.
With continued concern regarding rising college costs, the amount of outstanding student loans has now reached $1 trillion, making that the largest category of consumer debt in the US aside from home mortgages. Get more outline: http://rt.com/usa/record-high-us-student-debt-775/
3. Elizabeth Warren Attacks House GOP on Student Loan Bill:
On Thursday, Sen. Elizabeth Warren (D-Mass.) slammed a Republican student loan bill the House just approved that would allow interest rates on student debt to skyrocket.
“The student loan bill passed by House Republicans takes a bad situation and makes it worse,” she said in a statement.
On July 1, rates for federal student loans called Stafford loans are set to double from the current rate of 3.4 percent to 6.8 percent. The GOP bill, which passed the House on a mostly party-line vote of 221 to 198, would allow interest rates on those loans to rise or fall from year to year with the government's cost of borrowing, ending the system in which rates are fixed by law. Because market rates are low right now, the initial rate for those loans would be about 4.4 percent, but in coming years it could increase up to a cap of 8.5 percent. Understand more: http://www.motherjones.com/mojo/2013/05/elizabeth-warren-house-republican-student-loan-bill
PayMyStudentLoans.com Around The Web:
1. http://degreesanddebt.com/2013/05/25/budgeting-and-economics-carinval/
2. http://reachfinancialindependence.com/financial-independence-carnival-12/
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