Here are the best articles from around the web this week talking about student loans…

For the week ending Friday October 11, 2013

Student Loan News:

1. SCO graduates show zero student loan defaults for 17th year: 

Student loan debt is the only form of consumer debt that has grown since the peak of consumer debt levels in 2008, according to the Federal Reserve Bank of New York. Balances of student loans have eclipsed both auto loans and credit cards, making student loan debt the largest form of consumer debt outside of mortgages. And while delinquency rates vary among age groups and over time, delinquencies are on the rise, particularly over the past year, according to the New York Fed. More details: http://www.bizjournals.com/memphis/news/2013/10/11/sco-graduates-show-zero-student-loan.html

2. Fake Sallie Mae Accounts Target Struggling Student Borrowers:

As the government shutdown stretches into its second week, some furloughed workers may be struggling to make payments on their student loans – and numerous scammers have taken notice.

In the days following the onset of the shutdown, several fake Twitter and Instagram accounts popped up under the guise of student lending giant Sallie Mae. They made a tempting offer to borrowers: because of the government shutdown, borrowers could apply for loan “forgiveness” that would clear their debt. Get more: http://www.usnews.com/news/articles/2013/10/11/fake-sallie-mae-accounts-target-struggling-student-borrowers

3. Fitch Affirms Notes Issued by NorthStar Student Loan

Fitch Ratings affirms the ‘AAAsf' ratings assigned to the senior student loan asset-backed notes issued by the NorthStar Student Loan Trust I, Series 2012-1 (NorthStar 2012-1). The Rating Outlook on the notes, which is tied to the sovereign rating of the U.S. government, remains Negative. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS:

Adequate Collateral Quality: As of August 31, 2013, the trust collateral consisted of approximately $595 million of Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. The loans were originated by NorthStar Education Finance, Inc. Original news: http://www.4-traders.com/news/Fitch-Affirms-Notes-Issued-by-NorthStar-Student-Loan-Trust-I-Series-2012-1–17341985/

Student Loan Blog Posts:

1. Student Loans Military Funding Affected by Government Shutdown:

The recent government shutdown is estimated to cost the United States $1.6 billion for every week that the government is shut down. Calculated by the global economic consulting firm IHS Global Insight, this figure translates into about $300 million per day, or $12.5 million per hour of government closure. While the nation scrambles to find an answer to the chaos atop Capitol Hill, American college students, including those on Mount Oread, remain mostly oblivious to the real-world implications of the recent government shutdown, instead preferring to ask the question, “Why does it matter?” Details here: http://kansan.com/news/2013/10/09/student-loans-military-funding-affected-by-government-shutdown/

 2. The Waiting Game: Student Loans and Your College Degree: 

You want to go to college. You are ready now. You’re on a budget, yet you are determined to go back and earn your college degree.

What do you do?

If you are like most adult students, you will find an institution online or nearby that has a degree program you like, for example in engineering or nursing. You apply to that college. You get in. You look at the tuition price, and you think, “Ouch! College is expensive!”  Yet, you are focused on earning your degree. You enroll. Visit now: http://www.straighterline.com/blog/the-waiting-game-student-loans-and-your-college-degree/

3. Fair Market Valuation; CBO, Student Loans, Food Stamps, Etc: 

Earlier in 2013, CBO’s Douglas Elmendorf’s forecasted return on Student Loan’s resulting in a positive return for the Government. Later Elmendorf reversed the forecast claiming student loans would cost the government and the taxpayers by generating a negative return. Using one cost model (FCRA) to estimate the return, the government will make $184 billion on student loans in the next 10 years. Using another cost model (Fair Market Valuation ) to estimate return, the government will lose $95 billion over the same period. So why the difference? Utilizing the Fair Market Valuation methodology would necessitate additional compensation for investors to accept the risk that losses may exceed those already reflected in the cash flows. A premium for the possibility that debtors will default in large numbers is added into the calculation. Wait a minute, these are students locked in by signature to these loans which can not be discharged through bankruptcy.  Get every info: http://angrybearblog.com/2013/10/fair-market-valuation-cbo-student-loans-food-stamps-etc.html

PayMyStudentLoans.com Around The Web:

1. http://www.thehappyhomeowner.net/2013/10/the-yakezie-carnival-fall-is-here-edition.html

2. http://www.saveandconquer.com/carnival-financial-camaraderie-october-5-2013/

3. http://www.aspiringblogger.com/aspiring-blogger-personal-finance-carnival-16-october-4-2013/

4. http://www.tortoisebanker.com/2013/10/carnival-of-tortoise-banker-7th-edition.html