“It is in everyone’s best interest to address this problem and make a concerted effort to lessen the burden that student loans are having on generations of American consumers.” ASA says the federal government should increase funding for college financial aid grants and should keep interest rates on student loans low. The group also encourages states to improve funding for public colleges. In the private http://www.obamastudentloanforgiveness.net/ sector, ASA suggests businesses help their workers pay off their debt, with an eye toward employee retention. Private student lenders should at the same time offer more flexible repayment options for borrowers, the group said. Sixty percent of the survey respondents said they were confused about their student loan paperwork and 69 percent didn’t understand their repayment options. Colleges and universities were not spared criticism in the report.
This is in marked contrast to the housing market, for example, which has a robust refinancing industry. While all of these reforms entail complications and trade-offs, they are eminently doable. The Student Loan Ranger feels the bureau’s efforts to alleviate the unnecessary stress and suffering of far too many private student loan borrowers may also help improve the economic prospects of all of us. Isaac Bowers is a senior program manager in the Communications and Outreach unit, responsible for Equal Justice Works’s educational debt relief initiatives. An expert on educational debt relief, Bowers conducts monthly webinars for a wide range of audiences; advises employers, law schools, and professional organizations; and works with Congress and the Department of Education on federal legislation and regulations.
Even though more than half of college graduates under age 25 are unemployed or underemployed, there are other reasons to why a TransUnion study found that more than half of student loan accounts are in deferred status: The large loan amounts don’t register with them, says Tom Yarnell, director of financial aid at Otterbein University in Westerville, Ohio. “I don’t think they realize how long it takes to pay it back and the amount they’ll have to pay back,” Yarnell says. “Students at that age level have their eyes on something other than the borrowing amount and are pretty sure they’ll be able to get a job and pay the loan back,” he says. The loan amounts can be overwhelming. Student loan balances increased 75% between 2007 and 2012, with the average debt per borrower increasing by 30% to $23,829, according to the TransUnion study.
CFPB Takes Aim At Sallie Mae For Student Loan Servicing
Don’t worry though; the government has come to save us from what Keynesian economists would call this “market failure” by currently issuing over 90% of student loans. Reminiscent of the housing bubble in which there was an underlying societal myth that everyone should own a home and that all houses were good investments, this bubble is fueled by the myth that everyone should go to college and that all college is a good investment. Just like the housing bubble this is believed by just about everyone until it’s not – and then it’s too late. The culture, and of course government schools, tell the youth (and older displaced workers) that in order to get a good job one only needs to go to college. Colleges, much like the National Association of Realtors during the housing boom, take advantage of this combination of government subsidies, cheap credit and free marketing (propaganda) to fuel a speculative bubble. In the past decade college debt as a percentage of household debt has exploded becoming the second biggest form of household debt outpacing credit card and auto loan debt.
Student Loan Bubble
Criticizing him for Treasury’s failure to keep families in their homes, she questioned Treasury’s commitment to homeowners.
Ready For A Fight Elizabeth Warren reiterated her desire for a strong Consumer Financial Protection Agency to HuffPost’s Shahien Nasiripour:
“My first choice is a strong consumer agency,” the Harvard Law professor and federal bailout watchdog said in an interview with the Huffington Post. “My second choice is no agency at all and plenty of blood and teeth left on the floor.”
Named Interim Chief Of CFPB In September of 2010, HuffPost’s Ryan Grim reported that Elizabeth Warren was being considered as a candidate for interim director of the Consumer Financial Protection Bureau. Days later the announcement was official. The move allowed Warren to set up the groundwork for the agency immediately without risking a GOP filibuster of her nomination, a response that seemed certain giving the public opposition expressed by some Republican senators. When it came time to put forth an appointment for a longterm CFPB chief, Warren was overlooked, partially because she was seen as unfeasible, but also, HuffPost’s Shahien Nasiripour reported, because she was a divisive figure within the Obama administration:
Ultimately, Warren wanted the job, allies said. And near-united opposition from Senate Republicans — 44 of them signed a letter saying they’d oppose any nominee — should have made it easier for Obama to nominate her, since the Republicans publicly said they wouldn’t support anyone for the role.