Posted by Shannon Rasberry on May 8, 2012 in Student Loan Programs | 0 comments
This month, education loan giant Sallie Mae is launching its first fixed-rate private student loan to compete with federal student loans, which have historically been better deals for students because of low, fixed interest rates, as opposed to variable rates, and more protections for borrowers.
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Posted by Shannon Rasberry on May 7, 2012 in Student Loan Scams & Scandals | 0 comments
A graduate of George Washington University Law School has sued the lenders of his private student loans and the loans’ servicer for allegedly operating a “scheme” to fraudulently obtain additional interest payments from borrowers by slashing the amount borrowers owe every month and extending their repayment terms — without their consent — and then telling borrowers that the reduction was due to a small interest rate reduction.
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Posted by Shannon Rasberry on May 3, 2012 in Student Loan Legislation, Student Loan Programs, Student Loan Scams & Scandals | 2 comments
The U.S. Department of Education has been busy transferring large collections of federal Direct student loans to new nonprofit loan-servicing companies in an effort to streamline how education loans are serviced. However, the massive transition is causing some borrowers to suddenly encounter problems with their college loans.
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Posted by Shannon Rasberry on May 1, 2012 in Student Loan Legislation, Student Loan Programs | 1 comment
There’s been a lot of political posturing and somewhat apocalyptic soothsaying over a pending rate hike for federal student loans set to take effect this summer. But the reality is that the rate increase, if it doubles as scheduled, won’t affect current borrowers — or their estimated $1 trillion in outstanding student loan debt — and it won’t affect future borrowers to the extent that political rhetoric might make it seem.
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Posted by Shannon Rasberry on Apr 30, 2012 in Student Loan Legislation, Student Loan Programs | 0 comments
Legislation extending current interest rates on federal education loans passed the House on Friday but may be doomed to fail in the Senate because of a partisan disagreement over the bill’s funding.
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Posted by Shannon Rasberry on Apr 26, 2012 in Student Loan Debt, Student Loan Legislation, Student Loan Programs | 6 comments
A petition in support of legislation that would provide dramatic relief for student loan borrowers neared one million signatures Thursday, a day after the total outstanding debt from student loans supposedly reached $1 trillion.
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Posted by Shannon Rasberry on Apr 24, 2012 in Student Loan Debt, Student Loan Legislation, Student Loan Programs | 0 comments
Presumptive Republican presidential nominee Mitt Romney, in both a deviation from his party’s message and an apparent pitch to woo young voters, announced Monday that he would support an extension of the low interest rate on subsidized federal Stafford loans, which, if allowed expire this summer, would result in a doubling of interest rates on federal student loans from 3.4 percent to 6.8 percent.
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