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		<title>Exploiting the New Student-Loan Rules (via The Wall Street Journal)</title>
		<pubDate>Tue, 11 May 2010 05:51:46 -0700</pubDate>
		<description><![CDATA[



Tuition continues to soar, but there might be some relief for borrowers grappling with student-loan debt: federal income-based repayment programs. Many borrowers may not be aware of them.





Originally designed for those who pursue public-service jobs, the programs have expanded to benefit just about anyone struggling with student-loan debt, especially those with high debt loads and low incomes. 





The programs do come with fine print. One major caveat: Only government-backed loans qualify. Loans issued by private companies&mdash;which lack many consumer protections&mdash;don't.





The current program, rolled out in July 2009, caps the amount of a borrower's discretionary income that goes to repaying a federal loan at 15%. Then, after 25 years, any remaining balance&mdash;both principal and interest&mdash;is forgiven. If the borrower works in public service, the balance is forgiven after 10 years. 





Congress recently passed legislation that expands the program. For federal loans issued after 2014, the cap will be lowered to 10% of income, and the debt is forgiven after 20 years.





More
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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=243</link>
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		<title>Direct student loans: A better way to invest in education</title>
		<pubDate>Sat, 27 Feb 2010 10:11:55 -0700</pubDate>
		<description><![CDATA[
For too long, bankers have gotten a free ride from the U.S. Department of Education. 







Under current law, taxpayers provide as much as $9 billion each year to subsidize guaranteed student loans issued by banks. The banks earn profits on the interest; if students default, taxpayers take the loss, not the banks. In other words, working Americans pay while bankers get rich. 





Full story





]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=242</link>
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		<title>News: Student-loan debt in California averages $17,795</title>
		<pubDate>Mon, 14 Dec 2009 18:25:45 -0700</pubDate>
		<description><![CDATA[
Nearly half of all students who graduated last year from a California college or university owe money on student loans, and their debt burden averages $17,795.





That&rsquo;s according to new data from the Institute for College Access  Success&rsquo; Project on Student Debt.





California&rsquo;s average student debt is lower than the national average of $23,200, the annual report says. The national figure is up from $18,650 in 2004.





Full story



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=241</link>
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		<title>Student loans get makeover with White House plan</title>
		<pubDate>Sat, 12 Dec 2009 20:24:30 -0700</pubDate>
		<description><![CDATA[
A weakened economy that has prompted some lenders to drop out of the student loan market has resulted in the U.S. Senate considering a bill that would change some of the loan programs frequently used by students, said Financial Aid Client Services Specialist Linette McMurtrey.





An unstable economy and unreliable student loans market prompted Congress to pass the Ensuring Continued Access to Student Loans Act (ECASLA) on April 30, 2008. The bill allowed the Department of Education to purchase student loans from lenders.





The theory was the purchases would relieve the pressure on the lenders. However, lenders were still dropping out of the market, according to reports from the U.S. Department of Education.




Full story.



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=240</link>
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		<title>Debt 101: After college, many struggle with debts </title>
		<pubDate>Sun, 22 Nov 2009 05:22:08 -0700</pubDate>
		<description><![CDATA[






(Fredericksburg.com) Patrick is making her student loan payments despite the brutal labor market. 





The percentage of people who are at least 90 days late on their student loan payments is significantly higher than the percentage of people behind on their mortgage payments, though the latter has received far more media attention.





The student loan delinquency rate ranges from 5.8 percent to 14.5 percent for localities in the Fredericksburg area, according to data from the Federal Reserve Bank of New York. In each area locality, that rate is higher than the seriously delinquent mortgage rate, often two, three or even four times higher.





That higher delinquency rate is partly due to the fact that student loans are unsecured credit given to people with little income and no credit history, said Patricia Nash Christel, a spokeswoman for Sallie Mae, which is the country's largest student loan lender.





Christel said Sallie Mae helped 1.4 million customers resolve their past-due status in the 2008-09 academic year. The company offers online resources to help people estimate the cost of college and the income needed to repay various levels of debt. It offers financial counseling to students while they're still in school.





Full story



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=239</link>
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		<title>Student Lenders Rise On Hopes Fedl Loan Program Will Survive </title>
		<pubDate>Fri, 20 Nov 2009 03:13:41 -0700</pubDate>
		<description><![CDATA[









Via the Wall Street Journal:




Shares of student lenders jumped Wednesday after an analyst suggested that the industry may not immediately be pushed out of the federal loan origination business, a prospect many had feared for months. 





&quot;Although still an uphill battle, the survival of the FFELP program, we believe, is a real possibility,&quot; FBR Capital Markets analyst Matt Snowling wrote in a note to investors, referring to the Federal Family Education Loan Program, which allows private lenders to originate government-backed loans for college students. The Obama administration had proposed a plan to bypass the lenders in favor of direct lending, allowing the companies only to service the loans but not originate them. 





According to Snowling, the health-care debate has delayed congressional action on the lending legislation. Because schools and students need clarity by the time the new lending season gets under way this winter, the government could be forced to reauthorize the current rules and try again for an overhaul next year. Snowling said legislation to extend the current law could be introduced in both houses as early as Wednesday. 





Full story



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=238</link>
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		<title>Government may take over student loans</title>
		<pubDate>Sat, 14 Nov 2009 12:01:40 -0700</pubDate>
		<description><![CDATA[






(Yale Daily News) While the University has resisted government urging to convert its private bank-based student loan system to one that is federally funded, legislation set to pass the Senate as early as next month may force Yale to comply.



The Student Aid and Fiscal Responsibility Act, passed by the House of Representatives in September, would require all college students to borrow directly from the government&rsquo;s Direct Loans program. 





Full story
]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=237</link>
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		<title>Legislation passed to dismantle student loan program is an example of an unnecessary government takeover</title>
		<pubDate>Sun, 08 Nov 2009 05:31:54 -0700</pubDate>
		<description><![CDATA[









(The Indianapolis Star) Legislation passed recently by the U. S. House of Representatives to dismantle the student loan program is an example of an unnecessary government takeover. As a Sallie Mae employee, I have witnessed private/public sector cooperative efforts that have generated significant improvements. One of the improvements has been a drop in student loan default rates (from 22.4 percent in 1992 to today's 6.7 percent), saving taxpayers billions of dollars.












There are other advantages that Sallie Mae and other industry participants offer. Having worked in financial aid offices at a number of universities, I know the myriad mind-boggling laws and regulations that dictate how financial aid programs are to be administered. For decades, organizations such as Sallie Mae have helped college financial aid administrators make sense of these regulations. Without these learning opportunities, there is no doubt that the level of service that financial aid administrators offer to students and parents would be lacking.












Full story.



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=236</link>
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		<title>Neb. senator takes issue with student loan stance</title>
		<pubDate>Fri, 06 Nov 2009 15:35:04 -0700</pubDate>
		<description><![CDATA[
OMAHA, Neb. &mdash; U.S. Sen. Mike Johanns said Thursday that his concern for Nebraska families is what's driving his opposition to legislation that would turn control of student loans over to the government &mdash; not lobbying from private student loan provider Nelnet Inc. of Lincoln.





The Nebraska Republican took umbrage with U.S. Education Secretary Arne Duncan's recent warning to colleges and universities to be ready to offer direct loans to students by next school year.





Johanns said Duncan's call is presumptuous since the bill has not yet been taken up by the Senate. The student loan reform bill did pass the U.S. House in September.





&quot;There is dissension on both sides of the aisle relative to this proposal,&quot; said Johanns, a U.S. Agriculture Secretary under the Bush administration. &quot;A secretary should never be getting this far out in front of the policy choice being made by the Senate and the House.&quot;





Asked if his relationship with Nelnet, one of the nation's largest student loan companies, plays a part in his opposition, Johanns said he has &quot;little contact with them.&quot;





Full story: http://www.google.com/hostednews/ap/article/ALeqM5h-1MNrMwux6nVrENmTW9rfk56nKAD9BQ50G00



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=235</link>
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		<title>Federal education loans are student’s best option</title>
		<pubDate>Tue, 27 Oct 2009 18:52:58 -0700</pubDate>
		<description><![CDATA[
(Richmond Times-Dispatch) So I take it as good news that private student loans are declining fast. According to a new report from the College Board, the amount of nonfederal education loans in 2008-09 dropped by nearly 50 percent from the previous year and fell to 13 percent of the market from 25 percent a year earlier.





SLM Corp., commonly known as Sallie Mae, recently reported a significant drop in its private lending. In its third-quarter report, Sallie Mae, the nation's largest student-loan lender, said it had originated $893 million in private education loans, a decrease from $2.1 billion for the same quarter a year ago.





The reason for this trend is obvious. The recession has broken a long-standing trend toward private loans, which generally carry higher interest rates than federally subsidized or unsubsidized loans.





Additionally, borrowers don't get the same protections or perks. For example, the government pays the interest on subsidized Stafford and Perkins loans while a student is in school.





Full story



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=234</link>
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		<title>How to Repay Student Loans Early</title>
		<pubDate>Sun, 18 Oct 2009 18:39:28 -0700</pubDate>
		<description><![CDATA[
Via ABC News:




Most coverage of student loans focuses on the nightmares that can occur when a graduate struggles to make his monthly student loan payments. As Langen has learned the hard way, pre-payment comes with its own set of hassles. 





The first question is where to begin--if at all. If you're in a position to pay off debts early, it pays to attack your costliest obligations first. With many young graduates, that means reducing credit card debt first.





Check out the full story.
]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=233</link>
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		<title>(Neb.)-Nelson, Other Senators Propose Student Loan Relief for Soldiers</title>
		<pubDate>Thu, 15 Oct 2009 09:43:45 -0700</pubDate>
		<description><![CDATA[
WASHINGTON, D.C. - Agroup of 14 U.S. senators, from both the republican and democratic parties, introduced legislation, yesterday, to provide immediate debt relief to active-duty members of the military who have federal student loans. 








Nebraska Senator Ben Nelson was part of the coalition; he says this will save our service members money while they serve the country.










&ldquo;The bill we introduced prohibits interest from accruing on direct student loans for all service members on active duty for up to 60-months. This would save the average service member $1,183 and $1,479 over 12 to 15 month activation period,&rdquo; said Nelson.












Senator Nelson says this is a proper way to honor the troops&rsquo; service.












&ldquo;The federal government shouldn't ask for interest payments while service members are deployed in fighting for our country,&rdquo; said Nelson.












Check out the full story.





]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=232</link>
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		<title>900,000 Students Blocked from Federal Student Loans</title>
		<pubDate>Sun, 11 Oct 2009 17:24:24 -0700</pubDate>
		<description><![CDATA[
Nearly one in 10 community college students in the U.S. cannot get a federal student loan &ndash; the safest, most affordable way to borrow for college &ndash; because their schools choose not to participate in the federal loan programs. A new issue brief from the Project on Student Debt found that more than 20 percent of the community college students in seven states have no access to federal loans, including six states (AL, GA, NC, LA, TN, VA) in the southern U.S. African-American and Native-American students were twice as likely as other students to lack access to federal student loans.





Via The Pew Charitable Trusts.
]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=231</link>
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		<title>Student loan jobs at risk</title>
		<pubDate>Thu, 08 Oct 2009 14:35:58 -0700</pubDate>
		<description><![CDATA[






Student loan reform typically doesn't get folks as lathered up as health care.






Yet the largest overhaul of the financial-aid system since its introduction in the 1960s is raising similar issues: affordability for families, the role of government and keeping jobs in place.






Aiming to get subsidized private companies out of student lending and turn it over to the government, the proposal could save $80 billion the next decade by eliminating subsidies paid to lenders that keep interest rates down.






That savings would be used to make college more affordable for more students by increasing the maximum Pell Grant by $1,400 up to $6,900 and reducing interest rates on student loans.






But the legislation places the 1,200 people who work in student lending services in Sioux Falls in the precarious center of the debate.
Sioux Falls is home to two of the five largest student lenders in the country: Citibank's Student Loan Corp. and Wells Fargo's Educational Financial Services.





[More at Argue Leader]






]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=230</link>
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		<title>Be Wary of Private Student Loans [via Kiplinger]</title>
		<pubDate>Tue, 06 Oct 2009 19:56:59 -0700</pubDate>
		<description><![CDATA[
Until a year or two ago, private student loans (not to be confused with federal student loans offered through private lenders) were the hottest thing on campus since sliced pizza. The number of private loans more than tripled between 1998 and 2008, rising from 7% of all educational loans to 23%. Then credit seized up and dozens of lenders left the market. Now, the lenders who continue to offer the loans have made them more expensive and harder to obtain.







That isn't necessarily a bad thing. Unlike federal loans, which carry fixed rates and flexible repayment terms, private loans carry variable rates, which typically end up in double digits. They offer little relief for borrowers who have trouble repaying, and they let students borrow relatively high amounts, making it easy for them to get in over their head. 





Lesson? Have your student max out on federal loans first and use private loans sparingly, if at all. New rules from the Federal Reserve, which take effect in early 2010, dictate that lenders must disclose more and better information about interest rates and fees. In the meantime, here's what you should watch out for..




[Go to Kiplinger for full story]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=229</link>
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		<title>Sallie Mae Highlights Common Ground in Discussion on Student Loan Program Reform</title>
		<pubDate>Fri, 02 Oct 2009 18:23:28 -0700</pubDate>
		<description><![CDATA[
On a recent conference call with school customers, Sallie Mae executives highlighted the company&rsquo;s support for reforming the federal student loan programs and making college more affordable. Consistent with the President&rsquo;s reform proposal, the Community Proposal, an alternative plan supported by Sallie Mae and a broad list of industry players, would eliminate lender subsidies and have federal ownership of all student loans, generating $87 billion in mandatory savings to help make college more affordable. 





Vice Chairman and CFO Jack Remondi emphasized that the company agrees that the old Federal Family Education Loan Program (FFELP) should end, and that reform should result in a single federal student loan program with one set of loan terms. He also clarified that the Community Proposal supported by Sallie Mae and other lenders would end the pre-2008 FFELP lender compensation formula, which included lender subsidies.




[Full story here at Welt Online]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=228</link>
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		<title>Why students should care about student loan legislation</title>
		<pubDate>Wed, 30 Sep 2009 01:27:23 -0700</pubDate>
		<description><![CDATA[
Sept. 17, 2009, the House of Representatives voted to approve the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA) by a 253-171 margin, thus sending it on to the Senate, where it awaits further action. This issue has largely flown under the radar, which is unsurprising considering the fact that it affects only a small subset of the country. Other issues, such as the Iraq war, the complete failure of our banking system or the current American automotive industry crisis have garnered far more media attention and public awareness.





Despite a lack of mass appeal and public cognizance regarding SAFRA and its surrounding issues, the student loan system in the United States is an increasingly important matter. Regrettably, on college and university campuses, knowledge&mdash;or at least public and open discussion about the loan structure&mdash;is severely lacking. I cannot claim to be able to speak for the entirety of Washington University, but from what I have seen, there has been little to no dialogue regarding the current system, SAFRA or its ramifications. This could possibly be explained by the socioeconomic diversity of Wash. U. students. We have come under fire for having the lowest percentage of students receiving Pell Grants among top-ranked national universities, at 7 percent. Pell Grants are federal grants of up to $5,000 that are given to students who demonstrate financial need.





In the United States at this time, the Department of Education administers a series of loans, grants and programs designed to ensure that students from low-income families receive enough money to attend college. This patchwork of federally guaranteed bursaries is often distributed by banks (such as Sallie Mae, the largest student loan company in existence), which are given subsidies to provide loans for students. SAFRA would cut out private banks, which often make a killing&mdash;in taxpayer money&mdash;giving out the loans when students have difficulty paying them back. Providing direct federal aid instead of handing out loans through banks would save an estimated $87 billion in subsidies, which could either be used for additional loans or be funneled into other public welfare projects. One specific option that could directly affect Wash. U. students would be to increase the amount of money paid by the government via Pell Grants. In doing so, students who receive said grants would be less burdened financially by the extravagant collegiate tuition.





Despite the bill&rsquo;s seemingly impeccable intentions and purpose, there has been opposition. Members of Congress have objected, saying that the bill merely expands the role of the government in our lives. Citing examples such as the automotive industry takeover and the semi-nationalization of many banks, they question whether direct government spending is really the best option for the provision of student loans.











More at Student Life.



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=227</link>
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		<title>Government-guaranteed student loans good for students, parents and taxpayers</title>
		<pubDate>Sat, 26 Sep 2009 09:20:12 -0700</pubDate>
		<description><![CDATA[
Taxpayers who don&rsquo;t like unnecessary government handouts ought to be glad that Congress is moving legislation to eliminate federal subsidies to private lenders who are making tidy profits off struggling college students. 





The House last week passed HR 3221, which would end new taxpayer subsidies to companies that lend students money for college. Instead, the Education Department, which already lends directly to students &mdash; at lower rates than private lenders &mdash; would become the main source of government-guaranteed loans. 





This should be seen as beneficial to students, parents and taxpayers. 





Critics who are decrying a &quot;takeover&quot; of student loans are ignoring reality. 





The banking industry has already benefited from a taxpayer bailout. And when the economy tanked last year, many banks, along with other private lenders, shut their counters to students until the federal government poured more money into the student loan program. 





As it&rsquo;s now set up, the program has little risk and little downside for private companies. 





They charge higher interest than the government does. They get government subsidies to stay in the market. And they get hefty reimbursement from the government when borrowers default. 





In other words, they profit off taxpayers. 





They do not make government more efficient or cost-effective by being involved in the $92 billion student loan business. 





As columnist E.J. Dionne wrote in TheWashington Post, &quot;it&rsquo;s already a government program. The bill simply eliminates corporate welfare.&quot; 





[via Star-Telegram]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=226</link>
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		<title>After College, Student-Loan Sinkhole Awaits [via Washington Post]</title>
		<pubDate>Sun, 20 Sep 2009 17:02:37 -0700</pubDate>
		<description><![CDATA[









Deep into this recession, we know that an increasing number of people can no longer pay their mortgages, their credit card balances or their car loans. Now throw into the mix the rising number of defaults on student loans. 







The percentage of those loans in default grew to 6.7, up from 5.2 percent in 2006. The figures represent borrowers whose first loan repayments came due from Oct. 1, 2006, to Sept. 30, 2007, and who defaulted before Sept. 30, 2008, according to the U.S. Department of Education. 





In other words, the department reported, nearly a quarter-million student-loan borrowers went into default during that year. 





This latest statistic didn't get a lot of notice in most major newspapers when it was recently announced. But this disturbing trend is worth more than a paragraph or two. While the administration continues to try to find ways to fix the financial industry and health care, there has to be more focus on curtailing what has become for too many the crushing cost of getting a higher education. Without that education, many people won't be able to get well-paying jobs. And without better jobs, they risk eventually becoming part of this nation's underemployed or unemployed. 





Student-loan defaults have been relatively low since hitting their peak of 22.4 percent in 1990. Then, nearly one in four borrowers defaulted, according to the Department of Education. 





The rate dropped to a record low of 4.5 percent in 2003. 





So at 6.7 percent, things aren't as bad as they once were, yet they're not as good as they should be. But the default rate tells just part of the story. With wages depressed and housing and health-care costs high, even those who can keep up with their monthly student-loan payments are stretching their education loans out for decades. 





How bad is it? 





[Full story over at The Washington Post]





]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=225</link>
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		<title>Student loan market overhaul approved by US House</title>
		<pubDate>Fri, 18 Sep 2009 01:35:45 -0700</pubDate>
		<description><![CDATA[
The biggest change in U.S. higher education finance in 35 years was approved on Thursday by the House of Representatives, handing a defeat to major banks and student loan giant Sallie Mae (SLM.N).





Lawmakers voted 253-171 in favor of legislation that would cut the banks and Sallie Mae out of a large slice of the $92 billion college student loan business, shifting most lending into a program run by the U.S. Education Department.





The bill, supported by the White House, will go next to the Senate for further consideration.





The Senate education committee is drafting a bill similar to the House measure and hopes to take action on it within weeks, said a Senate Democratic aide.





Democrats praised the House bill, saying it represents a victory for students over banks.





&quot;Today the House made a clear choice to stop funneling vital taxpayer dollars through boardrooms and start sending them directly to dorm rooms,&quot; said Democratic Representative George Miller, chief sponsor of the measure.





With six Republicans supporting the House measure on final passage, the White House claimed it as a bipartisan victory.





Some Republicans criticized the bill as a government takeover of an industry that has served students well.





&quot;This bill is an expansion of the government ... a government takeover of an industry,&quot; said Representative John Kline, the education committee's top Republican.





&quot;We see the passage of this legislation as being one of the key pillars of the president's reform agenda being moved,&quot; Melody Barnes, director of the White House Domestic Policy Council, said at a White House news briefing.





If approved by the Senate and signed into law, as expected, by President Barack Obama, the legislation would kill the 1970s-era Federal Family Education Loan Program (FFELP), the backbone of a once highly lucrative business model.





Enactment would also mark a step forward for the Obama administration in its broad effort to tighten regulation of banks and capital markets following the worst financial crisis in generations and in a nation mired in recession.






[via Reuters]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=224</link>
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		<title>House to Vote on Student Loan Overhaul</title>
		<pubDate>Thu, 17 Sep 2009 11:11:07 -0700</pubDate>
		<description><![CDATA[
The House is expected to vote today on a bill that seeks to overhaul the $92 billion student loan market by taking private lenders out of the equation and allowing students to borrow directly from the U.S. Treasury instead. 





For the past 35 years, the federal government has subsidized loans made by private banks to students through the Federal Family Education Loan program, guaranteeing loans up to 97 percent and allowing lenders to reap the profits. The Student Aid and Fiscal Responsibility Act would shut down that program, replacing it with a direct loan program run by the Department of Education. 





&quot;The status quo student loan program that takes taxpayer money and gives it to private lenders and then rewards them to take a risk, not with their money but with ours, doesn't make any sense,&quot; Rep. Roberts Andrews, D-N.J., said yesterday on the House floor. 





Education Secretary Arne Duncan agrees. &quot;To invest in banks right now, rather than students, that just doesn't make sense to me,&quot; Duncan told reporters earlier this week at a Capitol Hill press conference. 





Furthermore, proponents of the legislation believe that by borrowing directly from the Treasury students will be protected from market swings, thus making college more affordable in any economy. Earlier in the week, the Education Department cited the downturn in the economy for rising student loan default rates. 





&quot;By converting all new federal student loans to the Direct Loan program starting in July 2010, we will finally end wasteful taxpayer subsidies that are keeping a broken system afloat. We will also insulate all federal college loans from future turmoil in the financial markets,&quot; Rep. George Miller, D-Calif., chairman of the Education and Labor Committee, said today. 





House Speaker Nancy Pelosi spoke out in support of the bill earlier in the week. &quot;Expanding access to higher education is essential to building America's way out of the recession and keeping our nation competitive,&quot; Pelosi said. The speaker claimed the bill &quot;means that many more students will enter college; that they will graduate with less debt; that the federal loan initiatives that they and their families depend upon are strengthened for decades to come; and that taxpayers will save money.&quot; 





[via ABC]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=223</link>
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		<title>Obama student loan plan may save more money [via Reuters]</title>
		<pubDate>Sat, 12 Sep 2009 13:29:23 -0700</pubDate>
		<description><![CDATA[
The Congressional Budget Office said on Friday that a student loan reform plan backed by Sallie Mae and other lenders might save U.S. taxpayers $17 billion less than one backed by the Obama administration.





The Obama plan has already been approved at the committee level in the U.S. House of Representatives and is headed for a likely vote on the House floor next week.








The student loan industry has been fighting the administration's plan and seeking political support for its own counter-proposal that would preserve a role for the lenders in the student loan system and furnish them steady fee income.








Congress' budget researchers said that after counting expenses needed to make the lender plan viable, budget savings from it &quot;would be about $67 billion over the 2010-2019 period -- in contrast to the net impact of $80 billion in 10-year savings for&quot; the Obama bill.








In addition, the lender plan &quot;would increase direct spending by about $4 billion over the 2010-2019 period&quot; in other areas, said the CBO in a letter to Representative George Miller, Democratic chairman of the House education committee.








Committee spokeswoman Rachel Racusen said: &quot;This shows that the Obama administration's student loan proposal is the superior plan for saving taxpayers dollars.&quot;








But Sallie Mae spokeswoman Martha Holler said: &quot;This CBO score confirms that mandatory savings of $87 billion are achievable through&quot; both plans.








Other student loan groups involved in the counter-proposal include Student Loan Corp, SunTrust Banks and Nelnet Inc.








Secretary of Education Arne Duncan will hold a news conference on Tuesday to urge passage of the Obama bill.








The education committee in July approved the Obama bill, which would shut down the $55 billion Federal Family Education Loan Program (FFELP) and shift most student lending into a program run by the Education Department.








The bill is expected to be approved by the House, where Democrats hold a substantial majority, analysts said. That would send it on to the more closely-divided Senate.





[via Reuters]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=222</link>
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		<title>Uncle Sam Saves College [via Forbes]</title>
		<pubDate>Wed, 09 Sep 2009 18:31:07 -0700</pubDate>
		<description><![CDATA[
Remember last year when a wave of college-bound students worried they wouldn't be headed to school due to a lack of loan availability? Not to worry. Thanks to Uncle Sam, the kids are all right this fall.





Despite pullbacks in lending and borrowing by consumers, the amount of government-backed student loans originated as of early August surpassed the full-year total for 2007/2008 by 21% at a record $95 billion, according to data provided by the Department of Education. &quot;As far as the federal student loan program, the bulk of student loans, there ended up being some minor disruptions,&quot; says Robert Shireman, Deputy Undersecretary of the Department of Education, &quot;but no one went without loans.&quot;





What saved student lending? Rescue legislation passed in May 2008 called the Ensuring Continued Access to Student Loans Act (ECASLA), which, along with increasing limits on government education loans, gave the DOE the authority to buy up taxpayer-backed student debt so that lenders would have the funds they need to issue new loans. 





[via Forbes]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=221</link>
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		<title>Cant Afford Tuition? Try These Colleges [via FOX News] </title>
		<pubDate>Mon, 07 Sep 2009 06:08:52 -0700</pubDate>
		<description><![CDATA[
Scholarships can pay your way through school, but so can an innovative tuition plan. Instead of scrambling for financial aid, students at schools like the U.S. Coast Guard Academy in New London, Conn., and Alice Lloyd College in Pippa Passes, Ky., attend college for free, thanks to their school's unique approach.





Before taking on a student loan, check out these cash-saving tuition strategies.





Work colleges



Throw out the FAFSA and get ready to punch the clock. Students who attend any of the nation's eight work colleges receive a significant tuition reduction -- in some cases, a full-tuition scholarship -- in exchange for part-time labor.





&quot;I work 10 hours a week and over four years, that amounts to about $12,000 in financial aid,&quot; says Aaron Pflug, a senior at Blackburn College in Carlinville, Ill. &quot;I'm also coming out of college with four years of supervisors' recommendations and management experience. It's definitely helped my resume.&quot;





To reduce the cost of running a campus, work colleges hire students to fill positions ranging from landscapers to office managers. Students get a job tailored to their studies, a beefier resume and a tuition reduction. Those who attend Alice Lloyd College, Berea College in Berea, Ky., College of the Ozarks in Point Lookout, Mo., or Deep Springs College in Big Pine, Calif., receive full scholarships for their work without filling out financial aid applications.





Graduation guarantee programs



Schools like the University of Nebraska (Kearney, Lincoln and Omaha campuses) and Juniata College in Huntingdon, Pa., can't promise sweet scholarships, but they can guarantee that you'll graduate in four years or the remaining cost is on the house.





&quot;Our students have to declare their (majors) early, meet with their academic advisers every semester, take a certain number of credits and pass their classes,&quot; says Valerie Rennell, Juniata College's director of student financial planning. &quot;If they do that and the last few classes they need aren't offered before they graduate, we pay the remaining tuition (at Juniata).&quot;





A study by the National Center for Education Statistics in Washington, D.C., shows that only about one-third of undergrads actually graduate in four years, and just over half finish in six. The rest attend school part time, take a few semesters off, or pony up for a fifth year to the tune of $6,585, on average, for public school students or $25,143 for private school students, according to the College Board in New York.





While a graduation guarantee doesn't sound impressive??because it doesn't directly reduce tuition price, it can take care of hidden costs. By completing college on time, students can avoid those extra charges as well as the cost of room, board, travel and living expenses for another year, Rennell says.





Service academies



Look alive, soldier! Students destined for military life can get a leg up on their education and future career by attending a service school. At the nation's five service academies??-- the??United States Coast Guard Academy; the United States Military Academy??at West Point in N.Y.; the United States Air Force Academy in Colorado Springs, Colo.; the United States Naval Academy in Annapolis, Md.; and the United States Merchant Marine Academy in Kings Point, N.Y. -- students receive a world-class education and basic military training without paying a dime for tuition or fees for room and board. In exchange, students live the cadet life that includes physical training, military coursework, maintaining uniform and living regulations, and fulfilling summer and weekend duty assignments.





After college, grads fulfill a mandatory, paid service requirement with their military branch that can range from five years to 10 years of active duty, along with a few years of reserve duty??that varies depending on the institution.





Tuition freezes



While tuition at state-funded schools skyrockets, undergrads attending Maryland or Kansas public institutions won't sweat it.





&quot;We've gone from being about the fifth most expensive university system to being 20th because we've frozen tuition for the past four years,&quot; says Brit Kirwan, chancellor of the University System of Maryland, an organization that oversees 13 state-funded schools. &quot;Over four years, (a tuition freeze) saves families about $2,000.&quot;





According to FinAid.org, the Web-based guide to student financial aid, tuition increases an average of 8% each year. That translates to a $2,374 savings over four years for students attending an in-state public college. While Maryland and Kansas are currently the only two states with public college tuition freezes, several individual institutions including Merrimack College in North Andover, Mass., and Benedictine University in Lisle, Ill., have instituted tuition freezes for the 2009 to 2010 school year.





Fixed-rate tuition plans



Similar to tuition freezes, fixed-rate tuition plans allow incoming students to lock in their current tuition price for up to five years, saving families some inflation costs. FinAid.org reports that over 30 individual institutions throughout the country as well as all Florida and Illinois public colleges currently offer a fixed-rate tuition plan.





FinAid.org also reports that program parameters vary significantly among schools. While some fixed-rate plans only cover tuition expenses, others cover the total cost of attendance. Because fixed-rate plans vary in terms of costs covered as well as how the program operates, some schools force fixed-plan students to lock in their tuition at a rate that's slightly higher than for the nonfixed tuition price. Others don't, so it's difficult to calculate how much families will save.





Mark Kantrowitz, publisher of FinAid.org, says before signing on, families should make sure they can meet any course, hour or grade-point requirements and should ask what happens if the student switches majors, studies abroad or takes a semester off for an internship or cooperative learning program.





&quot;Families need to be absolutely aware of what they're paying and what the tuition plan's restrictions are,&quot; he says. &quot;Once you're locked in, sometimes it's hard to back out.&quot;





A full list of fixed-rate tuition is available at FinAid.org.





[More at FOXBusiness]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=220</link>
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		<title>Government Discrimination In Student Loans</title>
		<pubDate>Sat, 05 Sep 2009 10:24:16 -0700</pubDate>
		<description><![CDATA[
Over on his Reuters blog, Felix Salmon has a post today pondering the difficulties that some graduates are having dealing with huge amounts of student loan debt. He says that it can sometimes be hard for students to grasp just how much they're borrowing when amounts turn out to be astronomical. I agree. He also provides a good example and concludes that the government should be more selective about who it gives student loans and for how much. This sounds nice in theory, I just don't think it could ever happen. 





His example comes from a Wall Street Journal article that talks about a graduate from University of Pittsburgh Law School named Lillian Russell who has accrued $181,000 in student loan debt. She is now having trouble finding a high-paying lawyer job, and consequently might have trouble making large student loan payments once her grace period is over.




[via The Atlantic Business Channel]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=219</link>
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		<title>Students Borrow More Than Ever for College [via Wall Street Journal]</title>
		<pubDate>Wed, 02 Sep 2009 20:07:19 -0700</pubDate>
		<description><![CDATA[
Students are borrowing dramatically more to pay for college, accelerating a trend that has wide-ranging implications for a generation of young people.





New numbers from the U.S. Education Department show that federal student-loan disbursements&mdash;the total amount borrowed by students and received by schools&mdash;in the 2008-09 academic year grew about 25% over the previous year, to $75.1 billion. The amount of money students borrow has long been on the rise. But last year far surpassed past increases, which ranged from as low as 1.7% in the 1998-99 school year to almost 17% in 1994-95, according to figures used in President Barack Obama's proposed 2010 budget.





The sharp growth is &quot;definitely above expectations,&quot; says Robert Shireman, deputy undersecretary of the Education Department. &quot;But we're also in an economic situation that nobody predicted.&quot; The eye-opening increase in borrowing is largely due to the dire economic environment, which is causing more people to seek federal loans, he says.





The new numbers highlight how debt has become commonplace in paying for higher education. Today, two-thirds of college students borrow to pay for college, and their average debt load is $23,186 by the time they graduate, according to an analysis of the government's National Postsecondary Student Aid Study, conducted by financial-aid expert Mark Kantrowitz. Only a dozen years earlier, according to the study, 58% of students borrowed to pay for college, and the average amount borrowed was $13,172.





[via Wall Street Journal]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=218</link>
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		<title>More college grads bank future on private student loans [via CNN]</title>
		<pubDate>Sat, 29 Aug 2009 04:47:51 -0700</pubDate>
		<description><![CDATA[
Kristin Schlaud brimmed with pride when she became the first in her blue-collar family to make it to college. But three years after law school, she is completely broke, saddled with almost a quarter-million dollar debt.





More college graduates are saddled with debt after taking private student loans to fund their education.





Schlaud didn't buy a house she could not afford or run up her credit cards. She owes for her education.





As the cost of higher education is skyrocketing, so is the debt carried by young Americans.





An increasing number of college students are turning to private loans -- one of the riskiest ways to pay for schooling, according to an education organization that compared them to credit-card debt.





&quot;I know I have accomplished a lot, but I wonder if it was all worth it,&quot; said Schlaud, 28, who has a law degree from Wayne State University in Detroit, Michigan, and a master's degree in commercial real estate from John Marshall Law School in Chicago, Illinois.





Private student loans carry variable interest rates that are higher for those least able to afford them, up to 18 percent in 2008, according to The Project on Student Debt. A new report by the group found that the proportion of all undergraduates who took out such loans increased significantly from 5 percent in 2003-04 to 14 percent in 2007-08.





The unfortunate aspect to student debt, the report said, is that nearly two-thirds of those who borrowed privately did not take full advantage of what it called safer and more affordable federal loans.





Paul Ramirez earned a degree at Art Center College of Design in Pasadena, California. The program was so intense, he said, that he could not work part-time. So he signed on the dotted line for a private student loan. The bank came calling for a $1,200 a month payment after Ramirez graduated. He asked for forbearance and when that was up, he moved in with his parents to make the monthly payment, which had risen to $1,700.





Then the recession hit and Ramirez found himself unemployed.





[viaCNN]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=217</link>
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		<title>StudentLoancenter.com Puts Several Student Loan-Related Domain Names Up For Sale</title>
		<pubDate>Wed, 26 Aug 2009 09:34:17 -0700</pubDate>
		<description><![CDATA[
We're announcing the sale of several of our domain assets related to Student Loans. We're keeping StudentLoancenter.com for this internet property, but we'resellingseveral of our domain names. Here is the list of names, all great for branding your own Student Loan website:





StudentBusinessLoans.com
StudentLoanWebsite.com
FederalStudentAidLoan.com
StudentCreditCardcenter.net
StudentLoanConsolidation101.com
StudentLoansDirectory.com
ConsolidateGovernmentStudentLoan.com
ConsolidateGovernmentStudentLoans.com
DirectGovernmentStudentloans.com
DirectStudentLoancenter.com
GovernmentStudentLoanApplication.com
GovernmentStudentLoanPayment.com
GovernmentStudentLoanwebsite.com
PrivateStudentLoancenter.com





If you'd like to make an offer on any domain name, email webmaster@studentloancenter.com 



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=216</link>
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		<title>$1M program to pay med students’ loans [via Providence Business News]</title>
		<pubDate>Wed, 26 Aug 2009 09:29:37 -0700</pubDate>
		<description><![CDATA[
The Rhode Island Foundation announced today the creation of a loan forgiveness program for medical students who elect to become primary care providers in the state.





The loan forgiveness program will receive a $500,000 grant from the Fund for a Healthy Rhode Island, a $20 million endowment created last year as part of a settlement between Blue Cross  Blue Shield of Rhode Island and then-U.S. Attorney Robert Clark Corrente. The new money will be added to the $600,000 already earmarked for the program.





The R.I. Student Loan Authority will administer the program, which will give up to $20,000 a year for up to four years to doctors who become primary care physicians in the Ocean State. Officials said they expect about 20 doctors to take advantage of the program over the next three years.






[via Providence Business News]






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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=215</link>
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		<title>Student Loans: How Much Do I Really Owe Each Month? [via NPR]</title>
		<pubDate>Tue, 25 Aug 2009 15:01:57 -0700</pubDate>
		<description><![CDATA[
That Sallie Mae/Gallup poll about student loans is still stirring up dust, with people arguing about whether it accurately reflects how much debt people are taking on for school. The survey found that fewer families borrowed money to send someone to college in 2008-2009 than the year before. I'm still thinking about it too and one section that particularly stands out to me is where they asked students to estimate their monthly loan payment once they graduate. The students were off -- by a lot. 





Twenty-three percent of students wouldn't venture a guess at all, which I personally chalk up to fear. Can you blame them for not wanting to put a number to their future debt-filled lives? 





The more debt you're staring at, the less likely you are to have a handle on the monthly load. Look at the chart above. Estimates from students who expected to borrow $10,000 or less were pretty close, but as their loans grew, the estimates all over the map. Sallie Mae says the range of estimates was $2 to $80,000 per month (those are the optimists who think they're going to pay it all back at once). 





When I graduated, I remember being hounded to consolidate my loans. It was a smart move in the sense that it locked in a good interest rate. On the down side, it sent me straight into repayment with no grace period. I chose a graduated payment option, meaning I agreed to pay more as I made more. For the first three years, I paid a very minimal amount that barely covered interest. Last year, when I was making more but still feeling broke, my payment doubled. I really noticed the increase. Now, after nearly year of paying the new amount, it's starting to seem normal -- that is, until I look at my Sallie Mae statement and realize that at this rate it'll take me until 2020 to pay off my loans!





[via NPR]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=214</link>
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		<title>The Secrets to Finding a Student Loan [via US News and World Report]</title>
		<pubDate>Tue, 18 Aug 2009 13:22:28 -0700</pubDate>
		<description><![CDATA[
The credit crunch and debacle on Wall Street have wiped out those easy-peasy $40,000 college loans that used to be all over late-night TV. And the feds are considering a dramatic consolidation of the educational lending industry that could reduce options still further. But no matter what happens in Washington or on Wall Street this year or next, most students will still be able to borrow enough to cover the bulk of tuition at their local public university at a reasonable cost from the feds. 





One of the most surprising results of the turmoil in the lending markets is how students' loan options have diverged from parents'. Here are the key things both should bear in mind:





DEALS FOR STUDENTS. Students should always start with the feds. The first step: filling out the FAFSA form, the Free Application for Federal Student Aid.






[Full story via US News and World Report]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=213</link>
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		<title>Student loan debt 101: Avoid programs like SafeStart</title>
		<pubDate>Mon, 17 Aug 2009 14:07:23 -0700</pubDate>
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In a piece in The New York Times, Ron Lieber writes about SafeStart, a new program for student debtors that I recently discussed here. The way the SafeStart program works is this: A student (or more likely his parents) pay a fee of $40 to $70 for every $1,000 borrowed through the federal Stafford loan program. Then if the student runs into problems paying off the loan and can provide proof of hardship, SafeStart will make the payments on the loans for 36 months. The offer only applies for the first 5-years of post-graduation life and borrowers only have 36 60 months to pay back the interest-free loan made by SafeStart.





[Via WalletPop]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=212</link>
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		<title>Student-Loan Changes Now in Effect </title>
		<pubDate>Sun, 16 Aug 2009 03:49:51 -0700</pubDate>
		<description><![CDATA[
Interest rates and other terms for student loans change each year on the first of July.





 


What's new this year? Income-Based Repayment is now available for the first time, Pell grants have gotten bigger, and interest rates on new Subsidized Stafford loans and existing variable-rate loans have gone down.





Details herefrom the Project on Student Debt.





Also, this articlefrom the Washington Post notes that &quot;people working in public service jobs - all levels of government work, teachers in public schools and universities, employees of public hospitals, and anyone working for a 501(c)(3) nonprofit would all qualify&quot; for the new Income-Based Repayment.





[via The Christian Post]
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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=211</link>
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		<title>Some tips for taking out student loans</title>
		<pubDate>Sat, 15 Aug 2009 03:17:39 -0700</pubDate>
		<description><![CDATA[
_ Fill out the FAFSA form for government aid, and always max out on federal grants and loans before turning to other sources. Rates are lower, and the new income-based repayment plan offers protections if you experience financial difficulties or choose a lower-paying career.





_ Be wary of any lender that refuses to provide information on terms and fees. Make sure you understand the repayment requirements, both for while you're in school and after.





_ If possible, apply with a creditworthy co-signer to reduce costs.





_ Borrow as little as possible, no matter how much somebody is willing to offer you. Depending on rates and repayment scheules, every $100 in loans is likely to cost around $200 by the time you repay. However, borrowing is preferable to forcing yourself to work so many hours while in school that you fail to graduate.





_ Find a school that won't set you up for failure. Especially at for-profit colleges, ask for data about graduation rates, job placement rates and average wages. If you're borrowing more than around $45,000 for a bachelor's degree, or $25,000 for an associate's degree, think seriously about finding a cheaper school.





_ A good rule of thumb: Don't give yourself more total loan debt than your expected gross salary the year after you graduate. Another: Your total monthly payment on all student debt shouldn't exceed 8 percent to 10 percent of your monthly salary.





[via AP]



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		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=210</link>
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		<title>Even as kids pack to go to college, its not too late for aid [via USA Today]</title>
		<pubDate>Tue, 11 Aug 2009 17:00:28 -0700</pubDate>
		<description><![CDATA[









Few things are more demoralizing than receiving a bill that exceeds the amount of money in your bank account. Especially if your child's future hangs in the balance.



That's the predicament facing many cash-strapped parents of college students as bills for the upcoming semester start to arrive in the mail.





Fortunately, even at this late date, you have options. Among them:





&bull;Extended-payment plans. These plans let you pay your tuition bill in monthly installments instead of one lump sum. You'll typically pay a fee of $50 to $100 to set up a payment plan. The plans are provided through colleges and universities, so contact your school's financial aid office for more information.





You don't have to put the entire amount you owe on a payment plan, says Thomas Blair, director of financial aid at Roanoke College in Salem, Va. But paying even a small amount of the balance in monthly installments will reduce the amount you have to borrow, he says.





&bull;Federal student loans. Unsubsidized federal Stafford loans are available to all full-time students, regardless of financial need. They carry a fixed rate of 6.8%. For the 2009-10 academic year, dependent students can borrow up to $5,500 for their freshman year. Sophomores can borrow up to $6,500 and juniors and seniors can borrow up to $7,500.





[via USA Today]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=209</link>
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		<title>Big college debts can be avoided [via The Clarion-Ledger]</title>
		<pubDate>Mon, 10 Aug 2009 15:53:35 -0700</pubDate>
		<description><![CDATA[












The instant gratification of college life often becomes interest-bearing debt - either through credit cards or student loans. Given that some employers check credit reports, bad decisions in college ultimately will keep some students from getting jobs.





Those in the business of handing out financial advice say that with a little planning, college students can leave college with as little financial burden as possible.





&quot;Twenty years out of college, they'll be paying for student loans, and it wasn't for educational purposes. It was for your instant gratification,&quot; Evelyn Edwards, vice president and community reinvestment officer for BancorpSouth, said.





[via The Clarion-Ledger]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=208</link>
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		<title>What is the Student Aid and Fiscal Responsibility Act?</title>
		<pubDate>Sat, 08 Aug 2009 18:30:24 -0700</pubDate>
		<description><![CDATA[






Read about the entire 'Student Aid and Fiscal Responsibility Act'here.






]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=207</link>
		<guid isPermaLink='true'>http://www.StudentLoanCenter.com/blog/index.php?entryid=207</guid>
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		<title>House Bill Would Overhaul Student Loan Program, As Defaults Rise</title>
		<pubDate>Sat, 08 Aug 2009 17:28:14 -0700</pubDate>
		<description><![CDATA[
Backers of a bill inching through Congress aim to take the middleman out of the student loan business. Introduced by Rep. George Miller (D-CA), the Student Aid and Fiscal Responsibility Act of 2009 (HR 3221) hit Capitol Hill this summer amid concern about mounting student loan defaults, chronicled in recent months by the Boston Globe and the Wall Street Journal. 





Also known as HR 3221, the bill on July 21 passed out of the Education Committee, chaired by Miller, on a largely party line vote of 30 to 17, reports The Hill.





The measure would supplant the current system of student loans companies sponsored by SLM Corp. (Sallie Mae) with a Direct Loan program funded by the federal government. The Education Department would choose lenders according to how well they serve customers, offer financial counseling, and avert loan defaults.





HR 3221 has already drawn fire from House Republicans who see it as an intrusion of the government into the lending arena.




[via CityTownInfo.com]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=206</link>
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		<title>GETTING PERSONAL: More Credit Unions Offer Student Loans [WSJ.com]</title>
		<pubDate>Sat, 08 Aug 2009 05:11:48 -0700</pubDate>
		<description><![CDATA[
NEW YORK (Dow Jones)--Credit unions - long a staple for savings, mortgages and car loans - are moving into the student loan market. 





The credit unions say they are responding to consumer demand. Many other private lenders are abandoning the business as their access to credit tightens up. Member-owned and non-profit, most credit unions did not engage in the kinds of speculative financial practices that have hurt many banks, and are in a better position to make loans. 





&quot;The banks have exited the student loan market in a big way,&quot; says Paul Gentile, president and CEO of the New Jersey Credit Union League, which recently created a network of credit unions making student loans. &quot;The amount of applications we're getting is overwhelming.&quot; 





New Jersey credit unions recently created a network of pooled capital and uniform loan pricing. Applicants can get better rates for good grades as they progress through college. 





Student loan experts and financial advisers still recommend that borrowers exhaust federal loans and grants, which offer the best interest rates and repayment terms, before applying for private loans. 





[via The Wall Street Journal]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=205</link>
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		<title>University in San Angelo, Texas, Concerned About Future of Student Loans [via Kansas City infoZine]</title>
		<pubDate>Tue, 04 Aug 2009 17:12:33 -0700</pubDate>
		<description><![CDATA[
Lyn Wheeler, director of financial aid for the university in San Angelo, Texas, said her office is doing its best to prepare for a possible switch to the Federal Direct Loan Program, which allows the Education Department to provide loans.




Obama wants all loans to go through the program by July 1, 2010, dealing a blow to the private student loan industry.




Wheeler said the switch would put a cumbersome administrative burden on her staff of 11, which deals with an enrollment of 6,155 students.





[via Kansas City infoZine]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=204</link>
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		<title>Sallie Mae Offers $1.68 Billion Student Loan-Backed Deal</title>
		<pubDate>Sat, 01 Aug 2009 05:43:21 -0700</pubDate>
		<description><![CDATA[



Student lender SLM Corp., better known as Sallie Mae, is offering a $1.68 billion student loan-backed deal, according to a source familiar with the matter. The deal is eligible for cheap financing through a Federal Reserve program.





The deal, dubbed SLM Student Loan Trust 2009-D, has Barclays Capital, Bank of America and JP Morgan as joint leads.





[via CNNMoney.com]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=201</link>
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		<title>Senior Republican vows student loan bill fight [via Reuters]</title>
		<pubDate>Wed, 29 Jul 2009 17:30:27 -0700</pubDate>
		<description><![CDATA[
WASHINGTON (Reuters) - Republicans will keep fighting a Democratic bill in the U.S. Congress that would squeeze banks out of the $92 billion student loan origination business, a top Republican lawmaker said on Wednesday.








Despite the likelihood that the legislation will pass the House of Representatives in September, Representative John Kline told Reuters he and others will resist the bill in the House and suggested it could stall in the Senate.





[via Reuters]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=200</link>
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		<title>More Scare Tactics from the Student Loan Industry and Friends [Via New America Foundation]</title>
		<pubDate>Tue, 28 Jul 2009 16:52:33 -0700</pubDate>
		<description><![CDATA[
Now that legislation is moving forward that would carry out President Obama's plan to eliminate the Federal Family Education Loan (FFEL) program, the student loan industry and its most hard-line supporters in the financial aid world are doing what they do best: spreading fear about proposed changes to the student loan programs that would be harmful to their interests. 





Take, for example, the Consumer Bankers Association (CBA). In a press release last week, the group wrote that the House Education and Labor Committee's approval of the bill was &quot;a setback for students.&quot;





Come again? The legislation would use savings from ending FFEL to boost spending on Pell Grants by $40 billion (yes, you read that right -- 40 BILLION DOLLARS) and significantly expand the low-interest Perkins Loan program so that financially needy students can avoid taking out high-cost private student loans. 





So how exactly would the bill's passage harm students?






Click link below to jump to full story.





[via New America Foundation]



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=199</link>
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		<title>Student Loan Measure Clears House Panel [via Washington Post]</title>
		<pubDate>Wed, 22 Jul 2009 18:29:16 -0700</pubDate>
		<description><![CDATA[
A bill that cleared a House committee Tuesday would largely remove private lenders from the federal student loan industry, generating an estimated $87 billion savings over 10 years to fund more government grants and loans. 







The Student Aid and Fiscal Responsibility Act of 2009 would eliminate an entire category of student loans issued by private lenders and subsidized by the federal government, vastly expanding direct lending by the government starting next July. Democrats would use the savings to fund a $40 billion increase in federal Pell Grant scholarships over 10 years, $10 billion in community college upgrades and $8 billion in pre-kindergarten changes, among other uses. 





Republicans opposed to the legislation say it amounts to a federal takeover of student lending. Democrats say the private lending program is in disarray because of the credit crisis, which has caused private capital to dry up. Republicans contend that the program will mend with the economy. 





[via Washington Post]





]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=198</link>
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		<title>Student Loan Q2 profit triples sequentially [via Reuters]</title>
		<pubDate>Sat, 18 Jul 2009 04:44:07 -0700</pubDate>
		<description><![CDATA[




Student Loan, a unit of Citigroup Inc's (C.N) Citibank N.A., said gains on loans sold increased by $17.0 million related to the sale of loans to the Department of Education under the Loan Purchase Commitment Program.




For the quarter, the company reported earnings of $24.9 million, or $1.25 a share, compared with $7.5 million, or 38 cents a share, in the prior quarter.




Net interest income, before loan loss provisions, fell about 41 percent to $70.9 million from the prior year.


[via Reuters]
]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=197</link>
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		<title>StudentLoanCenter.com Continues Brand-Building By Acquiring StudentLoanWebsite.com, StudentBusinessLoans.com</title>
		<pubDate>Mon, 13 Jul 2009 19:07:19 -0700</pubDate>
		<description><![CDATA[
We continue to add category-killer domain names, as we build our highly personalized brand for students. Recent additions to our portfolio include StudentLoanWebsite.com, StudentBusinessLoans.com,ClassroomLearning.com and many more.



We plan to press on with development and business partnerships. If you're interested in partnership opportunities, please contact us.



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=196</link>
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		<title>Obama’s Student Loan Plan Wins Support in House [via The New York Times]</title>
		<pubDate>Sat, 11 Jul 2009 03:42:46 -0700</pubDate>
		<description><![CDATA[




The chairman of the House Education Committee has dismissed a last-ditch plea from the private student loan industry and is throwing his support behind President Obama&rsquo;s plan to end the role of private banks in the federal education lending systems.

Mr. Obama&rsquo;s plan remains deeply contentious in Congress, and still faces strong opposition from private banks that for decades have earned big profits for handling federal student loans.

But after mulling the issue for months, Representative George Miller, the California Democrat who is chairman of the Education Committee, now plans to introduce legislation next week that would rely on direct government lending to replace the federally subsidized loans made by private banks. Administration officials who have reviewed drafts of the legislation said that it substantially adopts Mr. Obama&rsquo;s proposal.

[Via The New York Times]

]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=195</link>
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		<title>College Graduates Get Help with Student Loans [via News Station KOMU]</title>
		<pubDate>Tue, 07 Jul 2009 17:06:53 -0700</pubDate>
		<description><![CDATA[









Aprovision of the federal College Cost Reduction and Access Act of 2007 went into effect on July 1, 2009. The Income-Based Repayment (IBR) plan allows borrowers to pay back their federal student loans based on their income at the time of repayment. Under the IBR plan,monthly loan payments are limited to 15 percentof the borrower's discretionary income. After 25 years, the federal government writes offany unpaid principal and interest.





James Brooks, director of student financial aid at the University of Missouri, says the IBR plan has its pros and cons. &quot;It has its negatives in that obviously the longer you stretch your loan out the more interest you pay the longer you're paying on the loan. That's the downside. It does have the forgiveness after 25 years of paying on the income-based repayment.&quot; But as Brooks notes, &quot;Twenty-five years is quite a ways out.&quot;




More information at KOMU.com.



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=194</link>
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		<title>New program could reduce student loan payments [via the San Francisco Chronicle]</title>
		<pubDate>Sat, 27 Jun 2009 07:33:56 -0700</pubDate>
		<description><![CDATA[






Starting July 1, many people having trouble repaying their federally guaranteed student loans might be able to choose a new, more lenient payment plan.





The program, called income-based repayment, will be available to more people and almost always result in smaller monthly payments than an existing program for stressed borrowers called income-contingent repayment. 





The new program sets monthly payments based on adjusted gross income and family size. Unpaid principal and interest is generally added to your loan amount. Any debt remaining is wiped out after 25 years - or after 10 years if you work in the public or nonprofit sector.





If you are unemployed, low-income or have a very large debt, you could qualify. &quot;People who need advanced degrees to get low-paying jobs&quot; are prime candidates, says Edie Irons, a spokeswoman for the Project on Student Debt. 





Much more information at the San Francisco Chronicle.






]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=193</link>
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		<title>Student-Loan Changes: What You Need to Know [via the Wall Street Journal]</title>
		<pubDate>Thu, 18 Jun 2009 17:13:04 -0700</pubDate>
		<description><![CDATA[









The Wall Street Journal is reporting on changes to Student Loans that you need to know if you're thinking about financial aid. Changes include:

The maximum annual Pell Grant will increase to $5,350 from $4,731.





Interest rates on new subsidized Stafford undergraduate loans will fall to 5.6% from 6%.





Upfront fees for Stafford loans will fall to 1.5% from 2% of the loan amount.





Much more information and details on all the changesat the WSJ.



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=192</link>
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		<title>StudentLoanCenter.com Public Beta Launch</title>
		<pubDate>Wed, 17 Jun 2009 11:34:55 -0700</pubDate>
		<description><![CDATA[



Over a yearin the making and we&rsquo;re almost there. We&rsquo;ve been slowly and strategically building our platform and we still have more work to do, but this is a quick note that we've gone public with the website and are nowworking with Banks and Issuers to get the best offers listed in our directory.





If you have feedback or encounter any issues, please contact us. We're new and we want to make this website the best resource for Student Loans on the internet.



]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=191</link>
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		<title>Welcome to the Beta Launch! Free Listings to Banks/Issuers During Beta</title>
		<pubDate>Wed, 27 May 2009 13:51:49 -0700</pubDate>
		<description><![CDATA[







StudentLoanCenter.com plans to be the leading student loan marketplace, bringingstudents and banks/issuers together. Our site is a free online resource where studentscan compare loans, credit cards, and more, including low consolidation loans, as well as car loans. 





Our mission is to providestudents with the largest variety of offers online, and to enable smart selection and use ofoffers by offering news, advice, features and tools.





We will be listing offers from leading credit card issuers and banks, each linked to the bank/issuers's website. 





There are many ways in whichbanks/issuers canbuy ads with StudentLoanCenter.com: 





Byregistering and submittingadsonline
Byplacingdirect 728x90 leader board ads
By contacting (or being contacted by) our sales team



Click here to get started as a bank/issuer.





To get started as an student, visit ourLoan Directoryand start browsing.





Thanks for using StudentLoanCenter.com! 
]]></description>
		<link>http://www.StudentLoanCenter.com/blog/index.php?entryid=190</link>
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