Showing posts with label loan. Show all posts
Showing posts with label loan. Show all posts

Wednesday, April 2, 2014

Charles Keating and the Lessons of the Savings and Loan Crisis

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Charles Keating and the Lessons of the Savings and Loan Crisis

Sunday, March 30, 2014

Bank Of America Minority Home Loan Settlement - $335 Million

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Bank Of America Minority Home Loan Settlement - $335 Million

Tuesday, March 25, 2014

Payday Loan Companies Make Their Money By Trapping Customers In Debt

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Payday Loan Companies Make Their Money By Trapping Customers In Debt

Monday, November 18, 2013

World Bank Offers the Philippines 500m loan.

World Bank Offers the Philippines 500m loan.
http://thedailynewsreport.com/wp-content/uploads/2013/11/d3df5__p-89EKCgBk8MZdE.gif


posted on Nov, 18 2013 @ 08:18 AM




As government officials and aid workers struggled to reach communities devastated by Typhoon Haiyan 11 days ago, the World Bank has offered the Philippines a $ 500-million emergency loan to help it construct buildings able to withstand high winds and severe flooding.


“We are committed to supporting the government in its effort to recover and rebuild, and to help Filipinos strengthen their resilience against increasingly frequent extreme weather events,” said World Bank Group President Jim Yong Kim said in a statement on Monday. The bank did not offer details on the terms of the offer or when funds would be distributed.




World Bank Offers the Philippines 500m loan.

Make sure you read the fine print philippines. 500m today sounds like being offered beads for land, more so when coming from the world bank.


I fixed the last sentence from the snippit
“The bank did not offer details on the terms of the offer or when funds would be distributed to rich people not devistated by the disaster.”


It’s good to see that these people are getting more help, but I’m very skeptical about anything involving the world bank. And the devil strikes when your at your weakest, no?




AboveTopSecret.com New Topics In Breaking Alternative News




Read more about World Bank Offers the Philippines 500m loan. and other interesting subjects concerning Top Stories at TheDailyNewsReport.com

Thursday, August 1, 2013

Bill to lower student loan rates heads to Obama








Rep. John Kline, R-Minn., front right, with Reps. Virginia Foxx, R-N.C., from left, Luke Messer, R-Ind., and Cathy McMorris Rodgers, R-Wash., obscured, talk about student loans on Capitol Hill in Washington, Wednesday, July 31, 2013. (AP Photo/Manuel Balce Ceneta)





Rep. John Kline, R-Minn., front right, with Reps. Virginia Foxx, R-N.C., from left, Luke Messer, R-Ind., and Cathy McMorris Rodgers, R-Wash., obscured, talk about student loans on Capitol Hill in Washington, Wednesday, July 31, 2013. (AP Photo/Manuel Balce Ceneta)





Rep. Virginia Foxx, R-N.C., front right, with Reps. Luke Messer, R-Ind., from left, Cathy McMorris Rodgers, R-Wash., and John Kline, R-Minn., talk about student loans on Capitol Hill in Washington, Wednesday, July 31, 2013. (AP Photo/Manuel Balce Ceneta)













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(AP) — A bipartisan bill that would lower the costs of borrowing for millions of students is awaiting President Barack Obama’s signature.


The House on Wednesday gave final congressional approval to legislation that links student loan interest rates to the financial markets. The bill would offer lower rates for most students now but higher rates down the line if the economy improves as expected.


For the moment, the focus was on the class of students signing loans for classes this fall.


“Going forward, the whims of Washington politicians won’t dictate student loan interest rates, meaning more certainty and more opportunities for students to take advantage of lower rates,” House Speaker John Boehner said.


The measure passed 392-31.


Undergraduates this fall would borrow at a 3.9 percent interest rate for subsidized and unsubsidized Stafford loans. Graduate students would have access to loans at 5.4 percent, and parents would borrow at 6.4 percent. The rates would be locked in for that year’s loan, but each year’s loan could be more expensive than the last. Rates would rise as the economy picks up and it becomes more expensive for the government to borrow money.


But for now, interest payments for tuition, housing and books would be less expensive under the House-passed bill.


“Changing the status quo is never easy, and returning student loan interest rates to the market is a longstanding goal Republicans have been working toward for years,” said Rep. John Kline, the Republican chairman of the House Committee on Education and the Workforce. “I applaud my colleagues on the other side of the aisle for finally recognizing this long-term, market-based proposal for what it is: a win for students and taxpayers.”


The House earlier this year passed legislation that is similar to what the Senate later passed. Both versions link interest rates to 10-year Treasury notes and remove Congress’ annual role in determining rates.


“Campaign promises and political posturing should not play a role in the setting of student loan interest rates,” said Rep. Virginia Foxx, R-N.C. “Borrowers deserve better.”


Negotiators of the Senate compromise were mindful of the House-passed version, as well as the White House preference to shift responsibility for interest rates to the financial markets. The resulting bipartisan bill passed the Senate 81-18.


With changes made in the Senate — most notably a cap on how interest rates could climb and locking in interest rates for the life of each year’s loan — Democrats dropped their objections and joined Republicans in backing the bill.


Interest rates would not top 8.25 percent for undergraduates. Graduate students would not pay rates higher than 9.5 percent, and parents’ rates would top out at 10.5 percent. Using Congressional Budget Office estimates, rates would not reach those limits in the next 10 years.


Rates on new subsidized Stafford loans doubled to 6.8 percent July 1 because Congress could not agree on a way to keep them at 3.4 percent. Without congressional action, rates would have stayed at 6.8 percent — a reality most lawmakers called unacceptable.


The compromise that came together during the last month would be a good deal for all students through the 2015 academic year. After that, interest rates are expected to climb above where they were when students left campus in the spring, if congressional estimates prove correct.


The White House and its allies said the new loan structure would offer lower rates to 11 million borrowers right away and save the average undergraduate $ 1,500 in interest charges.


In all, some 18 million loans will be covered by the legislation, totaling about $ 106 billion this fall.


Lawmakers were already talking about changing the deal when they take up a rewrite of the Higher Education Act this fall. As a condition of his support, the chairman of the Senate Health, Education, Labor and Pensions Committee, Sen. Tom Harkin, D-Iowa, won a Government Accountability Office report on the costs of colleges. That document was expected to guide an overhaul of the deal just negotiated.


___


Follow Philip Elliott on Twitter: http://www.twitter.com/philip_elliott


Associated Press




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Bill to lower student loan rates heads to Obama

Friday, July 19, 2013

Compromise would restore lower college loan rates







Sen. Tom Harkin, D-Iowa, chair of the Senate Education Committee, announces to reporters that a bipartisan agreement was reached on lowering rates for government student loans, at the Capitol in Washington, Thursday, July 18, 2013. At left is Sen. Tom Carper, D-Del., with Sen. Joe Manchin, D-W.V., at right. (AP Photo/J. Scott Applewhite)





Sen. Tom Harkin, D-Iowa, chair of the Senate Education Committee, announces to reporters that a bipartisan agreement was reached on lowering rates for government student loans, at the Capitol in Washington, Thursday, July 18, 2013. At left is Sen. Tom Carper, D-Del., with Sen. Joe Manchin, D-W.V., at right. (AP Photo/J. Scott Applewhite)





Sen. Lamar Alexander, R-Tenn., a former secretary of education, center, speaks to reporters after a bipartisan agreement was reached on lowering rates for government student loans, at the Capitol in Washington, Thursday, July 18, 2013. Interest rates doubled July 1, 2013, because Congress didn’t avert a rate hike built into the law. Democratic Sen. Joe Manchin of West Virginia, right, was one of the main negotiators. At far left is Sen. Tom Carper, D-Del. (AP Photo/J. Scott Applewhite)





Chart shows projected student loan rates based on a proposed Senate plan; 1c x 3 inches; 46.5 mm x 76 mm;





Prospective students tour Georgetown University’s campus in Washington, Wednesday, July 10, 2013. The defeat of a student loan bill in the Senate on Wednesday clears the way for fresh negotiations to restore lower rates, but lawmakers are racing the clock before millions of students return to campus next month to find borrowing terms twice as high as when school let out. (AP Photo/Jacquelyn Martin)













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WASHINGTON (AP) — A compromise deal on student loans that could hold down loan rates in the short term was expected to come to a vote next week, well before students returning to campus this fall have to sign their loan agreements.


While the deal could lower rates for students and parents over the next few years, it could spell higher rates as the economy improves.


The Senate deal pegs the interest rates on new loans to the financial markets. Under the deal, undergraduates this fall could borrow at a 3.9 percent interest rate. Graduate students would have access to loans at 5.4 percent, and parents would be able to borrow at 6.4 percent. Those rates would climb as the economy improves and it becomes more expensive for the government to borrow money.


The compromise undoes the doubling of rates on some student loans that took hold on July 1, and one analysis of the Senate deal suggests incoming freshmen would save more than $ 3,300 in interest.


“We have gone through weeks of negotiations and we have an agreement,” said Sen. Dick Durbin, D-Ill.


At the White House, spokesman Jay Carney said President Barack Obama was “glad to see that a compromise seems to be coming together.”


And Sen. Lamar Alexander, R-Tenn., said students benefited: “For every one of them, the interest rates on their loans will be lower.”


At least for now. The compromise could be a good deal for students through the 2015 academic year, but then interest rates are expected to climb above where they were when students left campus in the spring.


Even in announcing the compromise, it was clear the negotiations were dicey.


“While this is not the agreement any of us would have written, and many of us would like to have seen something quite different, I believe that we have come a very long way on reaching common ground,” Durbin told reporters.


Moments later, Democratic Sen. Tom Harkin of Iowa, chairman of the Senate Health, Education, Labor and Pensions Committee, said he would revisit the whole agreement this fall, when his panel takes up a rewrite of the Higher Education Act. Harkin did little to hide his unhappiness with the compromise, but said there were few options to avoid a costly hike on students returning to campus this fall.


As part of the compromise, Democrats won a protection for students that capped rates at a maximum 8.25 percent for undergraduates. Graduate students would not pay rates higher than 9.5 percent, and parents’ rates would top out at 10.5 percent.


Using Congressional Budget Office estimates, rates would not reach those limits in the next 10 years.


Lawmakers engaged in near-constant work to undo a rate hike that took hold for subsidized Stafford loans on July 1. Rates for new subsidized Stafford loans doubled from 3.4 percent to 6.8 percent.


On Wednesday, the Consumer Financial Protection Bureau estimated outstanding student debt at $ 1.2 trillion — up 20 percent in just two years. Student loans are now the largest form of consumer debt behind mortgages.


The Congressional Budget Office estimates 21 million loans would be issued in 2013. Students often take a combination of subsidized and unsubsidized loans to pay for their education.


The rapid growth in debt is raising alarm among experts, and there is growing evidence student debt is weighing down the economy — for instance, by delaying the ability of young graduates to buy homes.


The increase follows the jump in the cost of higher education.


The tuition sticker price at public four-year colleges is up 27 percent beyond overall inflation over the last five years, according to the latest figures from the College Board. This past year it rose nearly 5 percent to an annual average of $ 8,655 nationwide.


Only about one-third of full-time students pay that published price, and the average net price — what the average student does pay after grants, scholarships, loans and federal tax credits and deductions — is just $ 2,910 for a year of studies. But net prices have been rising, too, and tuition is just part of the cost of college. Including room and board, the average annual sticker price at public colleges is now $ 17,860, and students pay on average $ 12,110.


At private four-year colleges, the annual average full tuition price is now just under $ 40,000, with the average student paying $ 23,840.


The bipartisan student loan compromise closely hews to what House Republicans passed earlier this year. Both Senate Republican Leader Mitch McConnell and Republican House Speaker John Boehner suggested the outlines of the proposal were acceptable to the GOP rank-and-file members who have pushed for a link between interest rates and the financial markets.


Even House Democrats who opposed the GOP-led deal there appeared ready to go along.


“I’m encouraged that bipartisan efforts continue in the Senate to reverse the student loan interest rate hike,” said Rep. George Miller, the top Democrat on the House Committee on Education and the Workforce.


Few students had borrowed for fall classes. Students typically do not sign loans until just before they return to campus, and lawmakers have until the August recess to restore the lower rates. The students who had borrowed for summer programs since July 1 would have their rates retroactively reduced.


The deal was estimated to reduce the deficit by $ 715 million over the next decade.


___


Associated Press Higher Education Writer Justin Pope in Ann Arbor, Mich., contributed to this report.


___


Follow Philip Elliott on Twitter: http://www.twitter.com/philip_elliott


Associated Press




Politics Headlines



Compromise would restore lower college loan rates

Thursday, July 18, 2013

Senators ready to restore lower college loan rates







The U.S. Capitol is seen in Washington, Sunday night, June 23, 2013. (AP Photo/J. Scott Applewhite)





The U.S. Capitol is seen in Washington, Sunday night, June 23, 2013. (AP Photo/J. Scott Applewhite)













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(AP) — Senators are ready to offer students a better deal on their college loans this fall, but future classes could see higher interest rates.


The Senate could vote as early as Thursday on a bipartisan compromise that heads off a costly increase for returning students. The compromise could be a good deal for students through the 2015 academic year, but then interest rates are expected to climb above where they were when students left campus this spring.


Under the deal, all undergraduates this fall would borrow at 3.85 percent interest rates. Graduate students would have access to loans at 5.4 percent and parents would be able to borrow at 6.4 percent. Those rates would climb as the economy improves and it becomes more expensive for the government to borrow money.


The deal was described by Republican and Democratic aides who insisted on anonymity because they were not authorized to discuss the ongoing negotiations by name.


Undergraduates last year borrowed at 3.4 percent or 6.8 percent, depending on their financial need. Graduate students had access to federal loans at 6.8 percent and parents borrowed at 7.9 percent.


The interest rates would be linked to the financial markets, but Democrats won a protection for students that rates would never climb higher than 8.25 percent for undergraduates. Graduate students would not pay rates higher than 9.5 percent and parents’ rates would top out at 10.5 percent.


The bipartisan agreement is expected to be the final in a string of efforts that have emerged from near constant work to undo a rate hike that took hold for subsidized Stafford loans on July 1. Rates for new subsidized Stafford loans doubled from 3.4 percent to 6.8 percent, adding roughly $ 2,600 to students’ education costs.


Lawmakers from both parties called the increase senseless but differed on how to restore the lower rates. Republicans have pushed for a link between interest rates and the financial markets. Obama included that link in his budget proposal, as did House Republicans. Democrats balked, saying it could produce government profits on the backs of borrowers if rates continued to climb.


Leaders from both parties, however, recognized the potential to be blamed for the added costs in the 2014 elections if nothing were done.


Senate aides said a vote on the agreement could come as early as Thursday, although it could be pushed back to the middle of next week.


The House has already passed student loan legislation that also links interest rates to the 10-year Treasury note. The differences between the Senate and House versions are expected to be resolved before students return to campus this fall, and Obama is expected to sign the bill.


Few students had borrowed for fall classes. Students typically do not take out loans until just before they return to campus, and lawmakers have until the August recess to restore the lower rates. The students who had borrowed for summer programs since July 1 would have their rates retroactively reduced.


The deal was estimated to reduce the deficit by $ 715 million over the next decade.


Lawmakers and their top aides have been tinkering with various proposals — nudging here, trimming there — trying to find a deal that avoids added red ink for students and the government alike.


Democrats and Republicans met with Obama and Vice President Joe Biden on Tuesday at the White House. An outline of an agreement seemed to be taking shape Tuesday, with follow-up meetings Wednesday in Democratic Sen. Dick Durbin’s office yielding a final agreement.


Democratic Sen. Joe Manchin of West Virginia and Republican Sen. Richard Burr of North Carolina were the main negotiators, with Republican Sen. Lamar Alexander of Tennessee and Durbin filling the role of mediators.


___


Follow Philip Elliott on Twitter: http://www.twitter.com/philip_elliott


Associated Press




Politics Headlines



Senators ready to restore lower college loan rates

Senators ready to restore lower college loan rates








The U.S. Capitol is seen in Washington, Sunday night, June 23, 2013. (AP Photo/J. Scott Applewhite)





The U.S. Capitol is seen in Washington, Sunday night, June 23, 2013. (AP Photo/J. Scott Applewhite)













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WASHINGTON (AP) — Senators are ready to offer students a better deal on their college loans this fall, but future classes could see higher interest rates.


The Senate could vote as early as Thursday on a bipartisan compromise that heads off a costly increase for returning students. The compromise could be a good deal for students through the 2015 academic year, but then interest rates are expected to climb above where they were when students left campus this spring.


Under the deal, all undergraduates this fall would borrow at 3.85 percent interest rates. Graduate students would have access to loans at 5.4 percent and parents would be able to borrow at 6.4 percent. Those rates would climb as the economy improves and it becomes more expensive for the government to borrow money.


The deal was described by Republican and Democratic aides who insisted on anonymity because they were not authorized to discuss the ongoing negotiations by name.


Undergraduates last year borrowed at 3.4 percent or 6.8 percent, depending on their financial need. Graduate students had access to federal loans at 6.8 percent and parents borrowed at 7.9 percent.


The interest rates would be linked to the financial markets, but Democrats won a protection for students that rates would never climb higher than 8.25 percent for undergraduates. Graduate students would not pay rates higher than 9.5 percent and parents’ rates would top out at 10.5 percent.


The bipartisan agreement is expected to be the final in a string of efforts that have emerged from near constant work to undo a rate hike that took hold for subsidized Stafford loans on July 1. Rates for new subsidized Stafford loans doubled from 3.4 percent to 6.8 percent, adding roughly $ 2,600 to students’ education costs.


Lawmakers from both parties called the increase senseless but differed on how to restore the lower rates. Republicans have pushed for a link between interest rates and the financial markets. Obama included that link in his budget proposal, as did House Republicans. Democrats balked, saying it could produce government profits on the backs of borrowers if rates continued to climb.


Leaders from both parties, however, recognized the potential to be blamed for the added costs in the 2014 elections if nothing were done.


Senate aides said a vote on the agreement could come as early as Thursday, although it could be pushed back to the middle of next week.


The House has already passed student loan legislation that also links interest rates to the 10-year Treasury note. The differences between the Senate and House versions are expected to be resolved before students return to campus this fall, and Obama is expected to sign the bill.


Few students had borrowed for fall classes. Students typically do not take out loans until just before they return to campus, and lawmakers have until the August recess to restore the lower rates. The students who had borrowed for summer programs since July 1 would have their rates retroactively reduced.


The deal was estimated to reduce the deficit by $ 715 million over the next decade.


Lawmakers and their top aides have been tinkering with various proposals — nudging here, trimming there — trying to find a deal that avoids added red ink for students and the government alike.


Democrats and Republicans met with Obama and Vice President Joe Biden on Tuesday at the White House. An outline of an agreement seemed to be taking shape Tuesday, with follow-up meetings Wednesday in Democratic Sen. Dick Durbin’s office yielding a final agreement.


Democratic Sen. Joe Manchin of West Virginia and Republican Sen. Richard Burr of North Carolina were the main negotiators, with Republican Sen. Lamar Alexander of Tennessee and Durbin filling the role of mediators.


___


Follow Philip Elliott on Twitter: http://www.twitter.com/philip_elliott


Associated Press




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Senators ready to restore lower college loan rates

Monday, July 8, 2013

Immigration, student loan top congressional agenda


(AP) — Republicans and Democrats will put good will to the test when Congress returns this week to potentially incendiary fights over nominations, unresolved disputes over student loans and the farm bill, and the uncertainty of whether lawmakers have the political will to rewrite the nation’s immigration laws.


The cooperation evident in the Senate last month with passage of a bipartisan immigration bill could be wiped out immediately if Majority Leader Harry Reid, D-Nev., frustrated with GOP delaying tactics on judges and nominations, tries to change the Senate rules by scrapping the current three-fifths majority for a simple majority.


Republican leader Mitch McConnell of Kentucky has indicated it’s a decision Reid could regret if the GOP seizes Senate control in next year’s elections.


“Once the Senate definitively breaks the rules to change the rules, the pressure to respond in kind will be irresistible to future majorities,” McConnell said last month, looking ahead to 2014 when Democrats have to defend 21 seats to the GOP’s 14.


McConnell envisioned a long list of reversals from the Democratic agenda, from repealing President Barack Obama’s health care law to shipping radioactive nuclear waste to Yucca Mountain in Reid’s home state of Nevada.


Recently elected Democrats have clamored for changes in Senate rules as Obama has faced Republican resistance to his nominations.


Two Cabinet-rank choices — Tom Perez as labor secretary and Gina McCarthy to head the Environmental Protection Agency — could be approved by the Senate this month after a loud debate over administration policies.


The GOP also has challenged Obama’s three judicial nominees to the powerful U.S. Court of Appeals for the District of Columbia Circuit as they’ve tried to eliminate the vacancies.


Reid had served notice in April that the Democratic majority could change the Senate rules on “any given day,” and he was willing to do so if necessary.


In the Republican-controlled House, courteous behavior, even within the GOP ranks, has barely been perceptible with the ignominious failure of the farm bill. Some collaboration will be necessary if the House is to move ahead on immigration legislation this month.


Conservatives from safe, gerrymandered House districts have rebuffed appeals from some national Republicans who argue that embracing immigration overhaul will boost the party’s political standing with an increasingly diverse electorate, especially in the 2016 presidential election. The conservatives strongly oppose any legislation offering legalization to immigrants living here illegally.


Reflecting the will of the rank and file, House Speaker John Boehner of Ohio and other Republicans have said the comprehensive Senate immigration bill that couples the promise of citizenship for those living here unlawfully with increased border security is a nonstarter in the House.


Republicans were assessing the views of their constituents during the weeklong July Fourth break and planned to discuss their next steps at a private meeting Wednesday.


“I think what members need before we proceed on the actual immigration reform is an ironclad guarantee that the border is going to be secure,” Rep. Matt Salmon, R-Ariz., said just before the recess. He didn’t see any urgency to acting quickly.


“I find it very interesting the argument that we can’t wait till the border is secure, we can’t even do a six-month test to make sure … we have to get them out of the shadows immediately,” Salmon said. “They’ve been in the shadows for 20 years, and another six months is going to break their backs? I mean come on, that’s not even a valid argument.”


Rep. Michael McCaul, R-Texas, chairman of the House Homeland Security Committee said Republicans would be hashing out “two key hot spots” in Wednesday’s meeting: the pathway to citizenship and health care.


“We need to be the party of solutions and not always obstructing. And, so, I think there’s an effort here that we have a broken immigration system. We need to fix this immigration system,” McCaul said Sunday on CBS’ “Face the Nation,” predicting that the full House could take up immigration as early as this month and representatives from both chambers could be working to resolve differences in the House and Senate versions late this year or early next.


The House Judiciary Committee has adopted a piecemeal approach, approving a series of bills, none with a path to citizenship that Obama and Democrats are seeking. Democrats hope the single-issue bills get them to a conference with the Senate, where the prospects for a far-reaching overhaul improve.


“I think what you’re finding is that there will be a compromise, a smart compromise,” said Rep. Xavier Becerra, D-Calif., said Sunday, also on CBS. “You have to be smart. You have to be tough. But you have to be fair. And if you can do that, you’ll have a full fix.”


A more pressing concern for some lawmakers was the fate of the five-year, half-trillion-dollar farm bill.


In a surprise last month, the House rejected the bill as 62 Republicans voted no after Boehner had urged support for the measure.


House conservatives wanted cuts deeper than $ 2 billion annually, or about 3 percent, in the almost $ 80 billion-a-year food stamp program while Democrats were furious with a last-minute amendment that would have added additional work requirements to food stamps, now called the Supplemental Nutrition Assistance Program, or SNAP.


Reid has made it clear that an extension of the current farm law, passed in 2008, is unlikely as he presses the House to pass the Senate version of the bill. That leaves Boehner to figure out the next step before the current policy expires Sept. 30.


Congress also must figure out what to do about interest rates on college student loans, which doubled from 3.4 percent last Monday because of partisan wrangling in the Senate.


Lawmakers promised to restore lower rates when they return this week, both retroactively and before students start signing loan documents later this summer. For now, the rate stands at 6.8 percent, which is higher than most loans available from private lenders.


Congress faces political and economic fights over the budget, with the fiscal year ending Sept. 30 and Congress plodding through spending bills with no sign they will be done on time. The House is set to vote this week on the spending bill for the Energy Department.


In addition to legislation to keep the government running, Congress probably will have to vote on whether to raise the nation’s borrowing authority, a politically fraught vote that roiled the markets in August 2009.


Three Senate committees will consider Obama nominees for major national security positions this month, confirmation hearings certain to set off a political dust-up over the president’s policies though the criticism is unlikely to scuttle the selections.


Questions about the administration’s policy toward Syria and plans to arm the rebels in their civil war with President Bashar Assad’s forces will dominate the Senate Armed Services Committee hearing on the re-nomination of Gen. Martin Dempsey for chairman of the Joint Chiefs of Staff.


The hearing is scheduled for July 18.


The Senate Foreign Relations Committee is expected to hold a hearing on Samantha Power, the president’s pick for U.S. ambassador to the United Nations, and a subcommittee meets July 11 to consider the nomination of Victoria Nuland for assistant secretary of state for European and Eurasian Affairs.


That posting typically wouldn’t draw a great deal of attention, but senators are certain to press Nuland about her work on the widely debunked talking points about the deadly assault on the U.S. diplomatic mission in Benghazi, Libya. Four Americans, including U.S. Ambassador Chris Stevens, were killed in the Sept. 11 attack last year.


Susan Rice, the U.S. ambassador to the United Nations at that time, used the talking points five days after the attack, blaming the assault on a spontaneous protest over an anti-Islamic video.


The Senate Judiciary Committee holds a confirmation hearing Tuesday on Obama’s choice of James Comey to serve as FBI director. If confirmed by the Senate, Comey, a top Bush administration lawyer best known for defiantly refusing to go along with White House demands on warrantless wiretapping nearly a decade ago, would replace Robert Mueller.


The administration’s recently disclosed surveillance programs are likely topics for Comey’s hearing.


Associated Press




Politics Headlines



Immigration, student loan top congressional agenda

Friday, June 28, 2013

Student loan rates to soar


Your money



1 hour ago


Boston College students walk across the college campus in Boston, March 29, 2005.

Chitose Suzuki / AP file


Boston College students walk across the college campus in Boston, March 29, 2005.



Time is running out for Congress to act. And low-income college students will pay a high price if a deal can’t be reached by Monday’s deadline.


Interest rates on many new subsidized Stafford loans will skyrocket—from 3.4 percent to 6.8 percent—on Monday, unless the Senate reaches a compromise.


The likelihood of that happening dimmed Friday as Congress recessed for the Independence Day holiday week.


Read More: Senate Can’t Save Student Loan Rates


Most in Congress agree loan rates should to stay lower than 6.8 percent, at least for the subsidized Stafford loans used by the country’s lowest-income students. But they’re stuck on how to get there.


Republicans want to let the rates fluctuate with the markets every year and use the proceeds for deficit reduction. Democrats say that’s unreasonable and want to cap how fast rates can rise.


Existing loan rates will not change and rates on new unsubsidized Stafford and PLUS loans also will remain the same.


Congress could come to an agreement later this summer to lower rates, but that may be unlikely.


“It is possible for them to make a retroactive change, but only if the loans have not yet been disbursed,” says Mark Kantrowitz, senior vice president and publisher of Edvisors.com. “So they could make a retroactive change if the US Department of Education delays the disbursement. But I doubt Congress will reach an agreement after July 1, as they are still too far apart.”


More than 7 million undergraduates receive subsidized Stafford loans, for which the federal government pays the interest while the students are enrolled in school.


But the nation’s student debt crisis affects so many more.


More than 38 million Americans have student loan debt, totaling nearly $ 1 trillion, a staggering number that has quadrupled in 10 years and keeps rising. Student loan debt now surpasses credit card and auto loan debt in this country—and it’s only expected to get worse before it gets better.


“I see the debate about interest rates as a distraction from the real problem, which is the amount of debt,” said Kantrowitz, who is also founder of FinAid.org, a leading website on financial aid for college and graduate students and their families.


“Each year the average cost of graduation goes up by about $ 1,000 or more. And having less expensive debt is going not going to make much of a difference if the total amount owed keeps on going up.”


A study done this spring by economists at the Federal Reserve Bank of New York found that the share of 25-year-olds with student debt has increased from just 25 percent in 2003 to 43 percent in 2012. The average student loan balance among those 25-year-olds with student debt grew by 91 percent over that time, from $ 10,649 in 2003 to $ 20,326 in 2012.


The amount of debt has risen as tuition, room, board, fees and other college expenses have soared. The cost of attending college has risen about 4 percent in the past year alone—and has far outpaced the rate of inflation in recent years.


Total charges for a full-time undergraduate at an in-state public college rose from $ 17,136 in 2011-2012 to $ 17,860 in 2012-2013, according to the College Board. Private college costs for one year totaled $ 39,518 in the past year, up from $ 37,971 the previous academic year.


“Grants are not keeping pace with the increases in college costs,” Kantrowitz said. “When grants are relatively stagnant or even going down that causes students to borrow more.”


But many families don’t plan or try to calculate the total cost of attendance for a student’s college and graduate studies—and that may be at the crux of the student debt crisis.


Sallie Mae CEO Jack Remondi said poor planning exacerbates a borrower’s burden, regardless of the rate on the loan. Sallie Mae is the largest provider of private student loans.


“If you overborrow, whether the rate is 4 percent or 7 percent, you’re still going to encounter difficulties,” Remondi said. “A plan that takes into consideration what your income potential is going to be when you graduate and what that debt burden is going to be is critical.”


Unfortunately, many students and parents have failed College Planning 101.


Less than a third of low-income parents said they knew how they would pay for their child’s college education before they enrolled, according to a Sallie Mae study. Only 37 percent of middle-income families had a plan. Among high-income families, only slightly more than half said they had a plan to pay for college before their children enrolled.


Yet this critical lesson can significantly cut borrowing costs: As long as your total student debt at graduation is less than your annual income, you should be able to pay back your student loans in 10 years or less, Kantrowitz said.


Keeping that formula in mind when choosing a college, graduate school and course of study can help students significantly cut borrowing costs.


—By CNBC’s Sharon Epperson. Follow her on Twitter @sharon_epperson.






Student loan rates to soar

Student loan rates to soar


Your money



1 hour ago


Boston College students walk across the college campus in Boston, March 29, 2005.

Chitose Suzuki / AP file


Boston College students walk across the college campus in Boston, March 29, 2005.



Time is running out for Congress to act. And low-income college students will pay a high price if a deal can’t be reached by Monday’s deadline.


Interest rates on many new subsidized Stafford loans will skyrocket—from 3.4 percent to 6.8 percent—on Monday, unless the Senate reaches a compromise.


The likelihood of that happening dimmed Friday as Congress recessed for the Independence Day holiday week.


Read More: Senate Can’t Save Student Loan Rates


Most in Congress agree loan rates should to stay lower than 6.8 percent, at least for the subsidized Stafford loans used by the country’s lowest-income students. But they’re stuck on how to get there.


Republicans want to let the rates fluctuate with the markets every year and use the proceeds for deficit reduction. Democrats say that’s unreasonable and want to cap how fast rates can rise.


Existing loan rates will not change and rates on new unsubsidized Stafford and PLUS loans also will remain the same.


Congress could come to an agreement later this summer to lower rates, but that may be unlikely.


“It is possible for them to make a retroactive change, but only if the loans have not yet been disbursed,” says Mark Kantrowitz, senior vice president and publisher of Edvisors.com. “So they could make a retroactive change if the US Department of Education delays the disbursement. But I doubt Congress will reach an agreement after July 1, as they are still too far apart.”


More than 7 million undergraduates receive subsidized Stafford loans, for which the federal government pays the interest while the students are enrolled in school.


But the nation’s student debt crisis affects so many more.


More than 38 million Americans have student loan debt, totaling nearly $ 1 trillion, a staggering number that has quadrupled in 10 years and keeps rising. Student loan debt now surpasses credit card and auto loan debt in this country—and it’s only expected to get worse before it gets better.


“I see the debate about interest rates as a distraction from the real problem, which is the amount of debt,” said Kantrowitz, who is also founder of FinAid.org, a leading website on financial aid for college and graduate students and their families.


“Each year the average cost of graduation goes up by about $ 1,000 or more. And having less expensive debt is going not going to make much of a difference if the total amount owed keeps on going up.”


A study done this spring by economists at the Federal Reserve Bank of New York found that the share of 25-year-olds with student debt has increased from just 25 percent in 2003 to 43 percent in 2012. The average student loan balance among those 25-year-olds with student debt grew by 91 percent over that time, from $ 10,649 in 2003 to $ 20,326 in 2012.


The amount of debt has risen as tuition, room, board, fees and other college expenses have soared. The cost of attending college has risen about 4 percent in the past year alone—and has far outpaced the rate of inflation in recent years.


Total charges for a full-time undergraduate at an in-state public college rose from $ 17,136 in 2011-2012 to $ 17,860 in 2012-2013, according to the College Board. Private college costs for one year totaled $ 39,518 in the past year, up from $ 37,971 the previous academic year.


“Grants are not keeping pace with the increases in college costs,” Kantrowitz said. “When grants are relatively stagnant or even going down that causes students to borrow more.”


But many families don’t plan or try to calculate the total cost of attendance for a student’s college and graduate studies—and that may be at the crux of the student debt crisis.


Sallie Mae CEO Jack Remondi said poor planning exacerbates a borrower’s burden, regardless of the rate on the loan. Sallie Mae is the largest provider of private student loans.


“If you overborrow, whether the rate is 4 percent or 7 percent, you’re still going to encounter difficulties,” Remondi said. “A plan that takes into consideration what your income potential is going to be when you graduate and what that debt burden is going to be is critical.”


Unfortunately, many students and parents have failed College Planning 101.


Less than a third of low-income parents said they knew how they would pay for their child’s college education before they enrolled, according to a Sallie Mae study. Only 37 percent of middle-income families had a plan. Among high-income families, only slightly more than half said they had a plan to pay for college before their children enrolled.


Yet this critical lesson can significantly cut borrowing costs: As long as your total student debt at graduation is less than your annual income, you should be able to pay back your student loans in 10 years or less, Kantrowitz said.


Keeping that formula in mind when choosing a college, graduate school and course of study can help students significantly cut borrowing costs.


—By CNBC’s Sharon Epperson. Follow her on Twitter @sharon_epperson.






Student loan rates to soar

Thursday, May 30, 2013

Student Loan Debate, Redux, as Donor Schools Weigh In


student money.jpgA feeling of déjà vu permeates the current student loan debate. Just last June, President Barack Obama and Congress agreed on holding the interest rate for unsubsidized Stafford loans at 3.4 percent. But that agreement expires on July 1. If Congress does not pass negotiate another deal, unsubsidized Stafford loan interest those rates will double — meaning more than 7 million students will need to pay $ 1,000 more per loan per year, according to the White House.

Opensecrets.org data shows that the education industry has invested heavily in members of the House and Senate who currently are working on bills to address the issue. 


Rep. John Kline‘s proposal, H.R. 1911: Smarter Solutions for Students Act, gained House approval with a vote of 221-198 on May 23. The bill aims to peg subsidized and unsubsidized Stafford loan rates to the rates of 10-year Treasury notes plus 2.5 percent — with a cap of 8.5 percent for undergraduate loans. This year, the interest rate would be 4.4 percent according to the Washington Post, but it would increase in subsequent years. 


As the House Education in the Workforce Committee chairman, Kline — a Minnesota Republican — has contributors in both the nonprofit and for-profit education realms. For the 2011-2012 election, education was his top industry donor, with individuals donating a little less than $ 200,000 and education PACs donating more than $ 70,000. His top contributor for 2011-2012 was the Apollo Group, a corporation that owns for-profit schools, including the University of Phoenix. In 2011-2012, he was the second top recipient of contributions from the for-profit education industry, receiving more than $ 193,000, and the 10th top recipient of funds from the education industry overall at $ 268,000.



Senate Democrats largely oppose the Smarter Solutions for Students Act and have come up with a couple of their own proposals. S. 909: Responsible Student Loan Solutions Act sponsored by Sens. Jack Reed (D-R.I.) and Dick Durbin (D-Ill.), would connect the interest rate on Stafford loans to the rate on a 91-day Treasury bill, plus an additional percentage for loan administration costs. The education industry donated more than $ 66,000 to Reed in the 2012 campaign cycle, and more than $ 185,000 to Durbin. A companion bill was introduced in the House by Rep. John Tierney (D-MA) and Rep. Joe Courtney (D-CT). The education industry donated less than $ 30,000 to Tierney’s campaign and less than $ 18,000 to Courtney’s campaign.

Reed is also sponsoring S.953, the Student Loan Affordability Act, with Sen. Tom Harkin (D-Iowa), chairman of the Committee on Health, Education, Labor and Pensions. The bill extends the current 3.4 percent rate for subsidized Stafford loans for another two years in order to buy time to devise a long-term solution. Harkin garnered more than $ 146,000 from the education industry during the 2012 cycle.


Sen. Elizabeth Warren (D-Mass.) introduced the S. 897: Bank on Student Loan Fairness Act in early May, with a companion bill introduced the following week in the House by Tierney. The bill, which will enable the Federal Reserve to fund student loans at the same, 0.75 percent rate charged for banks, has found many backers in the education industry. Warren pulled in more than $ 1.2 million from education in her 2012 race — the most expensive in the nation, with more than $ 77 million spent by the two candidates alone. That placed her third among all education industry recipients in 2012. Her top contributors included five universities, with Harvard University ranked third, Massachusetts Institute for Technology ranked fourth, Boston University ranked sixth, University of California ranked seventh, and Brandeis University ranked 16th. Since the bill’s inception, 19 colleges, including Brandeis and MIT, and 14 organizations have supported the bill. These organizations include the American Federation of Teachers, which donated more than $ 15,000 to Warren in 2012.


Sen. Kirsten Gillibrand (D-N.Y.) also announced the Federal Student Loan Refinancing Act in May, which gives students and graduates the ability to refinance their federal loans at a fixed rate of 4 percent if their rates are currently higher than that. The education industry donated a little less than $ 300,000 to Gillibrand in 2012; she was the 19th top education industry recipient that year.


Obama plans to veto Kline’s bill if it reaches his desk, yet seeks a different solution from those created by Democratic senators. His plan is to link rates to the Treasury’s borrowing costs, but fix the rates rather than reset them yearly. In addition, Obama’s plan would cap student borrowing costs so they would not exceed 10 percent of the student’s income.  


Obama was the favorite of the education industry overall in the 2012 campaign cycle, receiving more than $ 21 million. He ranked third with for-profit institutions, which gave him more than $ 79,000 for his last election. His top contributors included six schools within the University of California system, which donated more than $ 1.2 million; Harvard University, donating more than $ 668,000; Stanford University, which gave more than $ 512,000; Columbia University, contributing more than $ 455,000; the University of Chicago, with more than $ 357,000 donated, and the University of Michigan, which provide Obama with more than  $ 339,000.

While Obama is advocating for his student loan overhaul to pass, the government is positioned to profit the most if none of these bills are passed and unsubsidized Stafford student loan interest rates double on July 1. In May, the Congressional Budget Office upped its February estimate of what the Department of Education would earn from student loans in 2013 from $ 35.5 billion to $ 50.6 billion. As reported by the Washington Post, Obama’s plan would cost $ 33.4 billion during the next five years, but during the next ten years it would save the government $ 3.1 billion.


As July approaches, those in the education industry will discover whether their investments will yield them much sway over the future of student loan policy.




OpenSecrets Blog



Student Loan Debate, Redux, as Donor Schools Weigh In