The Department Of Education Cuts Off A Student Loan Watchdog

The Department Of Education Cuts Off A Student Loan Watchdog

The letters “CFPB” may not be much more than alphabet soup to your average student loan borrower. They stand for Consumer Financial Protection Bureau, a new-ish federal agency — created in 2011 — with a unique mission and a big effect on student lenders and for-profit colleges accused of defrauding or otherwise mistreating Americans. But the U.S. Education Department has just called a halt to the enforcement collaboration between itself and CFPB. This move leaves 44 million student loan borrowers, owing $1.4 trillion in debt, with potentially less, or at…

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Dalits, tribals prefer loans for home than education

Dalits, tribals prefer loans for home than education

More Dalit and tribal families have been taking home loans over the past few years while the number of education loans has reduced, indicating a new pattern of investments among these communities. A note prepared by the department of financial services in the ministry of finance shows the amount disbursed in home loans in 2017-18 , Rs 2,849.36 crore, has gone up by nearly 50% compared to 2015-16, Rs 1,954.57 crore. Sources add that the rise coincides with the government’s renewed thrust on ‘Housing for all’ by 2022 and the…

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3 months for banks to claim subsidies for education loans

3 months for banks to claim subsidies for education loans

CHENNAI: Banks across India can now submit claims for the education loan interest subsidy for eligible accounts for the financial year 2016-17 from August 23 to November 23. Canara Bank is the nodal bank and they will be opening the portal. All the students who have availed education loanfrom the Banks under Indian Banks’ Association (IBA) Scheme to pursue professional / technical courses in India are eligible to avail the full interest subsidy, if the annual parental income is less than 4.50 lakhs. Many banks have failed to claim the interest subsidy from MHRD thereby…

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National importance status will bring IIITs at the levels of IITs, NITs

National importance status will bring IIITs at the levels of IITs, NITs

The institutes can now frame their own syllabi and recruit faculty.(iSTOCK) For IIITs (Indian Institute of Information Technology) an upgrade is on the cards. They will soon be given the tag of Institute of National Importance. This puts them in the league of elite entities like the IITs (Indian Institute of Technology) and NITs (National Institute of Technology). It also means more funds for research from government organisations and PSUs, a more updated syllabus and an autonomous board that will have more freedom to appoint teachers. The change will come…

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Here Is The Real Reason Why The Interest Rate On Education Loans Is Always So High

Here Is The Real Reason Why The Interest Rate On Education Loans Is Always So High

There are many reasons why the interest rate on education loans is so high as compared to a car or property loan. But, don’t worry, there are some privileges through which you can save a part of your hard earned money. But, before that, here are some calculations to keep in mind to get a better idea of the bigger picture. Know If You Are Eligible For Taking The Loan You should be a resident of India. You should have secured an admission at a reputed institution for a particular…

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Despite 21% jump in unpaid education loans, lenders continue disbursal

Despite 21% jump in unpaid education loans, lenders continue disbursal

Despite increasing number of students not paying back their loans spiking NPAs to over 10 %, lending continues for higher education with the disbursals topping Rs 20,000 crore in fiscal 2017, according to a report. Banks and other lenders together disbursed around Rs 20,000 crore in education loans in FY17, up from around Rs 17,000 crore a year ago, while total outstanding grew 1.6 % to Rs 81,600 crore. Non-performing assets (NPAs) within the education loan book of the system ballooned 21 % in the reporting year, spiking the NPA…

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The burden of education loan

The burden of education loan

With the cost of education rising, more students seem to prefer education loans. But, many are finding themselves without jobs, even after paying for expensive education. According to recent reports, the total education loan dues in the banking system had risen from Rs 48,382 crore to Rs 72,336 crore, a rise of 49.5 per cent, between March 2013 and December 2016. In comparison, non-performing assets in this segment was up 142 per cent, from Rs 2,615 crore to Rs 6,336 crore in the same period. Clearly, more and more students…

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142 per cent rise in bad education loans in 3 years

142 per cent rise in bad education loans in 3 years

Indian banks have seen a 142 per cent rise in default by students who have taken education loans during the past few years, at a time when hiring for new jobs has slowed down and tech companies have started laying off employees. State-owned banks, which are already weighed down by huge defaults by corporates, are the worst hit as they account for over 90 per cent of educational loans. Private banks have largely stayed away from this segment. In the education segment, the total non-performing assets (NPAs), or loans on…

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Reforming student loans and tax credits

Reforming student loans and tax credits

Student debt has reached the top of the national agenda, thanks in part to the significant expansion in the stock of outstanding student loans over the past decade. There is now $1.3 trillion in federal student-loan debt outstanding, up from $441 billion just a decade ago. The increase is a function of rising college costs, increases in student enrollments, and the expansion of federal loan programs. Over that period, total enrollments in post-secondary education grew from 17.5 to 20.3 million students. The federal role in higher-education lending has expanded significantly…

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Betsy DeVos Picked A Student Loan CEO To Run The Student Loan System

Betsy DeVos Picked A Student Loan CEO To Run The Student Loan System

When the Trump administration announced its pick to run the $1.3 trillion federal student loan system on Tuesday, there was one notable thing about the candidate that wasn’t mentioned in the press release: He’s the CEO of a private student loan company. The Education Department’s statement described A. Wayne Johnson as the “Founder, Chairman and former CEO” of a payments technology company called First Performance Corporation. It noted his PhD in education leadership, and Education Secretary Betsy DeVos, citing his dissertation, said he “actually wrote the book on student loan…

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