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…

Read More

MoU signed to offer education loans sans any guarantee

MoU signed to offer education loans sans any guarantee

Director NITHM S. Chinnam Reddy   | Photo Credit: BY ARRANGEMENT   National Institute of Tourism & Hospitality Management (NITHM) entered into a Memorandum of Understanding (MoU) with the Indian Overseas Bank, Gachibowli Branch to facilitate education loans to the students without any guarantee or collateral security. Bank Chief Regional Manager Shivkumar Chaturvedi and Director NITHM S. Chinnam Reddy and other officials were present during the signing on Thursday. Two new education loan schemes — Vidhya Surakhas and Vidhya Jyothi introduced by Government of India are to help students studying…

Read More

Students make beeline for loans from educational trusts

Students make beeline for loans from educational trusts

By Jyotirmoyee Ghosh If didn’t get the scholarsI hip, would’ve dropped a year,” says Anubhav Khamroi, who received Rs 2 lakh under Jindal Law School’s Savitri Jindal Global Scholarship in Delhi. Khamroi, a second year BA LLB student, got a merit-based scholarship after attaining 90% in the LSAT entrance exam. “The scholarship has really reduced the financial burden on my family ,” said Khamroi. Scholarships have become essential for middle-class students as cost of higher education has skyrocketed in recent years. At top institutions, the annual fees for professional courses…

Read More

Trump Administration Considers Moving Student Loans from Education Department to Treasury

Trump Administration Considers Moving Student Loans from Education Department to Treasury

The Trump administration is considering moving responsibility for overseeing more than $1 trillion in student debt from the Education Department to the Treasury Department, a switch that would radically change the system that helps 43 million students finance higher education. The potential change surfaced in a scathing resignation memo sent late Tuesday night by James Runcie, the head of the Education Department’s federal student aid program. Mr. Runcie, an Obama-era holdover, was appointed in 2011 and reappointed in 2015. He cut short his term, which was slated to run until…

Read More

Trump’s budget seeks to eliminate one major benefit of federal student loans that costs billions

Trump’s budget seeks to eliminate one major benefit of federal student loans that costs billions

The Trump administration’s first budget proposes ending a program to encourage student-loan borrowers to go into public service by forgiving their debt to save an estimated $27 billion over the next decade. Here’s how the program works: If you take out a federal student loan, you have your loans forgiven after making 10 years of on-time payments and working for an employer the Department of Education deems to be serving the public good. Qualified employers include local, state and federal government agencies and nonprofit organizations. (Private lenders don’t offer this…

Read More

Department of Education Seeking Single Servicer for Student Loans

Department of Education Seeking Single Servicer for Student Loans

The Department of Education announced Friday that it would offer a contract to a single servicer to administer federal student loans. Currently, ED contracts with four different servicers to manage its $1.2 trillion student loan portfolio. Education Secretary Betsy DeVos ED released an amended contract solicitation for that future provider on Friday afternoon. “The amendment ensures high quality customer service, maintains all meaningful borrower protections, increases oversight and provides significant savings to tax payers,” James Manning, acting under secretary of education, said in a call with the press on Friday….

Read More

Goodbye to low interest rates on student loans

Goodbye to low interest rates on student loans

Families have been benefiting from historic lows on student loan interest rates. But that will change this fall. As the result of the Treasury Department’s auction of 10-year notes on Wednesday, interest rates on federal student loans will rise by seven-tenths of a percentage point. The new rates will take effect July 1 and are only good for loans taken out to pay for the 2017-2018 academic year. Undergraduate students can expect to pay 4.45 percent in interest on new Stafford loans, instead of the current 3.76 percent. At that…

Read More

Nicki Minaj pays off thousands in fans’ student loans, tuition

Nicki Minaj pays off thousands in fans’ student loans, tuition

Students saddled with college expenses are in for a real treat now that Nicki Minaj has stepped up her efforts to help college kids with their tuition. Over the weekend, the rapper shared an Instagram post that lists the names with payments doled out since shes called on students last week in a tweet to show her their straight A report cards in exchange for tuition money. Minaj also announced that she will be starting a charity to further help students financially “very soon.” Devonte Portis, a sophomore majoring in…

Read More

For-profit colleges under scrutiny as students default on loans

For-profit colleges under scrutiny as students default on loans

U.S. Education Secretary Betsy DeVos recently rolled back several Obama-era initiatives that would increase protections for student loan borrowers and curtail loan servicer misconduct. The initiatives were the result of three memos issued by the Obama administration to reform debt repayment. They involved creating a single platform system for loan repayment and banning collection fees for defaulted borrowers. DeVos rescinded the memos on April 11, explaining that the reform process “has been subjected to a myriad of moving deadlines, changing requirements and a lack of consistent objectives.” In response, 22…

Read More

Scheme to help students repay education loans

Scheme to help students repay education loans

The government has announced a support scheme to help students from financially backward families repay education loans. Chief Minister Pinarayi Vijayan told the Assembly here on Thursday that the scheme would provide relief to debt-ridden families who had availed themselves of education loans. Addressing a special session of the House to mark the 60th anniversary of the first legislative Assembly, he said the scheme was designed to help families facing revenue recovery after finding themselves unable to repay the loan. “It is not a debt relief programme, but to support…

Read More