(Sapurah Lashari)

Senators Chastise Govt. For Making Money Off Struggling Student Loan Borrowers, Not Offering Enough Relief

For several years now the government has offered federal student loan forgiveness programs aimed at helping borrowers to avoid defaulting on their debts. While recent reports have shown that the popularity of the programs has exceeded expectations, a group of six senators say the Department of Education could do more given the billions of dollars in payments it receives from federal loans each year. [More]

A group of 15 Corinthian College students are refusing to repay their federal student loans.

Current, Former Corinthian College Students Go On “Debt Strike,” Refuse To Pay Private & Federal Loans

With for-profit educator Corinthian Colleges Inc. selling off campuses and closing schools, thousands of Everest, WyoTech, and Heald College students are waiting to learn the fate of the more than $1 billion in private and federal student loan debt used to finance their education. While the Department of Education and the Consumer Financial Protection Bureau have worked to secure deals in which some of that debt will be forgiven, some students are increasing the pressure on such deals by staging a “debt strike.” [More]

The Federal Reserve Bank of New York found that borrowers with the least amount of student loan debt were actually more likely to default.

Why Are Borrowers With Less Student Loan Debt More Likely To Default?

Just days after the Federal Reserve Bank of New York showed that student loan delinquency rates were once again on the rise, a new Fed report finds it’s student loan borrowers with the lowest levels of debt who typically are the most delinquent.
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Ontario Education Officials Close 14 Everest Campuses Amid Corinthian Colleges’ Downfall

Ontario Education Officials Close 14 Everest Campuses Amid Corinthian Colleges’ Downfall

If you thought the issues plaguing beleaguered for-profit college operator Corinthian Colleges Inc. didn’t extend beyond the borders of the United States, then you were wrong. Some 2,400 students in Canada are now left to pick up the pieces after the Ministry of Education in Ontario announced it would shut down CCI-operated Everest College campuses in the province. [More]

Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

When student-loan servicing company Educational Credit Management Corporation revealed it would purchase 56 campuses belonging to embattled for-profit college chain Corinthian Colleges, regulators and consumer advocates began working to ensure that students affected by CCI’s collapse would be protected under the deal. Today, the Consumer Financial Protection Bureau and the U.S. Department of Education announced some students would receive the help they deserve in the way of $480 million in debt relief. [More]

A vast majority of complaints received by the CFPB relating to private student loans involve issues with repayment and servicing of loans.

CFPB: Private Student Loan Companies Provide Few Options For Borrower, Driving Them To Default

By now we all know that for many consumers taking out private student loans is the only option when it comes to financing their higher education. We also know that many of those same borrowers will ultimately end up defaulting on their debt. A new report from the Consumer Financial Protection Bureau suggests that it’s not borrowers’ lack of willingness to repay that lands them further in debt, but a lack of resources provided by lenders that drives consumers to default. [More]

The percentage of students from affluent families that leave college with student loan debt more than doubled in the past 20 years.

Percentage Of Rich Kids Needing Student Loans Has Doubled Since 1992

At one time, prospective college students from affluent families could count on having their tuition paid for by their parents or college savings accounts. But times have changed and now even students from the highest income brackets are borrowing to finance their high education dreams. [More]

Your Corinthian-Operated School Is Closing, But You Might Not Be Completely Screwed

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It’s not everyday that a higher education institution shuts down or announces it might be sold. But for the thousands of students attending Corinthian College Inc. (CCI) schools — like Everest University, WyoTech, or Heald College –– that’s their new reality, and it’s one that leaves more questions than answers. [More]

Student: Corinthian Colleges’ Demise Is Like “Watching A House Fall On A Witch”

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The downfall of Corinthian Colleges — the operator of Everest University, WyoTech, and Heald College — has put for-profit education chains in the spotlight, with people focusing on allegations of bogus job-placement statistics, grade manipulation, questionable marketing practices, and speculation regarding what will happen to $1.4 billion in federal student aid. But what about the actual students who have been watching this collapse from the inside? What about their stories? [More]

Corinthian Employees: School Manipulated Grades, Job-Placement Stats To Score Federal Aid Money

Corinthian Employees: School Manipulated Grades, Job-Placement Stats To Score Federal Aid Money

When a college touts its job-placement statistics to prospective students and investors, does that number only refer to graduates who have jobs in their field of study? What about people who have decent jobs that aren’t in that field, but which they wouldn’t have gotten without the extra schooling? And should that stat include every grad who is earning any sort of paycheck, regardless of how meager the income or how unrelated to their education? [More]

The Government Has 1.2 Billion Reasons To Keep Corinthian Colleges Afloat

The Government Has 1.2 Billion Reasons To Keep Corinthian Colleges Afloat

For the last week, we’ve been telling you about the ongoing negotiations between the U.S. Dept. of Education and Corinthian Colleges, the operators of the for-profit Everest University, WyoTech, and Heald College chains, that would sell off some of the schools and wind-down the others. Some people have asked why the government doesn’t just let Corinthian collapse. Part of the reason is that it would leave some 72,000 students in the lurch, but a big motivating factor is that the government could end waving bye-bye to more than $1 billion in student loan debt. [More]

Your College Education Might Be A Better Investment For Goldman Sachs Than It Is For You

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Americans have always viewed a college education as an investment in a student’s future, but there’s another sort of investment going on behind-the-scenes, and it’s nearly risk free. With access to a revolving door of prospective students and a continuous supply of federal aid, some colleges are turning hopes and dreams into big returns for Goldman Sachs and other investors. [More]

Private Student Loan Borrowers Face Automatic Default Because Of Co-Signer Provisions

Private Student Loan Borrowers Face Automatic Default Because Of Co-Signer Provisions

College graduates with private student loans know the importance of staying current on their payments. But a new report by the Consumer Financial Protection Bureau finds that even consumers who pay their loans on time are finding themselves placed in default when the co-signer of their loan dies or declares bankruptcy. [More]

Colleges Tight-Lipped On Revealing How They Divvy Out Financial Aid

Colleges Tight-Lipped On Revealing How They Divvy Out Financial Aid

When choosing a college to attend most teens and their families shop around a little. With tuition skyrocketing, many consumers look at financial aid offered by universities as a top priority when considering which institution to attend. Even with regulations on the books requiring schools to outline how financial aid is distributed, families are finding it nearly impossible to estimate their child’s worth to a school. [More]

CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans

CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans

The Consumer Financial Protection Bureau filed a federal lawsuit against a well-known for-profit college chain, alleging the company exploited its students and pushed them into high-cost private student loans that were likely to end in default. [More]

How To Not Suck… At Saving For College

How To Not Suck… At Saving For College

(This is Part One of a two-part feature on paying for an education. Part Two looks at the best way to borrow for college.)

Next to a home purchase, sending your kids to college may be the biggest expense of your lifetime. And like all things money, this one is easy to screw up. [More]

Heald College, along with Everest College and WyoTech, are all operated by CCI.

California Sues For-Profit College Operator For Lying To Students & Investors

California Attorney General Kamala Harris filed suit yesterday against a company that operates three for-profit colleges, alleging that it lied both to students about the prospects of job-placement, but also to investors about the success rate of its graduates. The complaint also accuses the colleges of illegally using military seals in its ads to lure in members of the armed services. [More]

Fewer Than Half Of Federal Student Loans Currently Being Repaid

Fewer Than Half Of Federal Student Loans Currently Being Repaid

It’s scary enough to think that the federal government has around $1 trillion in student loan money out there waiting to be repaid. More frightening is the fact that not even half that amount is currently being paid back. [More]