We know you just graduated and you don’t want to think about your student debt. Really. We understand. Sadly, you need to think about it, and you need to think about it before July 1st.
The New York Times has an article explaining some of the reasons that private loans are both more popular and more risky that they really ought to be.
In 2005 congress changed the law to exclude student loans (private or public) from bankruptcy protection, meaning that it is almost impossible to discharge your student loan by filing for bankruptcy.
What criteria do student loan companies use when determining which students to give loans to and how much to give? Don’t know? Neither does New York Attorney General Andrew Cuomo, but we’re pretty sure he’s going to find out. From the NYT:
“What criteria are they using in the underwriting of these loans?” Mr. Cuomo asked. “Parental income? Student income? Student creditworthiness? How about the school you attend? How is that weighted?”
The New York Times is reporting that Columbia University will pay $1.1 million into a fund to educate students about loans, and will have its student loan office monitored by the state of New York for 5 years under the terms of a settlement that NY Attorney General Andrew Cuomo announced yesterday.
Columbia University has finally fired their director of undergraduate financial aid, David Charlow, after suspending him over “questionable financial ties” to Student Loan Xpress.