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Student Debt/Credit Cards

Reader Response: How Americans Pay for College, by School Type New York Times - Economix Blog August 24, 2010 According to Sallie Mae/Gallup reports, students who attend private colleges are 1) relatively less reliant on using their own income and savings and 2) receive more in grants and scholarships compared with their peers at public schools, both in relative terms and absolute terms.

The Color of Money: Basic lessons on credit cards for students Washington Post - Column August 22, 2010 Entering freshmen at colleges across the country will be the first class of regular-semester students to face credit card restrictions under the Credit Card Accountability, Responsibility and Disclosure Act of 2009. But how successful will the law, also known as the Credit CARD Act, be?

New rules on student debt shouldn't be limited to for-profit colleges Washington Post - Column August 19, 2010 The Obama administration wants for-profit career colleges to better prepare students for gainful employment and to improve debt-repayment rates. The government is threatening to pull access to federal student aid for colleges that fail to show progress.  I love this idea, but why don't we take it further and require every college that receives federal financial aid to discuss with incoming students who are applying for loans how much they can expect to earn in the degree areas they are pursuing?

Colleges That Graduate Students Deep in Debt Huffington Post - Blog August 18, 2010 If April showers bring May flowers, what does July heat bring?  Not August meat.  August is instead open season on college rankings -- which are, of course, mostly fluff. The idea that the overall quality of U.S. colleges and universities can be reduced to a single number, which allows institutions to be rank-ordered first to last, is hugely problematic.  But it's also hugely popular.

Will Student Loan Debt Be The Next Bubble To Burst? Atlanta Post - Opinion Piece August 17, 2010 As a first generation college grad, I once looked at my degree as a way to escape poverty by opening doors to better career options and more money. However, when I add up how much I've been paying in rent, utilities, car insurance, health insurance, food and student loans, and subtract that from my public service salary plus the money I earned through writing and other side ventures, my current finance fails to make dollars and sense.

Academic Bankruptcy New York Times - Opinion Piece August 15, 2010 There is a similarity between the debt crisis on Wall Street and what threatens higher education. Just as investors borrowed more and increased their leverage in volatile markets, many colleges and universities are borrowing more and betting on an expanding market in higher education at the precise moment their product is becoming affordable for fewer people.

For-Profit Colleges to See Effect of U.S. Crackdown on Student Loan Rule Bloomberg News August 12, 2010 The U.S. Department of Education will release data tomorrow showing how its proposed requirements for student-loan eligibility will affect for-profit colleges.  The department will provide information taken from a single U.S. state on former students' earnings and a description of how the agency formulated its regulations. Figures showing the percentage of former students who are repaying their loans at individual for-profit colleges also will be released.

Deep In Debt Forbes Magazine August 11, 2010 More students than ever face high debt, even as tuitions keep rising. A degree doesn't guarantee a well-paying job, and debilitating payments haunt alumni for decades after graduation. Even bankruptcy doesn't provide relief--student loans are nearly impossible to discharge.  Teenagers are told that a college diploma is the best path to success. But that's no longer always the case, and if schools and policymakers fail to address this escalating crisis in higher education, the consequences will be borne not just by cash-strapped grads, but by all Americans.

New restrictions on for-profit colleges don't seem strict enough Los Angeles Times - Editorial August 9, 2010 The U.S. Department of Education, which loaned $20 billion to students at for-profit schools in 2009, has now stepped in with new rules intended to reduce the number of defaults. Using data on loan repayment rates and on debt-to-income ratios, the agency will refuse to lend money to students in the programs with the worst numbers, and will impose new requirements on schools with dubious numbers.  It remains to be seen whether the rules are stringent enough. Only 5% of programs are currently expected to be disqualified from participating in the federal loan fund, and 7% would face restrictions.

Student-Loan Debt Surpasses Credit Cards Wall Street Journal - Real Time Economics Blog August 9, 2010 Americans owe some $826.5 billion in revolving credit (mostly credit-card debt), according to June 2010 figures from the Federal Reserve.  Student loans outstanding today - both federal and private - total some $829.785 billion, according to Mark Kantrowitz, publisher of FinAid.org and FastWeb.com.  "The growth in education debt outstanding is like cooking a lobster," Mr. Kantrowitz says. "The increase in total student debt occurs slowly but steadily, so by the time you notice that the water is boiling, you're already cooked."

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