Signing student loan deal into law, Obama says ‘job is not done’ on college affordability

Angus King, I-Maine; Senate Majority Whip Richard Durbin of Ill.; Rep. Joe Courtney, D-Conn.; and Rep. John Kline, R-Minn. CAPTION By Associated Press, WASHINGTON President Barack Obama signed into law Friday a measure restoring lower interest rates for student loans, pledging the hard-fought compromise would be just the first step in a broader, concerted fight to rein in the costs of a college education. Encircled by lawmakers from both parties in the Oval Office, Obama praised Democrats and Republicans alike for agreeing finally on what he called a sensible, reasonable approach to student loans even as he cautioned that our job is not done. Feels good signing bills.
Source: http://www.washingtonpost.com/politics/federal_government/obama-set-to-sign-student-loan-bill-that-offers-students-better-deals-and-lower-rates/2013/08/09/ef13d284-00c5-11e3-8294-0ee5075b840d_story.html

Our Student Loan System Is Broken, and These New Statistics Prove It

About 11 million students this year are expected to have lower interest rates, saving the average undergraduate $1,500 on interest charges on this year’s loans. The legislation links student loan interest rates to the financial markets. It offers lower rates this fall because the government can borrow money cheaply at this time. If the economy improves in the coming years as expected, it will become more costly for the government to borrow money and that cost would be passed on to students. Rates on new subsidized Stafford loans doubled to 6.8 percent July 1 because Congress could not agree on a way to keep them at the previous 3.4 percent rate.
Source: http://abcnews.go.com/Business/wireStory/obama-sign-student-loan-deal-19912849

Fitch Takes Various Actions on Multiple SLM Student Loan Trusts

First, you have the the sheer amount of debt students are piling on. This part of the problem is familiar. It tends to get exaggerated a bit,but in the end, there are millions of former students out there struggling under the weight of loans that, 15 or 20 years ago, they would not have needed to borrow in order to make it through college. The second half of the crisis earns less attention, but is in some ways equally important. It’s our broken system for helping students manage their debt. With all of the repayment plans available to borrowers, some of which cap monthly payments based income, it should theoretically be damn near impossible to default on a student loan.
Source: http://www.theatlantic.com/business/archive/2013/08/our-student-loan-system-is-broken-and-these-new-statistics-prove-it/278453/

Congress OKs cheaper student loans

The total parity ratio for trust 2005-1 has been stable and the senior parity ratio has been increasing. The senior parity is currently 142.37% and total parity is 100% as of June 2013. Fitch gives credit to the reserve fund, which is excluded from the adjusted pool balance once the pool factor is at 40%. The current pool factor is at 10.23%. Fitch’s calculated total parity is at 100.98%.
Source: http://www.reuters.com/article/2013/08/08/ny-fitch-ratings-idUSnBw086445a+100+BSW20130808

Son secretly took out huge student loans in parent’s name

The new rates would be retroactive and apply to loans taken out after July 1. The bill, which passed the Senate last week, will now go to the President Obama’s desk to be signed into law. It has provisions for rates to go higher in coming years. As House members debated the bill, many Republicans took credit for the deal. They noted that the Senate version wasn’t much different from their own student loan bill, which linked rates to the bond markets.
Source: http://money.cnn.com/2013/07/31/pf/college/student-loan-house/index.html

Top 7 Ways to Eliminate Student Loan Debt from Your Life

My wife cosigned a homepage private loan for $25,000 for the first year, and that was the last we heard of any loans until he graduated with a degree in social services. After he was out of school for six months, we started getting phone calls asking for payment. Turns out he electronically signed my wife’s name to the next three years of his student loans. Just to keep the creditors from harassing us daily, we pay the interest, which is about $1,100 a month and equals two-thirds of my wife’s take-home pay. (I’m disabled and can’t work; she’s 64 and planning to retire soon.) Our son hasn’t paid a dime on any of the debt and seems to think it will disappear if you don’t talk about it. He makes only $15 an hour.
Source: http://www.latimes.com/business/la-fi-montalk-20130811,0,5493313.column

Obama to Sign Student Loan Deal

Today it’s possible to do that and get your student loan debt forgiven if you know where to look. At least 50 counties in Kansas qualify as what are called “rural opportunity zones.” In return for living in these communities, they’ll absorb up to $15,000 of your student loan debt and exempt you from state income tax for five years. You don’t have to be an existing resident of the state to qualify for this program. A similar program recently launched in Niagara Falls, New York. Niagara Falls is offering up to $3,500 a year in loan forgiveness if you rent and live there full-time or buy and occupy a home in the community as a full-time resident.
Source: http://www.huffingtonpost.com/clark-howard/top-7-ways-to-eliminate-s_b_3727667.html

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