6 Common Questions About Student Loan Defaults And Tax Refunds

The second reason for my bet has to do with the extent to which the servicers are beholden to others. Several for- and not-for-profit loan servicing companies have successfully securitized portions of the government-backed and private student loans they currently administer. So when seriously troubled loans require restructuring (extensions of repayment terms) or modification (reduction in principal balance, abatement of interest rate), it would be fair to speculate that the servicers are reticent to take actions that run contrary to their investors’ interests. This situation is likely to deteriorate even further as new firms stream into the so-called servicing-rights marketplace, which is all the more reason for a national standard to govern the administration of these debts. Student-loan borrowers are suffering through substandard customer service, half-baked solutions that are crammed down their throats and one-sided contracts that limit their recourse.
Source: http://www.dailyfinance.com/2014/03/19/student-loan-crisis-worse-than-you-think/

The trend makes sense, according to Mark Kantrowitz, senior vice president of educational resources company Edvisors Network. Its profitable. Even if a bank lowers the rate just by a few percentage points, its still a good deal for them and the consumer. Its an easy sell. Credit unions have been leading the charge in both issuing and refinancing college loans since 2008, according to Vincent Passione, CEO of LendKey, a private student-loan program that helps credit unions underwrite and price student loans. If you underwrite these loans correctly, there is an attractive return,” he says. “Lenders that want to look into refinancing student loans will have to look past the stigma.
Source: http://www.foxbusiness.com/personal-finance/2014/03/14/after-hiatus-student-loan-refinancing-remerges-should-do-it/

31, $29.36 billion worth of student loans migrated into the past-due column, which, when divided by the approximately $600 billion of loans that are currently being repaid, amounts to an additional 5% of delinquency. There is also another category that doesnt get nearly enough attention: the loans that have been granted temporary relief in the form of payment deferments and other forbearance arrangements . These contracts are troubled, and accommodations of this type mask the extent to which the debts may be only temporarily relocated to current status from past due. All considered, it would not be surprising to learn that one-third or more of all education debts that are in repayment mode are troubled, particularly whenper the FRBNYs spreadsheetmore than $100 billion of student loan balances migrated into delinquency in each of the past few years. How We Got Here Anyone with reasonable experience in this field should rightly ask Why are so many loans deteriorating and why arent the servicers preventing that from happening? I can think of four possible answers. At least one-third of all the loans that were made should not have been approved in the first place.
Source: http://finance.yahoo.com/news/why-student-loan-problem-even-120047192.html

2.How much of my tax refund can be seized?Up to 100percent of your tax refund can be taken, and you can still be subject to anoffset even if your wages are being garnished as well. Funds can be taken without your permission, but you will receive information regarding the amount and date of your offset. 3.Can I stop the offset?You may be able to avoid the tax offset if you set up a satisfactory repayment arrangement and begin making payments before the deadline outlined in the warning notice. Payments made under a redirected voluntary payment plan are often lower than the amount taken through garnishment and can lead to resolving the default altogether through rehabilitation or consolidation. Contact your loan holder to get started. You can find this information by going to the National Student Loan Data System .
Source: http://www.usnews.com/education/blogs/student-loan-ranger/2014/03/19/6-common-questions-about-student-loan-defaults-and-tax-refunds

According the The Washington Post, student loan debt is harming the slowly recovering housing market. Says David H. Stevens, chief executive of the Mortgage Bankers Association, Student debt trumps all other consumer debt. Its going to have an extraordinary dampening effect on young peoples ability to borrow for a home, and thats going to impact the housing market and the economy at large. As reported by Time, it seems that student loans are not only harming those who have them, but may be dragging down the economy as a whole. If students are spending the majority of their money on loans, they have less to spend on consumer purchasing. For those who did not graduate , or cannot find work in their chosen profession, student loans can be a heavy weight to bear.
Source: http://www.inquisitr.com/1174781/graduate-student-loans-harmful-or-beneficial/


Nasdaq Shares Retreat As N.y. Investigates High-speed Trading


Nasdaq stocks posting largest volume increases

in New York, the largest intraday decline since Jan. 24. The stock fell as much as 4 percent earlier. IntercontinentalExchange Group Inc., which owns the New York Stock Exchange, slipped 0.4 percent.
Source: http://www.bloomberg.com/news/2014-03-18/nasdaq-shares-retreat-as-n-y-investigates-high-speed-trading.html

Nasdaq stocks posting largest percentage decreases

Rick Sherlund of Nomura Equity Research has a “Buy” rating on MSFT stock and has set a price target of $45 for the tech giant. “We expect new CEO Satya Nadella to introduce this as a directional step in repositioning Microsoft to a mobile first/cloud first company,” Sherlund told investors. “We would expect Microsoft to announce that users of Office 365 [the subscription-based service] can access the touch first versions of Office [iPad, Windows 8.1 devices, and Android tablets] as an additional platform service for no additional charge,” Sherlund continued. Nadella took over the reins at Microsoft on Feb.
Source: http://markets.financialcontent.com/stocks/news/read/26718133/Microsoft_

Now that the first clearing house has been authorised under the new reforms, it starts a clock for the European Securities and Markets Authority or ESMA, an EU watchdog, to decide which types of derivatives contracts must be cleared across the 28-country bloc. “This is now the kick-off for the central clearing obligation. Probably the earliest possible date for mandatory clearing to start is by the end of this year,” ESMA spokesman Reemt Seibel said. More than 20 clearing houses have applied for authorisation under the EU derivatives law. Hans-Ole Jochumsen, an executive vice president at Nasdaq OMX, expects some assets like certain currency derivatives to be cleared even if ESMA decides that clearing should not be mandatory.
Source: http://www.reuters.com/article/2014/03/18/eu-derivatives-clearing-idUSL6N0MF4EF20140318?feedType=RSS

Microsoft (Nasdaq: MSFT) Stock at 14-Year High, Mobile Success Would Send It Higher

Nasdaq: MSFT

fell 8.7 percent to $6.07. Intersections Inc. fell 8.7 percent to $5.80. Plug Power Inc. fell 8.6 percent to $5.95.
Source: http://www.businessweek.com/ap/2014-03-18/nasdaq-stocks-posting-largest-percentage-decreases

Nasdaq OMX first to win EU approval to clear derivatives

Elbit Medical Imaging Ltd. : Approximately 10,210,400 shares changed hands, a 2,070.1 percent increase over its 65-day average volume. The shares rose $.07 or 32.4 percent to $.27. Glen Burnie Bancorp : Approximately 5,700 shares changed hands, a 1,463.9 percent increase over its 65-day average volume. The shares rose $.12 or 1.0 percent to $12.10.
Source: http://www.businessweek.com/ap/2014-03-18/nasdaq-stocks-posting-largest-volume-increases

Obama Issues A Campaign-ready Budget Proposal

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Source: http://www.usatoday.com/story/theoval/2014/03/05/obama-budget-ukraine-connecticut-boston-dnc-fundraisers/6062471/

After the speech, he was set to fly to Boston to speak to two fundraising events for the Democratic National Committee. Obama has proposed raising the federal minimum wage to $10.10 per hour, up from the current level of $7.25, which he said would lift wages for 28 million people. Three-quarters of Americans agree it should be hiked. It would immediately raise millions of people out of poverty. It would help millions more work their way out of poverty.
Source: http://www.voanews.com/content/reu-obama-touts-minimum-wage-hike-plan-in-connecticut/1865217.html

It also underscores how pressure has faded to launch bold, new attacks on federal deficits. (AP Photo/J. Scott Applewhite) WASHINGTON (AP) — Republicans are dismissing President Barack Obama’s new $3.9 trillion budget as nothing more than a Democratic manifesto for this fall’s congressional campaigns, but the fiscal plan is taking hits from another quarter too anti-deficit groups. Obama on Tuesday sent lawmakers a 2015 budget top-heavy with provisions that have little chance of becoming law. They included $1 trillion in tax increases mostly on the rich and corporations http://www.obamastudentloanforgiveness.net/ and a collection of populist but mostly modest spending boosts for consumer protection, climate change research and improved technology in schools. It even trumpeted $2.2 trillion in 10-year deficit reduction, though most of the proposed savings, including fresh tax boosts plus cuts in government payments to Medicare providers, seemed long shots to make it through Congress.
Source: http://finance.yahoo.com/news/gop-pans-obamas-3-9t-213123020.html

Most notably, Obama dropped a proposal aimed at slowing the growth of Social Security payments by changing how cost-of-living increases get calculated. Obama’s current plan would cut the deficit by adjusting the way the government means-tests Medicare, requiring higher premiums for some wealthy seniors. He would include measures to force down the cost of prescription drugs, which also reduces federal spending, and would count on the deficit-reducing impact of his proposed immigration reform measure. He proposed paying for new spending a $55-billion “Opportunity, Growth and Security Initiative” by closing tax loopholes used primarily by the wealthy and raising tobacco taxes. Among the tax provisions he would eliminate is the carried-interest rule, which allows some hedge fund managers to pay a lower tax rate on a significant share of their income.
Source: http://www.latimes.com/nation/la-na-obama-budget-20140305,0,3023686.story

7 Senate Democrats help block Obama nominee for civil rights post

The visit shocked the crowd on Main Street, including some in the chairs at a nearby barbershop, according to a pool report on Obama’s stop. Gervais Barger of Plainville was seated at the Courtside Cuts Barber Shop on Main Street when he heard a commotion outside at lunchtime. They started seeing the motorcade, and we came outside, Barger said as he stood outside still wearing a smock and without a coat on a cold day. He said he had never seen a president before not in person. Obama had high praise for the Connecticut delegation and for the New England governors. He said he usually appears at events with only one governor, but this visit was special.
Source: http://www.denverpost.com/nationworld/ci_25284684/obama-connecticut-minimum-wage-increase-is-8220-common

Adegbiles ties to the case of Mumia Abu-Jamal, an internationally known prisoner convicted of the 1981 murder of Officer Daniel Faulkner, had become the focus of a conservative crusade that boiled over in recent weeks. A senior aide to one of the senators who voted against the nominee said several senators offices were very angry at the White House for moving ahead with the nomination even though it could leave Democrats who are facing tough reelection races vulnerable to attack ads. Its a vote you didnt have to take. Its a 30-second ad that writes itself, said the aide, who spoke on the condition of anonymity in order to speak frankly. Administration officials pushed back late Wednesday, saying that Senate Majority Leader Harry M.
Source: http://www.washingtonpost.com/politics/7-senate-democrats-help-block-obama-nominee-for-civil-rights-post/2014/03/05/4becad52-a48e-11e3-84d4-e59b1709222c_story.html

Muted Stock Market Reaction To Ukraine So Far

MIDEAST STOCKS-Markets tumble as retail players sell on Ukraine tensions

Two questions being asked: How long does this go on? The longer it lasts, the more a premium is put on safe-haven bets like the U.S. Dollar , U.S.Treasuries and gold / silver . The concern is this may be the start of longer-term tensions between the West and Russia. What happens if the West wins?
Source: http://www.cnbc.com/id/101461716

Warren Buffett: Ukraine won’t stop my stock buying

But that hasn’t worked in years, says Josh Charney, alternative-investments analyst at Morningstar Inc. “His permabear position worked in the 2000-to-2002 downturn and during the 2008 crisis,” Mr. Charney says, “but since then his hedges have done more harm than good.” The fund shed an average 1.3% a year over the 10 years through February, while the S&P 500 gained an average of 7.2% a year, according to Morningstar. The average long-short equity fund rose 5.6%. The fund’s assets have shrunk to $1.3 billion from a peak of $6.7 billion in September 2010.
Source: http://online.wsj.com/article/SB10001424052702303704304579383224190021540.html

Bearish Manager Missed Big Stock Gains

Nymex front month oil futures prices hit their highest level since September last year, hitting $104 a barrel. Further oil price rises will have a knock-on effect on stocks and sectors that rely on a stable oil price to keep fundamental costs down. Rising oil prices is a direct threat to the ability of stocks to rally in the near term. This needs to be watched.
Source: http://www.theguardian.com/business/2014/mar/03/ukraine-crisis-hits-stock-markets-as-russia-hikes-interest-rates-business-live

Buffett: Unlikey to sell top 3 holdings Warren Buffett, Berkshire Hathaway chairman & CEO, explains why it is very unlikely he would sell his holdings in Wells Fargo, Coca Cola and American Express within the next five years. We like adding big chucks of earning power, explains Buffett. Buffett also comments on the performance of IBM as the company goes through a transition. “The oil from the Bakken, and from the Eagle Ford as http://www.todayhotstocks.com well, turned out to be more volatile than people anticipated. …
Source: http://www.cnbc.com/id/101459508

Ukraine crisis sends stock markets sliding; Russia’s MICEX tumbles 11% – business live

Trader Peter Tuchman works on the floor of the New York Stock Exchange, Monday, March 3, 2014.

Kuwait’s index ended at 7,494 points, below technical support at the December low of 7,501 points; any close below that level on Tuesday would confirm a break, leaving no major chart support before the September 2013 low of 7,132 points. In Qatar, Mesaieed Petrochemical, the market’s first new listing since 2010, fell by its daily limit of 10 percent for a second straight session. The stock soared 450 percent in its debut last Wednesday on the back of retail investor buying, valuing the stock at nearly three times levels which analysts consider fair. MONDAY’S HIGHLIGHTS * The index tumbled 2.7 percent to 7,859 points.
Source: http://www.reuters.com/article/2014/03/03/mideast-markets-wrap-idUSL6N0M02M120140303