Tag Archives: student loans

Three years of lower student loan interest rates: Borrowers save $36billion

The results are in and interest rates on federal student loans are set to drop for the 2015-16 school year. Undergraduates will see rates drop from 4.66 percent to 4.29 percent. But this boon for borrowers almost wasn’t. Student aid advocates and liberal Democrats in the Senate vehemently opposed the policy that caused rates to […] … learn more→

The strange history of the student borrower defenses provision

The only thing growing faster than the cost of college is the number of former Corinthian College students refusing to pay their debts. What started as a 15 person strike has now grown to approximately 100 people. The protest is raising important big-picture questions of what role the U.S. Department of Education should play in […] … learn more→

Obama backtracks on targeting student loan benefits

Last week the Obama administration took another step toward expanding their more generous version of Income-Based Repayment (IBR), known as Pay As You Earn (PAYE), to borrowers who were previously ineligible, despite growing concerns over the cost of the program and the large benefits that go to borrowers who attended graduate school. The administration plans […] … learn more→

Why direct lending allowed for a student aid Bill of Rights

Ending the bank-based federal student loan system in 2010 was all about cost savings. Taking subsidies banks received to make loans and putting them toward increasing the maximum Pell Grant award was a sensible policy. And students would be unaffected because they could always borrow straight from the U.S. Department of Education. But the White […] … learn more→

A new far-right oroposal for financing College “innovatively”

In “Here’s a New Way to Pay for College,” an article published in USA Today [http://college.usatoday.com/2014/04/17/heres-a-new-way-to-pay-for-college/], Daniel Wheaton reports on a new Far-Right proposal to address the student-debt crisis. In a bill that they have called “The Student Success Act,” Marco Rubio, the Republican Senator from Florida, and Jim Petri, a Republican House member from […] … learn more→