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Student Debt

Congress Is Creating Conditions for Another Corinthian Scandal

Corinthian Colleges has become the poster child for what’s wrong with the for-profit college industry. It misrepresented its job placement — the eligibility criteria for it to receive federal funds — and abruptly closed its doors when the federal government demanded some accountability.

The immediate victims of this business’ collapse are the thousands of students left with debt, worthless degrees, or both. The secondary victims are taxpayers.

A Plan for Making College Affordable

If you’ve been following #highered on social media lately, you may have noticed that college affordability and student loan debt are attracting attention of the 2016 presidential contenders. Many candidates harp on colleges to lower costs and on states to increase their funding, but any solution to making college more affordable needs to do more...

For Corinthian Colleges Students: What You Need to Know about Debt Relief

Earlier today, the U.S. Department of Education announced new steps to protect students from abusive for-profit colleges, as well as a new debt relief process for students at Corinthian Colleges – which operated schools under the names Everest, Heald, and Wyotech.

Information for borrowers is available at the Federal Student Aid (FSA) website...

What I Didn’t Know About Choosing a College

When I was a high school senior (many moons ago), I thought I was well-equipped to make the best college choice for me. I had read the brochures (Google wasn’t a thing back then); talked with my school counselor as well as friends and family; and visited campuses to check things out in person. After doing all of that and receiving acceptance letters and financial aid packages, I made a decision...

An Updated College Results Online = More Data for You

College Results Online has been updated with the most recent data from the federal government (2012-13), giving you even more information to compare in this one-stop shop tool. At CollegeResults.org — now in its 10th year of compiling and sharing critical information on colleges across the country — you can select nearly any four-year college or university and compare its graduation rate with that of similar institutions serving similar students.

The Lumina Foundation’s “Where Financial Aid Began: Partnering with Campuses and States”

The last time we checked in, we shared Part 3 of the Lumina Foundation and Institute for Higher Education Policy’s Looking Back to Move Forward: A History of Federal Student Aid. It’s a great documentary series on the evolution of federal student aid. 

CFPB Public Hearing on Student Debt

If you live in Milwaukee or plan to be there this week, consider joining the Consumer Financial Protection Bureau for a public hearing on student debt this Thursday. 

Reminder: What happens to your student loans if your school is shut down

When you’re told that your college will be shutting down, there can be a lot of uncertainty about what comes next. In light of recent closures of certain for-profit colleges, we wanted to share some helpful advice to help you navigate the situation.

Working Toward a Fresh Start for Corinthian Students

Imagine this: You’re 24, have your high school diploma, and have been working in a low-wage job for six years when you see an advertisement for a new career training program at a local, for-profit university. The ad promises to teach the latest, cutting-edge skills that will guarantee you a high-paying career...

A Must-See: The Lumina Foundation’s “A History of Federal Student Aid”

Have you seen The Lumina Foundation and the Institute for Higher Education Policy’s film series, Looking Back to Move Forward: A History of Federal Student Aid? The four-part series provides insight into the evolution of federal student aid over the last 60 years.

Pell Grants have helped millions of students from low-income families attend college. But you’ll be surprised to see the struggle that the program had to go through to become what it is today.

Student Stories: The Devastating Impact of Some For-Profits

The post and video below are from CNNMoney

Students across the country are shelling out tens of thousands of dollars for degrees that end up being completely worthless.

Many For-Profit College Companies Deliver Broken Promises and Failed Dreams

If you watch daytime or late-night TV, you’ve seen the slick, 30-second commercials that promise down-on-their-luck viewers a fairy godmother-like solution – a quick, affordable, college-level education that provides hands-on experience and positions students to land their dream job. If you want proof of the quality of these career education programs, the commercials continue, look no further than the myriad of success stories of their graduates.

Yesterday’s Boston Globe article, “For-profit colleges get harsh grades by former students: Graduates complain of onerous debt, unmet promises about careers,” paints a more realistic story of what actually happens to former students of these schools, such as:

Burned by a Career-Ed Program: Real and Raw Student Stories

The U.S. Department of Education plans to release its final "gainful employment" rule in October 2014. The draft rule, circulated by the department earlier this year, proposed cutting off access to federal financial aid for career-education programs (many of which are at for-profit colleges) whose graduates have high student loan default rates or high levels of student loan debt relative to their incomes. It is essential that the department adopt a final rule with strong protections for students.

During the month of May we asked students to submit their stories as public comments on the department’s draft “gainful employment” rule. Many of the student victims who have been exploited and defrauded by career-education programs offered compelling evidence of the need for stronger protections. Here’s what some of them had to say:

Low-Income Students Deserve a Real ‘CHANCE’ at Affordable College

Each year millions of Americans depend on Pell Grants to help make college affordable. Research has shown that need-based grant aid, like Pell Grants, increases college enrollment among low- and moderate-income students. But with college costs skyrocketing over the last three decades, Pell Grants have lost much of their purchasing power. In the 1980s, Pell Grants covered 77 percent of the cost of college at a four-year public college for low-income students. Today that share has dropped significantly to only 31 percent of the cost.

Google Hangout With CFPB hosted by Higher Education Advocates Provides Tips on Managing Student Debt

On Tuesday, Young Invincibles and StudentDebtCrisis.org hosted a Google Hangout on the “Top 5 Tips for Tackling Your Student Debt.” Rohit Chopra, of the Consumer Financial Protection Bureau, offered some of his best tips for managing student loan debt. In case you missed the great conversation, here’s a brief recap of some of the advice offered:

The Federal Government is Profiting off of Your Student Debt

The U.S. Government Accountability Office (GAO) recently released a report revealing that the federal government stands to make $66 billion in profits from student loans that originated between 2007 and 2012.

Soon following, a group of nine Senators strongly responded to the report, advocating for policies that address student loan debt, loan refinancing, and lower interest rates. Sen. Elizabeth Warren (D-MA), states, "This is obscene. The government should not be making $66 billion in profits off the backs of our students. The report issued today reinforces what we already knew - instead of investing in our children and their futures, the government is squeezing profits out of our young people and adding to the mountain of debt they will spend their lives struggling to repay."

Senator Warren to Introduce Bill to Allow Student Borrowers to Refinance Loans

Do you have a mortgage or car loan and wish to refinance to a lower interest rate? Congratulations, you have that consumer protection. But do you know who doesn’t? Student loan borrowers. Luckily, new legislation soon to be introduced in the U.S. Senate may change this.

U.S. Senator Elizabeth Warren (D-MA) recently announced her plans to introduce a bill that will allow students to refinance their federal student loans to the lower interest rates under the Bipartisan Student Loan Certainty Act of 2013. A measure that has the potential to save student loan borrowers thousands of dollars over the course of a loan’s life.

Wisconsin State Legislation to Tackle Student Loan Debt

There is exciting news in the Badger State. Wisconsin policymakers are attempting to lower student loan debt.

As reported by One Wisconsin Now, the Higher Ed, Lower Debt Act (SB 375) introduced by state senators Dave Hansen and Cory Mason would:

Bill Will Create Loan Free College for Low-Income Virginia Residence

With the recent good news that the University of Virginia (U.Va) has once again prioritized financial aid for its lowest-income students, a promising bill in Virginia has emerged that will make a larger, statewide commitment to college affordability.  

Introduced by Virginia Delegate Rob Krupicka, Virginia College for All (formerly, the Virginia Guaranteed Assistance Program) would offer no-loan guarantees to low-income students and interest free loans to students of middle-income families who graduate within 150 percent of the time to standard completion (6 years for a traditional four year college and 3 years for a two year college).

New Report Finds Student Loan Debt Increases by Over Ten Percent

A report shows that student loan debt has increased 10.5 percent in just one year. According to The Project on Student Debt at The Institute for College Access and Success (TICAS), from 2011 to 2012, average student loan debt rose from $26,600 to 29,400.

CFPB New Rule to Oversee Student Loan Servicers

The Consumer Financial Protection Bureau (CFPB) issued a new rule that puts the seven largest non-bank student loan servicers under its supervisory jurisdiction. Student loan servicers are third-party companies such as Sallie Mae, Great Lakes Educational Loan Services, Nelnet Servicing and the Pennsylvania Higher Education Assistance Agency that manage borrowers account and process their monthly payments. Under this new rule, they will join banks that service student loans in being regulated by the CFPB.

How Much Impact Does Student Debt Really Have on the Economy?

Student loan debt is rapidly approaching $1.2 trillion. What’s worse is that, with little reliable data available about the impact of student loan debt, we can't assess the real effect it's having on the economy. Regardless, we do know that student debt isn't good for sustaining a growing nation.

Freshly-minted, young graduates should be leaving college ready for the workforce and to help feed our thriving economy. Instead, burdened with high amounts of student debt, they usually don't have the extra cash to thrust back into the economy.

U.S. Dept. Of Ed College Ratings Hearing, George Mason

George Mason University recently hosted the U.S. Department of Education’s second of four college affordability forums to discuss the Obama administration’s proposed college ratings system. At the event, students expressed the same concerns to the department that thousands of current and prospective college students, like me, have across the nation: Students want more data to assess our financial future before enrolling in college and taking on massive amounts of student loan debt. To start, these data need to include information about the net price of college, the average incomes of graduates in different fields, and data on internship placement rates.

CFPB Report Finds Private Student Loan Borrowers Have Real Concerns

As college tuition and fees continue to rise, more students are finding that they have to turn to private loans - which are usually tagged with higher interest rates and less consumer protections than federal loans - in order to finance their degree. As of July 2012, about 850,000 private loans were in default.

This new report from the Consumer Financial Protection Bureau (CFPB), summarizes roughly 3,800 complaints on private student loans received from October 1st, 2012 to September 30th, 2013. The most common complaints reported by students were having difficulties making advanced payments on their loans

“99 Percent: The Occupy Wall Street Collaboration Film” Highlights Student Debt Crisis

Participant Media has helped produce “99 Percent: The Occupy Wall Street Collaboration Film”, which details the gripping accounts of the Occupy Wall Street movement. Student debt-- something 1.2 trillion of the 99% are facing-- is a main focus of the documentary. It’s a must-see film telling the story of how disenfranchised youth, many of whom have debts they can’t pay, created a powerful voice for the 99 percent.

#OutWithStudentDebt Video Project to Award $500 Each to Three Top Video Submissions

Led by Student Debt Crisist, a number of groups have decided to collaborate on the #OutWithStudentDebt Video Project – an initiative designed to help shed the stigma of shame and embarrassment that comes along with the burden of student loan debt.

UVa’s Vice Rector is Out of Touch With Reality: Low-Income Students Should Not be Crippled with Debt

As many of you may know, early in August, the University of Virginia’s (UVa) Board of Visitor (BOV) – the governing board for the institution - voted to slash overall funding for AccessUVa, the school’s financial aid program, and completely eradicate the no-loan policy for low-income students in the program. Vice Rector of the Board, William Goodwin, justified the cuts by proclaiming that low income students shouldn’t get an advantage wealthier students don’t have, “they all graduate with the same degree”, as reported in this Daily Progress article.

The Bright Spot in President Obama’s Plan on Student Debt and College Affordability

Reviews for President Obama’s agenda has been mixed, but we’ll take a look on the bright side: by creating a new rating system for colleges based on affordability and student performance, the President’s new plan intends to provide the financial help that many of our students deserve, while also providing the kick that many colleges may need to shape up.

Working through college still not enough to cover high cost

A new survey by Citigroup and Seventeen Magazine reveals that while many college students are paying for most of their expenses, just a handful of students are able manage the burden of high tuition cost.

According to the survey, only 18 percent of students pay their way through college. The rest? 41 percent of students in the survey reported relying on financial aid – which includes student loans - to pay for their education, 16 percent of students said they finance their education through scholarships, and only 22 percent reported that their parents pick up the tab. On the other hand, 60 percent of respondents said their parent did, however, pay their monthly cell phone bill.

These are the faces of our student debt crisis.

Last week, President Obama signed the Bipartisan Student Loan Certainty Act into law, effectively guaranteeing potentially sky-high interest rates for future students. However, even though Congress made the wrong deal for students, student loan interest rates are really the symptom of a much larger disease. College costs too damn much! And, that’s the real issue affecting millions of Americans.

University of Virginia Overhauls AccessUVA for Low & Middle Income Students, Creates More Debt

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Last week, the University of Virginia’s Board of Visitors – a Governor-appointed board responsible for long-term planning for the University – voted to end Access UVA, and will force low-income program participants to take out nearly $30,000 in student loans to attend UVA.