Student Loan News – September 7, 2013

Here are the best student loan articles from around the web.

Student Loan News

1. Refinancing student loans for better rates: 

U.S. Representative Mark Pocan (D-Madison), visits the University of Wisconsin Memorial Union in Madison (Thursday) to talk about college affordability. “We know that Wisconsin students and people across the country are facing the average debt of $26,000 when they leave college. And we know that student debt has now topped the $1 trillion mark.” He emphasizes, “That’s trillion with a T-R, not a billion or a million, but trillion.”

Pocan wants to ease the burden of college costs by allowing graduates to refinance their student loans to the lowest interest rates available, thereby freeing up more money to spend on necessities and help grow the economy. More details:

Student Loans

2. 8 Ways To Minimize Your Child’s Student Loan Debt:

 Do you have a minor child? If so, are you worried about how they’ll be able to go to college without the burden of too much debt? You’re not alone. With all the news about student loans becoming the second largest household debt in the U.S. and higher interest rates likely on the horizon, one of the biggest findings in our most recent quarterly research report was a significant increase in interest in college planning. Twenty four percent of employees named college funding as one of their top 3 priorities last quarter, up from 16% the same time last year. So what can you do?  Know every ways:

3. JPMorgan Chase to stop offering student loans: 

JPMorgan Chase & Co. is exiting the student loan business as more families opt for government-backed loans, which are generally cheaper and have more protections.

The New York bank had already been scaling back its role in student lending. In the spring of 2012, it stopped making student loans to borrowers who weren’t already Chase customers. Chase made just $200 million in student loans last year, down from $6.9 billion in 2008.

The lender said Thursday that it won’t accept student loan applications after Oct. 12. In a memo to colleges, Chase noted it would continue to work with students, co-signers and schools to process loan applications received before that date. It also asked administrators to schedule all final loan disbursements before March 15. Get more:

My Favorite Student Loan & Personal Finance Blog Posts

1. The Student Loan Bubble Is Starting To Burst:

The largest bank in the United States will stop making student loans in a few weeks.

JPMorgan Chase has sent a memorandum to colleges notifying them that the bank will stop making new student loans in October, according to Reuters. The official reason is quite bland.

“We just don’t see this as a market that we can significantly grow,” the marvelously-named Thasunda Duckett tells Reuters. Duckett is the chief executive for auto and student loans at Chase, which means she’s basically delivering the news that a large part of her business is getting closed down. Read full article

2. Govt tightens screws on student-loan defaulters: 

The Center for American Progress (CAP) released a report that suggests Congress should reclassify how student loan debt is discharged in bankruptcy. The report encourages Congress to review laws for both private and federal loans and how they could be handled in bankruptcy. Currently, student loan debt is almost impossible to discharge and it has been that way since it was made into law back in 1976.

CAP is proposing that student loan interest rates be capped a certain rates established by Congress. The long term goal would be to work toward making such debt repayable under realistic terms for borrowers. The borrower would need to meet specified standards of the educational institution as far as job placement potential, graduate rates, salary projections, and other evidence-based information. Read full article

3. Should Public Workers Be Exempt From Paying Off Student Loans? 

Richard Cordray, director of the Consumer Financial Protection Bureau (one of the new Obama-era bureaucracies), thinks public workers shouldn’t have to pay off their student loan debt like those who work in the private sector do:

Teachers, soldiers, firefighters, policeman – public sector careers invariably involve some effort, some inconvenience or some sacrifice. People give up higher incomes to serve their city, their state or their country. We believe that people who contribute part of their talents, part of the benefits of their education, to society as a whole should not be mired in debt because they stir themselves to the calling of public service. We estimate that one in four working Americans has a job that meets the definition of public service under this program. Many of these teachers, health care workers and other public servants could be eligible to have their college loans wiped out after ten years. Read full article

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