Monthly Archives January 2013

Student debt concerns Coalition

Author : Daniel Hurst

The federal opposition says the removal of caps on the number of university student places lacked foresight and has contributed to the nation’s ballooning bill for outstanding student loans.But the Coalition is stopping short of pledging to reintroduce the caps if it wins this year’s election.A Grattan Institute report released on Monday showed outstanding student loans stood at $26.3 billion, including $6.2 billion that was not expected to be repaid.The report said the amount written off was because some Higher Education Loan Program debtors were forecast to move overseas or die before their debt was repaid. Tertiary Education Minister Chris Evans has asked his department to consider ways to recover payments from people now living in another country...

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Student Debt: A Trillion Dollar Bubble

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More…)
 
On November 27, the New York Fed reported that during the third quarter, non real-estate household debt rose 2.3%. The primary driver of that expansion — accounting for $42 billion of the total $62 billion increase — was student loan debt. Out of that $42 billion, only $23 billion was attributable to new student loans. The other $19 billion reflects previously defaulted student loans that were just finding their way onto credit reports. The Fed’s data indicated that the percentage of student loans over 90 days delinquent had risen to 11% during the quarter, a new all time record and up 2.1% from the previous quarter.Default RatesAs it turns out, 11% i...
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Andres Pinter: Getting a better education and paying for it

Author : Andres Pinter

Andres Pinter is a managing director of Ernst & Young Capital Advisors. The views expressed here are his own.
Recently student loans have emerged as the most ubiquitous of consumer debts, and the unemployment rate among recent college graduates remains persistently high. All finger-pointing aside as to the underlying causes, these two economic birds could be killed by borrowing one stone from the world of syndicated lending, where interests are often properly aligned.
When a bank agrees to make a loan of a certain size, it often seeks to sell down some of that risk across a lending syndicate...
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Older Americans need student loan relief, too

I read with interest the front-page article “Politicians try to right struggling economy” (Dec. 30): I was especially interested in the section that indicated some relieffor people who owe on student loans. But once again, I was disappointed.
I’m one of thousands of Americans over 50 years old who are trapped by these loans. I went back to school in my 40s, hoping for a better job. But the only professional job I was offered was an on-call position. I could not afford to give up my full-time job to work on-call.
I have two student loan lenders. When I graduated in 2006, I owed $40,000. In spite of many payments on the smaller of my loans, I now owe $46,000. I’ve been job hunting for years, but continue to work as a secretary. I’m a single parent of a teenager, and will be 58 in 2013...
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