Unbelievable Differences in Incentives!

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According to the Washington Post, the bundle of financial incentives Wisconsin offered to lure Taiwanese technology giant Foxconn’s first major U.S. plant is larger than what New York, Virginia and Tennessee collectively pledged to Amazon.com, a comparison of the two development projects shows. Questions: 1. Foxconn has said its $10-billion factory in southeastern Wisconsin will… Read more »

Worse Than We Imagined!

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According to the National Center for Education Statistics, the typical student borrower will take out $6,600 in a single year, averaging $22,000 in debt by graduation. Questions: 1. Of borrowers who started repaying in 2012, how many had defaulted by 3 years later? 2. By year 5, how many students default? 3. Collectively, how much… Read more »

Wells Fargo In the News, AGAIN!

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In a recent regulatory filing, Wells Fargo disclosed that between 2010 and 2015, they foreclosed on 400 homeowners after improperly denying them loan modifications that could have allowed them to stay in their homes. Questions: 1. According to the article, how did this happen? 2. How do they plan to compensate these people? 3. Do… Read more »

Stepping over a line: Legitimate collection or legal harassment on student loans?

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The agency charged with monitoring such student loan bankruptcy declarations is facing concerns that its tactics have grown ruthless. Bankruptcy experts say that the group is wasting judicial resources because it brings legal challenges to those few who are desperate enough to seek bankruptcy relief. Questions: 1. What is the name of this agency? Which… Read more »

Program at a Standstill!

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According to Mother Jones, in 10 months, the Trump administration has yet to approve a single claim to help defrauded students of such for-profit colleges as Corinthian or ITT. Questions: 1. Who is now calling on the Department of Education to resume helping students who borrowed loans from the fraudulent for-profit colleges? 2. Approximately how… Read more »

Repealing an effective policy without immediate replacement? Good idea?

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In June, the secretary of education, Betsy DeVos, announced plans to dismantle a set of Obama-era policies devised to protect students and taxpayers from predatory for-profit colleges. However, data released in the final days of the previous administration shows that the existing rules were more effective at shutting down bad college programs than even the… Read more »

Changes Coming!

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According to the Associated Press, Federal regulators recently announced new rules governing the prepaid debit card industry. It’s a big change more than two years in the making that’s expected to bring some basic account protections to its customers, who are often financially disadvantaged. Questions: 1. How much money was loaded on prepaid cards in… Read more »

Litigation Finance

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This article discusses the trend of litigation finance, where individuals and companies are turning to private companies to front the money for legal costs in expensive litigation. Despite having in-house counsel, even larger companies are selling off pieces of lawsuits to improve cash flow and reduce risk. Questions: 1. Between 2013 and 2014, how much… Read more »

Incredible Law School Debt

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The median LSAT score of students admitted to Florida Coastal School of Law was among the lowest 25% nationwide. Despite the fact that the average debt of the 2014 graduating class had $163,000 in debt, may not pass the bar, and probably cannot repay the debt, this school is one of six for-profit law schools… Read more »

Fueling Both the Upside and Downside

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In the wake of the financial crisis, HUD established the Dirtressed Asset Stabilization Program. Unfortunately, this program has allowed many of these loans to be sold to hedge funds and private equity firms, rather than nonprofits. Questions: 1. What have the private equity firms done that Senator Warren is rallying against? 2. How many distressed… Read more »