More Blues for College Borrowers in the For-Profit College Environment

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According to the Associated Press, tens of thousands of former students who say they were swindled by for-profit colleges are being left in limbo as the Trump administration delays action on requests for loan forgiveness. Questions: 1. Why is the Department of Education sitting on the claims? How many claims are there? 2. Who has… Read more »

Wiped Away

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Tens of thousands of people who took out private loans to pay for college but have not been able to keep up payments may get their debts wiped away because critical paperwork is missing. Questions: 1. How much do the troubled loans total? 2. According to the article, what is this situation reminiscent of? 3…. Read more »

The Dizzying Student Loan Game

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The Feds claim that the nation’s largest student loan servicer gave rushed and costly advice. Questions: 1. What is the amount or size of the U.S. government’s student loan program in dollars? 2. What is Navient? 3. How would you describe the structure of Student loan servicing? 4. What are some of the claims about… Read more »

Who’s Scrooge this year? Ba-Humbug!

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According to the Washington Post, who sources Senate staffers, the Treasury Department refuses to stop forcing permanently disabled people to pay taxes on student loans that have been canceled, leaving a vulnerable population susceptible to thousands of dollars in charges. Questions: 1. What is the financial problem associated with each dollar forgiven? 2. What is… Read more »

A deeply ill-conceived way to address student debt?

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Members of Congress have introduced bipartisan bills that would give a tax break to the growing number of companies that offer to help pay off their employees’ student loans. Questions: 1. What are the reasons that the article presents for this idea as being a deeply ill-conceived way to address student debt? Do you agree… 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 »

New Mortgage Rules for Those with Student Debt

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New rules could make it tougher to qualify for a low down payment mortgage from the Federal Housing Administration, particularly with respect to down payment gifts and deferments associated with student loans. Questions: 1. What is the role of debt-to-income ratios in this story, as they related to student loans? 2. What is the old… Read more »

Morbid Thought, but Necessary Resolution

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When a young person dies unexpectedly, his or her family could end up with the burden of paying off student loans. How can that be avoided? Questions: 1. According to the article, which loans are forgiven after a student’s death and which ones are not? What is a rough estimate of the total amount of… Read more »

The Question of Undue Hardship

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The bankruptcy case of Janet Roth stirred a debate over the rigidity of the “undue hardship” standard in discharging student loans. This year, President Obama instructed several governmental agencies to review, by Oct. 1, whether the treatment of student loans in bankruptcy should be altered. Questions: 1. How did Ms. Roth prepare for her case?… Read more »

Bye, Bye to Tens of Thousands of Dollars of Debt for a Certificate

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Despite intensive lobbying efforts and lawsuits by the Association of Proprietary Colleges (APC), a U.S. District federal judge denied a challenge to the Obama administration’s rules limiting the amount of debt students can carry in career-training programs. This decision delivers a blow to the deteriorating for-profit college industry. Questions: 1. What are the new rules… Read more »