Student Loans

APM's Marketplace | Student Loans Are Getting Whacked

Bank of America and a unit of Citigroup have joined a growing list of lenders cutting back on student loan programs. At the same time, the House passed an emergency bill that would enable lenders to have more cash to keep making loans. John Dimsdale reports.

TESS VIGELAND: OK, here's another side-effect of the credit crunch: Student loans are getting whacked. Today Bank of America and a unit of Citigroup joined a… more

Look Twice at Loan Advice (U.S. News & World Report)

. . . Stephen Burd, a senior research fellow at the New America Foundation, says many colleges are affordable without the help of private loans at all. Plus, Burd adds, federal loans also are due only after graduation, and the subsidized ones don't accrue interest while students are still in school, as most private loans do—a fact not mentioned in the ads. . .

In Student Loan Market, A Direct Approach (CQ Weekly)

. . . But private lenders who need help face a dilemma. "Lenders are sort of putting themselves in this weird spot, where on the one hand they're raising huge alarms on the viability of their program, and on the other hand are trying to make sure they don't scare schools into the direct loan program," said Steven Burd, a senior research fellow at the New America Foundation. more

Hedging Bets on Student Loan Availability (Inside Higher Ed)

. . . “I think he’s doing the right thing in seeking to calm fears of parents or financial aid officers scared by newspaper headlines, and by demonstrating that Congress is ready to act should there be widespread problems for students themselves, as opposed to some lenders,” said Michael Dannenberg, director of the Education Policy Program at the New America Foundation. Dannenberg said that Kennedy’s plan should be viewed not… more

A Student Loan Credit Crunch — But for Whom? (Inside Higher Ed)

. . . “Students with poor credit ratings, particularly those at trade schools whose graduates have poor repayment track records, might be unable to find a willing private student loan provider,” the New America Foundation’s Education Policy Program wrote on its blog this month. “All students, however, who apply for a private student loan with a creditworthy co-signer should be able to obtain a loan and obtain it at a lower… more

Student Loan Field Takes Defense (University Wire)

. . . Michael Dannenberg, director of the education policy program for the New America Foundation, a nonpartisan think tank investigating the student loan crunch, said the media had merged private student loans and federal student loans' susceptibility to the housing crisis, noting federal loan recipients won't be affected. He scolded the press for creating a sense of fear. "The bigger danger is that the fear, if not panic, could… more

Higher Ed Watch.Org's staff writer and a lead investigator on the 2007 student loan scandals, Stephen Burd, is the winner of a 2007 National Award for Education Reporting, the Education Writers Association announced on Monday. Burd is a Senior Research Fellow with New America Foundation's Education Policy Program and a former Senior Writer at The Chronicle of Higher Education more

Student loans are often categorized as good debt, because a college education is considered a sensible long-term investment. ...

But it's important to understand that not all student loans are alike. Federally guaranteed student loans, known as Stafford loans, have fixed interest rates, now 6.8%, and flexible repayment terms. Any full-time college student, regardless of family income, can take out a Stafford loan.

Private student loans, which are often offered by the same lenders that provide federal loans, are more… more

When it comes to private student loans, loan giant Sallie Mae speaks out of both sides of its mouth. Case in point: Sallie Mae officials say they go out of their way to persuade students to exhaust their federal student loan eligibility before taking out more costly private loans. Not… more

The student lender Sallie Mae, after trying to force colleges in at least three states to provide it with contact information for potential student borrowers, is backing down.

The company, which is the nation's largest student-loan provider, described the shift in strategy after a Washington-based policy group revealed this month that the lender had filed a New York Freedom of Information Law request asking community colleges in the State University of New York system to provide it with student names,… more