Student Loans

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

Students Pinched by Credit Markets (Minneapolis Star Tribune)

..."There is zero danger that federal Stafford loans will not be available in the foreseeable future. Zero danger," said Michael Dannenberg, director of education policy at the New America Foundation in Washington.

Only about 10 percent of all college loans come from private lenders, he said. Many of those students could turn to federally backed loans if other sources of cash dry up, in Dannenberg's view.

As Lending Tightens, Education Could Suffer (New York Times)

...Not everyone believes that retrenchment in commercial education would be bad. “High-risk borrowers with low academic achievement who are pursuing post-secondary training should not go to expensive, low-quality proprietary schools,” said Michael Dannenberg, director for education policy at the New America Foundation in Washington. “They would be better off going to community colleges, which are lower cost and open enrollment, for the most part.”

House Democrats to Vote on Cutting Student Loans (Cox News Service)

...Michael Dannenberg, director of the Education Policy Program at the New America Foundation, said the federal government has wasted "billions of dollars" each year on excess lender subsidies. "Financial aid should be helping students, not banks," he said.

Market Doubts Hit Private Student Loans (Pittsburg Post-Gazette) ...Sallie Mae and others are experiencing a growing default rate. The sub-prime mortgage crunch has spilled over into the student loan area, too, with investors less willing to buy loans of different kinds, said Stephen Burd, senior research fellow at New America Foundation, a nonprofit think tank. "It's just a question of securitization right now," Mr. Burd said. ...