Student Loans

New America Senior Research Fellow Stephen Burd appeared on the April 24 edition of NPR's "All Things Considered." To listen to the full interview, please visit the NPR website.

The Bankruptcy Abuse Prevention and Consumer Protection Act was enacted in 2005 to include private student loans as one of the 10 debts that can't be forgiven.Robert Siegel talks with Stephen Burd, senior research fellow in the Education Policy Program at the New America Foundation,… more

New America Senior Research Fellow Stephen Burd appeared on the April 24 edition of CNN's "Lou Dobbs Tonight." A partial transcript is available below; for the full story please visit the CNN website.

ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Tuesday, April 24th.Live from New York, Lou Dobbs.DOBBS: Good evening, everybody... DOBBS: The rapidly rising cost of a college education in this country creating an almost unmanageable… more

WASHINGTON — SLM Corp., the nation's largest student lender that is soon to become a private company, said Tuesday its first-quarter profit shrank 24 percent as more students missed payments on loans.The earnings decline at SLM, commonly known as Sallie Mae, reflects the higher risk of student loans not guaranteed by the federal government. Those private loans, which constitute about 16 percent of Sallie Mae's nearly $150 billion portfolio, do not have their interest rates capped as many… more

Colleges and college aid officials have been funneling their students to big banks like Sallie Mae and Citibank in exchange for cash, gifts and in-kind benefits, according to a series of recent public investigations, the most energetic of which is being led by New York State Attorney General Andrew Cuomo.

Thus far, the investigations have resulted in the suspension of 10 higher education officials, including Columbia University's director of financial aid, the issuance of almost 100 subpoenas nationwide, and… more

NEW YORK (Reuters) - The widening U.S. student lender scandal is putting new scrutiny on the ties between private loan companies like Sallie Mae and the government agencies that oversee federal loan programs.

A number of top U.S. Department of Education officials in President George W. Bush's administration previously had worked for student lenders or related groups. Critics say these links have led to weak monitoring of federal loan programs and contributed to the turmoil surrounding the $85 billion student loan… more

In the past two weeks, New York Attorney General Andrew M. Cuomo (D) has roiled the $85 billion student loan industry with a sweeping conflict-of-interest probe, extracted settlements from major financial institutions, and set the agenda for lawmakers and regulators in Washington.It is a bold -- and, some analysts say, unexpected -- approach to a politician's first 100 days in office as he strives to fill the shadow of predecessor Eliot L. Spitzer (D), who defined the role… more

The proposed $25 billion sale of student lending giant Sallie Mae yesterday to a group including two private-equity firms, Bank of America Corp. and JPMorgan Chase & Co., caps a period of upheaval in the $85 billion college-loan market...Sallie Mae's shares had fallen this year as it faced growing competition, a settlement with the New York attorney general over its practices, and a proposed reduction of the federal subsidies that threatens its core business model. Here's how the… more

It is not often that one’s research topic is the lead story in the national media, but the topic of financial aid has been in the forefront of the American consciousness from San Diego (home of Student Loan Xpress) to Albany, N.Y., (home to New York Attorney General Andrew M. Cuomo) and points in between.The stories of scandals, kickbacks, influence peddling, and fleecing — to highlight just a few of the phrases used by politicians and reporters —… more

A Department of Education official who oversaw the student-loan industry and owned at least $100,000 worth of stock in a student-loan company has been placed on leave, a department spokeswoman said this month. Matteo Fontana, who keeps an eye on lenders and loan guarantors that participate in the Federal Family Education Loan Program, was placed on leave with pay April 6, a day after his ownership of stock in Education Lending Group Inc. was disclosed by Higher Ed… more

Students with loans typically receive a barrage of solicitations for loan consolidations and other services in their mailboxes, and they often wonder how the advertisers got their names and addresses. Recent reports suggest they may have come from the U.S. Education Department itself.As first reported in the Washington Post, lenders have been improperly using the department's National Student Loan Data System to gain access to student loan information, including names and loan balances. Congress authorized the creation of… more