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As Federal Aid Goes Up, College Costs Rise Enough to Gobble It All Up
http://www.motherjones.com/kevin-dru...-gobble-it-all
Human-Americans are wealth-sucked and forced into debt every which way they turn. Lambs to the slaughter.
ITT Educational Services Under Increased Scrutiny From SEC, Department Of Education
Could ITT Educational Services be the next large for-profit company facing collapse? Things might not be that dire for the parent company of ITT Technical Ins ute, but the ins ution recently revealed it’s under increased government examination that could result in the loss of federal funds.
According to the Wall Street Journal, ITT received a notice from the Securities and Exchange Commission indicating that the regulator may pursue a cease-and-desist order and fines against the education company.
ITT’s latest regulatory filing [PDF] sheds more like on just what’s brewing between the regulator and the company.
The company admits it has been under investigation by the SEC concerning two private education loan programs for students. In early August the company received a Wells Notice from the SEC telling ITT that regulators had made preliminary determinations to recommend that regulators file an enforcement action against the company.
According to the ITT filing, the recommended enforcement action could include a civil injunctive action, public administrative proceedings or civil monetary penalties.
A Wells Notice isn’t a formal allegation or a finding of wrongdoing, instead it indicates that the SEC staff has determined it may bring a civil action against a person or firm, and provides the person or firm with the opportunity to provide information as to why the enforcement action should not be brought.
Officials with ITT say they intend to “defend itself vigorously against any legal action taken by the SEC.”
http://consumerist.com/2014/09/19/it...-of-education/
As Federal Aid Goes Up, College Costs Rise Enough to Gobble It All Up
http://www.motherjones.com/kevin-dru...-gobble-it-all
Human-Americans are wealth-sucked and forced into debt every which way they turn. Lambs to the slaughter.
And that's how it always will be.As Federal Aid Goes Up, College Costs Rise Enough to Gobble It All Up
http://www.motherjones.com/kevin-dru...-gobble-it-all
Human-Americans are wealth-sucked and forced into debt every which way they turn. Lambs to the slaughter.
When you increase the money, supply and demand dictates just that. We are harming our society by providing for so much in student loans.
bull
colleges have been adding 10Ks of non-teaching "staff", administrators, etc rather than investing in teaching faculty and education.
btw, lots of adjunct professors, doing piece work, "gigs", live precariously, are on public assistance.
You forgot:
/rant
It's almost as if government intervention into the market ends up making everything more expensive for the customer!As Federal Aid Goes Up, College Costs Rise Enough to Gobble It All Up
http://www.motherjones.com/kevin-dru...-gobble-it-all
Human-Americans are wealth-sucked and forced into debt every which way they turn. Lambs to the slaughter.
You anti-govt takes are as ty as all Repugs, rightwingnuts.
The worse scam is govt student loans to for-profit "colleges" and like Liberty University, Oral Roberts and any loans for theological study.
It's just a fact. The Higher Education Act under LBJ is the root source of the student loan crisis and tuition bubble.
agreed. i dont think throwing more money at schools is gna fix . they have to fundamentally change the way they're spending
govt is not throwing money at schools, it lending money to students, but the schools, greedy as any bankster, keep buildin administrative empires of paper pushers and political bull ters, plus building luxury student apartments for spoiled brats en led to luxury, rather concentrating on education.
bull , really really bull , not a fact, It's Just, Like, Your Opinion, Man.
the government funds the schools that are charging outrageous tuitions... and then the schools whine about needing funding... see: uc system, prop 30 in CA
We're talking about Fed support for students, not the state university systems, state support of which, esp red states, has been cut way back, eg, Kockenstein monster Walker cutting $300M from UWisc.
As a result, even state schools are raising tuition outta reach, adding innumerable fees as bad as airlines and banks, to make up the cuts from the state. It's all part of the VRWC War of Education.
Unis are also ramping up their foreign student enrollments because those students nearly always pay full freight, no aid, no grant, no loans.
there wouldn't be the need for huge student loans if govt funded schools werent charging outrageous tuitions due to ty money management and inefficient spending
The taxpayer subsidies remove any incentive for colleges to charge a reasonable tuition, tbh. They just jack up the price every year, find a few suckers willing to pay it, and then keep getting them handouts.
Student Loan Debt Causing Millennials To Delay Marriage, Kids, Home-Buying
http://consumerist.com/2015/08/05/st...s-home-buying/
So paying debt+interest to the financial sector stops people from building their own wealth, making investments, and stimulating the economy
Colleges Flush With Cash Saddle Poorest Students With Debt
A ProPublica analysis of newly available federal data shows that some of the nation’s wealthiest colleges are leaving their poorest students with plenty of debt.
New York University is among the country’s wealthiest schools. Backed by its $3.5 billion endowment, the school has built campuses in Abu Dhabi and Shanghai, invested billions in SoHo real estate, and given its star faculty loans to buy summer homes.
But the university does less than many other schools when it comes to one thing: helping its poor students.
A ProPublica analysis based on new data from the U.S. Department of Education shows that students from low-income families graduate from NYU saddled with huge federal loans. The school’s Pell Grant recipients – students from families that make less than $30,000 a year – owe an average of $23,250 in federal loans after graduation.
That’s more federal loan debt than low-income students take on at for-profit giant University of Phoenix, though NYU graduates have higher earnings and default less on their debt.
NYU is not the only university with a billion-dollar endowment to leave its poorest students with heavy debt loads. More than a quarter of the nation’s 60 wealthiest universities leave their low-income students owing an average of
more than $20,000 in federal loans.
At the University of Southern California, which has a $4.6 billion endowment, low-income students graduate with slightly more debt than NYU’s graduates: $23,375. At Boston University ($1.5 billion endowment), it’s $27,000, and at Wake Forest University ($1.1 billion endowment) low-income students graduate with $29,150 in debt.
This new data on student debt is drawn from numbers that the Obama administration assembled as part of a planned effort to create grades for every college. In the face offierce lobbying from universities, the administration backed away, but has made much of the data public on a new website called College Scorecard. ProPublica has used that material to create Debt By Degrees, an interactive database that allows you to search information for almost 7,000 schools. The data provides an unprecedented level of detail on the financial burden that the poorest college students face, showing for the first time how much federal debt poor students take on compared to their wealthier peers, and how well these students are able to repay their loans. The database also shows how much graduates earn on average after leaving school.
The implications of these numbers can be far-reaching. Studies have shown that even small debts can increase a student’s chances of dropping out, particularly for minorities and low-income students. Also, federal loans, which are typically capped at $27,000 over four years, often don’t cover the full expense of college. Many students also take on private bank loans or work jobs outside school.
“Student debt is not the same to every borrower,” said Mark Huelsman, a senior analyst at Demos, a public policy nonprofit. “It can look a lot different to a first generation student from a very modest economic background than to someone going to graduate school getting a law degree.”
Indeed, undergraduates take a fraction of the loans of graduate students but default at much higher rates. Debt can put low-income young adults at a disadvantage for years to come, limiting a graduate’s ability to save, get a mortgage, or get the job they aspire to.
“At the end of the day, you’re talking about households that don’t have nearly as much wealth to fall back on,” said Huelsman.
Rebecca Arthur wanted nothing more than to study photography at Tisch, NYU’s arts school. Her mother, however, made less than $25,000 a year working at a nursing home, so Arthur knew the school’s four-year price tag of over $250,000 would be a stretch. When Arthur was accepted, she was shocked – not only because she had gotten into her dream school, but also because the school only offered modest financial aid.
“The first bill was $32,000 and it was more than my mom made in a year,” she said. “Why would they accept me if they knew I couldn’t afford it?”
Arthur tried to crowdfund the remaining amount of her tuition, but it was only when her mother died a month before school started that NYU agreed to take a second look at her financial aid package. Although they increased her aid, she works four jobs and expects to graduate with over $24,000 in loans.
“The one downside to NYU is that money is always a big problem,” said Arthur, who is now a sop re at the university. “People that really want [to go to NYU] and deserve it shouldn’t have to fight for it.”
NYU students from poor families graduate with big loans — more than low-income students at the University of Phoenix. (Robert Mecea/AP)
In response to recent criticism of its financial priorities, NYU says it has more than doubled financial aid in the last decade and that average student debt has decreased significantly in the past five years. The school also enrolls a greater percentage of Pell Grant recipients than other elite schools. Finally, NYU points out that its endowment is actually quite modest on a per-student basis, since NYU has far more students than many other elite universities.
“NYU is deeply concerned about the issues of cost and debt,” John Beckman, NYU’s vice president for public affairs, told ProPublica. “NYU has made tremendous strides in improving financial aid.” NYU’s full responsecan be found here.
While NYU students average debt from both federal and private loans has gone down in the past five years, it’s about the same as a decade ago. And though NYU’s financial aid has doubled over the past decade, its revenue from tuition and fees has nearly doubled as well. Faculty and students haveprotested NYU’s $6 billion expansion plan, saying more should be spent on financial aid.
A government report released today along with the data noted just how wide a disparity there can be in the prices poor students pay at compe or schools: Poor students pay an average of $8,086 per year at Columbia University ($8.2 billion endowment) versus $25,441 at NYU.
“Schools talk so much about how they’re about helping low-income students,” said Stephen Burd, a senior policy analyst at New America Foundation. “But their words and actions are so different.”
Overall, students at nonprofit universities fare far better than those at for-profit schools and community colleges. One recent study shows that students at public and nonprofit schools typically have lower default rates and higher earnings.
Out of the nearly 2,000 nonprofit colleges that ProPublica analyzed, a handful of wealthy schools do particularly well in serving the needs of low-income students.
Vassar College, with an endowment of close to $1 billion, charges its poorest students a quarter of what NYU does, and they graduate with less than half the debt.
Only a decade ago, Vassar looked little different than NYU. However, in 2006, the school hired a new president, Catharine Bond Hill, an academic who specializes in college access and affordability. During her first few years, Hill ins uted need-blind admissions, accepting students regardless of their financial background. She also created a policy of replacing loans with grants to poorer students. And to bolster low-income applicants to the school, she initiated an aggressive recruiting campaign in poorer neighborhoods, partnering with pre-existing college prep programs.
After 10 years, these changes have made Vassar one of the most affordable colleges in the country for low-income students. Today, over 20 percent of Vassar students receive Pell Grants. That’s double the percentage of low-income students of a decade ago.
“Schools that have the resources should be giving out more in need-based grant aid,” Hill told ProPublica.
Other schools that have helped level the playing field for low-income students includeAmherst College and Williams College, both in Western Massachusetts. Nearly 20 percent of students at these schools receive Pell Grants and they graduate with less than $10,000 of federal loans. Berea College in Kentucky charges no tuition and only accepts low-income students.
Vassar’s Hill told ProPublica that other wealthy schools need to do more to recruit low-income students and to make college affordable for them. A White House report that accompanied today’s data release notes that poor kids are often discouraged by schools’ sticker prices, and do not know that they might qualify for financial aid.
“We know there are talented students out there and recent work has shown there are ways to get them into our pools,” Hill said.
Harvard ($35.9 billion endowment), Princeton ($20.9 billion endowment), and Yale($23.9 billion endowment) all give generous support and even free tuition to low-income students. But they do not enroll many of them. At Harvard, only 10 percent of the students receive Pell Grants.
Asked about their modest number of low-income students, a Harvard official said that school is committed to enrolling the best students, regardless of their financial cir stances.
http://www.propublica.org/article/co...ent=&utm_name=
New Budget Grants Debt Collectors Right to Bombard Student Borrowers With Robocalls
A provision in the budget deal that passed the House on Wednesday will allow debt collectors to harass student loan borrowers with unlimited automated calls and text messages, even when they are asked to stop.
The new rule will add significantly to the anxiety of the nation’s already-distressed borrowers, many of whom are disabled financially by an economy that does not provide adequate wages.
National student loan debt is now over $1.2 trillion, a sum greater than what the entire U.S. population owes on credit cards. In 2013 alone, the U.S. government collected $51 billion from interest charged to the nation’s youth.
Lee Fang reports of the robocall provision at The Intercept:
The change is a major victory for the debt collections industry, which has retained a small army of lawyers and lobbyists for years to weaken the Telephone Consumer Protection Act, the law that protects people from unwanted robocalls and pre-recorded messages.
It’s also a big win for the small network of lobbyists within outgoing Speaker John Boehner’s inner circle, a cadre nicknamed “Boehnerland” by D.C insiders. …
President Barack Obama also supports changing the law to allow more automated calls by debt collectors.
Consumer advocates are livid that congressional leaders, including Boehner, Democratic Leader Nancy Pelosi, D-Calif., and Senate leaders, would agree to such a deal.
http://www.truthdig.com/eartothegrou...+the+Headlines
Senators Say They Will Try To Reverse Robocall Exemption For Federal Debt Collectors
http://consumerist.com/2015/10/29/se...bt-collectors/
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Last edited by boutons_deux; 10-29-2015 at 09:02 PM.
Fukk Yahh! I'm going back to school when I retire and max out my student loans. , I might get 2 or three PHD's. I just love free that doesn't have to be paid back.
Federal Government Finally Forgives Billions in Debt of Students Who’ve Become Disabled
The move comes after a ProPublica investigation that do ented how the government was making it hard for disabled borrowers to get their loans forgiven.
The federal Department of Education said on Tuesday it would offer to write off $7.7 billion of student debt owed by disabled individuals, taking a big step to streamline a loan forgiveness program long plagued by bureaucratic delay and inefficiency.
Starting April 18, loan forgiveness letters will go out to approximately 387,000 borrowers who have been identified as totally and permanently disabled by the Social Security Administration, allowing them to sign and file a simplified application form to have their debt forgiven.
The move was enabled by changes in the department’s regulations governing the loan forgiveness program, which resulted from a 2011 ProPublica investigation published in partnership with Columbia’s Stabile Center for Investigative Journalism and the Center for Public Integrity.
Under federal law, borrowers who develop severe and lasting disabilities after taking out federal student loans are en led to have their debts forgiven. As we noted in our investigation, the purpose of the rule was to spare former students who become disabled from a lifetime of ruined credit, garnished Social Security benefits, and spiraling debt.
But the investigation found that borrowers who become disabled faced such a high hurdle for proving their disability to the department — and obstacles such as unclear rejection letters and lack of medical standards for proving disability — that many simply gave up.
In one case, a borrower in a vegetative state was placed into default for failing to provide the department with income verification, according to an internal Department of Education Ombudsman Report that outlined problems with the program.
In another case do ented in our February 2011 story, Tina Brooks, a former policewoman who had been severely injured during a training accident, could not get her $43,000 of student debt forgiven despite the fact that a Social Security judge had ruled she was fully disabled.
Internal reports showed the ombudsman had twice warned that the loan forgiveness program was flawed and needed to be reformed. But the Department of Education had ignored calls for reform from within and outside the agency.
That began to change after the story ran. Within a few weeks, the department forgave Brooks’ student debt. The following year it proposed reforms which took effect in 2013and allowed the Department to use the Social Security Administration’s disability designation to qualify applicants for loan discharge.
https://www.propublica.org/article/f...ent=1460649075
Being intellectually disabled, emotionally stunted don't qualify, so you rightwingnuts, bubbas, kickers, gun fellators are out of luck.
Trump administration rolls back protections for people in default on student loans
Days after a report on federal student loans revealed a double-digit rise in defaults, President Trump’s administration revoked federal guidance Thursday that barred student debt collectors from charging high fees on past-due loans.
The Education Department is ordering guarantee agencies that collect on defaulted debt to disregard a memo former President Barack Obama’s administration issued on the old bank-based federal lending program, known as the Federal Family Education Loan (FFEL) Program.
That memo forbid the agencies from charging fees for up to 16 percent of the principal and accrued interest owed on the loans, if the borrower entered the government’s loan rehabilitation program within 60 days of default.
https://www.washingtonpost.com/news/...=.2ca674832fba
How about we just stop handing out tens of thousands of dollars in loans to children with no work history and no credit? Without government insured loans, colleges might actually have to reduce costs so that people could afford school.
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