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Warren: Student Loans Are A 'one-two Punch' For Women - Upi.com

As Democrats push for vote on Sen. Elizabeth Warren's student loan debt refinancing bill, dozens of groups step up to endorse it | masslive.com

"It is a drag on our economy," Warren said. "It's harder for young people to buy homes, to start businesses, and to begin their economic lives." Warren, flanked by fellow Democrats Barbara Mikulski of Maryland, who sponsored the equal pay legislation blocked by Republicans last month , Dianne Feinstein of California, Patty Murray of Washington, Debbie Stabenow of Michigan, Tammy Baldwin of Wisconsin, and Maisie Hirono of Hawaii, called the combination of soaring student loans and paycheck inequality a "one-two punch for women." Although the number varies depending on how it is measured, most studies find women earn between 15 and 33 cents less than men when equally qualified to do the same work. The number for college-educated women, the senators said, is $0.82. "Young women are working hard to build an economic future for themselves," she said. "Right now, they face an extra tax." The Banking on Students Emergency Loan Refinancing Act would allow student borrowers to refinance their loans to 3.86 percent interest -- the level matching the level set by Congress last year for new borrowers and would be paid for by enacting the so-called Buffett Rule that eliminates a tax loophole allowing millionaires to pay low tax rates. "Young women are hit by a double whammy by ever-increasingly high student debt," Mikulski said. "They deserve a fair shot at higher education they can afford." Research has showed that, despite the continued value of holding a college degree, the rising costs have weighed increasingly heavily on America's young people. Rohit Chopra, the student loan ombudsman at the Consumer Financial Protection Bureau, testified before the Budget Committee Wednesday that multiple studies have found student debt has kept an entire generation from buying homes, starting businesses and saving for retirement. Richard Vedder, the director for the Center of College Affordability and Productivity, argued the problem was not mounting debt -- at least not directly. Vedder, who was invited by the ranking member to testify, said the student loan programs have caused college tuitions to skyrocket beyond the pace of inflation as schools happily collect federal dollars to build expensive facilities and court donors.
Puedes ver la version sin traducir en http://www.upi.com/Top_News/US/2014/06/04/Female-senators-tie-college-loan-push-to-equal-pay/2071401890697/

Student Loan Servicing: The Borrower?s Experience

We are just honest, hard-working people who are being run over by a corporation. Please help! - Jennifer Martens, North Aurora, Ill. Dear Jennifer: If Franz Kafka were alive today, we're thinking this Ocwen story would make a nice plotline: You had your loan servicer unwittingly switched, but you paid your bills. Ocwen's own account statements said you paid your bills, and your bank said you paid your bills and then Ocwen said you didn't pay your bills. And then Ocwen said they could see that you did pay your bills, but they couldn't make their computer say you paid your bills. What a headache. Seriously, though, your account was pretty screwed up. When the ABC News Fixer contacted them about the problem, Ocwen told us they had escalated the case and were urgently trying to fix it. The good news is you had plenty of documentation showing you had made your loan payments on time.
Puedes ver la version sin traducir en http://abcnews.go.com/Blotter/loan-company-demands-payment-family-proof-paid/story?id=23991963

Is Your Student Loan Servicer Ruining Your Credit? - Forbes

[12] College costs have risen more than health care costsby some estimates, twice as much [13] and faster than increases in the price of food. Increases in tuition and fees over the past 30 years suggest that growth in federal subsidies such as loans and grants has done little to mitigate the college cost problem. A Better Path Forward In order to make college more affordable, federal policy should do three things: Stop the higher education spending spree; Employ fair-value accounting to understand the cost of federal student loans; and Decouple federal financing from accreditation Stop the Higher Education Spending Spree If history is any guide, continuing to increase federal subsidies will fail to drive down college costs. Some experts and economists even argue that such subsidies enable universities to raise tuition, confident that students will be able to access a virtually open spigot of federal funds. In 2014, the $33 billion Pell Grant program provided grants to 9 million college students, making it the largest share of the federal education budget. [14] Congress grew the Pell Grant program in 2007 by expanding eligibility and funding, resulting in a doubling of the number of Pell recipients since 2008. In order to control higher education spending, Pell Grant funding should be targeted to the low-income students the grants were originally intended to help. In addition, as long as the federal government finances federal student loans, it should use fair-value accounting practices to get an accurate measure of what these programs are costing taxpayers, to ensure the loans use a non-subsidizing interest rate. Fair-Value Accounting In a report released last month, the Congressional Budget Office (CBO) calculated that the four largest federal student loan programsSubsidized Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, and Parent PLUS Loanswill cost taxpayers money, not result in a net gain (a negative subsidy) for the federal government as is often claimed. While the report states that the four loan programs will yield a savings of about $135 billion from 2015-24, CBO calculates in the same report that using fair-value accounting measures, the four loans would actually have a net cost of $88 billion over the next 10 years, not including administrative costs. In other words, the four largest student loan programs represent an $88 billion taxpayer-financed subsidy.
Puedes ver la version sin traducir en http://www.heritage.org/research/testimony/2014/06/student-loan-servicing-the-borrowers-experience

On Wednesday, several organizations centered on everything from education and lending to labor and progressive activist groups announced they were backing the legislation . "Right now, homeowners can do it. Businesses can do it. Even local governments can refinance their debts when interest rates are low. But most people have no options for their student loans," Warren said in an email to supporters this week. "The idea behind this bill is simple. Last year, Republicans and Democrats came together to lower the interest rates on new undergraduate loans to 3.8%. But nothing was done for the millions of people who have older student loans at 6%, 8%, 10% and even higher interest rates. They were just stuck paying -- and paying and paying." Which is why Warren's bill would allow people to refinance student loans under the current rates. It would also allow those who have student loan debt through private financial institutions to refinance it under the federal program, under the lower interest rates. In proposing the bill, Warren pointed to a report released by the Government Accountability Office in January which determined that based on the student loans issued between 2007 and 2012, the federal government stood to profit to the tune of $66 billion from the interest alone.
Puedes ver la version sin traducir en http://www.masslive.com/politics/index.ssf/2014/06/as_democrats_push_for_vote_on.html

Loan Company Demands Payment, Family Has Proof They Already Paid - ABC News

You need to be vigilant What Student Loan Servicers Do The student loan servicing companies are designated by the Department of Education to collects payments, responds to customer service inquiries, and perform other administrative tasks associated with maintaining a federal student loan. Once you apply for a Federal Student loan, the Department of Education assigns your loan to one of its designated loan servicing companies. These companies will disperse the loan to your school, send your statements, and then collect your payments once you graduate. These companies are also the ones that can help with different student loan repayment plans, as well as deferment and forbearance needs. Finally, they are also the ones that will try to collect on loans that havent been paid, including reporting borrowers to the credit bureaus and seeking wage garnishments. These companies are essentially the paperwork keepers for your student loan. How Student Loan Companies CanAccidentallyHurt Borrowers Credit Scores Its the last area that these companies can really impact student loan borrowers these are the companies that report borrowers to the credit bureaus and seek repayment on student loan debt. They can also cause tax nightmares for borrowers because of this. The problem lies in the fact that these companies transfer student loans back and forth amongst themselves all the time. Its not common for a borrower to have their loan transferred two or three times before they graduate.
Puedes ver la version sin traducir en http://www.forbes.com/sites/robertfarrington/2014/06/03/is-your-student-loan-servicer-ruining-your-credit/

Cov-lite Loan Controversy Fades To Whisper While Portfolio Managers Chase Yield - Forbes

English: The door to the walk-in vault in the ... The market is what it is and we have to go with whats out there. Still, its a matter of debate as to whether the superior performance of cov-lite loans during the 2007-08 default cycle is repeatable. Cov-lite apologists rely on data from that cycle showing that first lien cov-lite loans defaulted at a lower rate than the overall market, and, when they defaulted provided better recoveries, according to a special report published by DDJ Capital Management , citing data from Moodys Investors Service and S&P Leveraged Commentary & Data . But a host of factors imply that the market should not necessarily expect a repetition in the next cycleof any superior performance stats the 2008 cycle spawned, and that isolating a cov-lite effect is virtually impossible, several investors noted in interviews with Debtwire . For one, the drastic central bank intervention in the financial system beginning in 2008 quickly stabilized then helped improve the economy. That action, which helped cut off distress before it pushed more levered companies into restructuring, is unlikely to be repeated in future cycles. The differences between then and now also include the quality of the cov-lite component of the market which has broadened substantially. During the last cycle, cov-lite was largely the province of borrowers with better credit ratings that investors could justify didnt even really need the looser structures, sources agreed. Now cov-lite loans are accessible for most levered issuers. In 2006 and 2007, only 24.5 percent and 32.7% percent of cov-lite issuers were rated single-B or below, compared with 57% last year, said the DDJ report. Cov-lite loans also represented a much smaller percentage of the whole during the last cycle 7.4 percent of new issuance in 2006 and 25 percent in 2007, the report said.
Puedes ver la version sin traducir en http://www.forbes.com/sites/mergermarket/2014/06/03/cov-lite-loan-controversy-fades-to-whisper-while-portfolio-managers-chase-yield/

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