Too Big To Fail bank JP Morgan Chase will stop making student loans according to documents reviewed by Reuters. According to the documents the megabank is leaving the student loan business out of concern that competition with the federal government will reduce profit opportunities. But given the state of the student loan market the move will inevitably raise other questions.
|By: DSWright Friday May 10, 2013 12:25 pm|
As a recent study indicates that college and universities are giving financial aid to rich students at the expense of poor ones Senator Elizabeth Warren is offering a bill to bring student debt relief. Warren says students should get the same rates as Wall Street.
|By: TomThumb Sunday April 7, 2013 7:18 am|
Old Guy with the Dog takes a deep breath and looks up at the tall buildings, then up at the sky, and says, “Something’s got to give.”
|By: David Dayen Wednesday November 28, 2012 12:10 pm|
Student debt was a prime motivator for the Occupy movement. Some real oversight in higher education costs would go a long way toward driving that problem back down. But the easy accessibility to lending should raise concerns as well.
|By: David Dayen Monday October 22, 2012 9:00 am|
The Consumer Financial Protection Bureau released an eye-opening report on student lending late last week that got me thinking about a simple truth I think I had overlooked previously. I’ve documented for well over a year the extent to which mortgage servicers make their profits almost entirely through ripping off their customers, adding on unnecessary fees, and basically using opaque processes to skim money off the top.
|By: John Washington Wednesday August 15, 2012 4:25 pm|
Our presentation this week will focus on the student debt crisis — and the activism surrounding this important issue.
|By: David Dayen Friday July 20, 2012 3:50 pm|
The Consumer Financial Protection Bureau has delivered a report to the Senate Banking Committee on the rise of the private student loan industry. This industry took a hit after 2010, when the Affordable Care Act included a provision that ended the practice of private banks administering student loans guaranteed by the government, and just had the government issue the loans themselves. Private student debt origination grew from $5 billion in 2001 to $20 billion in 2008, but after the 2010 law, the market contracted to under $6 billion. The recession and tightening credit standards also had something to do with that.
But those loans from 2001 to 2008 are still out there, for the most part, particularly from the 2005-2007 period. And just like in the housing bubble, this period was characterized by reduced underwriting standards and a kind of “subprime” market.
|By: David Dayen Friday June 29, 2012 2:22 pm|
Congress has quickly passed a series of bills, consolidated into one package, that freezes federal student loan interest rates at 3.4% for one year, and extends surface transportation funding for two years. The package also reauthorizes the federal flood insurance program for five years. Congress was clearly eager to get out of town for the Fourth of July recess, because they passed this giant package, in both chambers, in one day.
|By: David Dayen Friday June 29, 2012 10:23 am|
Lost in the shuffle yesterday amid the health care ruling and the contempt citation for Eric Holder was the deal reached on a minibus package for freezing student loan interest rates, extending surface transportation funding for two years, and reauthorizing for five years the flood insurance program. That package will get House and Senate votes by this afternoon, just beating key deadlines on all three measures, and allowing Congress to go home for the July 4th recess.
|By: David Dayen Thursday June 28, 2012 6:25 am|
As we await the Supreme Court ruling on health care, two of the other major stories of the week have reached a conclusion. Congress has reached agreement on a compromise package that will avert three separate deadlines and deliver some of the more robust lawmaking of the entire year to date.