Student Loan Blog

Student loan lenders and holders of student loan securities are set to be among the beneficiaries of a $1 trillion government plan unveiled by Treasury Secretary Timothy Geithner this week to jump-start the credit markets and encourage private sector lending, CNNMoney reports (“$1 Trillion To Boost Lending,” Feb. 10, 2009). As part of the ...

Despite being hampered last year by a lack of investors and a lack of access to credit, federal student loan lenders are surviving the economic crisis — making the student loan market one of the few lending industries still able to thrive this year, The Wall Street Journal reports (“Tuition Ammunition: a Happy Lesson on Lending,” Jan. 6, ...

Despite New York’s $15 billion budget deficit, Gov. David Paterson announced he is creating a student loan program that would allow New York college students to borrow $350 million in low-cost private student loans directly from the state, reports The New York Times (“Governor to Unveil a Low-Cost Student Loan Program,” Dec. 15, 2008). State ...

After ranking number one in the nation for student loan defaults for the last four years, Nevada managed to come in fifth this year with a 7.4-percent default rate based on the Education Department’s data for borrowers who began repaying their loans between October 2005, and September 2006. To combat the state’s consistently high default rate, ...

With problems in the credit markets continuing to plague student loan providers, the U.S. House of Representatives overwhelmingly approved a year-long extension of the Ensuring Continued Access to Student Loans Act, which allows the secretary of education to buy student loans from cash-strapped lenders. If approved by the Senate, the measure, ...

For the first time in its nearly 30-year history, The Massachusetts Educational Financing Authority won’t be offering student loans this fall to the 40,000 borrowers it serves, according to an article in The New York Times (“Agency in Massachusetts Is Stopping College Loans,” July 29, 2008). Citing the troubled economy and fallout from the ...

A student-loan borrower has filed a class-action lawsuit against student-loan lender Northstar Higher Education for allegedly breaking its contract with borrowers. In the suit, filed Monday with the U.S. District Court in Los Angeles, Northstar is accused of breaking its contract by eliminating its “Total Higher Education Repayment Bonus,” a ...

College graduates preparing to enter critical fields like nursing and teaching may no longer be able to take advantage of programs that previously offered them a break on their student loans. In at least six states this year, state-affiliated lenders have dropped or scaled back programs that repay or forgive a portion of a borrower’s federal ...

A number of lenders who abandoned the federal student loan market in recent months may be returning, in light of a new law designed to keep struggling lenders afloat, according to a Dow Jones Newswires article. Many of the 102 companies that scaled back or withdrew from the Federal Family Education Loan Program, in which federal student loans ...

Students at community colleges, for-profit universities, and other less competitive institutions may have trouble finding a lender willing to offer them federal student loans as some of the nation’s biggest banks pare down the list of schools they serve, according to an article that appeared today in The New York Times (“Student Loans Start to ...