Tag Archives: federal student loans

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Student-Loan Watchdog Digs Beneath the $1-Trillion Debt Tally

The Consumer Financial Protection Bureau has taken a microscope to the $1-trillion in federal student-loan debt and found that more than 9 percent of that amount is in default.

Over all, about seven million borrowers have defaulted on federal or private student loans, while about a third of federal direct-loan borrowers have sought to delay or lower their repayments, the bureau’s ombudsman, Rohit Chopra, wrote in a blog post on Monday.

The bureau’s analysis of data collected by the U.S. Departme…

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Proposed Student-Loan Reforms Set Activists and Lawmakers at Odds

Washington — With interest rates on federal student loans set to double this summer, student-advocacy groups have intensified their calls for Congress to find a way to avoid the increase, and lawmakers are scrambling to pass legislation that would overhaul the student-loan system.

President Obama’s loan-reform proposal, which he released on Wednesday as part of his budget for the 2014 fiscal year, suggests switching to a market-based rate, in which interest rates would be set annually and fixe…

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Proposal for Overhauling Student-Loan Program Gets Mixed Reviews

Washington — Legislation introduced in Congress this week that would overhaul the federal student-loan programs by changing how interest rates are set and how borrowers repay their loans is getting mixed reviews from student-aid advocates.

The bill, sponsored by Rep. Thomas E. Petri, a Wisconsin Republican, is unlikely to progress through Congress anytime soon, but the proposal could be debated as part of the next reauthorization of the Higher Education Act, which would happen next year at the e…