January 4, 2009
Thank you for highlighting this new economic scam. ("Students learn too late the costs of private loans," Dec. 27.) I received federal loans that did not cover everything, and I was referred to the Signature Student Loan from Sallie Mae by my school in Pittsburgh. I received my master's degree in psychology, and I currently owe more than $60,000 in both federal and private loans. To make things impossible, I owe about $600 a month for the next 30 years, and I only make $30,000 a year.
December 27, 2008 |
Natalie Hickey left her small hometown in Ohio six years ago and aimed her beat-up Dodge Intrepid for the West Coast. Four years later, she realized a long-held dream and graduated with a bachelor's degree in photography from Brooks Institute in Santa Barbara. She also picked up $140,000 in student debt, some of it at interest rates as high as 18%. Her monthly payments are roughly $1,700, more than her rent and car payment combined.
August 19, 2012 |
Dear Liz: I co-signed some private student loans for my youngest child. She graduated two years ago with about $80,000 in student debt, including federal and private loans. Like many other recent graduates, she has had a difficult time finding a job. She worked part time at a retail store until about a month ago and made around $7,000 annually. I have been helping her make reduced payments and she has gotten deferments and income-based repayment plans. But I'm planning to retire in a few months and won't be able to make the payments as I have been.
August 9, 2013 |
Dear Liz: Our son went to an expensive private school and ended up with more than $100,000 in federal and private loans by the time he graduated. My wife cosigned a private loan for $25,000 for the first year, and that was the last we heard of any loans until he graduated with a degree in social services. After he was out of school for six months, we started getting phone calls asking for payment. Turns out he electronically signed my wife's name to the next three years of his student loans.
February 26, 2014 |
[ Updated 1:45 p.m. PST Feb. 26: This post has been updated to include a response from ITT Educational Services and to reflect the closing stock price.] In its first action against a company in the for-profit college industry, the federal Consumer Financial Protection Bureau on Wednesday sued ITT Educational Services Inc., which operates 149 schools in 40 states, including 14 in California. The consumer protection agency alleges that ITT used high-pressure tactics over a five-month period beginning in July 2011 to coerce students into high-interest private loans that were likely to end in default.
January 30, 2008 |
Corinthian Colleges Inc., the for-profit provider of post-secondary education, said Tuesday that its fiscal second-quarter profit tripled. However, the company also reduced its earnings forecast as it braced for student loan cutbacks. Net income rose to $8.11 million, or 10 cents a share, from $2.58 million, or 3 cents, a year earlier, the Santa Ana-based company said. Revenue for the quarter ended Dec. 31 increased 16% to $272.6 million. Corinthian and other education companies are preparing for a halt in lending by SLM Corp.