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REAL ESTATE
July 13, 1986
Private primary financing totaling $3,075,000 has been arranged by City Bond & Mortgage Corp., a Pasadena mortgage banking firm, through Mercury Savings & Loan Assn. to assist in the development of 85 affordable rental units in the Temple-Beaudry and Hollywood Hills revitalization areas of Los Angeles.
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BUSINESS
February 26, 2014 | By Ricardo Lopez
[ 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.
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NEWS
December 26, 1992 | From Times Staff and Wire Reports
Bill Clinton's inauguration will be largely financed with private loans, the same controversial method used to pay for President Bush's in 1989. Clinton's inaugural committee needed about $17.5 million in loans to stage the five-day gala, expected to cost more than $20 million, said spokesman Richard Mintz. He said the money would be repaid from sales of souvenirs, tickets and commercials.
BUSINESS
August 9, 2013 | Liz Weston, Money Talk
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.
BUSINESS
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.
BUSINESS
December 27, 2008 | Kathy M. Kristof
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.
BUSINESS
August 19, 2012 | Liz Weston, Money Talk
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.
BUSINESS
February 26, 2014 | By Ricardo Lopez
[ 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.
BUSINESS
August 9, 2013 | Liz Weston, Money Talk
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.
BUSINESS
January 30, 2008 | From Times Wire Services
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.
OPINION
June 22, 2013 | By Adam B. Wolf
Cable news channels regularly stoke their viewers' fears about China holding $1.1 trillion of U.S. debt. But they're focused on the wrong $1.1 trillion of loans. The borrowers of this other $1.1-trillion debt are far more likely to default on their obligations: students, particularly those who went to for-profit colleges. The global consequences could be - and likely will be - staggering. More than 38 million Americans have student loans outstanding. To put this in perspective, 38 million is the combined population of New York and Florida.
BUSINESS
April 19, 2013 | By Lew Sichelman
The lending landscape shifted measurably this month when the standard-bearer for first-time buyers and low-to-moderate income borrowers became more expensive than its private business counterpart. On April 1, fees for low-down-payment mortgages insured by the Federal Housing Administration rose for the third time in two years. The hike in fees serves a twofold purpose: to help shore up the FHA's sagging mortgage insurance fund, which is dangerously low; and to reduce the government's footprint in the mortgage market.
BUSINESS
March 22, 2013 | Liz Weston, Money Talk
Dear Liz: We are in our 60s and looking to downsize. We're living in an apartment now and don't like it, so we want to buy a small house. Also, our finances took some serious hits in the recent economy and we're trying to rebuild. But in trying to sell our possessions, we're learning that people want us to discount the item beyond belief or even expect to get it for free. People talk about using Craigslist and EBay to generate cash but it looks like a waste of time. Do you know of other options?
BUSINESS
December 23, 2012 | Liz Weston, Money Talk
Dear Liz: We have a family member who recently was approved by Social Security for a complete disability claim. This person will never work again but has an outstanding student loan. The lender has a formal mechanism to apply for loan forgiveness, but is refusing to accept medical documentation of the disability. What appeal process is there and how can we force them to act? Do we need to retain legal counsel and incur additional expense to enforce a legal process and achieve loan forgiveness?
CALIFORNIA | LOCAL
October 23, 2012 | By Larry Gordon, Los Angeles Times
Average college tuition again rose faster than inflation this year, but the 4.8% increase at four-year state schools nationwide was the smallest rise in more than a decade, according to a College Board study released Wednesday. The report also emphasized that hefty financial aid significantly cut college bills for many students and that loan burdens were not as large as many people feared. The increase brought average tuition at public four-year schools to $8,655 without financial aid. But in what may be a happy surprise to worried families, grants and tax credits reduced average tuition bills at those campuses to about $2,900, the study said.
NEWS
August 19, 2012 | Liz Weston, Money Talk
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.
BUSINESS
November 14, 2010 | Kathy M. Kristof, Personal Finance
College graduates, do not delay in grappling with your student loans. Almost all student loans offer grace periods that delay the need to repay for six months. So if you graduated in May, the automatic payment deferral probably evaporates this month, making it high time to start beating down the loan balance. And you don't have to graduate for the payment clock to start ? if you leave school for more than six months, the loans usually come due. Because your student loans are likely to be your first significant foray into the world of credit, it's imperative that you handle these loans wisely.
BUSINESS
February 26, 2008 | From Times Wire Services
For-profit education company Corinthian Colleges Inc. said student loan company Sallie Mae would no longer provide serial sub-prime private loans for current students, adding to worries that Corinthian students would have difficulty funding their education. Sallie Mae, the commonly used name for SLM Corp., will continue to fund all current sub-prime loans on the books but it will not provide new "serial," or subsequent, loans for these students, Corinthian said in a securities filing.
BUSINESS
August 19, 2012 | Liz Weston, Money Talk
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.
BUSINESS
June 13, 2012 | Ryan Faughnder, This post has been corrected, as indicated below.
As Americans continue to borrow more to pay for college, many are confused and frustrated at the process of dealing with private student loans. The Consumer Financial Protection Bureau disclosed the depth of the problem Wednesday by publishing nearly 2,000 comments from borrowers, advocacy organizations and other agencies. The federal agency removed names and other identifying information from comments. Many were angry with lenders for not making terms and conditions clear, such as how to consolidate a series of loans.
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