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Student Loans

February 10, 2014 | By Sarah Amandolare
Last October, in between arguments over the debt ceiling, the federal government somehow found time to send me an email. My student loan payment was 70 days past due, the message read, so the government had negatively reported me to each major credit bureau and would continue to report me until my account was brought current. I'm betting the government sent out a lot of those letters to people like me: college graduates from middle-class families who didn't qualify for much in the way of scholarship aid and had parents who couldn't afford to pay for their schooling.
October 28, 2012 | Liz Weston, Money Talk
Dear Liz: My husband and I took out more than $200,000 in federal parent PLUS loans to pay for our two daughters' college educations. My husband earned over $300,000 when the loans were made. Since then, he lost his job and now makes $100,000. I went back to work and earn $35,000. We finally succeeded in getting a more affordable mortgage, but we are taking about $3,000 out of our savings each month to pay the bills. My husband handles the finances and says that even if we could lower our loan payments, it wouldn't matter because we still have to pay forever.
October 25, 2011 | By Geraldine Baum, Los Angeles Times
For almost a week, Nate Grant has sat cross-legged on a wall at the Occupy Wall Street encampment, holding a cardboard sign that bears his scrawled grievance: "Students Ought Not Be a Means of Profit. " Strangers have harangued him: "Get a job, you commie. " Tourists have photographed him. Others have stopped to engage in existential standoffs. "I have to pay interest on my car loan," a banker told Grant. "What's the difference between that and you paying off a student loan?" This sparked a debate that lasted so long that the 22-year-old protester from New Jersey missed out on getting a free sleeping bag. He spent his first night at the protest sleeping on cold concrete.
December 16, 2012 | Liz Weston, Money Talk
Dear Liz: I'm in my 50s. My kids have college loan debts that might total more than $200,000. I allowed them to take out loans because I expected to inherit $300,000 to help them pay off the debt. Now that inheritance will not happen. I have $250,000 saved for retirement. When I'm 58 1/2 years old, I would like to pull that money out and pay some or all of these debts. Or use home equity. I've recently been downsized in employment, but I am looking to increase my income so I can help with their debt.
September 5, 1987
A permanent endowment for student loans has been created at the Southern California College of Optometry in Fullerton. More than $470,000 has been received to date, making it the second largest bequest ever received by the college, campus officials said. The bequest is from the estate of Dr. John Harris, a Long Beach optometrist, and his wife, Nina. The program begins with the 1987-88 academic year, providing low-interest loans that will range from $300 to $2,500.
March 22, 1992
In the article "Swamped By Debtors and Abuse" (Jan 12), it was stated that student loans and income taxes are not dischargeable in a bankruptcy. While generally true, time does turn both student loans and IRS debts into dischargeable debts. Student loans are eligible for discharge seven years after the repayment date takes effect. Taxes are dischargeable three years after the due date of the return (with extensions), or two years after they are filed, or 240 days after they are assessed, whichever is later.
Interest rates on student loans will fall to an all-time low next month, presenting indebted college graduates with an opportunity to lock in a low rate for the life of their loans. The change will save the average student borrower hundreds--possibly even thousands--of dollars, experts said. Those who are heavily indebted, such as Brooke Gurland-Garrow of Brooklyn, N.Y., who ran up $100,000 in student loans while working her way through medical school, will save considerably more.
February 19, 1993 | From Reuters
President Clinton's plan to phase in direct government lending to students sent the shares of companies active in the business into a virtual free fall Thursday. Investors feared that the plan--called a "national service loan" by Clinton in his speech Wednesday night--would ravage the business of the Student Loan Marketing Assn. as well as Student Loan Corp. Sallie Mae dropped $9.375, or 17%, to $47.25 and was the most actively traded issue on the New York Stock Exchange, with more than 3.
December 12, 1987 | Associated Press
A federal education official, defending a crackdown on student loan defaults, said Friday that some profit-making business schools recruit barely literate students out of unemployment lines. That charge at a Senate hearing by Bruce Carnes, deputy undersecretary of education, drew an angry retort from Sen. Edward M. Kennedy (D-Mass.), who accused the Reagan Administration of aiming its budget ax at "the most vulnerable young people in our society."
February 23, 1988
United Education & Software in Encino said it agreed to continue processing payments for the California Student Loan Finance Corp., a private company that buys student loans. United Education, which primarily operates trade schools, said it could receive more than $100 million in service fees over the 10-year life of the contract.
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