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Student Loans

June 18, 2013 | By Adolfo Flores
Student loan debt has nearly doubled in the last five years, posing a potential risk to the economy, according to a new report from Congress . The information, released Tuesday by the Joint Economic Committee, found that student loans increased from $550 billion in late 2007 to just under $1 trillion in the first quarter of 2013. Two-thirds of recent graduates have student loans, with an average balance of more than $27,000. New borrowers could face additional costs in their higher education pursuits unless Congress acts to keep interest rates for federally subsidized Stafford loans from doubling from 3.4% to 6.8% for new loans starting July 1, the report said.
June 6, 2013 | By Michael A. Memoli, Washington Bureau
WASHINGTON - With student loan rates set to double in about four weeks, competing proposals to prevent the increase were defeated in back-to-back Senate votes Thursday, leaving the issue unresolved. The failed measures leave lawmakers snarled in a familiar debate that has divided the parties but has not attracted the attention it did a year ago when it became part of the presidential campaign. The House voted last month on a proposal that would tie interest rates for Stafford loans to the Treasury's 10-year borrowing rates, which Republican sponsors said was in line with principles outlined by the Obama administration.
June 3, 2013 | By Larry Gordon
While more California college students are taking on larger education loans, that investment is paying off with better-paying jobs after graduation compared to young people without a bachelor's degree, a new study finds. The “economic returns of attaining a bachelor's degree are, on average, quite large regardless of major," said the report by the Public Policy Institute of California. "Average loan debts are relatively low in comparison with the average economic returns to earning a college degree; consequently, paying back student loans should not pose a huge financial problem for the typical college graduate.”  A typical California worker with only a high school diploma can expect to earn about $1 million over a 40-year work life, compared to $1.9 million for someone with a bachelor's degree, according to the study.  Unemployment rates are much higher for young people without a bachelor's compared to college graduates.
May 31, 2013 | By Christi Parsons
WASHINGTON -- President Obama complained about the looming interest rate hike on student loans in a Rose Garden event Friday morning and urged Americans to call, write and tweet their Republican members of Congress to do something about it. But on Capitol Hill, GOP leaders questioned why Obama doesn't just ask Senate Democrats to take up the Republican rescue plan already passed by the House. The two sides are quibbling over the details of how to avert the rise in interest rates on federally subsidized student loans, set to double to 6.8% in a month.
May 21, 2013 | By Linda P.B. Katehi
As an immigrant and an engineer, I know the magnetic pull that the United States exerts on anyone who dreams of a career in science. From the time I watched NASA technicians on television during the first lunar landing in 1969, I resolved to get the best scientific education that my talents and circumstances would allow. That quest initially took me to National Technical University in Athens, where I became the first person in my family - and the first woman from Salamis, the Greek island where I grew up - to earn a college degree.
May 13, 2013 | By Walter Hamilton
Nearly two-thirds of wealthy Angelenos would allow their children to attend an expensive college, but half of parents refuse to go into debt to pay for it, according to a new survey. According to the study, 64% of the so-called “mass affluent,” those with $50,000 to $250,000 in investable assets, would not discourage their children from going to a specific college based solely on price. But 18% have not, and will not, save for their children's education, and 51% say they won't go into debt to cover the cost.
May 13, 2013 | By Walter Hamilton
Nearly half of American mothers think their children are unprepared to get a job and one-third say their kids aren't ready to live on their own, according to a new study. The study by the McGraw-Hill Federal Credit Union found that 49% of mothers say their children aren't ready to get a job, while 44% say their progeny aren't prepared to finance their college educations. One-third of mothers say their children are “not at all prepared” to save money or live on their own, according to the study.
May 8, 2013 | By Andrew Tangel
NEW YORK -- Former Enron Corp. Chief Executive Jeffrey Skilling could get a decade lopped off his prison sentence in a deal with the U.S. Justice Department. Skilling has spent more than six years in federal prison following his 2006 conviction in Enron's massive corporate fraud. The now-defunct company played a starring role in the energy crisis that swept through California and other Western states before Enron's epic implosion in 2001. Skilling challenged his 24-year sentence and, after a series of court rulings, struck a deal with federal prosecutors that would reduce his sentence to a range of 14 to 17.5 years, according to court documents filed by the Justice Department.
May 8, 2013 | By Jim Puzzanghera
WASHINGTON -- Students taking out government loans to help pay for college should pay the same rock-bottom interest rate that the Federal Reserve charges big banks, Sen. Elizabeth Warren (D-Mass.) proposed Wednesday. With the interest rate on federal student loans set to double to 6.8% this summer, Warren said it's unfair that big banks can borrow money at 0.75% from the central bank's discount window. "In other words, the federal government's going to charge interest rates nine times higher than the rates they charge the biggest banks -- the same banks that destroyed millions of jobs and nearly broke the economy," Warren said in introducing her first stand-alone bill since taking office in January.
May 8, 2013 | By Walter Hamilton
Jack Welch is throwing his support - such as it is - behind Jamie Dimon, the embattled leader of JPMorgan Chase & Co. Dimon is scrambling to hang on to the chairmanship of his company in the aftermath of an embarrassing trading mishap by the now-infamous "London Whale" that has blotted Dimon's once-unassailable record. Dimon remains chief executive of the banking giant. But critics are pressing JPMorgan to separate the CEO and chairman roles. Corporate-governance advocates say such moves help prevent a powerful leader, even a visionary or successful one, from amassing too much clout in the boardroom.
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