Author: Jamie Johnson

Congress Will Review New Legislation on Student Loans Come January

In January 2017 Congress will have an opportunity to reauthorize the Higher Education Act, which is the primary law governing federal higher education programs, including federal student loans. This bill is up for reauthorization every 5 years and was due in 2014, but has been stalled up until this point. Reauthorization is a chance for policymakers to evaluate current legislation, make improvements needed, add new programs, and review funding. A few of the student loan bills discussed in recent months have progressed through at least one chamber of Congress and although they have not become laws, have a chance...

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Rapper Dee-1 Talks to High School Students About Avoiding Debt

When David Augustine Jr., better known as the rapper Dee-1, graduated from high school in New Orleans, Louisiana he had been offered a full scholarship to several different schools for having high grades and playing basketball. He chose to attend Louisiana State University, where he did not have a scholarship, which required him to take out student loans to pay for his education. Dee-1 describes the process of acquiring student loans as very easy, saying he didn’t even need his parents’ help through the process. Dee-1 applied for as many loans as he could and admits he mismanaged his...

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Presidential Candidate Promises to Cancel All Student Loans

Green party Presidential candidate Jill Stein calls student loan debt a sign of a human rights crisis and claims that if elected she will pressure local lawmakers to cancel all student loan debt, currently numbering in the trillions. The bailout would take place over a decade and Stein claims this will help boost the economy because rather than millennials putting their money toward their debt, they can use that money to help stimulate the economy. “We found a way to bail out Wall Street, the guys that crashed the economy with their waste, fraud, and abuse. So my point...

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Student Loan Debt Causes Many Millennials to Delay Home Ownership

In 1985, Congressman William Ford of Michigan cautioned that due to the debt student loans created, “we are producing a class of indentured servants who must work to free themselves of the bondage of educational debts. How will the next generation afford a home or car if their disposable income is committed to paying off student loans?” Today, American student loan debt is at an all-time high of 1.4 trillion with millennials shouldering a large part of that burden. About 70% of millennials in the workforce have some student loan debt. This debt often delays their decision to get...

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For-Profit Colleges Represent 35% of All Student Loan Defaults

On Wednesday the Department of Education issued a press release on the rate of student loan defaults over the past three years. This report looked at the total number of current and former students who did not make a payment for 360 consecutive days. While the overall number of defaults has declined, this report showed that for-profit colleges account for 35% of all federal student loans defaults even though they only represent 26% of all federal loans. The Department of Education has been coming down hard on for-profit colleges such as ITT Technical Institute. In August, the institution was...

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