Shackled by their own loans, many parents lack the funds for their children’s educations, unless they opt to sink further into debt.
“With one out of four student loan borrowers struggling to repay their loans or already in default, cleaning up the servicing market is critical,” said CFPB Director Richard Cordray.
The percentage of parents saving for their children’s college expenses keeping growing, but as honorable as their intentions are — it may not be enough with surging tuition costs.
As it turns out, having a lot of student-loan debt doesn’t “greatly reduce young people’s chances of homeownership” — as long as they graduate, a new analysis by Zillow has found.
U.S. education officials are simplifying the FAFSA ritual. For starters, you’ll be able to file as soon as October 1, using tax data from the previous year.
Obama: “You’ll be able to see how much each school’s graduates earn, how much debt they graduate with, and what percentage of a school’s students can pay back their loans.”
For-profit colleges take the brunt of the blame for the quadrupling over the last 12 years of outstanding federal student loan balances in the U.S. that exceed $1.1 trillion, and the resulting surge in defaults.
Just over the past five years or so since the Great Recession, mounting student loan debt has grown at such a staggering rate that many experts say this troubling trend threatens the nation’s economic growth.
The administration said Thursday it will take several months before the federal loans of student borrowers will be forgiven. These students were victims of alleged fraud by the career college chain.
The best news: Foreclosures hit their lowest point in the 16-year history of the New York Fed’s tracking of consumer credit.