Student loans

10/11/2007 -- In the 21st Century, a college education is more important than ever. Hillary Clinton believes it's time for a new bargain with the American people – a bargain that gives all Americans willing to work hard the tools they need to get ahead. Her plan will make college more affordable and accessible so that every American who has earned it and wants to go has the chance to get a college degree.    » read more »

Warns Students About Fraudulent And Illegal Business Practices; Student Loan Marketing Companies Subpoenaed

New York, NY (October 11, 2007) - As part of an escalating investigation into direct marketing of college loans, New York State Attorney General Andrew M. Cuomo served subpoenas and document requests on thirty-three companies and lenders. The subpoenas seek information on the companies’ use of misleading and deceptive tactics to entice young borrowers seeking college loans.    » read more »

September 28, 2007 -- WASHINGTON, DC — Senator Edward M. Kennedy today commended the Senate’s passage by voice vote last night of legislation permanently extending the provisions of the Higher Education Relief Opportunities for Students Act, originally enacted in 2003. The Act authorizes the Secretary of Education to waive or modify any statutory or regulatory provisions on federal student aid for service members and others during a war or other national emergency.    » read more »

September 28, 2007 -- “The President took an important step today toward making college more affordable for millions of families by signing the College Cost Reduction Act into law. I am proud the bill provides the largest increase in student aid since the GI Bill and includes provisions I authored that cap monthly loan payments at 15 percent of the borrower's discretionary income, increase Pell Grants and allow working students to keep more of their income without losing crucial student aid.    » read more »

September 27, 2007 -- WASHINGTON, D.C. – U.S. Senator Barack Obama (D-IL) today released the following statement after President Bush signed the College Cost Reduction and Access Act of 2007 into law. This legislation passed the Senate this month and included a provision to increase the maximum Pell Grant for eligible students from $4,310 in 2007, to $5,400 by 2012. The bill also mandates that interest rates on subsidized student loans are cut in half over four years. Senator Obama sat on the Conference Committee that won these improvements in the bill.    » read more »

September 27, 2007 -- HELENA – Montana Attorney General Mike McGrath today released a report (PDF) that examined the way Montana institutions of higher education handle student loans, particularly how lenders qualify to be included on the preferred lender lists given to students and their parents.

In the report, McGrath said that the results of a survey his office conducted last summer "are reassuring for student borrowers and their families."    » read more »

September 20, 2007 -- Jefferson City, Mo. — Three more Missouri universities, including the second largest university system in the state, have entered into code of conduct agreements with Missouri Attorney General Jay Nixon regarding their relationships with the student loan industry.    » read more »

September 19, 2007 -- Today the Democratic Congress sent landmark legislation to the President that reduces college costs for millions of young people. College Democrats of America issued the following statement praising Congressional Democrats and highlighting the bill's benefits for minority students.

College Democrats of America Black Caucus Chair Kevin Chambliss and Hispanic Caucus Chair Shamil Rodriguez issued the following joint statement:    » read more »

September 18, 2007 -- Washington, D.C. – Speaker Nancy Pelosi and Members of the Congressional Asian Pacific American Caucus (CAPAC) released the following statement on the new investments made in minority-serving institutions in the College Cost Reduction and Access Act. The bill, which was signed by Congressional leaders and sent to the President today, creates a new designation for Asian American and Pacific Islander (AAPI) serving institutions:    » read more »

September 14, 2007 -- [CHICAGO, IL]- Student interest rates are on track to be cut in half as a result of legislation written by U.S. Senator Dick Durbin (D-IL) and included in the College Cost Reduction Act of 2007 that was passed by the House and the Senate last week and sent to the President, who is expected to sign the bill into law in the coming days.    » read more »

Governor urges Georgians to take advantage of state’s 529 Plan

September 13, 2007 -- ATLANTA – For the fifth consecutive year, Georgia Governor Sonny Perdue has declared September as College Savings Month in Georgia, urging families to plan and save for their children’s education and take advantage of Georgia’s 529 college savings plan. The savings plan allows for tax-free withdrawals for qualified higher education expenses such as tuition, room and board, books, fees and required equipment.    » read more »

September 4, 2007 -- "Senator Kennedy's latest report again underscores the vital need to reform the student loan industry.

While my Office will continue to investigate and uncover the conflicts and abuses that pervade every level of the student loan business, what is truly needed to protect students and their parents is national legislation that will outlaw these practices nationwide.

New York State unanimously passed such legislation months ago, and it is now time for Congress and the White House to do the same."

Source: New York Attorney General

Report details abuses within lending system

September 4, 2007 -- WASHINGTON, D.C.—Today, Senator Edward M. Kennedy, Chairman of the United States Senate Health, Education, Labor and Pensions (HELP) Committee, released a report on the student loan system entitled “Second Report on Marketing Practices in the Federal Family Education Loan Program.” The report discusses the findings of Chairman Kennedy's investigation of inappropriate marketing practices in the student loan industry.    » read more »

University of Missouri-Columbia expert says vicious cycle masks future financial headaches

Aug. 31, 2007, COLUMBIA, Mo. - College students are using student loans to bail out of credit card debt, leading to poor real-world money management skills and future financial burdens according to a personal financial planning expert at the University of Missouri-Columbia.    » read more »

Code Prohibits Financial Ties Between Schools and Student Lenders

September 4, 2007 -- Trenton, NJ – New Jersey Attorney General Anne Milgram announced today she had sent a code of conduct for state colleges and universities to prohibit the schools from having financial relationships with student loan providers.

The code addresses questionable practices in the student loan industry and seeks to protect students and parents from potential conflicts of interest and deceptive marketing that would steer students to more expensive loans.    » read more »