I promise never to say another nasty thing about Obama if he will verbally support this Senate bill

[limpyhobbler]

Last edited Wed Jul 31, 2013, 01:18 AM - Edit history (1)

AS STUDENT LOAN DEBT SURPASSES $1 TRILLION, SENATORS INTRODUCE LEGISLATION TO ADDRESS CRISIS

[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) joined Chairman of the Senate Health, Education, Labor and Pensions Committee U.S. Senator Tom Harkin (D-IA) and U.S. Senator Al Franken (D-MN) in reintroducing two pieces of legislation – the Fairness for Struggling Students Act of 2013 and the Know Before You Owe Act of 2013 – to restore transparency, fairness and common sense to the student loan process.

According to the Consumer Financial Protection Bureau, the student loan debt among college students surpassed $1 trillion last year. This reflects an average debt load of $24,301 for each of the 37 million student borrowers in the United States, according to the New York Federal Reserve Bank. The CFPB reports that approximately $150 billion of outstanding student loan debt is in private loans.

“The first two pieces of legislation I will introduce this Congress deal with what I think is one of the biggest threats to millions of working families – the growing student loan debt crisis,” said Durbin. “Too many Americans are carrying around mortgage-sized student loan debt that forces them to put off major life decisions like buying a home or starting a family. It’s not only young people facing this crisis, it is parents, siblings and even grandparents who co-signed private loans long ago and are still making payments decades later. It’s time for action. We can no longer sit by while this student debt bomb keeps ticking.”

“Unless we take action to educate and protect borrowers, student loan debt will be the next mortgage crisis. Young Americans are being hamstrung by record debt levels, forcing them to delay other important investments in their futures, including purchasing homes and saving for a secure retirement. By empowering students with clear guidance about their federal financial aid options before they turn to more expensive private loans and restoring the option to discharge private loan debt through bankruptcy, the Know Before You Owe Act and the Fairness for Struggling Students Act will go a long way to help students make smart choices and provide relief to borrowers. Students need to know how to avoid the higher interest rates and less favorable terms of private loans, so they can be on more stable financial footing when they graduate,” Harkin said.
...

http://www.durbin.senate.gov/public/index.cfm/pressreleases?ID=adad47a3-9b82-4c46-b971-57bb9dc11044

####################



This article explains regulators have asked banks to do voluntary self regulation, which isn't good enough. Also it discusses the House of Reps bill that is similar to Senator Durbin's bill

REGULATORS ASK BANKS TO WORK WITH STUDENT LOAN BORROWERS; BANKRUPTCY BILL PENDING

Federal regulators are asking banks to work with borrowers having a hard time paying off student loans, an issue that has captured the attention of Congress and prompted legislation to make private student loans dischargeable in bankruptcy.

The Federal Deposit Insurance Corporation, the Federal Reserve and the Office of the Comptroller of the Currency issued a statement July 25 encouraging institutions to work constructively with private student loan borrowers experiencing financial difficulties. “Prudent workout arrangements are consistent with safe and sound lending practices and are generally in the long-term best interest of both the financial institution and the borrower,” the statement said.

Student loan borrowers who are unemployed or underemployed may face hardship in making payments on their private student loan debts after separation from school or during periods of economic difficulty, the agencies said.

“Current interagency guidance permits prudent workout and modification programs for retail loans, including student loans, and provides that extensions, deferrals, renewals, and rewrites may be used to help borrowers overcome temporary financial difficulties,” they said. “Institutions that have private student loan workout programs should provide borrowers with information that clearly explains the programs, including eligibility criteria and the process for requesting a modification.”
...

http://about.bloomberglaw.com/law-reports/regulators-ask-banks-to-work-with-student-loan-borrowers-bankruptcy-bill-pending/

[PowerToThePeople]

1. I won't say that. But, something does need to curb student loan debt

[global1]

2. They Need To Work On College Tuitions.....

they are way out of line with the education that the students get these days and they need to be pulled in.

I think that the Repugs are pleased with tacking on as much student loans at outrageous interests rates - so that these young people whom Obamacare is relying on to become insured - make the decision to put the money towards their loans than get health insurance. Without this young group buying into health insurance - Obamacare is on shaky ground. I think that the Repugs want that to happen. Strap the young. Get them to not opt into health insurance and take a penalty. Put Obamacare in a precarious position.

[limpyhobbler]

3. Another article on regulators asking the banks to do voluntary self-regulation

Private Student Lenders Urged To Assist Struggling Borrowers

Three federal regulatory agencies are calling on banks that issue private student loans to assist struggling borrowers, as recent college graduates across the country labor under an unprecedented debt load.

The Federal Deposit Insurance Corporation, the Federal Reserve Board and the Office of the Comptroller of the Currency issued a joint statement Thursday suggesting that lenders offer "prudent workout arrangements" to student borrowers experiencing financial difficulties. Such arrangements could include loan extensions, deferrals, renewals and rewrites of closed-end loans.

The agencies "will not criticize financial institutions" for such arrangements, the statement said, "even if the restructured loans result in adverse credit classifications or troubled debt restructurings in accordance with accounting requirements under generally accepted accounting principles."

The statement noted that all this is in accordance with "current interagency guidance."
...

http://www.huffingtonpost.com/2013/07/29/private-student-loans-assistance_n_3672740.html

[limpyhobbler]

4. bump