According to a recent study by the Institute for College Access and Success, the average college student who graduated last year has $26,600 in student loan debt. That is the highest in the seven-year history of the report.
Student loan debt up 5 percent
In 2010, the average amount of loan owed by graduates was $23,350. That means it rose 5 percent in the intervening year. The report also said that about two-thirds of 2011 college grads with bachelor’s degrees have student loan debt looming over them.
About 20 percent of that debt is from private loans, which do not have the same [...]
New home sales fell slightly in August when compared to July, says the Commerce Department. However, the price of new homes simultaneously rose faster than it ever has before in a single month.
Ups and downs of new home sales in August
The Commerce Department said Wednesday that the about 373,000 new homes (seasonally adjusted) were sold in August. That is down a grand, or 0.3 percent, from July’s 374,000. However, that is 27.7 percent growth when examined year-over-year.
August’s home sales also fetched higher prices than they have in more than five years. The median price of a new home in August [...]
Under a federal settlement, several of the nation’s major lenders are offering unsolicited mortgage relief deals to some selected distressed borrowers.
Unsolicited mortgage relief
These offers come from the banks and can not be applied for or requested. Some selected borrowers are offered a reduction in the principal of the loan, or in the lending rate. Some underwater borrowers are being refinanced. The average reduction in loans across the board is just over two percent.
In April, five of the nation’s largest lenders — Wells Fargo, Bank of America, Citigroup, JPMorgan Chase and Ally Financial (GMAC) — reached an agreement with the state [...]
The Consumer Financial Protection Bureau has proposed new rules for mortgage service providers. The new CFPB rules attempt to provide more transparency for borrowers.
CFPB rules seek transparency
According to the CFPB, the new rules demand more transparency from companies that collect mortgage payments and handle foreclosure procedures.
Richard Cordray, director of the CFPB, said:
“The bottom line is to treat consumers fairly by preventing surprises and run-arounds… We want to make sure that at all times consumers can get information about how much they owe, what they are paying, and how their payments are being applied. And if consumers fall behind on their [...]
Fannie Mae announced a net income of $5.1 billion in the second quarter of 2012. It is the Federally-run mortgage buyer’s second consecutive quarterly gain since government intervention, following the Great Recession. The posting leaves little doubt that the U.S. housing industry is gaining ground.
Fannie Mae quarterly gain $2.2 billion
Wednesday, Fannie Mae announced that it will be paying out $2.9 billion to the Treasury Department in quarterly dividends, leaving a net gain of $2.2 billion.
The company posted profits of $2.7 billion in the year’s first quarter. In the first quarter of 2011, Fannie Mae posted a loss of $6.5 billion.
According to a weekly report from Freddie Mac, the rates on 30-year fixed mortgages went up, breaking a spell of record lows that has lasted for 13 weeks.
Mortgage rates tick up slightly
Freddie Mac, Uncle Sam’s mortgage buyer, reported Thursday that the average rate for a 30-year fixed mortgage rose from last week’s 3.49 percent to 3.55 percent. The 15-year fixed mortgage, which is commonly used for refis, also climbed from 2.80 percent to 2.83 percent.
The increase comes following news of increased consumer confidence domestically, as well as news of efforts to relieve debts in the Eurozone. Frank Nothaft, Freddie [...]
The Obama Administration, in the interest of clarity and transparency, rolled out its new easy-to-understand financial aid form on July 24. The federal government is urging colleges and university to adopt the new “shopping sheet” for the 2013-2014 school year.
Financial aid ‘shopping sheet’
The new form will allow potential students and their parents to make more informed decisions regarding student loans. The “shopping sheet” lists the various options available to chose from in the way of loans. It also offers comparative, side-by-side information on estimated payments, annual costs and the default rate of student loans. In addition, the one-page form gives [...]
Congress passed omnibus legislation June 29 that freezes student loan rates, which were due to double. If the legislation hadn’t passed, 7.4 million U.S. student borrowers would have taken on an additional $1,000 in debt for each year of college, according to The Detroit News. With the freeze in place, it would behoove lawmakers to consider the next vital steps needed to prevent the student loan crisis from becoming the next financial bubble that drags the U.S. economy once more into the depths of hell.
Student loans: Much work to be done
Michigan Rep. Gary Peters (D-Bloomfield Township) noted that while the [...]
The Department of Education has placed for-profit educational institutions on warning. Too many students from these institutions are finding it hard to pay off their student loans, says the federal agency. If the situation does not reverse, those schools could lose access to federal student aid.
The gainful employment rule
The U.S. Education Department said Tuesday that students in 193 programs at 93 institutions — that is five percent of all for-profit career training programs — have failed to meet all the standards set by the 2011 “gainful employment” rule. The rule pertains to the programs ensuring graduates will find work and [...]
People are always buried deep into some sort of debt. They take more credit to repay their mounting credit card bills. There is no way that can rescue these people from the troubles of debt. Sometimes, the outstanding balances give them a poor credit score that make them ineligible for other lines of credit. This forces them to take some self-initiated credit card debt reduction steps to improve the credit score.
Understand the basics of personal loans
Every now and then people need huge amount of cash. During this time, many of them look at personal loans as a safe alternative. However, [...]
Foreclosures drive down the price of homes and hinder the recovery of the market. Sadly, there seems to be no shortage of foreclosures on the horizon. A recent report by RealtyTrac, a web-based marketplace for foreclosure properties, concludes that more than a quarter of all home sales in the U.S. are foreclosures. Coupled with last week’s dismal jobs report, the data reinforces the picture of an already-sluggish economic recovery continuing to tap its brakes.
Foreclosures on the rise
The company’s quarterly Foreclosure Sales Report last week reported that 26 percent of all homes sold in the U.S. during the first quarter of [...]
All aboard for the next U.S. financial crisis! Student loan debt is being called the next great bubble, and experts claim the continued rising cost of higher education will set that bubble to burst as borrowers who cannot keep up with payments lapse into default. For those who receive student loans but wish to leap off the debt train before it leaves the station, here’s how to cancel your federal student loan without penalty.
Read the fine print
In Federal student loan documents, a provision exists which informs the borrower that they may cancel all or part of a student loan before [...]
“Spot delivery” or “yo-yo financing” is when an auto dealer allows a buyer with poor credit to take possession of a vehicle before finalizing the finances. While it may be enormously gratifying for the consumer to drive away in a new car immediately, it also allows disreputable dealers to stick him or her with higher interest and/or down payment when the financing falls through.
Consumer groups frown on practice
Many consumer groups have lobbied to enact legislation preventing auto dealers from letting cars go before the financing is in place. Negativeequityauto.com says, “Yo-yo financing is one of the worst problems that plagues [...]
It seems like Democrat and Republican politicians never see eye-to-eye on anything. But this week, President Obama and Mitt Romney both agreed that the rate for Stafford student loans should not go up. But Congress may still not be buying it, at the expense of the nation’s young people.
Romney gets heat from conservatives
Mitt Romney, while expressing his solidarity with President Obama in regard to the Stafford loan rate issue, never fails to blame the president’s economic policies for new grads being unable to find work. Even so, he is taking heat from some conservative Republicans, who see the stand as [...]
President Obama is currently traveling the nation, appealing to college crowds about an impending student loan rate hike. Ironically, Mitt Romney is saying pretty much the same thing on the issue.
President appeals to college students
President Obama made his pitch on college campuses in Boulder, Colo., and Chapel Hill, N.C., earlier this week. He is scheduled to speak at the University of Iowa on Wednesday. Obama carried all three states in 2008.
The president told a young crowd at the University of North Carolina that he and Michelle had been in their shoes, exiting college with a massive loan debt:
“College education is [...]
The economic downturn, rising tuition costs and the burden of student loans have paved the way for a more economical way of getting that all-important sheepskin. Many colleges and universities are now offering — or considering offering — fast-track three-year bachelor’s degree programs.
Other colleges considering option
Grace College and Seminary, Baldwin-Wallace College, American University, Lesley University and St. John’s University all began offering three-year bachelor’s degrees in the fall of 2011, according to the National Association of Independent Colleges and Universities. And, according to NAICU president Tony Pals, other colleges are considering the option.
“The economic downturn has encouraged more students [...]