July quick hits
The midsummer feeling of wanting to be on vacation (staycation, anyone?) has hit us, so here are few links to check out while we, er, check out for the month:
-Above The Law has an open thread about student loan debt (focused on lawyers, but applies to all borrowers).
-Some teachers in Montana will be getting their loans paid off by the state.
-Considering the cloistered life? Financial assistance for religious vocations.
-A story on student debt from In These Times: "'To leave college and enter the real world with such grave debt is a setup for failure,' says [a former Columbia College Chicago film and video major]. 'What good are well-educated kids who, right out of the cradle, have major financial obligations before most own a house, a car or know where the nearest grocery store is?'"
-A new law could help you get some debt forgiveness if you work in public service.
-Oh poor Sallie Mae - can't afford to consolidate loans anymore. But wait, Sallie Mae spent more than $1.4M lobbying in the first quarter of 2008. Priorities, Sallie Mae, priorities!
-Yet another armchair financial advisor who thinks that anyone who dares to complain about usurious lenders is a whiner.
Student loan debt clock: $539 billion.
Comments
Question: I have a consolidated sallie mae loan. Is there any way to transfer it to a consolidated federal loan in order to take advantage of new rules recently enacted (non profit employment, income-based repayment etc.) or just to get away from the evil-doers? Thanks!
Posted by: Rick Dawson | July 8, 2008 12:54 PM
Rick - I apologize for taking so long to respond to your question. The answer is, as far as I know, you're stuck with Sallie Mae. But you might want to call the Department of Ed to make sure. Let us know what they say there if you do. Thanks.
Posted by: Diana
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July 22, 2008 1:18 PM
any comments about the freddie and fannie 3.9 billion bailout (or "lifeline" as it may be referred to)?????
1) was bear stearns;
2) fannie/freddie (are they a couple?)
Posted by: john lysenko | July 23, 2008 6:21 PM
Hi Diana,
Stumbled across your blog. This is good. I'm wondering where you stand on the H.R. 598 (H.R. 598, The Student Loan Interest Full Deductibility Act) introduced by Congressman David Wu of Oregon. Looks like it has been introduced a couple of times and sits languishing in a committee. How can we get this bill moving? Your entry about contacting alumni sites is a great idea. Any other ideas?
Posted by: M | July 27, 2008 5:34 PM
My only comment is that it seems pretty rich for these companies to complain about federal regulation, and then take federal bailouts.
Posted by: Diana
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July 29, 2008 12:34 PM
Hi, thanks for the kudos.
We fully support Congressman Wu's bill. We mentioned it back in 2004. and as you say, it keeps being reintroduced and shunted off into committee (which seems to happen to all of these bills that would help us with our student loans).
As to how to get this bill (and others) moving, it's a tough issue. We've all written to our representatives, and talked up the legislation to anyone who'll listen. It's my opinion that until the presidential election is over, no concrete action will be taken in Congress.
Posted by: Diana
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July 29, 2008 12:34 PM
I s there any possibility that a SALLIE MAE Private loan can be forgiven for Public Service after 10 years? Last year I spoke with a woman in Sen. Kennedy's office and she told me that private loans could be forgiven after 10 years. Is there any truth to this.
Eliie
Posted by: Eloise O'Shea-Wyatt | August 19, 2008 8:58 AM
Hi Ellie -
I've never heard that. I can't see what the incentive for Sallie Mae would be to provide such forgiveness. Private loans are simply bank loans - no government guarantees. So why would Sallie Mae forgive such loans for public service? My advice would be to call Sallie Mae and ask.
Posted by: Diana
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August 22, 2008 10:17 AM