Student Loan Reality Check: Are Lenders The Problem?

read The CFPB report does not deal with any illegal activities the agency may have found in the private student loan marketplace, but Chopra told me many of the practices taking place do raise some serious questions. We want to make sure policymakers know they may need to take action if servicers dont come up with more clear and transparent ways of handling student loan borrowers funds, he said. The National Consumer Law Center praised the CFPB for its report and called on all federal regulators that oversee this marketplace to make sure that current rules and laws are being enforced. We also need to look at new laws and regulations to make sure that borrowers get what they are entitled to and to make sure there is more relief available to help financially distressed borrowers, said Deanne Loonin, director of NCLCs Student Loan Borrower Assistance Project . Where to find help Along with its report, the Consumer Financial Protection Bureau released a consumer advisory: Stop Getting Sidetracked by Your Student Loan Servicer . Other resources include the CFPBs Repay Student Debt , an interactive web tool designed to help you navigate your repayment options and Ask CFPB to find answers to common questions.
Source: http://www.today.com/money/student-loan-borrowers-face-payment-processing-pitfalls-8C11415970

The BAP found that the debtor did not have reasonably reliable future financial resources and reversed and remanded the bankruptcy courts decision that the student loans were not dischargeable. Between 2003 and 2006, the debtor entered into 15 separate student loans with National Collegiate Student Loan Trust (NCSLT) with a total original balance of $70,100. The Bankruptcy Judge found that the debtors NCSLT loans were not an undue hardship pursuant to Section 523(a)(8) of the Bankruptcy Code and therefore they should not be discharged and the debtor appealed this ruling to the BAP. Under Section 523(a)(8), student loans are not dischargeable unless they impose an undue hardship on the debtor, which the debtor bears the burden of proving by a preponderance of the evidence. While undue hardship is not defined by the Bankruptcy Code, the BAP said that in the Eighth Circuit, a totality of the circumstances test is used.
Source: http://www.examiner.com/article/student-loans-discharged-bankruptcy

The authority would have all powers available under existing law to collect payments from borrowers, including payments from borrowers who default. Under the consumer protection part of the bill, private student loan debt data in Wisconsin would be required to be collected and tracked by the Department of Financial Institutions and the Higher Education Aid Board to help policy-makers and the public better understand the depth and breadth of student loan debt. The data would include a ranking system based on private loan interest rates, loan terms and consumer protections. A recent study ranks Wisconsin No. 10 in the nation for number of college students with debt, with 67% of graduates from four-year schools having loans to repay.
Source: http://www.jsonline.com/news/education/bill-sponsored-by-wisconsin-democrats-would-ease-student-loan-debt-b99125859z1-228938911.html

PREV of NEXT Mark Harrison / The Seattle Times A.J. and Amy Roberts sold their Edmonds condo and downsized to help get a handle on debts particularly their student loans. Hide / Show comments I guess actually enjoying your life and taking vacations can wait a few years or… (October 26, 2013, by tutone) MORE I’ll take it a step further tutone- If you’re living your life intelligently, there… (October 27, 2013, by m5po) MORE “I don’t know about this couple though.
Source: http://seattletimes.com/html/businesstechnology/2022117563_moneymakeoverrobertsxml.html

Unlike federal student loans, private loans not only cost more they offer less repayment flexibility and typically cannot be discharged in bankruptcy . Almost all student debt is difficult, if not impossible, to refinancesticking borrowers with high rates in a low-rate environment and adding to the economic drag. In the ombudsmans annual report , released Wednesday, Chopra detailed the problems that borrowers have trying to pay down their private loans, and how a seemingly intentionally confusing system often holds borrowers hostage. In the end this takes a toll on their credit scoreand on their ability to buy a home or anything else with borrowed money. Repaying a student loan should be simple, CFPB director Richard Cordray said in a statement. When servicers process payments to maximize fees and penalties they undermine the trust of their customers.
Source: http://business.time.com/2013/10/18/student-loan-are-becoming-a-drag-on-the-us-economy/

Chopra tied 75% of the decrease in household formation over the past few years to college debt. Treasury Secretary Jacob Lew told the members of the Financial Literacy Education Commission several days ago that a college education is vital to young people, increasing the chances of upward income mobility by 75%. But high levels of student debt are keeping graduates from achieving goals such as saving for retirement, starting new businesses — and buying a home. A roadblock to homeownership Surveys reveal that many indebted college graduates have found student debt to be a barrier to owning a home. Respondents to a poll by the Young Invincibles this past spring showed that 47% have put off buying a home to make their monthly student loan payments.
Source: http://www.fool.com/investing/general/2013/10/27/its-official-student-loan-debt-is-hurting-the-econ.aspx

The late payments don’t disappear off your credit reports for seven years, even when you pay off the debt. However, a debt paid in full is far less damaging than an outstanding or settled debt. In addition, the further away you get from the dates of the delinquencies, the less they will affect you. The time to fret about taking on the responsibility of a student loan for someone else is before you sign on the line. I’m sure it’s disappointing to both of you that your husband’s career investment hasn’t paid off yet.
Source: http://www.creditcards.com/credit-card-news/cosigner-on-delinquent-student-loan-1294.php

Forcing lenders to fess-up to that reality would also encourage them to be more proactive, especially if the default trigger for government-backed loans were made to coincide with that of all other types of consumer lending activity. As for the payment misapplication and incorrectly calculated payoff quotation matters, these can happen from time to timebut they should not happen to the extent thats been reported. Not only should lousy customer service not be tolerated by companies wanting to stay in business, but it should also be penalized by the Department of Education (which does the majority of the loan servicing-subcontracting), because these failures can lead to defaults that the government will then be called upon to cover. And as it pertains to the forced payment-adjustment issue, its hard to understand how a two-sided agreement can be materially altered without both parties consenting to that change. But instead of saddling borrowers with the costly and time consuming effort of challenging improper servicer conduct in court, the practice should be outlawed, pure and simple. The Biggest Issue All that said, what disappoints me more than anything, however, is our apparent unwillingness to address the single greatest impediment to resolving the student loan crisis: the roughly $500 billion of education debt thats controlled by private lenders and their investors (approximately $300 billion of FFEL loans, plus more than $150 billion of private loans).
Source: http://finance.yahoo.com/news/student-loan-reality-check-lenders-190043728.html

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Bitcoin, Bubbles And The Aging Adult-film Star Of The Stock Market

(TROW) , the money manager with about three-fourths of its assets in equities, said third-quarter earnings rose 9 percent as a global stock rally boosted the holdings it oversees for clients. Net income increased to $267.7 million, or $1 a share, from $245.7 million, or 94 cents, a year earlier, the Baltimore-based company said today in a statement. Earnings beat the 97-cent average estimate of 14 analysts in a Bloomberg survey. Customers pulled $7.4 billion, the second straight quarter of net redemptions at the money manager that has posted a profit every quarter since going public in 1986. The withdrawals were offset by the appreciation in market values as the MSCI ACWI Index of global stocks rose 7.4 percent in the quarter and 15 percent in the year through Sept.
Source: http://www.bloomberg.com/news/2013-10-24/t-rowe-price-profit-rises-9-on-global-stock-market-gains.html

It Could Happen Using multiple attack vectors, including those originating from external sources and malicious insiders, individuals from the private and public sector participating in the SIFMA exercise gained experience reacting to realistic attempts by hackers to crash the technical systems that serve as the lifeblood of U.S. equity markets. With motives varying from a desire to steal billions of dollars, disrupt equities markets or degrade a firms post-trade processing capability, participants fought off attempted phishing schemes, corruption in widely-used source code, distributed denial of service attacks, fraud designed to falsely move the market as well as stolen administrator accounts that triggered automatic selloffs in target stocks. To top it all off, malicious code and equipment was introduced that in a real-world scenario, would serve to divert authorities in their investigation and slow down response time. The more realistic the exercise, and the more involved the traders and the hierarchy of the exchanges and the whole financial community are in these exercises, the better prepared theyll be if and when attacks from a cyber standpoint occur, Leighton said.
Source: http://www.foxbusiness.com/technology/2013/10/22/white-hat-hackers-expose-cyber-flaws-us-stock-market/

In fact, throughout last year and the first half of this year, average market prices for high-quality preferred stocks were higher than these securities’ $25 par value. The par value is the amount of cash shareholders will receive in the event that the issuing company redeems the preferred-stock issue (also known as a “call”). Risk-averse preferred-stock investors therefore seek to pay less than $25 for their shares. More preferred-stock candidates to pick from As we saw earlier this year, when a high-priced market forces buyers to go out on a limb and pay more than $25 per share, “call-protected” preferred stocks (those that have yet to reach their respective call dates and are therefore unable to be called by the issuing company) command an additional premium. But in anticipation of the Fed backing out of its QE program, preferred-stock prices came back down over the summer.
Source: http://www.fool.com/investing/dividends-income/2013/10/22/preferred-stock-investors-see-more-choices-in-toda.aspx

Stock Market Gains Likely To Continue As QE Remains

site, you agree not to redistribute the information found therein. Fundamental company data provided by Capital IQ . Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI) .
Source: http://finance.yahoo.com/news/stock-market-briefing-com-182401296.html

The buzz: Well see what Twitter power-user Carl Icahn had to say to Apples Tim Cook later this morning. He tweeted that itll be available on his new website . Icahn divulged back in August that he took a large position in Apple /quotes/zigman/68270 /quotes/nls/aapl AAPL . The letter reportedly makes an unknown pledge and builds on his push for a large buyback.
Source: http://blogs.marketwatch.com/need-to-know/2013/10/24/bitcoin-bubbles-and-the-aging-adult-film-star-of-the-stock-market/

13. That day is the deadline for the committee which was formed following negotiations to come up with some workable solution to budget talks. If some progress is made, equity markets may take it as a good sign that legislative practices are getting back to normal. However, OHare said, if that occurred it could be a sign that the Fed might start tapering. Fears of the Fed tapering could overshadow any http://www.todayhotstocks.com fiscal progress, he added, and cause stocks to fall. However, until the Fed looks to taper its QE plan, S&Ps will likely to continue to move higher overall.
Source: http://www.forbes.com/sites/kitconews/2013/10/21/focus-stock-market-gains-likely-to-continue-as-qe-remains/

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Obama Says Iran ‘a Year Or More Away’ From Having Nuclear Weapon

“That has to stop.” Obamacare glitches The government shutdown occurred when Obama refused to give in to Republican demands that he delay or change the Affordable Care Act, the signature achievement of his first term that began enrolling patients on October 1. Obama said he did not know how many people had signed up for the plan, also known as Obamacare. He acknowledged that computer glitches have snarled the process for some, but urged them not to give up. “My message to them would be, each day the wait times are reduced,” he said. But the program is not going to be affected by the budget negotiations, he said.
Source: http://www.cnn.com/2013/10/05/politics/obama-interview/index.html

– [/] An installation piece with paper tubes at Basel Art. – [/] A gallery scene at the Scope Basel show. – [/] A sculpture of Sperone Westwater Gallery’s employee, Michael Short, by Evan Penny. – [/] Evan Penny’s sculpture of Michael Short. – [/] A woman views Jaume Plensa’s “Tel Aviv Man,” (Study) 2010, Galerie Lelong, Paris. – [/] Photo “Medusa marinara,” 1997 a photographic representation of the Medusa in spaghetti and tomato sauce by New York-based Brazilian artist, Vic Muniz.
Source: http://www.globalpost.com/dispatch/news/regions/asia-pacific/131007/obama-asia-summit-cancellation-china-victory

Obama Echoes No-Negotiations Stance as Congress Deadlocks

Republicans have criticized Obama and Senate Democratic leader Harry Reid for refusing to negotiate the differences over spending and health care. In the weekly Republican radio address, Sen. John Cornyn, R-Texas, said that “it has become disturbingly clear that the Obama-Reid shutdown is no longer about health care, or spending or ideology. It’s about politics, plain and simple.” With the government shutdown in its fifth day, Obama and congressional Republicans also face another rapidly approaching deadline: Oct. 17, the day the Treasury Department says it will finally breach the $16.7 trillion debt ceiling. Without an increase, the government faces a http://www.obamastudentloanforgiveness.net first-ever default on its debts, Obama said, a development that could plunge the nation and the world into recession.
Source: http://www.usatoday.com/story/news/politics/2013/10/05/obama-associated-press-interview-government-shutdown/2926989/

Obama withdrawal puts China’s Xi Jinping in APEC box seat

should try a diplomatic solution. RELATED: IRANS PRESIDENT A WOLF NOT TO BE TRUSTED: NETANYAHU Obama recently had a brief phone conversation with Iranian President Hassan Rouhani the first direct contact between the leaders of the two countries in more than 30 years. I think Rouhani has staked his position on the idea that he can improve relations with the rest of the world, Obama said. And so far, he’s been saying a lot of the right things. And the question now is, can he follow through? Obama said the U.S.
Source: http://www.nydailynews.com/news/world/obama-iran-year-nukes-article-1.1477685

Rand Paul: Obama ‘Irresponsible’ To Suggest U.S. May Default

Lew, who appeared yesterday on four of the major Sunday television talk shows, said the administration would be willing to negotiate only after the partial shutdown comes to an end and the debt ceiling is increased. He also warned of the dangers of default. Ive talked with John Boehner; I know he doesnt want to default, Lew said on Fox News Sunday. He also didnt want to shut the government down. And here we are with a government shutdown. The U.S. will run out of borrowing authority on Oct.
Source: http://www.bloomberg.com/news/2013-10-07/obama-echoes-no-negotiations-stance-as-congress-deadlocks.html

U.S. Secretary of State John Kerry now leads the U.S. delegation to Indonesia for APEC and to the East Asia summit and U.S.-ASEAN meetings that follow in Brunei starting Wednesday. Obama’s cancellation was no surprise. He had already trimmed Malaysia and the Philippines from his Asia itinerary because of the failure of the U.S.
Source: http://www.cnn.com/2013/10/06/world/asia/apec-obama-xi-putin/index.html

Federal government shutdown since 1995 begins. (PAUL J. RICHARDS/AFP/Getty Images) Smithsonian Museums Fay Wagstaff, right, and her mother Fernanda Wagstaff of El Paso, Texas., sit outside the closed Smithsonian National Air and Space Museum in Washington, Tuesday, Oct. 1, 2013. (AP Photo/Carolyn Kaster) Everglades National Park Park Ranger Christine MacKarvich mans the Shark Valley entrance booth in Everglades National Park, early Tuesday, Oct.
Source: http://www.huffingtonpost.com/2013/10/06/rand-paul-obama_n_4053787.html

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Nasdaq Platform Speeds Up Nigeria Bourse-dealers

fell 9.6 percent to $7.09. Montage Tech fell 8.3 percent to $13.48. Prime Acquisition Corp. fell 6.9 percent to $10.20.
Source: http://www.businessweek.com/ap/2013-10-04/nasdaq-stocks-posting-largest-percentage-decreases

Certain risks and uncertainties related to the Company’s business are or will be described in greater detail in the Company’s filings with the SEC. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. The Company intends these forward-looking statements to speak only at the time of this press release and does not undertake to update or revise these statements as more information becomes available except as required under federal securities laws and the rules and regulations of the SEC. About Farmer Bros.
Source: http://finance.yahoo.com/news/farmer-bros-co-receives-nasdaq-210733595.html

Farmer Bros. Co. Receives NASDAQ Notification Letter

To put it another way, comparable revenue is falling and, as Netflix has clearly shown, people are turning toward streaming content for their viewing needs. Is this short interest deserved? Absolutely! If you didn’t catch the stinker of an updated forecast that Outerwall released in mid-September, allow me to rehash it for you. It lowered its full-year revenue forecast to a range of $2.274 billion-$2.339 billion from a prior forecast of $2.372 billion-$2.475 billion (precise, aren’t they?), and slashed adjusted EPS to a new range of $4.72-$5.12 from a prior guidance of $5.76-$6.26.
Source: http://www.fool.com/investing/general/2013/10/02/the-nasdaqs-5-most-hated-stocks.aspx

“The new system needs a bit of getting used to… but it’s efficient and transparent,” another dealer said. Other reforms the bourse has undergone include relaxing restrictions on price swings to 10 percent a day, from 5 percent previously, opening until 1430 Nigeria time (1330 GMT) into U.S. trading hours and allowing short selling, which is due to start next year. Africa’s second-biggest bourse is automated, but the old technology was slow and price rather than quote driven. After roaring growth earlier last decade, a banking crisis, some of it caused by fraud, took around 60 percent off the value of stocks in 2008, plunging the exchange into crisis.
Source: http://www.reuters.com/article/2013/10/04/nigeria-bourse-nasdaq-idUSL6N0HU23620131004?feedType=RSS

Is Nasdaq and NYSE Neglect Breaking the Humble Stock Ticker?

As trading volumes have diminished over the last five years, though, so has the revenue. According to data compiled by financial market consultant Tabb Group, public data revenue (visit site) fell to $445million in 2012 and is expected to come in at about $430million in 2013. NYSE and Nasdaq have helped offset the decline in public data revenue by selling proprietary data feeds to a variety of market participants, including high-frequency traders. These feeds arrive sooner and contain more information than the SIPincluding all prices being offered, not just the best ones.
Source: http://www.businessweek.com/articles/2013-09-26/is-nasdaq-and-nyse-neglect-breaking-the-humble-stock-ticker

Nasdaq Helps Set Up Iraq Erbil Bourse After Qatar Sale

To learn more, visit nasdaqomx.com . Follow us on Facebook ( http://www.facebook.com/NASDAQ ) and Twitter ( http://www.twitter.com/nasdaqomx ). (Symbol: NDAQ and member of S&P 500) The photo is also available via AP PhotoExpress. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither The NASDAQ OMX Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company.
Source: http://finance.yahoo.com/news/photo-release-nasdaq-welcomes-potbelly-155452275.html

Mutiple BlackBerry (NASDAQ:BBRY) Bids In The Works

And Nasdaq’s stable of retailers were also big winners, including Avis Budget, up 7,300%, yoga wear maker Lululemon Athletica, up 3,200%, and discounter Tuesday Morning, up 2,800%. Even big retailers, such as Costco, have stunning gains of 200%. And online retail leaders Amazon.com and Priceline were also huge winners, Winans says, rising 427% and 1,200%, respectively. New entrants added to the Nasdaq. Given that many young companies list on Nasdaq, it’s to be expected that the index morphs considerably over time.
Source: http://www.usatoday.com/story/money/markets/2013/10/01/nasdaq-200-bear-market/2903825/

Photo Release — NASDAQ Welcomes Potbelly Corporation (NASDAQ: PBPB) to The NASDAQ Stock Market

Other members include Chairman Barbara Stymiest, CEO Thorsten Heins, Richard Lynch and Bert Nordberg. A spokesman for BlackBerry said in an emailed statement to Reuters: The special committee, with the assistance of BlackBerrys independent financial and legal advisors, is conducting a robust and thorough review of strategic alternatives. He declined to provide further comment. Google, Intel, Cisco, LG and SAP declined to comment. Samsung was not available for comment. JPMorgan Chase & Co (NYSE:JPM)and RBC Capital Markets are advising BlackBerry.
Source: http://www.livetradingnews.com/mutiple-blackberry-nasdaqbbry-bids-works-12361.htm

Nasdaq rockets 200% from 2009 bear market low

The exchange, or ESX, will compete with the Baghdad-based Iraq Stock Exchange, which received a boost in February when mobile telephone operator Asiacell Communications PJSC listed its shares. Asiacells stock offering was fully subscribed and doubled the Baghdad stock markets value from $4.66 billion last year, Taha Ahmed Abdul-Salam al-Rubaye, the Iraq exchanges chief executive officer, said at the time. Nasdaq OMX is also helping to upgrade the Iraq exchanges trading system, he said on June 28. Upgrading Qatar The developments come days after Qatar Holding LLC, a unit of the Middle Eastern emirates sovereign wealth fund, bought NYSE Euronext (NYX) s 12 percent stake in the Qatar Exchange to become its sole owner. NYSE Euronext assisted with changes at the Qatar Exchange that almost doubled the bourses market capitalization and contributed to MSCI Inc. (MSCI) s decision in June to upgrade the exchange to emerging market status from frontier, according to an Oct.
Source: http://www.bloomberg.com/news/2013-10-03/nasdaq-helps-set-up-iraq-erbil-bourse-after-qatar-sale-correct-.html

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