student loans

Updated at 1:12 p.m. ET

The federal official in charge of protecting student borrowers from predatory lending practices has stepped down.

In a scathing resignation letter, Seth Frotman, who until now was the student loan ombudsman at the Consumer Financial Protection Bureau, says current leadership "has turned its back on young people and their financial futures." The letter was addressed to Mick Mulvaney, the bureau's acting director.

In a move it said was to address the large cost of entering a career in medicine, New York University's School of Medicine said Thursday that it will offer full scholarships to all current and future students in its doctor of medicine program.

NYU said it was the "only top 10-ranked" medical school in the U.S. to offer such a generous package.

Updated at 5:15 p.m. ET

Trying to change Obama-era rules, the Trump administration is one step closer to making it more difficult for students to have loan debt wiped clean in cases involving fraud by universities.

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Courtesy of Julio Ramos

Roughly 11,300 people applied to Loyola’s Stritch School of Medicine in Chicago this year. They interviewed about 600 people. About 160 were accepted — the odds of getting in were less than 2 percent.

And 10 of the students they accepted are undocumented, brought to the US as children. They have DACA status, Deferred Action for Childhood Arrivals, which gives them a temporary work permit and a chance to become physicians.

One of them is Julio Ramos.

Imagine if one notice from the federal government could cause you to question your major life decisions.

More than half a million people may have found themselves in that situation after a new legal filing by the Education Department.

Under a program known as Public Service Loan Forgiveness, some student loan borrowers were supposed to be able to have the balance of their student loans forgiven after ten years of both on-time payments and eligible work in the public sector. Meaning, a qualifying nonprofit, federal, local, state, or tribal government.

The number of people 60 and older with student loan debt has quadrupled in the past decade, and older Americans now represent the fastest-growing segment of the U.S. student loan market, according to a new report by the Consumer Financial Protection Bureau.

As of 2015, more than 2.8 million Americans over 60 had outstanding student loan debt — up from some 700,000 in 2005.

Cathleen Carter / WUSF

Looking back, Ronnie Wyche said it’s easy to spot the red flags: Recruiters dodged his questions, rushed him through enrollment paperwork and brushed aside concerns about being about to keep up in an engineering program after more than 30 years without taking a math class.

 

I Can't Be The Only One Drowning In Student Debt

Aug 11, 2016
Dwight Burdette / Creative Commons

For-profit colleges have gotten some unwanted government attention lately—for aggressive recruiting and high interest rates on loans, and for misleading students about what their degrees will help them accomplish.

The for-profit giant Corinthian Colleges shut down a year ago. Now another large operator, ITT Technical Institute, looks like it might be next: It is losing students quickly, its stock price has plunged to $2 a share, and the Obama administration is pushing to shut down the accreditors that oversee this school and many other for-profit colleges.

A new White House report on student loan debt reveals that how people repay student loans has changed dramatically in a short time.

Bush Shares Ideas To Reshape Student Loan Market

Feb 5, 2016

LACONIA, N.H.  — Former Florida Gov. Jeb Bush is campaigning in New Hampshire this week before the first-in-the-nation primary election on Feb. 9.

 

Trianons Oficial/flickr

Bills filed in the Florida House and Senate would require high school students to take a one-semester financial literacy course. But with just three weeks left in the legislative session, the proposals (House bill 29 and Senate bill 92)  haven’t been discussed by committees.

How Broward College Is Reducing Student Debt

Sep 21, 2014
John O'Connor / StateImpact Florida

To get a student loan at Broward College, you’ve got to sit through a two-hour financial lesson with Kent Dunston first.

At times, it’s a little like “Scared Straight!” – that 1978 documentary about setting juvenile delinquents on the right path -- but for your credit score.

Dunston’s first piece of advice – figure out how much money you’re going to need.

“You’re not going to borrow more than that amount of money,” he told the students. “You’ll be offered more. You don’t need it.”

Gina Jordan

The average student loan debt for new graduates last year was more than $26 thousand.

A leading Florida educator compiled data showing most students end up owing less than $20 thousand for a degree that will give them greater earning power.

“People with college degrees make more money than people without college degrees in their lifetime,” Dr. Ed Moore says. “People with college degrees are more likely in this kind of economy to be employed.”