“Federal education loans are student’s best option (Richmond Times-Dispatch)” plus 3 more |
- Federal education loans are student’s best option (Richmond Times-Dispatch)
- Witness: Mayor had $240K in card debt, $92K in car loans (The Tuscaloosa News)
- Research and Markets: The UK Personal Lending Overall Contraction to Be Around 12% in the Market from £192.9 Billion ... (Business Wire via Yahoo! Finance)
- StepUp not-for-profit loans will continue (Western Advocate)
| Federal education loans are student’s best option (Richmond Times-Dispatch) Posted: 26 Oct 2009 09:10 PM PDT MICHELLE SINGLETARY TIMES-DISPATCH COLUMNIST WASHINGTON Ican't stand debt. One of my missions in life is to help keep people out of debt.So I take it as good news that private student loans are declining fast. According to a new report from the College Board, the amount of nonfederal education loans in 2008-09 dropped by nearly 50 percent from the previous year and fell to 13 percent of the market from 25 percent a year earlier. SLM Corp., commonly known as Sallie Mae, recently reported a significant drop in its private lending. In its third-quarter report, Sallie Mae, the nation's largest student-loan lender, said it had originated $893 million in private education loans, a decrease from $2.1 billion for the same quarter a year ago. The reason for this trend is obvi ous. The recession has broken a long-standing trend toward private loans, which generally carry higher interest rates than federally subsidized or unsubsidized loans. Additionally, borrowers don't get the same protections or perks. For example, the government pays the interest on subsidized Stafford and Perkins loans while a student is in school. Subsidized Stafford loans are awarded to students who have demonstrated financial need. Unsubsidized loans are awarded regardless of financial need and students are responsible for the interest, although they don't have to make payments while in school. Clearly of the two types of loans, subsidized is better because with an unsubsidized loan, unpaid interest that accrued during the in-school period and the six-month grace period after leaving school is added to the loan principal. "Students should always borrow federal first, as federal loans are cheaper," said Mark Kantrowitz, publisher of FinAid.org and FastWeb.com. The interest rate on federally subsidized Stafford loans was 6 percent in 2008-09. The rate dropped to 5.6 percent in 2009-10 and is scheduled to decline to 3.4 percent in 2011-12. The interest rate on unsubsidized Stafford loans is fixed at 6.8 percent. Kantrowitz also points out that federal loans have better consumer protections, such as economic hardship deferment, greater availability of forbearances and flexible repayment programs. Interest rates for private student loans currently range from about 9.5 percent to 10 percent, down about 1 percentage point from the previous year, says Tim Ranzetta, president of Student Lending Analytics. And these rates aren't fixed. Is shifting borrowing from private student loans to federal good for students and their parents? It certainly got a lot of thumbs up. "Absolutely, it's great that private loan borrowing is down, but with one caveat," Ranzetta said. "Is this going to lead to overborrowing with federal loans?" No doubt it will. "We are very concerned some students are borrowing much too much," said Sandy Baum, senior policy analyst at the College Board. But Baum was quick to point out that the percentage of students borrowing incredibly high levels of debt is still relatively low. Sixty-five percent of 2007-08 bachelor's degree recipients graduated with education debt, and the median debt for those who borrowed was $20,000, the College Board reported.
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| Witness: Mayor had $240K in card debt, $92K in car loans (The Tuscaloosa News) Posted: 27 Oct 2009 01:44 AM PDT The testimony came as federal prosecutors neared the end of their case and tried to show Langford had a financial incentive to accept bribes while he was on the Jefferson County Commission, a charge that Langford denies. Norm Davis, a former top executive with the National Bank of Commerce, said Langford came to him seeking a $50,000 loan from the bank shortly after it was hired as a financial adviser to Jefferson County. Langford was the County Commission president and head of finances at the time in 2003. Davis, a one-time head of the Alabama Banking Department, said Langford listed $649,946 in liabilities on a balance sheet they prepared together, including $238,152 in credit card debt and $92,000 in car loans. The only Langford asset mentioned in court was a $250,000 partnership in a piece of land a share of property that a previous witness said Langford obtained without putting up any money. Despite Langford's precarious financial status, a group of executives including the bank's CEO decided to give Langford a credit card with a $25,000 limit, Davis said. 'He had a low credit score, but there were other compensating factors,' Davis said. He didn't elaborate. Langford asked for and received increases in his credit limit to more than $60,000, and the bank finally rolled his credit card debt into a loan for $58,686, said Davis, describing himself as a 'very good friend' of Langford. Prosecutors contend he took bribes totaling some $235,000 in loan payments, gifts and checks to funnel lucrative public bond business to investment banker Bill Blount, whose Montgomery-based firm received $7.1 million for its work on a series of deals. Blount and lobbyist Al LaPierre testified for prosecutors after pleading guilty in agreements that let them shave years off prison sentences in exchange for their assistance. Langford, 63, will automatically be removed from office and could face years in prison if convicted on any of multiple felony counts of bribery, fraud, conspiracy, money laundering or filing false tax returns. All the charges stem from Langford's tenure as president of the Jefferson County Commission before he was elected mayor. With the prosecution's case nearly complete, U.S. District Judge Scott Coogler told the defense to be ready to begin presenting its witnesses today. Trying to show Langford often had his hand out for gifts, prosecutors called businessman Keith Nelson to testify about a business partnership he and several other men formed with Langford to purchase property in the Birmingham area. Members of the partnership each put up $10,000 in earnest money to secure a loan for a $500,000 piece of property, Nelson said, but he and another man, Pat Lynch, paid Langford's share. Lynch also made monthly payments on Langford's behalf, Nelson said. It wasn't clear why Lynch and Nelson would be willing to pay Langford's way. All three worked for Birmingham Budweiser, where Langford was a promoter at the time. Jurors also heard testimony where Langford denied under oath in 2007 that Blount had lavished him with items from high-priced New York stores. Testifying to attorneys with the Securities and Exchange Commission before he was indicted on charges that could send him to prison for years, Langford said he and Blount swapped birthday and Christmas gifts, and Blount may have purchased a shirt or tie for him. 'We've exchanged gifts, but I know I've given him more than he's ever given me,' Langford said in a deposition that was read to jurors. Langford confirmed in his SEC statement that he visited Manhattan stores with Blount during business trips to New York, as trial testimony showed. But Langford said he paid for his purchases with his own credit cards. Langford's claims contradicted testimony and records from earlier in his bribery trial that showed Blount used his American Express card to provide Langford with clothes and jewelry worth tens of thousands of dollars. This content has passed through fivefilters.org. |
| Posted: 27 Oct 2009 09:17 AM PDT DUBLIN--(BUSINESS WIRE)--Research and Markets(http://www.researchandmarkets.com/research/001cc4/uk_personal_lendin) has announced the addition of the "UK Personal Lending 2009" report to their offering. The recession in the UK has impacted lending considerably and the consumer credit landscape is now very different to what it was a year ago. However, with change comes opportunity, and with signs of a slow but steady recovery on the horizon, lenders will need to move quickly to take advantage of the improving consumer sentiment in the economy. Scope
Highlights of this title The UK personal lending market has suffered considerably over the past year. Lending has declined across all product lines, and many lenders have left the market entirely. While some signs of recovery are on the horizon, the supply of credit is still restricted, and perhaps more importantly, consumers are reducing borrowing and debt obligations. Datamonitor expects conditions to remain tough throughout 2009 and 2010 before improving in 2011. Datamonitor's expectation is of an overall contraction of around 12% in the market from £192.9 billion to £170 billion between 2008 and 2009. The competitive landscape has also shrunk considerably. In June 2008, there were 46 lenders offering unsecured personal loans, down from 58 in June 2007, however, by June 2009 this number had dropped further to just 37. Key reasons to purchase this title
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For more information visit http://www.researchandmarkets.com/research/001cc4/uk_personal_lendin Source: Datamonitor This content has passed through fivefilters.org.  This posting includes an audio/video/photo media file: Download Now |
| StepUp not-for-profit loans will continue (Western Advocate) Posted: 26 Oct 2009 03:13 PM PDT
THE Josephite Foundation and National Australia Bank have renewed their commitment as Microfinance partners to deliver not-for-profit small loans in the Central West, through the award-winning StepUP program. First established in Bathurst in 2004, the Josephite Foundation StepUP programs have delivered 156 loans to low income earners throughout Bathurst, Lithgow and Cowra, totalling $415,800. Building on the concept originally developed by NAB and Good Shepherd Youth & Family Service in 2004, StepUP will be delivered by the Josephite Foundation in the Central West for another two years. Margaret Jones, Executive Officer of the Josephite Foundation, said that StepUP works to address financial exclusion by creating a "bridging alternative" that empowers people unable to access credit through traditional institutions. "These small microfinance loans are delivered to individuals for a specific purpose, but we've seen flow-on effects to families and community networks as they develop their own capacity to change their lives," she said. Corinne Proske, NAB's Senior Manager Community Finance and Development, said the renewed agreement would improve the prospects of the StepUP applicants, creating for many, a first positive lending experience upon which they can build. "The economic downturn showed us that microfinance is increasingly relevant in Australia to help low income earners build their own way to financial independence. While the global crisis raised the prominence of financial exclusion, it's an issue that has long existed, and until recently has been unrecognised by the Australian financial community," she said. StepUP loans are generally to purchase necessary personal and household goods or services. They are not for emergency relief, bond or rent money, living expenses or to repay debt. This content has passed through fivefilters.org. |
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