How Elizabeth Warren Beat A Student Loan Giant

The Huff Post reports

Two years ago, Sen. Elizabeth Warren demanded to know why a government-sponsored bank meant to expand homeownership was instead lending money on the cheap to student loan company Sallie Mae, boosting its profits at the public’s expense.

Last week, the Massachusetts Democrat achieved a quiet victory after the Federal Home Loan Bank of Des Moines restricted Sallie Mae offshoot and student loan giant Navient Corp.’s access to ultra-cheap funds — causing stock in the company to plummet and demonstrating the unique ability of one of the Senate’s most liberal lawmakers to influence the bottom line of one of the nation’s largest publicly traded companies.

Navient shares have fallen more than 10 percent this week,  after the companydisclosed the Des Moines bank’s Dec. 22 move to investors on Monday morning. The stock has plunged 48 percent this year.

How Elizabeth Warren Beat A Student Loan Giant

Ninth Circuit Student Loan Bankruptcy Ruling Signals Lower Courts That Easier Hardship Discharges Are OK & Will Be Upheld On Appeal

Couldn’t have said it better… From the “Above the Law” blog:

Who in the f**k does this court think it is? The Hedlunds have kids. The court has no right to dictate how they are cared for. For all we know, the wife’s earning potential wouldn’t cover child care costs. And even if it would, a court cannot essentially order a man to pimp out his wife to pay his debts. It’s one thing for a court to look at finances, but this crosses a line into judging the Hedlunds’ marital relationship. It’s disgusting. What’s the next step? “While Mrs. Hedlund doesn’t have a lot of skills, she is pretty and athletic enough to at least be a stripper, a fact that seems to not have occurred to Mr. Hedlund before filing for bankruptcy.”

via  Above the Law.

This case (In re Hedlund, No. 12-35258., 9th Cir., 5/22/2013) doesn’t mean that any bankruptcy court couldn’t impose a work requirement on a spouse as a good faith requreiment. It just means that it’s not a requirement to satisfy the standard of “undue hardship” required to discharge a student loan. The bankruptcy court’s determination of “good faith” was a fact question that the district court had no business revisiting on appeal unless the facts could not support it and it was “clearly erroneous.” [Read more...]

Student Debt and the Crushing of the American Dream – NYTimes.com

Student Debt and the Crushing of the American Dream – NYTimes.com.

Private Student Loan Bankruptcy Fairness Act of 2013 (H.R. 532) – GovTrack.us

Private Student Loan Bankruptcy Fairness Act of 2013 (H.R. 532) – GovTrack.us.

Fairness for Struggling Students Act of 2013 (S. 114) – GovTrack.us

Fairness for Struggling Students Act of 2013 (S. 114) – GovTrack.us.

Student Loan Relief – NYTimes.com Op Ed

Student Loan Relief – NYTimes.com Opinion piece.

A law professor urges passage of a bill to make the loans dischargeable in bankruptcy.

Senator Richard J. Durbin of Illinois and Representative Steve Cohen of Tennessee have introduced legislation (S. 114/H.R. 532) to make private student loans dischargeable in bankruptcy, as they were until 2005. This would be the quickest way to push private student lenders to develop relief programs for borrowers who are unemployed, ill or otherwise unable to pay and who need deferments, furloughs and income-based repayment plans to avoid default and its severe consequences.

Student Loan Interest Rate Set to Rise: Forum | KQED Public Media for Northern CA

Student Loan Interest Rate Set to Rise: Forum | KQED Public Media for Northern CA.

Good discussion of Student loan situation.

Guests:

  • George Miller, congressman representing the 11th District of California in the East Bay, and senior Democrat of the House Education and Workforce Committee
  • Jason Delisle, director of the Federal Education Budget Project at the New America Foundation
  • Mike Cagney, co-founder, CEO, and chairman for SoFi, a group which connects students and alumni through a social community lending pool
  • Nancy Coolidge, coordinator for federal and state programs, student financial support at the Office of the President, University of California

Student Loans Archive > Consumer Financial Protection Bureau

Student Loans Archive > Consumer Financial Protection Bureau.

Posts pertaining to Student Loans from the CPFB.

More wiggle room for student-loan debt? – MarketWatch

More wiggle room for student-loan debt? – MarketWatch.

The Consumer Financial Protection Bureau last week said it’s seeking proposals on ways to make debt repayments more manageable for borrowers of private student loans — especially those who encounter financial hardships. In a call with reporters on Thursday, Rohit Chopra, the CFPB’s student-loan ombudsman, said private student-loan borrowers face bigger challenges than those with federal loans because they typically don’t have flexible repayment options, such as “income-based repayment,” where borrowers make payments based on their income rather than the amount they owe, and “extended repayment,” which lowers the monthly payment by lengthening the loan’s duration.

Education Department Adopts Crucial Reform for Disabled Student Loan Borrowers

The education department has adopted a rule that says a Social Security finding of disability is grounds for forgiving government student loans without the need for a separate finding of disability by the Ed Departmemnt.

The rules, which the department has not publicly announced, for the first time recognize certain disability findings by the Social Security Administration as sufficient grounds to discharge student loans. This will allow many borrowers to avoid a lengthy double review to determine whether they are truly disabled. Under federal law, borrowers who develop severe and lasting disabilities are entitled to get their loans forgiven.

via Education Department Adopts Crucial Reform for Disabled Borrowers – ProPublica.