WSJ: Consumers now have more student loan debt than credit card debt
August 11, 2010 by Todd Murray · Leave a Comment
According to the Wall Street Journal, Americans owe approximately $826.5 million in revolving credit debt, which is mostly made up of credit card debt. But the outstanding student loans–both public and private–total approximately $829.785 billion. According to experts quoted in the story, there is $605.6 billion in outstanding federal student loans and $167.8 billion in outstanding private student loans. It’s estimated that $300 billion in federal student loan debts have been incurred in the last four years.
The story attributes this shift to Americans paying down their credit card debts, which usually carry higher interest rates than student loans, as well as the rising costs of higher-education.
Student-Loan Debt Surpasses Credit Cards | The Wall Street Journal | August 9, 2010
Congress approves major student loan changes
March 30, 2010 by Todd Murray · Leave a Comment
Last week, Congress voted to cut private banks out of the federal student loan process. The law ends federal subsidies to private lenders, such as Sallie Mae, which ends the current system where banks reap the profits and taxpayers subsidize the losses. The new law also will make it easier for people to pay back their student loans, by reducing the portion of income that a borrower has to commit to repayment. This change doesn’t go into effect until 2014, though. Predictably, banks and their Republican allies lobbied hard against the changes, although the government has indicated it will hire many of the same banks to service the loans.
Student Loan Overhaul Passes Congress | New York Times | March 25, 2010
Links of the week
May 18, 2009 by Todd Murray · Leave a Comment
Notes From Another Credit Card Crisis. Op-Ed contributor Suki Kim compares America’s current credit card crisis with similar problems in South Korea in the early 2000’s.
Right Steps to Take Before Disputing a Credit Error. How to dispute an error on your credit report under the Fair Credit Reporting Act.
A Final Lesson: Repay Student Debt Quickly. Columnist Michelle Singletary advises new graduates to take a hard look at their budgets and attempt to pay back their student loans as soon as possible.
Plan to Encourage Banks to Allow Short Sales. The Obama administration has proposed incentives for banks to allow homeowners to sell their home at a loss, rather than going through foreclosure.
Weighing the Options with Credit Card Debt. Tips for resolving your credit card debt.
Consumerist Interviews Goolsbee on Credit Card Reform. An interview with Obama credit card advisor Austan Goolsbee on proposed credit card reform legislation.
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