NextStudent Inc. to Explore Liquidity Options for Outstanding Auction Rate Notes
NextStudent Inc. announced today that it intends to explore alternatives for creating liquidity for the outstanding auction rate notes issued by NextStudent Master Trust I.
Last-Minute Withdrawal by Lenders Leaves Students Scrambling for Student Loans
On July 28, just a few weeks before the fall semester gets underway, some 40,000 college students in Massachusetts suddenly found themselves facing outstanding tuition bills with no money to pay them, when the nonprofit Massachusetts Educational Financing Authority announced that it wouldn’t be able to provide any private student loans for the upcoming semester. MEFA, the largest issuer of student loans to Massachusetts residents, had already suspended its federal student loan program back in April.
Faltering Economy Eroding Consumer Confidence in Student Loans
Some banking industry experts have long regarded the federal student loan program, established in 1965, as one of the most successful public-private partnerships ever created. A historically steady and reliable source of financing for parents and college students needing help paying for school, the federal student loan program also used to be a mostly risk-free and profitable venture for private lenders issuing government-backed student loans.
Post-9/11 GI Bill to Double Veterans Education Benefits Starting August 1
Some 1.6 million veterans of the Iraq and Afghanistan wars will see their GI Bill benefits more than double from approximately $40,000 to $90,000 as the new Post-9/11 GI Bill goes into effect today.
Student Loans Could Be Forgiven After 10 Years of Public Service
The government hopes a new loan forgiveness program will give students an incentive to consider a career in public service. In exchange for 10 years on the job in a field of public service such as public safety, education, or social work, the Department of Education will erase certain borrowers’ remaining federal student loan debt.
July 1 Brings Record-Setting Drop in Interest Rates on Federal Student Loans
As a result of the string of rate cuts made by the Fed over the last year, most parent and student borrowers who have existing variable-rate federal student loans will see their interest rates drop by 3 percent on July 1, 2008 — the biggest rate drop in the history of the federal student loan program.
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