Tag: student

Assessing the latest big idea for fixing the U.S. student loan crisis

One of the solutions being floated involves income-share agreements (ISAs), a type of financing where a student pays for education by paying a percentage of their income after graduation.

“Over the last several years we’ve certainly seen a resurgence and the interest in using income-share agreements to finance higher education, and potentially for other uses as well,” Joanna Darcus, a staff attorney at the National Consumer Law Center, told Yahoo Finance. “And that the interest is primarily driven by financial companies, FinTech platforms, venture capitalists, and some institutions who are interested in exploring the model.” 

While not a new idea, … Read more

President Trump overturns an Obama-era student loan rule

Both chambers of Congress had passed a resolution to reverse a proposed policy by U.S. Education Secretary Betsy DeVos that would have changed how defrauded victims of for-profit colleges could seek debt relief.

But on Friday night, two months after the GOP-controlled Senate rejected the proposed policy, Trump vetoed it.

The president had two choices: Either sign the new resolution and affirm that his education secretary made a mistake by attempting to overturn the Obama-era rule or veto the bill and risk a political fight over debt relief in the middle of a pandemic.

The president chose the latter option.

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Bankruptcy emerges as a viable option for U.S. student loan borrowers

Student loan forgiveness and bankruptcy are both ideas — and ways — that offer a second chance at what education was originally meant to offer: the American Dream.

“I always wanted to be an attorney when it was time for me to go to undergrad… it was sort of just automatic that I would take out student loan money in order to be able to pay the tuition,” Natalie Jean-Baptiste, an attorney who also specializes in student loans and bankruptcy cases, told Yahoo Finance. “And I didn’t really give it much thought it was just what you did.”

This is Read more