Higher Education Reporter
Janet Lorin writes about higher education, focusing on college admissions, financial aid and student debt. Since she joined Bloomberg News in April 2008, she has also written about the nonprofit testing industry, university presidents who sit on corporate boards and the impact of the economic downturn on university finances. Before joining Bloomberg, Janet worked for The Associated Press as Newark Correspondent, the Atlanta Journal-Constitution and the Akron Beacon Journal. She holds a bachelor's degree in history from Columbia College of Columbia University and a master's in journalism from Columbia's Graduate School of Journalism. Follow Janet at www.twitter.com/
The U.S. Treasury, which finances more than 90 percent of new student loans, is exploring ways to make repayment more affordable as defaults by almost 7 million Americans and other strapped borrowers restrain economic growth.
Young borrowers saddled with student loans have a median net worth that’s typically seven times lower than their peers without college debt, according to a report. The study is the second in two days to show that young Americans with student debt are diverging economically from their peers who aren’t burdened with college loans.
Student-loan borrowers retreated from home buying for the second year in a row, outpaced in the mortgage market by young people who aren’t saddled with college debt, according to the Federal Reserve Bank of New York
Stanford is outshining the Ivy League as its reputation for innovation and proximity to Silicon Valley attracts students, some drawn by the allure of jobs in technology, venture capital and related fields. Stanford, based near Palo Alto, California, received almost 8,000 more applications than its East Coast rival for the coming academic year.
City University of New York, which graduated 12 Nobel laureates between 1930 and 1950, is making a bid to return to the spotlight by hiring Princeton University economist and New York Times columnist Paul Krugman.
Federal Reserve economists are trying to determine whether student loan borrowers who move home with their parents represent a trend that will damage U.S. growth, partly by restricting sales of houses and cars. Student loans are one of the only deteriorating pockets of consumer credit, with balances and delinquency rates rising to record highs even as a strengthening economy allows Americans to reduce total borrowing.
For-profit Caribbean medical schools that don’t have access to U.S. federal loans are finding a way around the rules: Encouraging some students to enroll simultaneously in online master’s programs at U.S. universities.
U.S. Senator Dick Durbin called for an examination of for-profit medical schools in the Caribbean that have access to federal student loans yet may be subject to standards below those set for medical students in the U.S.
DeVry Inc., which has two for-profit medical schools in the Caribbean, is accepting hundreds of students who were rejected by U.S. medical colleges. These students amass more debt than their U.S. counterparts -- a median of $253,072 in June 2012 at AUC versus $170,000 for 2012 graduates of U.S. medical schools.
The next generation of U.S. physicians is being saddled with record debt amid a looming shortage of doctors needed to cope with a rising elderly population. The burgeoning debt burden may be turning students away from primary care toward more lucrative specialties and scaring off low-income and minority students fearful of taking on big loans.
Sallie Mae, the largest U.S. education-finance company, is making a bet on the future of private student debt, a business under fire in Washington for marketing high-interest-rate loans before the financial crisis.
Scholarship programs funded by some of the nation’s biggest donors say colleges are hurting poor and minority students by rescinding aid once they find out they have awards from outside sources or by banning use of the funds to cover some student contributions. Donors complain that, in some cases, their gifts are boosting a school’s bottom line rather than the students they seek to help.
Needy U.S. borrowers are defaulting on almost $1 billion in federal student loans earmarked for the poor, leaving schools such as Yale University and the University of Pennsylvania with little choice except to sue their graduates.
Freshman applications to many U.S. colleges and universities are rising this year, fueled by a surge of international students, even as costs increase and the number of U.S. high school graduates declines.
After a decade of resistance from universities, Congress is poised to take on college prices amid a groundswell of anger about tuition outpacing inflation and family incomes, leaving borrowers with $1 trillion in debt. Politicians from both parties are seeking to compel colleges to tell students how much they could be expected to earn from their degrees, spell out fees and debt in plain English, reward schools that keep tuition affordable -- and punish those that don’t.
The November election isn’t the only presidential contest prompting career opportunities in Washington.
Princeton University, Dartmouth College and Yale University are all searching for new presidents, fueling speculation that some top Washington officials may seek haven in the Ivy League.
Princeton University President Shirley Tilghman’s retirement next June along with departures of the heads at Yale University and Dartmouth College mark a generational shift in leadership in the Ivy League.
Geraldine Damiani Brezler took out a $5,000 student loan in the late 1960s to study at the State University of New York. She became a nurse, got married, bought a house and repaid the debt in less than three years.
Today, her son, David, 38, owes about $85,000 in loans for a master’s degree in education at New York University. He can’t find full-time work, lives with his parents in White Plains, New York, and has deferred paying his debt for three years.
Unlike the federal student-loan program, which lets consumers borrow at fixed rates directly from the government, these loans from at least 30 banks and other private lenders feature mostly variable rates that can be more than twice what some people pay in the U.S. program. With college costs spiraling, the marketing and interest rates of these loans are drawing increasing complaints from borrowers and regulators, who say teenage consumers often don’t understand their terms.
As many high school seniors face a May 1 deadline to decide where to go to college, families are struggling to understand financial-aid letters, which can be murky and confusing. While the federal government requires banks and mortgage companies to disclose interest rates and total payments on loans, financial- aid letters for college -- which can cost as much as $240,000 for four years -- are unclear about how much families will have to pay.
Students who take out loans from private lenders to finance their education should have the same right to discharge their debt in bankruptcy that other borrowers enjoy, Illinois Senator Dick Durbin said today.
About $85 billion in U.S. student loan debt, or 10 percent of the outstanding balance, was delinquent in the third quarter of 2011, according to a report released today by the Federal Reserve Bank of New York.
The president of the College Board, the nonprofit owner of the SAT entrance exam, has seen his compensation triple since 1999 and now gets more than the head of the American Red Cross, which has more than five times the revenue.
U.S. Representatives Ed Markey and Joe Barton asked the College Board, owner of the SAT college entrance exam, to explain how it collects and stores data from students as the government seeks to bolster teen privacy laws.
Colleges from Bowdoin in Maine to Pitzer in California dropped the SAT entrance exam as a requirement, saying it favors the affluent, penalizes minorities and doesn’t predict academic success. What they don’t advertise is they find future students by buying names of kids who do well on the test.