student loans

Five billion dollars in outstanding private student loan debt may be forgiven because of poor record keeping by financial companies, an investigation by The New York Times found this week.

On Adriene McNally's 49th birthday in January, she heard a knock on the door of her modest row-home in Northeast Philadelphia.

She was being served.

"They actually paid someone to come out and serve me papers on a Saturday afternoon," she says.

Brian Jackson/123rf Stock Photo

Attorney General Lisa Madigan is pushing legislation aimed at protecting Illinois students who take out college loans.

Imagine if one notice from the federal government could cause you to question your major life decisions.

More than half a million people may have found themselves in that situation after a new legal filing by the Education Department.

Under a program known as Public Service Loan Forgiveness, some student loan borrowers were supposed to be able to have the balance of their student loans forgiven after ten years of both on-time payments and eligible work in the public sector. Meaning, a qualifying nonprofit, federal, local, state, or tribal government.

Recent college graduates who borrow are leaving school with an average of $34,000 in student loans. That's up from $20,000 just 10 years ago, according to a new analysis from the Federal Reserve Bank of New York.

National K-12 and higher ed news came fast and furious this week. Here are our highlights to help you keep on top.

The president's "skinny budget" has cuts for education

The biggest story of our week happened early Thursday morning when President Trump released his budget outline, historically known as a "skinny budget" because it has few details.

The U.S. Department of Education came in for a $9 billion, or 13.5 percent, cut.

Brian Jackson, 123rf Stock Photo

A Franklin Circuit Judge has ordered Florida-based student loan company Liberty Tax and Student Loan Defense to stop operating in Kentucky. 

There's a new book out about the student loan crisis, or what author Sandy Baum suggests is a "bogus crisis." Baum, a financial aid expert and senior fellow at the Urban Institute, claims it has been manufactured by the media in search of a spicy story and fueled by politicians pushing "debt free college" proposals.

We had a few questions for Baum about the book, Student Debt: Rhetoric and Realities of Higher Education.

We all know that American college education isn't cheap. But it turns out that it's even less cheap if you look at the numbers more closely.

That's what the Wisconsin HOPE Lab did. The lab, part of the University of Wisconsin-Madison, conducted four studies to figure out the true price of college.

To get a sense of student realities, researchers interviewed students on college campuses across the state of Wisconsin. But they also examined 6,604 colleges nationally and compared their costs with regional cost-of-living data from the government.

President Obama has increased college aid by over $50 billion since coming into office. And he's trying to do more.

Acting Education Secretary John King announced two new proposals today that would expand the Pell Grant program, the biggest pot of federal money for students with financial need:

  • Year-round Pell. Currently, students are only eligible for two semesters of Pell grants in a school year. Today's proposal would allow students to get extra money to cover a third session of, say, summer courses.

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