🎅 How to Overcome Holiday Stress Student Loan Update🎅 | $12,233.69 Original Balance $85,308.07
University of Phoenix to cancel $141 million in student debt
December 12, 2019
By Scott Olson, NBC News
The University of Phoenix and its parent company have agreed to pay $50 million in cash and cancel $141 million in student debt to settle allegations of deceptive advertisement brought by the Federal Trade Commission.
The deal, announced Tuesday, settles a dispute over an ad campaign the for-profit college launched in 2012 touting partnerships with companies including Microsoft, Twitter and Adobe. It suggested the school worked with those companies to create job opportunities for students, even though there was no such agreement, investigators found.
The Federal Trade Commission said the settlement is the largest the agency has ever obtained against a for-profit college.
“Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist,” said Andrew Smith, director of the Federal Trade Commission’s Bureau of Consumer Protection.
The University of Phoenix said in a statement that much of the dispute focused on a single ad campaign that ran from 2012 to 2014. It said it agreed to the deal “to avoid any further distraction from serving students.”
“The campaign occurred under prior ownership and concluded before the FTC’s inquiry began. We continue to believe the University acted appropriately,” the company said.
Apollo Education Group owns the University of Phoenix. The Arizona-based for-profit college chain has 55 campuses across the nation and teaches thousands of students through its online programs. It’s the nation’s largest recipient of GI Bill tuition benefits for military veterans.
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https://www.nbcnews.com/news/us-news/u-phoenix-agrees-cancel-141-million-student-loan-debt-n1099681
‘I’m working until I’m 75’: Factory worker describes family’s student debt nightmare
December 2, 2019
By Aarthi Swaminathan
Student debt isn’t just a student problem. Across the U.S., many parents also struggle with the burden of student loans.
A recent survey by Freedom Debt Relief found that 37% of 1,506 American adults said their children’s college education cost has made them feel financially overwhelmed. And 20% said that the stress has contributed to mental or emotional health issues.
More than 40% said education costs impacted their retirement plan, with 31% indicating that they had “given up retiring when they initially desired.”
Yahoo Finance spoke with one parent in a particularly difficult student loan situation: a 60-year-old factory worker from Scranton, Pa., who had cosigned a loan for his son. (The man, whom we’ll call Frank, asked for anonymity to protect his son.)
Frank’s student debt experience began when his son got into a college. As a “middle-class working family” that brings in about $75,000 a year, Frank and his son started borrowing.
The son fell seriously ill after attending the school for one-and-a-half years and dropped out. After his health improved, the son decided to resume his education at a different school. All the while, both father and son continued to borrow.
The expenses began mounting: The family had a refinanced mortgage and credit card debt, as well as home and car insurance to pay. On top of that, they had recurring medical bills. And there was the possibility of more kids going to college.
“[With] some of my bills, I was in no position to barely help myself,” Frank said.
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https://finance.yahoo.com/news/student-debt-family-burden-175514385.html
❄️November 2019 Student Loan Update | From Sweepstakes to Snowflakes ❄️
U.S. Education Dept. Cancels Loans for 1,500 Defrauded Students
November 11, 2019
By Stacy Cowley, The New York Times
About 1,500 students who attended two art institutes that were part of the sudden collapse of a career-school chain this year will have their federal loans canceled, Education Secretary Betsy DeVos said on Friday.
It was a rare victory for borrowers seeking debt relief from a department that, under Ms. DeVos, has frozen or curtailed relief programs for students who claim that schools defrauded them. Borrowers who attended the two schools, the Art Institute of Colorado and the Illinois Institute of Art, sued the department last month, seeking to have their loans eliminated.
“Students were failed and deserve to be made whole,” Ms. DeVos said. Students who attended the schools from late January 2018 through the end of last year, when they shut down, will have their loans for that period canceled, the department said.
Borrowers will still generally owe on federal loans they took out before Jan. 20, the department said in an email sent to borrowers on Friday. Some people, however, may qualify to have all of their loans eliminated through the department’s closed school discharge program.
The decision was the latest twist in the messy unraveling of the chain, Dream Center Education Holdings, which owned dozens of campuses under the Art Institutes, South University and Argosy University brands.
Dream Center was owned by a Christian nonprofit that acquired the troubled group of for-profit schools in late 2017. It closed some schools within a few months, and the entire chain abruptly shut down barely a year later after millions of dollars in federal financial aid funds that were owed to students went missing. The money has still not been recovered.
The accreditation for the Art Institute’s Colorado and Illinois campuses was removed by the Higher Learning Commission in January 2018, around the time Dream Center took them over. The loss of certification meant that students risked being unable to transfer their credits to other schools or have their credentials recognized by employers.
Officials at the Art Institutes never told students that the campuses had lost their accreditation, according to court filings and the Higher Learning Commission.
By law, the Education Department is not allowed to release federal student loan funds to for-profit schools that are not accredited. But the department sent more than $10 million to the two schools and, according to emails and other records, told Dream Center officials that it was working to allow schools to become retroactively accredited.
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My aunt cosigned my student loans, but 12 years later I’m determined never to do the same
November 5, 2019
By Kelly Burch, Business Insider
During my freshman year of college, there was a five-figure gap between what my financial aid covered and what tuition cost. In hindsight, I should have seen that bill and run to my nearest community college, since the four-year university I was planning to attend was clearly unaffordable.
Instead, I turned to private student loans to cover the cost. As a broke 18-year-old with no official work history, I couldn’t get approved for a private student loan on my own. My parents couldn’t either because of their credit histories. I was panicked, until an aunt offered to cosign an $18,000 loan.
I was incredibly grateful at the time, and still am today. That loan allowed me to get started in a journalism program that kickstarted my career. However, in the 12 years since that loan was dispensed, I’ve learned a lot about cosigning.
I recently refinanced the loan in my own name, and I’ll never ask for a cosigner again. And though I am incredibly grateful for the gift my aunt gave me, I’ll never be a cosigner myself. Here’s why.
Cosigning affects you, even if everything goes well
Many people think a cosigner is merely a backup payee. If the primary borrower doesn’t pay, the lender can go to the cosigner, who is also responsible for the loan. If you think about cosigning this way, there’s little risk, as long as you believe the primary borrower will hold up their end of the deal.
However, that’s not the full picture. When you cosign a loan, it shows up on your credit report. Lenders consider cosigned debt just the same as they would consider debt where you’re the primary borrower. It affects your all-important debt-to-income ratio, which can limit your ability to get additional credit in the future. That means that even if the person you cosigned for is doing everything right, their loan can still change your financial situation.
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https://www.businessinsider.com/aunt-cosigned-student-loans-ill-never-cosign
And The Winner Is…🎊🎉🎊
October 2019 Student Loan Update | $13,909.57 Original Balance $85,308.07
Check out No Debt But Love’s student loan update for October featuring a special little helper.😄
😱😱😱Vacation in Hawaii with Sallie Mae😱😱😱
🙏Sending up prayers to those impacted by the tornado in Dallas.🙏
