The New York Times reports today that aggressive lobbying by top student lenders like Sallie Mae may derail Obama’s plans for reforming the student loan industry.
Obama’s plan is to cut out federal subsidies to private lenders and loan the money directly to students instead, a plan that a Congressional Budget Office analysis says could save approximately $80 billion dollars over the next ten years. That money would then go to “expanding direct Pell Grants to students, establishing $10,000 tax credits for families with loans, and forgiving debts eventually for students who go into public service, administration officials say.”
Wow. Just read this post over at The Jobless Juris Doctor about a woman who was denied her petition to discharge her student loans because she had recently been offered a position at a bank making $80,000 per year. The irony? The job offer had later been revoked due to her poor financial situation…which was the result of her student loans. The court did not find this relevant. Amazing.
Myself a law grad with crippling student loan debt, I was particularly excited to discover the new-ish blog, Big Debt, Small Law. The blog is written by a graduate of Seton Hall University School of Law who is, to put it mildly, extremely angry about the career/salary prospects for law school graduates from non-top-ranked schools in comparison to tuition costs. From the About page:
Today’s law school deans are the modern day “Wizards of Oz.” They know full well (perhaps better than anyone) the gruesome market and long-shot odds that their grads will soon face, yet allow personal greed to trump all tenets of honesty and fair disclosure. And no, you can’t get away with blaming the “recession” for the struggles of your grads. Not here. We graduated in 2005, at the zenith of American economic hegemony, and faced a market not significantly different from what exists today. The truth is this: Small firms in most US markets pay south of 50 K, offer minimal (if any) health benefits, and provide baptism by fire “training” at the expense of clients who can ill afford it.
A little over a year ago, I stopped posting to this blog due to personal issues and a career change that required a significant time commitment. Recently, I decided to check on the blog and discovered that even with no new posts, I continue to receive a significant number of hits. Clearly, student loans and their accompanying problems remain a significant issues, and now that my schedule is more regular, I’ve decided that it’s time to get this back up and running. So, thank you to my readers, and I’m happy to announce that I’m back, and you can expect regular posts from here on out!