Education Finance News
May 9, 2017
Top Stories

For more than a week, calls to student loan debt collectors have gone unanswered across the country, and pleading, confused voicemails have been ignored. Work shifts have been cancelled, and money slated to pay off loan balances sits in borrowers' bank accounts, untouched.  A crucial part of the student loan system - affecting tens of thousands of borrowers and billions in loan debt - has essentially ground to a halt, the bizarre result of a low-profile lawsuit against the Education Department.


Purdue University managed to make a big splash without fronting cash in its deal to acquire Kaplan University and its major online education presence. That's a key point in an era when public higher education institutions are increasingly saddled with tight state funding and rising cost pressures. But it comes with trade-offs. Purdue agreed to a lengthy contract requiring it to buy support services from parts of the Kaplan operation that will remain tied to a for-profit business. The contract limits Purdue's early financial downside, but getting out of it in the future would come at significant expense.


In fall 2012, the University of Phoenix soared above other distance education providers. At the time, more than 256,000 students took at least one online course there -- nearly 200,000 more than the next institution on the list. Southern New Hampshire University, by the same metric, ranked 50th.


Here's some good news for home buyers and owners burdened with costly student loan debts: Mortgage investor Fannie Mae has just made sweeping rule changes that should make it easier for you to purchase a first home or do a "cash-out" refinancing to pay off your student debt.

Events
May 24 - May 25
The Weston Alexandria, Washington, D.C.

Servicing Dynamics: Keeping up with the Times
Wednesday, May 24, 2017
3:35 - 4:20 pm

Larry Chiavaro, Executive Vice President
First Associates Loan Servicing