Suchergebnisse

Using data from the International Finance Corporation study on private investment in education, Tooley and West give details of two types of international experience with student loans. In particular they look at the government student loan scheme in Thailand and loan schemes offered by various for‐profit and nonprofit education companies in Peru, Colombia and India. Difficulties are pointed out with regard to the government scheme, which it may be possible to alleviate under the company schemes.

Payday loan outlets across the U.S. off er short term loans with high interest rates in comparison to credit cards and other consumer credit. Generally, low income and military families are served by payday loan outlets while wealthier consumers have access to lower interest loans. Missouri has some of the most lax regulations according to the Missouri Attorney General and Predatory Lending and the Military: The Law and Geography of "Payday" Loans in Military Towns. A Missouri payday loan customer can be charged as much as a 1,950% Annual Percentage Rate (APR) in comparison to 12.71% APR on the average credit card. The average APR Missouri customers will pay is around 420%, but the 1,950% APR demonstrates the extreme that is possible under current Missouri law. Other states, such as Oregon, cap the APR payday lenders can charge at 153%. ; Includes bibliographical references

Testimony issued by the General Accounting Office with an abstract that begins "Consolidation loans, available under the Department of Education's (Education) two major student loan programs--the Federal Family Education Loan Program (FFELP) and the William D. Ford Direct Loan Program (FDLP)--help borrowers manage their student loan debt. By combining multiple loans into one loan and extending the repayment period, a consolidation loan reduces monthly repayments, which may lower default risk and, thereby, reduce federal costs of loan defaults. Consolidation loans also allow borrowers to lock in a fixed interest rate, an option not available for other student loans. Consolidation loans under FFELP and FDLP accounted for about 48 percent of the $87.4 billion in total new student loan dollars that originated during fiscal year 2003. Two main types of federal cost pertain to consolidation loans. One is "subsidy"--the net present value of cash flows to and from the government that result from providing these loans to borrowers. For FFELP consolidation loans, cash flows include, for example, fees paid by lenders to the government and a special allowance payment by the government to lenders to provide them a guaranteed rate of return on the student loans they make. For FDLP consolidation loans, cash flows include borrowers' repayment of loan principal and payments of interest to Education, and loan disbursements by the government to borrowers. The subsidy costs of FDLP consolidation loans are also affected by the interest Education must pay to the Department of Treasury (Treasury) to finance its lending activities. The second type of cost is administration, which includes such items as expenses related to originating and servicing direct loans. This testimony focuses on two key issues: (1) recent changes in interest rates and consolidation loan volume and (2) how these changes have affected federal costs for FFELP and FDLP consolidation loans."