Join for FREE, and start talking with other members, weighing in on community discussions, and more.
Also, by registering and logging in you'll see fewer ads and pesky welcome messages (like this one!)
The federal government has, in recent years, paid debt collectors close to $1 billion annually to help distressed borrowers climb out of default and scrounge up regular monthly payments. New government figures suggest much of that money may have been wasted.
Nearly half of defaulted student-loan borrowers who worked with debt collectors to return to good standing on their loans defaulted again within three years, according to an analysis by the Consumer Financial Protection Bureau....Even when borrowers don't default, debt collection efforts often yield little. Close to 80 percent of borrowers who rehabilitate their debt make the minimum $5 monthly payment, according to a 2015 estimate by the National Council of Higher Education Resources, a lobbying group that represents student debt collectors and servicers. That means the Education Department is paying its debt collectors up to $1,710 per borrower to collect around $45, regardless of whether the borrower continues to make her payments.
Tuition discounting at private colleges and universities is up again. Tuition revenue is straining to keep up. And enrollment is weak. Those are the top takeaways from the 2016 Tuition Discounting Study from the National Association of College and University Business Officers. The latest version of the annual study, which was released today, provides a look at how much colleges and universities are awarding students in scholarships and grants -- and how much they are effectively undercutting their own tuition and fee sticker prices. It also offers a glimpse at how such tuition discounts affect other key measures of college and university financial health.
The latest findings show no break from long-established trends of rising tuition discounting. The headline average institutional tuition discount rate for first-time, full-time students hit an estimated 49.1 percent in 2016-17, up from 48 percent the previous year. For all undergraduates, the average institutional tuition discount rate rose to an estimated 44.2 percent, up from 43 percent.