| Cooley denies financial aid probe problem
Thomas M. Cooley Law School President Don LeDuc said his director of financial aid's membership on a lending institution's board never translated into inappropriate preferential treatment for the student loan provider. And though that lending institution, San Diego-based College Loan Corp., recently reached an agreement with the New York Attorney General's Office to settle allegations that it gave perks to schools - and financial aid officers - that placed the company on preferred lender lists, LeDuc said Cooley has never been the target of an investigation. "You've got a headline out there that makes it sound like there's something wrong at Cooley," LeDuc said, referring to articles that ran Saturday in the Lansing State Journal and the Detroit Free Press. "In fact, there's never been what anybody would think of as an investigation." .
Bayh proposes student loan relief for soldiers, spouses
Interest would not accrue on federal student loans for active duty soldiers and their spouses under the Interest Relief Act introduced by U.S. Senator Evan Bayh. For those activated for 12 to 15 months, the bill could mean an average savings of between $1,183 and $1,479 in interest over their activation period, according to Congressional Research Service estimates. Under the Interest Relief Act, eligibility would include active duty soldiers of any branch of the military, including reserve units and the National Guard and their spouses, who have student loans through the Federal Direct Loan Program. The interest accrual deferment could be for up to five years while on active duty. Members of the armed forces can already defer payments on their student loans while on active duty, but the interest continues to accrue.
Bill lowers college costs; US Senate passes the College Cost ...
Around 12:30 a.m. a final vote was called on The College Cost Reduction Act of 2007, H.R.2669, in the U.S. Senate. The vote was a resounding yes for more affordable college educations with three-fourths voting in favor of the measure. While only 18 senators voted against the bill, the senators from Florida were divided. Holding to his belief that the bill set bad policies, Senator Mel Martinez (R-FL) voted against it. "The way that the bill is written, it discourages private lenders from competing in the student loan market," stated Ken Lundberg, spokesperson for Sen. Martinez. "It also puts the taxpayers on the hook for bad debt." The bill, with the new amendments, does state that after the debtor has made 120 monthly payments and worked in a high-need field for 10 years that "the secretary shall cancel the obligation to repay" for the remainder of any Federal Direct Loans that they have out -- provided that the borrower submitted documentation that their annual income was less than one-tenth of the balance of principal and interest due at time of cancellation.
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