Check the loan agreement for that provision as well. Odds are that the loan servicer correctly relayed the terms of the loan agreement and when you would qualify to be released as co-signer. After reviewing the loan documents, if you find that they are violating terms of the loan agreement, then you can pursue other regulatory or legal options. Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter . Ask the adviser To ask a question of Dr.
‘Over £5bn’ in student loans lost
About 50% of students are not expected to earn enough to repay all their loan. The NAO report also highlights concerns over the more than 5bn owed by about 368,000 former students whose exact whereabouts are unaccounted for. It says officials are overestimating how much money will be recovered each year, and is not securing value for money for tax payers. The increase in tuition fees in England has meant much higher levels of student loans and debts – and the spending watchdog says there needs to be much tighter scrutiny of levels of repayment. Such an expansion requires a “much more robust strategy” for recovering loans, said Margaret Hodge, chair of the Commons Public Accounts Committee.
Student loans: hundreds of millions of pounds unaccounted for
Photograph: Andrew Yates/AFP/Getty Images Hundreds of millions of pounds of public money paid out in student loans is unaccounted for because the government does not have enough information about the recipients, a report by the spending watchdog suggests. The National Audit Office has found that the Department for Business, Innovation and Skills (BIS) does not have employment records for around 368,000 students and former students who took out loans under the scheme. This could be because they are unemployed students living in the UK, EU students who have returned home or UK students who have moved overseas, a report has found. It means that the government does not have enough information to decide whether these students should be making repayments on their loans, and if so, how much. In its report, the NAO also said that BIS “consistently over-forecasts how much it expects to collect annually by around 8%.” Using that percentage figure, House of Commons library research has found that the department would be left struggling to cover an extra 600m expenditure from 2015/16.
Student loan repayment needs tighter control, say MPs
Related Content Article: Five years of falling family debt ends – due to student loans Telegraph – Mon, Nov 25, 2013 17:25 GMT More than 5bn paid out in student loans is unaccounted for because the Government does not have enough information about the recipients. There are 368,000 student borrowers for whom there is no current employment record, or other details on earnings, according to a study by spending watchdog the National Audit Office (NAO). This could be because they are unemployed students living in the UK, EU students who have returned home or UK students who have moved overseas. It means the Government does not have enough information to decide whether these students should be making repayments on their loans, and if so, how much. The NAO report claims the Business Department (BIS) is not doing enough to find out whether borrowers are earning enough to start repayments. Students currently repay their loans when they earn21,000, and repayments are linked to earnings.
Federal Student Loan Profits Help Duncan Cut Education Spending To Lowest Level Since 2001
Student loan system ‘out of control’ The Association of Teachers and Lecturers (ATL) said the student loan system is “out of control” and in need of urgent review. The government has made it hard for most medium-earning graduates to ever pay off their loans by trebling student fees, basing interest payments on RPI plus 3%and raising the minimum level at which they start to repay their loans. The result, as the NAO report reveals, is an unbelievable accumulated debt of 200 billion in 30 years time. It is grossly unfair that some graduates will be saddled with paying all their lives to subsidiseother students debts because the authorities wont be able to trace graduates who go abroad or move in and out of work. Martin Freedman, director of economic strategy at the ATL Hole in student loan repayments ‘particularly troubling’ Former students who the Government has no financial record of are “particularly troubling” according to a tax think tank. Robert Oxley from the Taxpayer’s Alliance raised concerns the Department of Business, Innovation and Skills (BIS) had already given up on finding the 5 billion in loans that was now unaccounted for.
Student Loans: £5bn Unaccounted For Says NAO
In a sign of read more just how important student loan profits have become for the Education Departments bottom line, its reported gains off lending to students and their families over the last year comprised nearly half of the agencys total outlays, the biggest share since at least 1997. By effectively subsidizing half of the department’s total operations — spending that encompasses programs ranging from early childhood learning to aid for colleges — the profits have enabled Duncan to reduce his agencys total cost to U.S. taxpayers to the smallest amount since 2001. The department spent $40.9 billion in the fiscal year ending Sept. 30, nearly a third less than the previous year and the lowest reported amount since the first year of George W. Bushs presidency, according to Treasury Department data.