| Report: University of Nevada, Reno alumni group paid by loan firm
RENO, Nev. (AP) - The alumni association at the University of Nevada, Reno received money from a student loan consolidation company in exchange for names of alumni and exclusive rights to UNR's logo in promotional material, the Las Vegas Review-Journal reported. Over the past four years, UNR's alumni association received $88,400 from Nelnet Inc., the nation's second-largest student loan consolidation company, according to the New York Attorney General's Office, which has been investigating ties between student loan lenders, universities and administrators. On Wednesday, New York Attorney General Andrew Cuomo announced an expansion of the probe to include whether top college athletic departments steered athletes and other students to loan companies in exchange for kickbacks. No Nevada schools were among 39 nationwide served with subpoenas and requests for documents in that aspect.
Suthers backs state's colleges in wrangle
The Colorado attorney general's office on Thursday called probes into agreements between student-loan consolidation companies and state universities nothing more than a "fishing expedition" by the New York attorney general. "If the New York attorney general has some evidence that something illegal has occurred, he certainly hasn't shared that with our office," said Nate Strauch, spokesman for Colorado Attorney General John Suthers. "We have no reason to believe that any wrongdoing has occurred." Officials with Colorado State University and the alumni foundations at CSU and the University of Colorado at Boulder say they have not violated the law. This week, New York officials announced an agreement with the student loan company Nelnet, which had relationships with the CSU and CU-Boulder alumni associations.
Schools' common ground: Collaboration not consolidation
Pennfield Schools Superintendent Dale Kimball, providing a tour of the district's new $23 million high school last month, opened the door to the workout facility when his cell phone started chirping. "Hey, Cindy," Kimball said. "Yeah, come on down, we'll be here." .
Rein in spending and avoid credit-card debt
Question: I have credit-card debt at high interest rates on several cards, as well as student loans. Going into my last year in college and being wary of the future, carrying this debt scares me. I have been wondering if I should consider a debt-consolidation loan. What do you think? Answer: I am not a fan of consolidation loans. What attracts most people to consolidation loans is the potentially lower monthly payments. However, the main drawback of such loans is that they usually raise a person's average interest rate on his debt. .
Student loan options are baffling to family
Karen Wons of Maryland finds herself in a quandary that is confronting many parents right now. She is struggling with how best to advise her daughter -- a recent college graduate -- on paying down her $25,000 in student loans. Wons did what any wise parent would do. She asked for help. Wons's daughter works as a project manager at a medical software company. She has an annual salary of more than $50,000. Her employer provides a 401(k). She has about $13,000 in cash from recently redeemed Series EE savings bonds. She has no credit card debt. She has no payments on a reliable car with low mileage. She's sharing an apartment and other living expenses with an older sister in Madison, Wis. Her portion of the rent is a little more than $500 a month. Wons is unsure about the course her daughter should take: Should the daughter consolidate her college loans during her six-month grace period? (She has federally backed Stafford and Perkins loans.) Should she use the entire $13,000 to pay down the loans or keep making monthly payments to take advantage of the interest deduction? Should she invest all of the $13,000? While paying on the loans, should she contribute to her 401(k)? Let's take the consolidation question first.
Australians 'need to rethink borrowing habits'
MORTGAGEE companies say Australians will have to rethink their borrowing habits after the central bank today lifted interest rates. The Reserve Bank of Australia (RBA) hiked rates by 25 basis points to 6.50 per cent to head off inflationary pressures in the economy.Mortgage broker Mortgage Choice says some borrowers have been resting on their laurels when it comes to managing their mortgage. "This month's widely predicted rise should be the jump start many need to seriously reconsider their current mortgage situation, which should be done every year anyway,'' national manager, corporate affairs, Warren O'Rourke said. "Some people will be quite shocked at the increase because they havent been keeping in touch with industry commentary and predictions."And for the large number of people who have secured their first mortgage in the last 12 months, it will be the first time they have had to budget extra dollars per month for their property repayments. "This will take some adjustment.''Mr O'Rourke said borrowers should consider debt consolidation, fixing some or part of their loans, or refinancing.Housing Industry Association (HIA) managing director Ron Silberberg said the rise in interest rates will make it much harder for those with mortgages and for those trying to enter the housing market.Dr Silberberg said the rise was a double whack for average Australians looking to buy a home, with house prices also higher. "Too many are being locked out of the market, which is having some disturbing consequences for the private rental sector which is already strained,'' Dr Silberberg said.
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