Recent Media Coverage

Student Loan Reform: ASA President and CEO Paul Combe’s op-ed piece, “What the Federal Government Owes Student Borrowers,” appears in the May 15 issue of the Chronicle of Higher Education: “…(W)hat would amount to a small fraction of the projected savings in Obama’s proposal could be apportioned to refocus and retain nonprofit guarantors as an already-existing network of support for borrowers. Education-debt management must be independent of, and neutral to, the holder of the loan, whether the holder of the loan is a bank or the federal government. Independent, public-purpose guarantors, as impartial third parties, are in an ideal position to play that role. Since loans may be securitized or sold to any party, including the Education Department, the guarantor provides the borrower with a stable and neutral relationship over the life of the loan. Essentially, guarantors would no longer insure the lenders, but instead help guarantee the borrowers’ success.”

In addition, The New York Times recently published a Letter to the Editor from ASA’s Paul Combe: “…A recent study of borrowers by American Student Assistance, a student loan guarantor, showed that an astonishingly high 81% were not aware of a federal database that can help them keep track of their loans, and 45% were surprised by the number of loans and lenders they have. As you note, recently released statistics from the Department of Education show that the rate of those students who have defaulted on their student loans has risen to 6.9%, year over year. If we want borrowers to succeed at managing their student loan payment and avoiding default, we have to proactively empower them to do so. Congress should craft federal policy to make explicit a role that a number of guarantors have already adopted as central to their mission: providing all borrowers with unbiased guidance, financial literacy information and debt-management support along every step of the student loan process.”

Education Debt Management: ASA has become a regular contributor on filife.com, a personal finance web community offering members the chance to find and review personal finance products, ask and answer money questions, and use smart tools to simplify financial decisions. “Managing Student Loan Debt through Under-Employment or Worse” and “Federal Loans and Online Learning” are both available online.

The website http://loans-consolidate.com/ recently posted a piece, “Rising Student Debt Overwhelming for Graduates,” that cited statistics from the ASA website: “According to American Student Assistance, federal loans are the primary source for federal financial aid. Between the years of 2000 – 2007, an estimated 60% of bachelor’s degree recipients borrowed to help fund their education, and the average debt per borrower rose 18% during this time period…In 2007, 2 out of 3 students had a credit card, and the average debt of a senior is close to $3,000 at graduation, according to American Student Assistance.”