opinion Julie Margetta Morgan Opinion contributor Published 6:00 AM EDT Oct 8, 2018 The Department of Education recently released a status report on its Public Service Loan Forgiveness Program, and the results are eye-popping. The program promises loan cancellations for borrowers who commit to 10 years of public service, and the first group of borrowers is finally eligible. According to the status report, however, almost no one is getting relief: Of the 32,601 applications received by the end of June, only 96 borrowers have actually had their debt cancelled. Ninety-nine percent of the applications that have been processed were denied. As lawmakers explore new solutions to our nation’s student debt crisis and college affordability woes, PSLF should serve as a cautionary tale. The program’s outcomes are distressing, but they are not entirely shocking. At first glance, PSLF sounds simple and generous. But it was packed full of red tape and fine … [Read more...] about Student loan programs promise debt relief but deny almost all borrowers
Debt relief programs
Picture: AFP Athens. Greece officially completes its bailout program on Monday, after eight years of cutbacks enforced in return for massive loans and following an economic collapse on the scale of the Great Depression, Kathimerini writes. The exit is a welcome milestone. But it offers little assurance that the 19-country euro currency union has left behind its problems with debt. The huge debt pile in Greece and an even bigger one in Italy will remain a lurking financial threat to Europe that could take a generation to defuse. Europes debt problems have repeatedly raised fears over the past decade of a break-up in the euro, a worst-case scenario that would cause severe economic damage in the region and shake world financial markets and trade. In Greece, successive governments had borrowed heavily for three decades to fund generous spending on pensions and jobs given to political supporters, while tolerating widespread tax evasion and covering up budget shortfalls. All that … [Read more...] about Kathimerini: Greek bailout ends, but Europe’s debt problems grind on
Credit ratings agency Fitch on Friday upgraded Greece's sovereign debt one notch to 'BB-' from 'B' due to the recent deal with Europe to provide "substantial" debt relief. The announcement, which still rates Greek debt as speculative, followed S&P Global's decision last month to raise its outlook for Greece to "positive," suggesting another upgrade could be coming soon. Athens in June reached an agreement with its euro area creditors, allowing a 10-year extension for repaying much of its debts, which, at a 180 percent of GDP, are still the highest in the European Union. The agreement will also allow Greece to exit its financial bailout program on August 20. And after graduating from a European aid program, "The debt relief measures agreed at the 21 June Eurogroup are substantial," Fitch said in a statement. "We expect fiscal performance to remain sound over the post-program period," the agency said, noting that the long-troubled economy posted a budget surplus of 0.8 percent of GDP … [Read more...] about Fitch upgrades Greece’s debt rating to ‘BB-‘ on European debt deal
Robert Powell Special to USA TODAY Published 11:43 p.m. UTC Jul 18, 2018 Question: I’m 64. My credit score is about 656. For different reasons over a long period of time — including unemployment and health issues — I accumulated credit card debt of about $50,000. I intend to take out an unsecured personal loan, but I don’t want it to have a negative impact on my credit score. I have a job now and I will pay my monthly payments on time. But what will happen if I cannot continue my payments to the lender? If I should file for bankruptcy, which is worse: defaulting on credit card debt or an unsecured personal loan? If I try to negotiate a reduction of my debt with the creditors, do you think this procedure will be successful and not take too long? And what is a nonprofit debt relief company/agency, and how could they help me? Bottom line: What strategy would you implement to resolve the debt problem if you were in my … [Read more...] about How do I get out of $50,000 in credit card debt: personal loan or repayment plan?
Greece exits its third international bailout in August, but without further debt relief it may not be able to sustain market access in the long run, the International Monetary Fund said on Friday. Greece and its European partners agreed last week on a set of debt measures to help the country emerge smoothly from the program. The deal significantly improved medium-term debt sustainability but "longer prospects remain uncertain," the IMF said. The Fund said that European assumptions on Greece's future growth were "very ambitious," and those targets, along with aim to run large primary fiscal surpluses, would make it difficult for Greece to sustain market access over the long run. Euro zone finance ministers last week extended maturities and deferred interest payments on 96 billion euros ($111.87 billion) worth of Greek debt, about a third of the country's overall debt pile. Greece has the highest ratio of debt to gross domestic product in the eurozone, representing almost 180 percent of … [Read more...] about Greece may need further debt relief to sustain market access, IMF says