Aug 16, 2007

Thursday, August 16 , 2007 Senator Herb Kohl introduces bill to help students remain out of debt By Nihit Aurora Predatory lending is the use of unethical lending tactics to keep gullible borrowers in debt as long as possible. Predatory lenders usually target vulnerable groups like students, the elderly, minorities, and people with poor credit records. This is a widespread practice among mortgage lenders and credit card companies. They flourish by lending to consumers who need more than they can afford. They have a knack for making borrowers believe that the credit they are offering is necessary and affordable. Recently, U.S. Senator Herb Kohl (D-WI) introduced a bill called the Student Credit Card Protection Act, which is a measure to help students remain out of debt by making student credit card companies adhere to strict and financially accountable lending practices.  read more Medical students to benefit from Nelnet-AMSA partnership By Shaileja Mammen Nelnet and the American Medical Student Association (AMSA) have combined their expertise to help medical students pay for their education expenses. The complete student aid program is a customized loan to the members of AMSA, the largest medical student organization. David Bottegal, chief executive officer of Nelnet, a leading education planning and financing company, said that the Nelnet-AMSA partnership is "committed to educating students about financial responsibility and debt management," along with the best financing options. The partnership will work to help students in achieving their educational goals by eliminating any financial hardship that may come their way."  read more Private Student Loan Transparencies and Improvement Act The Government Accountability Office's recent study on the private loan industry and a series of investigations of college loan offices has lead Congress to debate a number of bills, including the Private Student Loan Transparencies and Improvement Act. The bill, which is under consideration by the Senate, aims to regulate and monitor student loan providers. Authored by democratic presidential candidate and Connecticut Senator Christopher Dodd, the bill requires lenders to provide clear disclosures on their interest rates, fees, terms, and deferral options. It also requires lenders to inform students of their eligibilities for federal loans. Low response to scholarships offered in NJBEST program A college-savings plan in New Jersey that provides scholarship money is not being fully utilized by many families. According to The Record, only 363 scholarships have been awarded through the plan, which started in 1998. The NJBEST program awards $500 to $1,500 in scholarships to families who have invested a minimum of $1,200 by the time the student enters high school. Though out-of-state students can also invest in the program, only resident families are eligible for scholarships. A reason for the low response to the program is that many families may not know that they have to apply for the scholarship. Another reason may be that eligible students may not be old enough to go to college yet.  read more To ensure that the Medical School Loans Newswire is delivered to your Inbox, please add registration@medicalschoolloans.com to your address book. © 2007 Medical School Loans. All rights reserved. Office: 175 South Lake Avenue, Suite 200, Pasadena, CA 91101