Here are some surprising statistics about student loans:
Data from the College Board's Trends in Student Aid report show that the amount of Federal Stafford Subsidized Loans has grown by 75 percent over the past 10 years; Federal Stafford Unsubsidized Loans have grown 253 percent; and nonfederal loans (state, institutional and private loans combined) have jumped 934 percent.
The article also mentions that student loan volume has doubled in the last decade, and that "risky private loans now account for one out of every five student loan dollars."
Meanwhile, New York Attorney General Andrew Cuomo's probe into the $85 billion student loan industry has sparked nationwide controversy.
Cuomo claims there is widespread corruption, citing several concerns including questionable revenue sharing deals, college call center staffed by loan company employees posing as university staff, and conflicts of interest involving preferred lenders and university administrators. Cuomo says that criminal charges may be possible in some of the more serious cases.
Education Secretary Margaret Spellings has formed a federal task force to investigate, and the Senate education committee has launched a probe into collection tactics and conflicts of interest.
Large banks have agreed to settlements as a result of the probe, including Citibank, and J.P. Morgan Chase and Bank of America. Sallie Mae, the largest student loan provider that manages $142 billion in student loans for nearly 10 million customers, agreed to a $2 million settlement without admitting any wrongdoing.
Closer to home, Cuomo subpoenaed the records of a Knoxville based student loan processing company:
John Milgrim, a spokesman for Cuomo, said the subpoena was issued last week and requested information about agreements Edfinancial has with colleges and any records related to practices that Cuomo's office has uncovered during the investigation.
According to the article, a spokesperson for Edfinancial and Edamerica says they have not entered into any revenue-sharing agreements, and that all of the nation's largest student loan providers are being asked for records and the request is not related to any of the company's practices.
The probe has also prompted the University of Tennessee to consider policy changes:
As a national investigation heats up, the University of Tennessee at Knoxville is taking a second look at policies that allowed two employees to serve on the boards of companies that are involved in student financial aid.[..]
At UT, Dean of Enrollment Services Richard Bayer and Director of Financial Aid Jeff Gerkin have served on boards related to Knoxville firm Edfinancial Services.
While Edfinancial is not a lender, its subsidiary until recently was Edamerica, a lender that is on UT's preferred list. The two companies are now separate entities but have the same chairman.
According to the article, Bayer and Gerkin both say there is no conflict because they were not involved in selecting preferred lenders and Edfinancial is a servicer, not a lender.
Here is a timeline of the student loan probe, and a Q&A about the probe from NPR. And here's some advice for getting the best deal on a student loan.
|
|
Discussing:
- Natural gas cost nearly double from a year ago (2 replies)
- Many in Nashville still without power (2 replies)
- Snow! Again. Maybe. (1 reply)
- President & Mrs. Obama: a wake-up call to every American (3 replies)
- Are you snow ready? (2 replies)
- Geographic Clarification (1 reply)
- Small dam in Walland to be removed (2 replies)
- Embarrassed? (1 reply)
- Feds looking for West Knox detention location? (6 replies)
- Search for Mike Johnson's Spine (2 replies)
- Trump says his 'own morality' is limit to his global power (3 replies)
- Pentagon seeks to reduce Sen. Mark Kelly's retirement rank over video urging troops to refuse illegal orders (2 replies)
TN Progressive
- Alcoa Safe Streets Plan Survey (BlountViews)
- WATCH THIS SPACE. (Left Wing Cracker)
- Report on Blount County, TN, No Kings event (BlountViews)
- America As It Is Right Now (RoaneViews)
- A friend sent this: From Captain McElwee's Tall Tales of Roane County (RoaneViews)
- The Meidas Touch (RoaneViews)
- Massive Security Breach Analysis (RoaneViews)
- (Whitescreek Journal)
- Lee's Fried Chicken in Alcoa closed (BlountViews)
- Alcoa, Hall Rd. Corridor Study meeting, July 30, 2024 (BlountViews)
- My choices in the August election (Left Wing Cracker)
- July 4, 2024 - aka The Twilight Zone (Joe Powell)
TN Politics
- Knoxville attorney withdraws from Appeals Court quest amid partisan politics (TN Lookout)
- Tennessee Republicans advance bills targeting LGBTQ+ residents (TN Lookout)
- Tennessee bill creating immigration crime clears first hurdle (TN Lookout)
- Shutdown looms for FEMA, Coast Guard, TSA with stalemate over Homeland Security funds (TN Lookout)
- US House approves bill mandating proof of citizenship for voting in federal elections (TN Lookout)
- Democrats decry ‘authoritarian’ Trump attempt to indict them for illegal orders video (TN Lookout)
Knox TN Today
- Tale of Two Proposals (Knox TN Today)
- Patience and adventure: Capturing winter sunrise on Roan Mountain (Knox TN Today)
- Who is skating this week at the Olympics? (Knox TN Today)
- Vols blow another big lead but beat Bulldogs, 73-64 (Knox TN Today)
- Duane Grieve + ET Design Center + Anderson County business leaders ++ (Knox TN Today)
- Knoxville Writers Guild announces Nia Thompson as 2026 Youth Poet Laureate (Knox TN Today)
- Last week’s high amounts of snow didn’t hamper high property sales (Knox TN Today)
- Won’t you be my neighbor? -Fred Rogers (Knox TN Today)
- Weekend Scene starts today from Cabaret to Galentine’s fun (Knox TN Today)
- HEADLINES: News and events from the World, the USA, Tennessee, Knox & Historic Notes (Knox TN Today)
- Vaughn Pharmacy, trusted hometown pharmacy (Knox TN Today)
- Knoxville Youth Orchestra performs free concert tonight (Knox TN Today)
Local TV News
- Joey Aguilar's legal team files new brief in NCAA case (WATE)
- TDOT storm recovery crews at risk on Tennessee highways (WATE)
- Knoxville's Sunshine Services launches fundraiser to support workers before program closes (WATE)
- Famous Zoo Knoxville African grey parrot 'Einstein' dies after cancer battle (WATE)
- Former West High coach sues Knox County Schools alleging libel after being let go (WATE)
- Man suing Sevier County after 2021 officer-involved shooting, claims deputies fabricated evidence (WATE)
News Sentinel
State News
- Chattanooga accountant Jonathan Frost free on $10K bond after pleading guilty - Chattanooga Times Free Press (Times Free Press)
- New TVA board under Trump extends coal, eliminates renewable energy as priority - Chattanooga Times Free Press (Times Free Press)
- TVA reverses course on retiring two largest coal plants, documents show - Chattanooga Times Free Press (Times Free Press)
- Former NFL player arrested on murder charges in Ooltewah - Chattanooga Times Free Press (Times Free Press)
Wire Reports
- Federal authorities announce an end to the immigration crackdown in Minnesota - AP News (US News)
- Recovered gloves, wanted Ring doorbell footage highlight Guthrie case latest - KVOA (US News)
- Partial government shutdown looms as ICE negotiations hit stalemate - The Washington Post (US News)
- Stock Market Today: Dow, S&P 500 Rise, With Earnings, AI in Focus — Live Updates - The Wall Street Journal (Business)
- Laid-Off Battery Plant Workers Pin Blame on Ford, not Trump, for Lost Jobs - The New York Times (Business)
- Trump Administration Erases the Government’s Power to Fight Climate Change - The New York Times (US News)
- ‘It’s astounding': NTSB chair chides FAA, Pentagon after El Paso chaos - Politico (US News)
- Judge says Pete Hegseth is unlawfully retaliating against Sen. Mark Kelly over ‘illegal orders’ video - CNN (US News)
- Spirit Airlines sells more planes, calls back 500 flight attendants from furlough ahead of spring break - CNBC (Business)
- Trump says all Democratic governors except Wes Moore and Jared Polis are invited to White House gathering - NBC News (US News)
- Author of viral 'Something Big is Coming' essay says AI helped him write it — and that proves his point - Business Insider (Business)
- 6 GOP reps defy Trump to block Canadian tariffs. And, student loan defaults rise - NPR (US News)
- Some folks on Wall Street think yesterday’s U.S. jobs number is ‘implausible’ and thus due for a downward correction - Fortune (Business)
- Forbes 250: America’s Greatest Historic Innovators - Forbes (Business)
- The business of not ageing: Why people are spending $1,300 on longevity treatments - BBC (Business)
Local Media
Lost Medicaid Funding
Search and Archives
TN Progressive
Nearby:
- Blount Dems
- Herston TN Family Law
- Inside of Knoxville
- Instapundit
- Jack Lail
- Jim Stovall
- Knox Dems
- MoxCarm Blue Streak
- Outdoor Knoxville
- Pittman Properties
- Reality Me
- Stop Alcoa Parkway
Beyond:
- Nashville Scene
- Nashville Post
- Smart City Memphis
- TN Dems
- TN Journal
- TN Lookout
- Bob Stepno
- Facing South

The average cost of public
The average cost of public college tuition keeps increasing (from $3,856 to $5,836 in the past 10 years. $5,836 tuition is a pretty good deal. Including room and board the increase was from $9,258 to $12,796. Still a pretty good deal. Tuitions in southern public colleges and universities are generally less than the average.
The majority of people I went to high school with (the old days) went to undergradutate school on a pay as they went plan. If so inclined, debt was reserved for graduate degrees. It may have taken 5 or 6 years, but that was okay.
Why do college students feel the need to go into debt for a 4-year undergraduate degree anyway?
So tuition has gone up ~50%
So tuition has gone up ~50% (which is bad enough), but student loans have increased 74%, 235%, and 934%?????