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:
- Can we trust the FDA? (1 reply)
- Knox County Juvenile Detention Center troubles continue (1 reply)
- Terrible things are happening outside. (7 replies)
- City of Knoxville to host south waterfront development feedback meeting (3 replies)
- 50 Year Mortgage Part II (3 replies)
- Pause a moment, honor a Veteran (1 reply)
- Trump Speech Uses Merit, but Misses Point (1 reply)
- Millionaire tax that inspired Mamdani fuels $5.7 billion haul in Massachusetts (1 reply)
- Trump pardons former Tennessee House speaker convicted of federal public corruption charges (1 reply)
- GOP dereliction of duty, SNAP must be funded (10 replies)
- Electricity prices are rising (3 replies)
- MAP: See the number of SNAP participants by Tennessee county as benefit lapse looms (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
- A tornado and an immigration sting. The start and end of a life in Nashville. (TN Lookout)
- Contempt investigation over Trump deportation flights to resume (TN Lookout)
- Under new EPA rule, protections would dry up for wetlands in Tennessee, Mississippi River basin (TN Lookout)
- Higher gun ownership rates lead to more gun homicides of pregnant women, new study says (TN Lookout)
- Immigration officers targeting Latinos causing unlawful arrests, group says (TN Lookout)
- John Cole’s Tennessee: Military justice (TN Lookout)
Knox TN Today
- Helene trees meet the Aurora (Knox TN Today)
- Grand Minimalism (Knox TN Today)
- Jim Haslam + Beth Phillips + Rhonda Lee + Lori Humphreys + Choice Health (Knox TN Today)
- $10 million is largest loan of the last week (Knox TN Today)
- Weekend Scene: A Christmas Carol to Golden Gloves & more (Knox TN Today)
- December Holiday Events at the O’Connor Center (Knox TN Today)
- Learn more about Pellissippi State at Fall 2025 open house (Knox TN Today)
- HEADLINES: World to local news & more (Knox TN Today)
- Real estate companies collaborate to clarify new homebuyer requirements (Knox TN Today)
- Downtown Knoxville Alliance opens new office (Knox TN Today)
- Celebrate the release of ‘Red & Me’ at the ETHC (Knox TN Today)
- The Book Whisperer recommends ‘Awake: A Memoir’ (Knox TN Today)
Local TV News
- Medicare Part B prices rise for East Tennesseans as health care crisis continues (WATE)
- South Knoxville woman starts community food pantry in her yard (WATE)
- USDA offers second round of natural disaster relief to farmers impacted by Helene (WATE)
- Security footage from Rep. Burchett's home captures two people urinating on driveway (WATE)
- Community, White House show support for Maryville officer injured in VP escort crash (WATE)
- Air Force selects McGhee-Tyson Air National Guard Base to host new KC-46 tanker aircraft (WATE)
News Sentinel
State News
- Perimeter Properties buys last ‘doughnut hole’ of foundries district in Chattanooga - Chattanooga Times Free Press (Times Free Press)
- James Daverson Obituary - Chattanooga Times Free Press (Times Free Press)
- Robert Gaines Obituary - Chattanooga Times Free Press (Times Free Press)
- Bobby Cox - Chattanooga Times Free Press (Times Free Press)
Wire Reports
- Cheney’s funeral expected to draw Bush and GOP’s old guard, not Trump - The Washington Post (US News)
- Live Updates: September Jobs Report Shows Hiring Continued, but Unemployment Rate Rose - The New York Times (Business)
- Stock Market Today: Dow Rallies; U.S. Added More Jobs Than Forecast in September — Live Updates - The Wall Street Journal (Business)
- Existing home sales see small October gain, but supply is now dropping - CNBC (Business)
- Walmart Q3 earnings: Sales surge thanks to bargain hunters - NBC News (Business)
- Trump approves 28-point Ukraine-Russia peace plan, but so far, Ukraine is not on board - CBS News (US News)
- GE Appliances bolsters ties with US suppliers as it moves production from China to Kentucky - AP News (Business)
- Verizon Begins Laying Off More Than 13,000 Employees - The Wall Street Journal (Business)
- DOJ case against Comey faces troubles. And, powerful figures in latest Epstein docs - NPR (US News)
- After Trump signs Epstein files bill, focus shifts to release timeline - ABC News (US News)
- Lawrence Summers Has Come Back From Scandals. Will This Be His Last? - The New York Times (US News)
- Thune and Johnson suffer rare split over Epstein, Jack Smith fallout - Politico (US News)
- U.S. Rep. Cherfilus-McCormick indicted on charges of stealing $5M in disaster funds - NPR (US News)
- Trump and Mamdani to meet at the White House on Friday - Axios (US News)
- Many Fed policymakers at last meeting were opposed to December rate cut - Reuters (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%?????