For You Enjoyment, While I Write

So, I am working feverishly on wrapping up my book project, and that is one of the reasons I haven't been writing here as frequently. Rest assured, the work continues, but it is a bit more behind the scenes that this juncture.

As for tidbits about the student lending crisis, many of you probably know that the Department - despite countless complaints against the behemoth lender - has plans to renew their contract with Sallie Mae. Big frickin' surprise, right? Sallie Mae not only is responsible for overseeing loans, but they also have an arm that collects them when payments are either delinquent or in default status. And, uh, yeah, that isn't a conflict of interest or anything. We should all congratulate this administration and Arne Duncan for their decision to renew the Department's contract with Sallie Mae. Great job!

I Am Not A Loan Blog

Folks, I've been away on vacation, hence one of the reasons I haven't written as much lately. (I'm also, as most of you know, finishing up my book for Seven Stories Pres, so that project is keeping me very, very busy). In any event, I wanted to share this new blog from Ed Trust - I Am Not A Loan - with everyone. I've added it to my blog roll, and encourage you to check it out.

The Forgotten War: Love Letter to a Soldier in Afghanistan

Despite what politicians say, the "war" in Afghanistan is not over. The claims that we are withdrawing troops is inaccurate. We continue to deploy soldiers to the country, despite press coverage of the President and others talking about a withdrawal. In plain words, this is simply false.

I can say this with certainty, because of the way in which deploying soldiers have found their way into my own life, especially one particular soldier, a soldier I love, respect, and admire. You see, that soldier is, once again, in Afghanistan, just like thousands and thousands of other American soldiers. So, this talk about withdrawal and everything is, as the German would say, ganz falsch (entirely false).

So, with that said, here is a second public love letter to that soldier currently deployed to Afghanistan (a snippet):

Pre-Deployment: Night

Your green combat fatigues, your gray combat goggles, your brown combat boots -- the boxes with holsters and caps and gloves and medicines and even more field supplies -- all of these things sit quietly on the floor of my tiny apartment. Even though you are away, the tan war bags that you will cart with you to dusty Afghanistan rest in front of my little black refrigerator. At the moment, you carry just one camouflaged colored backpack. You are gone because it's a weekday during pre-deployment training, but not by a very far distance, just a few hours away. Despite the short distance between the two of us, I cry and hug your green socks and combat clothing, even your holster, I hug that as well.

The piece can be read in its entirety here.

Photo Credit: Lawrence Torres

Huff Post: What Would Happen to the Student Loan Portfolio If the Debt Ceiling Is Breached?

That is the question. What would happen to the student loan portfolio if the debt ceiling is breached? Could China or Russia buy it up? Yup. Absolutely.

To read about 4 potential buyers of the U.S. Government's Student Loan Portfolio, head over to Huff Post and read it there.

Here's just a small snippet:

In less than two days, if Congress cannot reach an agreement on the debt ceiling, it will be breached. This means that that U.S. Treasury will be unable to pay the bills. Thus far, the U.S. Treasury has not been vocal about what they will do if the ceiling is breached. But when it comes to student loans, the ones owned by the U.S. government, things could get problematic if the U.S. Treasury finds itself selling off its assets. 

Debt Ceiling And Student Loans

The Center for American Progress wrote a recent piece on why the debt ceiling debacle matters to Millennials, or at least those who might soon be student loan borrowers. If we do not raise the debt ceiling, it will be catastrophic, something that doesn't need to be rehashed here, because there is an abundance of analysis on the topic that is readily available online. However, it is worth noting what will happen to student loans for future borrowers if the debt ceiling is not raised.

Here's how the Center explained it:

If Congress fails to extend the debt ceiling, it is possible that new student loans would not be issued until the debt ceiling is increased. In the long run, the Bipartisan Student Loan Certainty Act of 2013, which Congress passed earlier this year, ties federal student loan rates to interest rates on Treasury bonds. Fortunately, current federal student loan borrowers are locked into their rates for the duration of their loan and their interest rates would not be affected by rising Treasury rates.

But if the government defaults on its debt, causing a rise in Treasury rates, student loan rates would rise for future borrowers beginning on July 1, 2014. That means hardworking students taking out new loans would be facing higher payments and exacerbating our student debt crisis.

The last point is important. It will exacerbate our student debt crisis, something that isn't even remotely on the table because our government - the faction of extremists in the GOP - is completely dysfunctional at the moment. Here's to hoping these folks get kicked out during the next election cycle. (We also desperately need to address the issue of gerrymandering).