Posts tagged loans
Graduate student borrowers are defaulting on almost US$1 billion in federal loans that were given out to the poor. US colleges such as Yale, Penn State and George Washington are coming after them in the courts, suing for nonpayment.
All three colleges have pursued lawsuits against students who defaulted on their Perkins loans. The exact number of lawsuits is not known, but just last year alone the University of Pennsylvania filed at least a dozen lawsuits over the Federal Perkins Loan, Bloomberg reported.
Colleges are suing to collect unpaid Perkins Loans, given out by individual colleges to students who demonstrate extreme financial hardship.
Colleges depend on repayment of money to finance the new Perkins loans and so when graduates fail to pay back the borrowed sum, the current students are put at risk of not receiving new loans.
Between June 2010 and 2011 students defaulted on $964 million in Perkins loans, 20 per cent more than five years ago, Bloomberg reports.
The result is that the colleges go after the students in courts to collect the money.
“If you borrow to go to school, it may not be just the government that ends up coming after you if you can’t pay,” attorney Deanne Loonin told Bloomberg. “We offer credit very easily.” If the student doesn’t benefit financially from the education, “the government or the school comes after them very aggressively.”
Borrowers with multiple debts often put aside paying back the Perkins loans because it has a lower interest rate than other private loans.
After graduating with a Perkins loan, students get a nine-month grace period and a 5 per cent per annum interest rate afterwards.
Perkins is given out to those from low-income families and “they may have the least ability to pay it back,” Associate Director of Student Financial Support for the University of California System Nancy Coolidge told Bloomberg.
As the cost of higher education continues to soar, more and more students are forced to take out loans, which increased US education debt to US$1 trillion.
The average size of student loan debt has also almost doubled from US$17,233 in 2005 to US$27,253 in 2012, according to a study released by FICO Labs.
The increased amount of debt is connected to the increased number of defaults on loans, Daily Free Press quotes the study as saying.
In addition, a poor economy and high unemployment make it very difficult for recent graduates to repay their loans.
Around 5.9 million people nationwide have fallen at least 12 months behind in their payments.
It is the first time I am seeing the words from China that comes right out and says what the plans for the Yuan is.
The first batch of cross-border yuan loans agreements were signed on Monday after the central government approved the Qianhai area in Shenzhen to test a freer yuan before it becomes a global reserve currency.
As the loans come from Hong Kong, the move is a test offurther capital accounts opening by allowing offshore funds tobe transferred to the mainland.
Previously, offshore yuan could flow back to the mainland only through yuan-denominated trade and renminbi qualified foreign institutional investors.He added that the yuan is marching gradually and steadily toward becoming a global currency,and he expects more breakthroughs on that front this year.
They have never said “Global Reserve Currency” before. They have said “Convertible currency” and other words.
China has actually imported more gold and silver than they admit to. They imported an estimated 1000 tons of gold over the last few years but experts believe it was much more than that. They have also been importing silver in major quantities that are not being revealed. I read a story the other day about someone in China trying to buy silver and gold bullion but the place was nuts with crowds all trying to buy the gold and silver the dealer had just gotten.
Jim Willie did an interview last week and he mentioned that China was going to take it slow and not be totally overt in becoming the Global currency because they don’t want the U.S. to start a war for some made up reason against china.
unconfirmed speculation” that China – the world’s number one producer and second-placed consumer (at the moment) – is gearing up to buy up to at least 5,000 to 6,000 tonnes starting before the end of the year.
Silver is huge in China too. There has been a lot of talk in the “silver world” saying there is a major shortage. Besides the fact that the 2013 Eagles sales have been suspended due to over 5 million orders in the first few days of 2013. The majority of silver mined is used for industrial purposes and it seems there is a shortage happening.
The writing is on the wall. China plans on having a Gold backed Global Reserve Currency. I have written about the agreements China has with other countries and has already began trading in Yuan instead of dollars. The BRICS began those trades last year. The only thing that is keeping the dollar as the “reserve currency” right now is because it is the “Petrol Dollar.” Saudi Arabia is the reason the dollar is still the oil trading currency. Is it any wonder that Obama bows to the King of Saudi Arabia as the U.S. is obviously beholden to them otherwise it would not still be the official reserve currency of the world.
Once Saudi Arabia decides to go with the rest of the world and begins using other currencies for oil as India, Iran, Russia and China already do…. it will be game over for the dollar.
Obviously the day is getting closer since the article says “Global Reserve Currency” from China Daily. Again they have never used those words before from what I have seen. They have used “Global convertible currency.” Remember China purchased the London Metals exchange last year, which began using the Yuan and the CME began added the Yuan as a trading currency last year too
China holds things very close to their chest in information and they don’t put information out normally until deals are done. So with them allowing “Global Reserve Currency” words out, what deals have been done already and how fast will it all go down and the dollar with it?
Some of my favorite metals sites are: David Morgan of Silver-Investor always has great information about Silver and what is really going on. I go to Gata, Got Gold Report , and 24 hour Gold for the latest in gold information.
Few probably are aware of this, but long time subscribers to The Morgan Report (TMR) were notified that a meeting had taken place in South East Asia roughly a decade ago discussing — you guessed it –A GOLD BACKED YUAN.
Edit to add: I found another article today on the same Chinese News site – Their frustration with the dollar titled “The Unloved Dollar”
But the dollar’s role as international anchor is beginning to falter, as emerging markets everywhere grow increasingly frustrated by the Fed’s near-zero interest-rate policy, which has caused a flood of “hot” capital inflows from the United States. That, in turn, has fueled sharp exchange-rate appreciation and a loss of international competitiveness – unless the affected central banks intervene to buy dollars.
Wow – they have really put out information now as I have never seen before and the two articles being out on the same day…… says something is already happening, we just don’t know the full extent yet. But I have a feeling since they have come right out and said “Reserve Currency” and “Unloved Dollar” whatever the changes of Currency will happen this year.
By Pete Papaherakles
Could gaining control of the Central Bank of the Islamic Republic of Iran (CBI) be one of the main reasons that Iran is being targeted by Western and Israeli powers? As tensions are building up for an unthinkable war with Iran, it is worth exploring Iran’s banking system compared to its U.S., British and Israeli counterparts.
Some researchers are pointing out that Iran is one of only three countries left in the world whose central bank is not under Rothschild control. Before 9-11 there were reportedly seven: Afghanistan, Iraq, Sudan, Libya, Cuba, North Korea and Iran. By 2003, however, Afghanistan and Iraq were swallowed up by the Rothschild octopus, and by 2011 Sudan and Libya were also gone. In Libya, a Rothschild bank was established in Benghazi while the country was still at war.
Islam forbids the charging of interest, a major problem for the Rothschild banking system. Until a few hundred years ago, charging interest was also forbidden in the Christian world and was even punishable by death. It was considered exploitation and enslavement.
Since the Rothschilds took over the Bank of England around 1815, they have been expanding their banking control over all the countries of the world. Their method has been to get a country’s corrupt politicians to accept massive loans, which they can never repay, and thus go into debt to the Rothschild banking powers. If a leader refuses to accept the loan, he is oftentimes either ousted or assassinated. And if that fails, invasions can follow, and a Rothschild usury-based bank is established.
The Rothschilds exert powerful influence over the world’s major news agencies. By repetition, the masses are duped into believing horror stories about evil villains. The Rothschilds control the Bank of England, the Federal Reserve, the European Central Bank, the IMF, the World Bank and the Bank of International Settlements. Also they own most of the gold in the world as well as the London Gold Exchange, which sets the price of gold every day. It is said the family owns over half the wealth of the planet—estimated by Credit Suisse to be $231 trillion—and is controlled by Evelyn Rothschild, the current head of the family.
Objective researchers contend that Iran is not being demonized because they are a nuclear threat, just as the Taliban, Iraq’s Saddam Hussein and Libya’s Muammar Qadaffi were not a threat.
What then is the real reason? Is it the trillions to be made in oil profits, or the trillions in war profits? Is it to bankrupt the U.S. economy, or is it to start World War III? Is it to destroy Israel’s enemies, or to destroy the Iranian central bank so that no one is left to defy Rothschild’s money racket?
It might be any one of those reasons or, worse—it might be all of them.
Pete Papaherakles, a U.S. citizen since 1986, was born in Greece. He is AFP’s outreach director. If you would like to see AFP speakers at your rally, contact Pete at 202-544-5977 .
By Ben Protess
Federal prosecutors in New York sued Bank of America on Wednesday, accusing it of carrying out a mortgage scheme that defrauded the government during the depths of the financial crisis.
In a civil complaint that seeks to collect $1 billion from the bank, the Justice Department took aim at a home loan program known as the “hustle,” a venture that has become emblematic of the risk-fueled mortgage bubble. The complaint adds to a flurry of federal and private lawsuits facing Bank of America’s beleaguered mortgage business.
Bank of America inherited the “hustle” home loan program with its purchase of Countrywide Financial in 2008. Prosecutors say the effort, kept alive by Bank of America through 2009, was intended to churn out mortgages at a rapid pace without proper checks on wrongdoing. The bank then sold the “defective” loans without warning to Fannie Mae and Freddie Mac, the government-controlled housing giants, which were stuck with heavy losses and a glut of foreclosed properties.
Why Paul Ryan is a BAD Choice…
The Republican Party has chosen another big-government fake conservative to run on the ticket in 2012. Looks like they are gearing up to have their base stay home (again) this year likely causing Obama to get reelected. Perhaps in 2016 they will learn that only a real conservative as their nominee will allow them to win the White House.
Here are the facts about Paul Ryan:
Paul Ryan’s Awful Voting Record:
Paul Ryan’s Budget Is Similar To Obama’s:
Think Twice About Paul Ryan:
Paul Ryan Is Worse Than Bill Clinton:
Paul vs Ryan:
Ron Paul Slams Paul Ryan:
Paul Ryan Refuses To Cut Pentagon Spending:
Paul Ryan’s Budget:
- It led to 10 more years of deficit spending
- It added between $5-11 TRILLION dollars to the national debt
- It spent a total of $40 TRILLION over the next 10 years
- His plan REQUIRED the debt ceiling to be raised
- It was an obviously unbalanced budget (in fact it doesn’t fully balance until the year 2040)
- It increased spending over the next few years (it merely slows the rate of spending, not actually cutting spending anytime soon)
- It was was bigger than what we had under Bill Clinton
By JOE NOCERA
Here in the early stages of the Libor scandal — and, yes, this thing is far from over — there are two big surprises.
The first is that the bankers, traders, executives and others involved would so openly and, in some cases, gleefully collude to manipulate this key interest rate for their own benefit. With all the seedy bank behavior that has been exposed since the financial crisis, it’s stunning that there’s still dirty laundry left to be aired. We’ve had predatory subprime lending, fraudulent ratings, excessive risk-taking and even clients being taken advantage of in order to unload toxic mortgages.
Yet even with these precedents, the Libor scandal still manages to shock. Libor — that’s the London interbank offered rate — represents a series of interest rates at which banks make unsecured loans to each other. More important, it is a benchmark that many financial instruments are pegged to. The Commodity Futures Trading Commission, which doggedly pursued the wrongdoing and brought the scandal to light, estimates that some $350 trillion worth of derivatives and $10 trillion worth of loans are based on Libor.
With so much depending on this one critical interest rate, there shouldn’t ever be a question about its reliability. Yet beginning in 2005, according to the C.F.T.C. and the Justice Department, derivative traders at Barclays, the too-big-to-fail British bank, with the active involvement of traders at other yet-unnamed banks, persuaded their fellow bank employees to submit Libor numbers that were shaded in ways that would help ensure their trades were profitable. Even Robert Diamond Jr., the former Barclays chief executive who lost his job over the scandal, said that reading the traders’ e-mails made him “physically ill.”
Identity Theft: 2.5 Million Dead Americans Have Their Social Security Numbers Stolen
Call it financial grave robbing.
Each year the identities of nearly 2.5 million deceased Americans are used to open credit cards, apply for loans, get cell phones and conduct other financial transactions, according to a new study.
The study is the first to put a number on identity theft of the deceased, according to ID Analytics, the data analysis company that conducted the study.
“We see fraudsters intentionally using identities of the deceased at the rate of more than 2,000 per day,” said Stephen Coggeshall, the chief technology officer at ID Analytics, in a statement. “Surviving family members can also be the victims of this identity fraud as they are left to manage the estates of their deceased loved ones.”
For living relatives, any unpaid debts created with stolen IDs could usher in an unwelcome call from creditors. Debts run up in the deceased’s name can be claimed against the estate, according to Time’s Moneyland blog. Getting a record of when the fraud occurred — along with proof of the date of death — can be used to reject any financial claims.
Another way to keep tabs on a deceased person’s finances is through their credit report. According to MSNBC, it’s possible to get access to the report with a death certificate and proof of relationship.
Another preventative tactic to thwart identity theft of the deceased is to place a “deceased — do not issue credit” flag on the credit file. According to Bankrate.com, the best way to do that is for the estate’s executor to contact each of the three credit bureaus with a snail-mail letter with a copy of the death certificate and instructions to flag the file.
The study compared the names, dates of birth and Social Security numbers on 100 million credit applications from January through March 2011 against data in the Social Security Administration’s Death Master File. It found that 800,000 deceased Americans’ identities are intentionally used for identity theft while another 1.6 million Social Security numbers were fabricated by thieves and happened to belong to dead people.
It’s not the first time the Death Master File — the official record of all Americans who have died — has been part of costly identity mixups. The Social Security Administration mistakenly declared 14,000 people dead last year when they were still very much alive and kicking.
President Obama has only used four last I read, so guessing the Democrats and Republicans are using the remaining 2,499,996 for election fraud? The GOP has repeatedly played it’s hand and have been repeatedly burned. Maybe the left wing will learn from the ignorance of the right wing, but then again, they are both wings of the same bird. Go back to sleep, nothing to see here.
As people clutch their TV remotes as if it was a form of life support we know something is wrong, According to lame stream media it is a shabby collection of force living in a cave 1/2 way around the world that comprise no real military. The threat to our freedom is neither from the left or the right, as both are controlled by the same entity. The threat to freedom is locally based and globally owned. If the passage of NDAA and the actions for CISPA did not wake you up you may be so sound asleep your pulse resembles that of a corpse.
Wondering why the candidate said this and then did that?
- Your only value to most politicians is your vote, bottom line.
- With the same entities controlling both parties you have a false sense of choice when voting, but most results give you the same results.
- Wondering why a change in party creates the same results (war, spending, inflation, etc.) is because both sides are owned and follow the same script.
The enemies best accomplishments:
- Create a fiat currency
- Have a private non-govermental cartel control the fiat currency
- Create a bill to capture individual freedoms and have it ready for deployment
- Create / have / allow an event, “a second Pearl Harbor”, to force the bills passage.
- Follow the UN agendas, such as Agenda 21 and follow the UN and NATO to set policies and defense actions (war)
- Control the masses by controlling the media
- Make massive transfers of wealth
- Destroy the middle class
- Create a socialist state while visually promoting prosperity
- Continue to follow failed political structures of the past in hopes of gratification, control, etc
So I ask, when is the time to set down the remote and push aside the family size box of Twinkies and prove that your ass and the couch are not surgically connected? You already missed yesterday, you have today, and you have no assurance of tomorrow. As always, your thoughts are appreciated.
A few videos for thought, of which there could be hundreds
Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fail Banks?
What you are about to read should absolutely astound you. During the last financial crisis, the Federal Reserve secretly conducted the biggest bailout in the history of the world, and the Fed fought in court for several years to keep it a secret. Do you remember the TARP bailout? The American people were absolutely outraged that the federal government spent 700 billion dollars bailing out the “too big to fail” banks. Well, that bailout was pocket change compared to what the Federal Reserve did. As you will see documented below, the Federal Reserve actually handed more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010. So have you heard about this on the nightly news? Probably not. Lately Bloomberg has been reporting on some of this, but even they are not giving people the whole picture. The American people need to be told about this 16 trillion dollar bailout, because it is a perfect example of why the Federal Reserve needs to be shut down. The Federal Reserve has been actively picking “winners” and “losers” in the financial system, and it turns out that the “friends” of the Fed always get bailed out and always end up among the “winners”. This is not how a free market system is supposed to work.
According to the limited GAO audit of the Federal Reserve that was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the grand total of all the secret bailouts conducted by the Federal Reserve during the last financial crisis comes to a whopping $16.1 trillion.
That is an astonishing amount of money.
Keep in mind that the GDP of the United States for the entire year of 2010 was only 14.58 trillion dollars.
The total U.S. national debt is only a bit above 15 trillion dollars right now.
So 16 trillion dollars is an almost inconceivable amount of money.
But some other dollar figures have been thrown around lately regarding these secret Federal Reserve bailouts. Let’s take a look at them and see what they mean.
A recent Bloomberg article made the following statement….
The $1.2 trillion peak on Dec. 5, 2008 — the combined outstanding balance under the seven programs tallied by Bloomberg — was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg.
The $1.2 trillion figure represents the peak outstanding balance on these loans, not the total amount of all the loans. On December 5, 2008 the “too big to fail” banks owed this much money to the Federal Reserve. Many of them could not pay these short-term loans back right away and had to keep rolling them over time after time. Each time a short-term loan got rolled over that represented a new loan.
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