The Great Debate

from Reuters Money:

What the CFPB should be doing with private education lenders

The following is a guest contribution from Mark Kantrowitz, founder and publisher of finaid.org and fastweb.com. The opinions expressed are his own.

The Consumer Financial Protection Bureau, which starts operating on Thursday, has oversight and enforcement authority over private education loans and most private education lenders.

The Private Education Loan Ombudsman within the CFPB will respond to complaints about private education loans by students and their families and will help mediate borrower disputes with education lenders on an informal basis. Here are my recommendations to improve the private loan process.

The Private Education Loan Ombudsman should create a centralized clearinghouse for tracking complaints about private education loans. The complaints should be tracked according to type of complaint, characteristics of the loan - such as the loan amount, term and interest rates - lender and borrower and the type of college. This will allow the CFPB to identify patterns of abuse and other trends for possible enforcement actions, new regulations or other remediation.

The ombudsman should also track other data about private education loans. Currently there is very little publicly-available accurate data concerning private education loans, such as annual new loan volume, total debt outstanding and loan interest rates and fees. It would also be helpful to publish data by education level and individual college in addition to aggregate totals. This data can potentially inform public policy concerning private education loans.

from Reuters Money:

Is the American Dream dead?

The American Dream lures people from all over the world, and it’s because of this possibility: If you come here and work hard, your kids will have a better life than you.

What if that weren’t true anymore?

Record debt, persistent joblessness, millions of underwater mortgages and a stock market that hasn’t gone anywhere in 10 years: For today’s kids who are entering the job market, it’s hardly a recipe for future success.

For parents who only want the best for their children, those prospects are like a wrenching pit in our stomachs. When such a central pillar of the American story is falling apart, frantic moms and dads hardly know what to think.

Divorce marked to market

MARKETS-GLOBAL /– Margaret Doyle is a Reuters columnist. The opinions expressed are her own –

The Myerson divorce case in Britain makes compelling reading, as all rich bust-ups do. Regardless of whether the judges make Ingrid Myerson hand back 3.2 million pounds of her 11.1 million pound payout to compensate for the decline in her ex-husband’s shares, she is a lucky woman.

Thanks to her divorce last year from fund manager Bryan who, as one half of Active Value Advisers, was the scourge of corporate UK, she is independently wealthy. Had the marriage survived, she would probably be — like him — worthless.