Everyone has role in fighting loan sharks
– Jennifer Martens, North Aurora, Ill. Dear Jennifer: If Franz Kafka were alive today, we’re thinking this Ocwen story would make a nice plotline: You had your loan servicer unwittingly switched, but you paid your bills. Ocwen’s own account statements said you paid your bills, and your bank said you paid your bills and then Ocwen said you didn’t pay your bills. And then Ocwen said they could see that you did pay your bills, but they couldn’t make their computer say you paid your bills. What a headache. Seriously, though, your account was pretty screwed up. When the ABC News Fixer contacted them about the problem, Ocwen told us they had escalated the case and were urgently trying to fix it. The good news is you had plenty of documentation showing you had made your loan payments on time. It took about a month, but eventually Ocwen was able to get your account properly credited and remove the threat of foreclosure.
Puedes ver la version sin traducir en http://abcnews.go.com/Blotter/loan-company-demands-payment-family-proof-paid/story?id=23991963
CDB to Loan LDK Solar $320 Million
Since 2008, grant aid per full-time enrolled student has increased over 30 percent. Between the 2007-08 academic year and the 2012-13 academic year, federal grant aid doubled in real terms, and state grant aid increased 11 percent.  Pell Grant funding, which is available to income-eligible students and does not have to be repaid, has more than doubled in real terms since the 2002-03 academic year, increasing from $14.8 billion to $32.3 billion.  Increases in total Pell expenditures are due in large part to increases in the number of grant recipients, which has grown from 4 million during the 1992-93 academic year to 8.8 million during the 2012-13 academic year,  nearly doubling in the past decade. Student debt. Approximately 60 percent of students who earned a bachelors degree during the 2011-12 academic year left school more than $26,000 in debt.  Total cumulative student loan debt now exceeds $1 trillion, which, as is often noted, is more than cumulative credit card debt. Increases in College Costs Increases in debt have been driven by increases in college costs. In the last 30 years, inflation-adjusted tuition and fees at private colleges increased by 153 percent; tuition and fees at public universities for in-state students increased 231 percent.  College costs have risen more than health care costsby some estimates, twice as much  and faster than increases in the price of food.
Puedes ver la version sin traducir en http://www.heritage.org/research/testimony/2014/06/student-loan-servicing-the-borrowers-experience
Businesses can do it. Even local governments can refinance their debts when interest rates are low. But most people have no options for their student loans,” Warren said in an email to supporters this week. “The idea behind this bill is simple. Last year, Republicans and Democrats came together to lower the interest rates on new undergraduate loans to 3.8%. But nothing was done for the millions of people who have older student loans at 6%, 8%, 10% and even higher interest rates. They were just stuck paying — and paying and paying.” Which is why Warren’s bill would allow people to refinance student loans under the current rates. It would also allow those who have student loan debt through private financial institutions to refinance it under the federal program, under the lower interest rates. In proposing the bill, Warren pointed to a report released by the Government Accountability Office in January which determined that based on the student loans issued between 2007 and 2012, the federal government stood to profit to the tune of $66 billion from the interest alone.
Puedes ver la version sin traducir en http://www.masslive.com/politics/index.ssf/2014/06/as_democrats_push_for_vote_on.html
Cov-lite Loan Controversy Fades To Whisper While Portfolio Managers Chase Yield – Forbes
Now cov-lite loans are accessible for most levered issuers. In 2006 and 2007, only 24.5 percent and 32.7% percent of cov-lite issuers were rated single-B or below, compared with 57% last year, said the DDJ report. Cov-lite loans also represented a much smaller percentage of the whole during the last cycle 7.4 percent of new issuance in 2006 and 25 percent in 2007, the report said. What few argue with is the fact that cov-lite contributes to the erosion of total returns since holders lose the ability to reprice a loan when its risk profile deteriorates. Those loans in turn trade poorly and create paper losses for mark-to-market portfolios. Despite potential pitfalls, avoiding cov-lite deals altogether doesnt make sense now, especially with no near-term default catalyst, sources said. The low default expectation is in part because so few covenants are out there to trip up borrowers, and also because hardly any corporate issuers have maturities over the next few years courtesy of the flood of refinancings over the last several years. For some, the takeaway is that if youre basing your decisions on covenants, rather than credit analysis, youre going to lose, one portfolio manager said. This post is brought to you by Debtwire, a Mergermarket company and the leading provider of real-time intelligence, analysis and data on distressed debt, leveraged finance and asset-backed markets.
Puedes ver la version sin traducir en http://www.forbes.com/sites/mergermarket/2014/06/03/cov-lite-loan-controversy-fades-to-whisper-while-portfolio-managers-chase-yield/
As Democrats push for vote on Sen. Elizabeth Warren’s student loan debt refinancing bill, dozens of groups step up to endorse it | masslive.com
In turn, this may result in an increase in loan-shark harassment. A better approach would be to partner family service centres and voluntary welfare organisations to educate the public on the dangers of borrowing from loan sharks. In Britain, some primary and secondary schools include this topic in their character and citizenship syllabus. Children are also taught the difference between debt and credit, and how to manage their money wisely. The hope is that the children can share what they have learnt with their parents, who can then make better financial decisions. Of course, parents too have a role to play in educating their children not to take part in loan-sharking activities. They can remind their children of the severity of the offences and intervene if their children display signs of involvement. TV advertisements can serve a similar warning role. Perhaps there could be a documentary where former loan-shark borrowers talk about their experiences.
Puedes ver la version sin traducir en http://www.straitstimes.com/premium/forum-letters/story/everyone-has-role-fighting-loan-sharks-20140606
The company has lost a huge amount of marketshare and its billion dollar poly plant remains shut, as it is not economically viable. Improvement in technology has made this plant obsolete and the company has not been generating profits. The companys share were delisted from NYSE and the company sold equity stakes to Chinese state funds for a pittance, as it was desperate to raise cash to run operations. NoteSuntech(STP) has already become bankrupt, with most of its assets sold to Shunfeng. Bankruptcy in China remains a hazy process as state owned funds keep running even zombie companies to protect jobs. LDK Solar (NYSEARCA:TAN)was the largest solar wafer producer and had diversified into all parts of the supply chain. But increasing competition from the like of GCL Poly eroded its competitive position and its huge pile of debt made operations almost impossible.$64 millionof the loan will be used to resurrect the dead poly plant that LDK had built over the last 3-4 years. The plant never ran to even half of its capacity as price of poly went below $20/kg. LDK had no money to improve the equipment. I think it is a bad move on the part of the banks to pour more money into a company that has already defaulted on $3 billion of debt.
Puedes ver la version sin traducir en http://www.wallstreetsectorselector.com/investment-articles/analyst-desk/2014/06/cdb-loan-ldk-solar-320-million/