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Bank Notes: U of Phoenix, Student Loan Debt, Green Dot

Adam Rust's picture

Posted June 26, 2013

University of Phoenix's corporate parent reports large drop in enrollments: Apollo Group, the parent of the U of Phoenix and several other for-profit schools, says that

new enrollments fell by 25 percent year-over-year.

Interesting comments from Rohit Chopra: Yesterday's hearing at the Senate Banking Committee produced some interesting commentary on the status of student lending in the United States.

  • 81 percent of high debt undergraduate borrowers used private student loans.
  • According to the National Association of Home Builders, the share of first time home buyers in today’s market is extraordinarily low relative to historical levels, because student debt is limiting down payment capacity.
  • The American Medical Association says that high-debt burdens impact career choices of new doctors.
  • 89 percent of veteranian students graduate with more than $100,000 in debt.

From Senator Crapo: Federal loans default three times as often as private loans.

Green Dot kicks off full release of GoBank: GoBank is "a lot of fun," according to one person I know who tried it out already. I have signed up and I hope to have my own thoughts about using it in short order. One question from my perspective is what impact it will have upon its competition. Will it take business from already existing Green Dot products, from Bluebird, from Liquid, or from the standard program-managed product? To what extent will it gain customers who were previously using a traditional bank? How many households will it take from the un-banked population?

NBPCA's Power of Prepaid starts tomorrow at National Harbor in suburban Washington, DC.