Just how desperate are you to pay down student loan debt? If the latest report by personal finance site MyBankTracker is any indication, the answer is "very." The website surveyed its users (the group had an average student loan balance of $34,000) about their level of desperation when it comes to educational debt. The analysis found some debtors (30%) are willing to give up a body part in order to make their debt disappear.

"While MyBankTracker does not condone the use of these extreme measures, it's interesting to see the percentage of respondents who would resort to them. It shows there are plenty of people who strive to erase their student loan debt as soon as possible," said Simon Zhen, a researcher MyBankTracker.

Privacy is also up for discussion when it comes to crushing student loan debt. For some debtors it's not so important when faced with the possibility of receiving a big payout. The survey found more than half of respondents (55%) would be willing to forgo their privacy by appearing on a reality TV show if that meant they could be debt free. Reality TV stars can make big bucks. MyBankTracker research found that the stars on Aamp;Es "Duck Dynasty" make roughly $200,000 per episode.

When it comes to chipping away at a debt mountain, some people are also willing to become a lot less materialistic. Those who took the survey said they would consider significant downsizing. Approximately 43% of survey takers said they would part ways with half of their possessions if that meant they could be free and clear of student loan debt.



After being subjected to a summer of Republican-sponsored congressional meetings claiming five years of the Dodd-Frank Act have hurt the economy, Democrats went on the offensive Thursday against charges the law has shrunk small business lending.

California Democratic Rep. Judy Chu told a House Small Business Committee hearing that small business loans are up 19 percent this year over the same period in 2014.

She added at the same time that the Federal Reserve is reporting bank loan standards for small business have eased considerably since the recession.

However, an expert brought into the session by Republican committee members came with his own conclusions and his own numbers.

Harvard researcher Marshall Lux said Dodd-Frank and a tepid recovery were to blame for a 10 percent drop in outstanding loans to small businesses from banks from 2010 to 2014. He said the biggest drop, 17 percent, came from small community banks, which are proportionately facing the biggest financial compliance burden from Dodd-Frank.

Julia Gordon, a liberal activist and the senior director of housing and consumer finance at the Center for American Progress, said one of the factors stifling small business lending by small banks is that their officers dont know about the freedoms they have from the law.

A lot of small banks dont realize what exemptions they have from Dodd-Frank, she said. I have [heard] from a lot of banks they cant do this kind of loan or that kind of loan and thats not right.





ABUJA, Sept 17 (Reuters) - Nigeria has restructured the commercial bank loans of 13 cash-strapped state governments as Africas biggest economy seeks to cut domestic debt piled up due to falling oil revenues.

Nigerias public funds have been hit by the more than halving of global crude prices at the end of last year. Revenues from oil sales make up 70 percent of state income and are distributed between the three tiers of government.

As a result, many states have been unable to pay public salaries in time or continue infrastructure projects and other state services.

The Debt Management Office has issued bonds for 13 states which had run into trouble servicing commercial loans worth 252 billion naira, the National Economic Council, a state body, said in a statement. The bonds were issued to 12 commercial banks with which the states had outstanding loans.

The measures are a continuation of a three-pronged bailout for the states announced in July. It included dividing up $2.1 billion in newly acquired Nigerian natural gas export dividends, central bank interventions of 250 to 300 billion naira and commercial loan restructuring by the DMO.

The debt office had already restructured loans worth 322 billion naira for 11 states in August while another 18 had obtained soft loans from a special emergency fund, said the council, without giving details.

Nigeria is divided into 36 states and one federal capital territory, which holds the capital Abuja.

Analysts say the short-term loans are being replaced by long-term sovereign debt.

Nigerian states are in debt to the tune of 660 billion naira ($3.3 billion), the statement said. Several of them borrowed in the domestic bond market and from banks to fund infrastructure projects.

President Muhammadu Buhari is expected to announce his cabinet this month, nearly four months after his inauguration. (Reporting by Felix Onuah and Ulf Laessing; Editing by Catherine Evans)



Ever since the US Department of Education announced it would forgive the loans of thousands of students who attended Corinthian Colleges, there have been a lot of questions about when students do and don't qualify for debt relief.

The Education Department made first steps toward regulating student loan forgiveness on Wednesday, Politico reports. Hearings in Washington, DC, and San Francisco will open up the discussion on regulating who should benefit.

The "borrower defense to repayment" rule grants debt relief if students can show under state law that they were defrauded by their college. It used to be a rarely invoked section of the Higher Education Act, but the number of students now using it has overwhelmed the Education Department, Politico says.

 

The latest effort wont affect the separate relief for the thousands of former Corinthian Colleges students who have sought more immediate help with their loans in the wake of their campus closing or being sold.

Pauline Abernathy, vice president at the Institute for College Access amp; Success spoke with Marketplace when news broke about Corinthian Colleges. When asked about sussing out returns to students, she argued for a more automated process to save time and effort, especially in cases where the government knows which students have been the victims of fraud: "[The application] creates more work for the government and for the borrower when the government already knows that they are eligible for a discharge."