The Student Loan Corporation Agrees to Settle Shareholder Class Action Lawsuits

The Student Loan Corporation (the "Company") (NYSE: STU) today
announced that it and the other named defendants have entered into a
memorandum of understanding with plaintiffs' counsel in connection
with putative class action lawsuits filed in the Chancery Court for
the State of Delaware and the Superior Court of the State of
Connecticut in connection with (i) the Company's merger agreement with
Discover Financial Services ("Discover") and the merger contemplated
thereby (the "DFS Merger"); (ii) the Company's agreement with SLM
Corporation pursuant to which affiliates of SLM Corporation will
acquire from the Company certain securitized federal student loans and
related assets; and (iii) the Company's agreement with Citibank, N.A.
("Citibank"), pursuant to which Citibank will acquire from the Company
certain federal and private student loans and other assets .

Student Loan Forbearance Plans On Federal Loans–Graduates Delay Repayment Of College Debt

Student loan debt is often something that has been troubling for
graduates who may have exited college and are not in a financial
position to meet the repayment requirements of their college loans.
Understandably, factors like unemployment or underemployment which
have been present in the lives of many recent graduates have caused
financial strains, but there may be options for graduates to delay the
repayment of their college loan debt.

As an example, federal student loans may offer forbearance periods on
student loan debt repayment obligations for those who may be
unemployed or suffering a particular financial hardship. While some
graduates have been able to take advantage of consolidation loans or
income-based repayment plans, forbearance offers a graduate the
opportunity to completely forgo making payments on their debt for a
set period of time.

Obviously, for graduates who may be unemployed, this is greatly
beneficial as there are no financial obligations from college loans
for months at a time and when an employment opportunity comes
available, a graduate maybe begin repaying their student debt. While
there may be forbearance options on private student loans as well,
this maybe dependent upon the lender as to what opportunities
graduates may have to delay their debt repayment, but there may be
problems associated with debt forbearance for some.

During periods of forbearance, interest may begin to accrue and
compile, which could be problematic for a student, especially if this
interest is eventually tacked on to the principal. Most student loans
come with low, affordable interest rates and can be easily repaid by
most, but there are problems related with a high amount of student
loan debt which many face and, when this principle amount goes unmet,
interest rates can be problematic down the road.

While it's understandable that some students must turn to forbearance
options before they began missing required student loan repayment
obligations, and possibly doing damage to their credit score, advisers
often have counseled students and graduates to look at their repayment
options and, if at all possible, begin combating their student loan
debt obligation as quickly as they can.

Source: rwbpress.com