credit unions offer micro loans. we do a lot of micro loans up to $50,000. this is -- we check credit. we need a business plan. then we look at the three-year tax return and that statement. we do a lot of home care and mom-and-pop shops. we also do start ups. we asked for approval through documents. we work a lot with people who do not know how to file taxes properly. we are mainly focused in san francisco. we are small. we focus mainly on the tenderloin, chinatown, bayview, visitation. we do a lot of expansion. people start small through the credit union and then want to go to the bank. we know we are limited. we cannot afford to give out a big loan. starting from the credit union, we educate them about filing taxes properly and then moving on to the bank, a small one, expansion, and we work with the bank. the bank and credit union are similar. we do allow tax returns, projections. credit unions do not charge an additional loan or processing fee. processing time, on a small loan, -- consumer loans probably a few days. because we require a business plan, som

a cap on subsidized stafford loans, and subsidized stafford loans and the plus loans for families. now we don't have a cap. there is some discussion that if you consolidate your loans you will get an 8.25% cap but consolidation can only take place after you are in repayment and before you were in repayment all the interest on it on subsidized stafford loans in the plus loans are accumulating and being capitalized and what you owe. so when you consolidate you have a much much bigger principle to pay off. there might be a cap of 8.25% but a much bigger principle and oakville by the way it's extended for a longer. map of time so you won't have to pay for that longer extension of time. that is not the cap we have had before in the context of these programs. it's been a cap on individual loans. a cap on and subsidized loans. not typically we have chosen a 91 day t-bill interest in the 91 day t-bill is cheaper frankly. so that you start off with a much lower index that the student has to pay and then you add other cost to it or the discount they estimate of the fall than all those things

loan. lox that in. it doesn't go to 8.25%. that 8.25% is just a cap in case interest rates start going up. and i would point out to my friend from illinois that that 8.25% is what we had in the 199 1990's and five times -- in the 199 1990's, and five times we hit that cap. we expected students at that time. i say to my friend, we have got to pass this bill to keep students from paying 6.8% on their loans this year. madam president, on behalf of senator manchin, i call up his amendment which is at the desk. the presiding officer: the clerk will report the amendment. the clerk: the senator from iowa, mr. harkin, for mr. manchin and others proposes amendment numbered 1773. strike all after the first word and insert the following. mr. harkin: i ask unanimous consent that further reading of the amendment be dispensed with. the presiding officer: without objection. mr. harkin: madam president, i yield the floor. mr. sanders: madam president? the presiding officer: the senator from vermont. mr. sa

loan, a cap on a plus loan. and that, i think, is a major sort of fault within the proposal that we're seeing today. and the other issue too, and it goes to the index, is that it shows in a ten-year t-bill interest, typically we've chosen the 91-day t-bill interest. a 91-day t-bill is cheaper, frankly. so that you start off with a much lower index that the student has to pay, and then you add other costs to it. the discount, estimate of default, all those things to come up with the final rate. but we're going to a ten-year t-bill rate, which means that students will be paying morell alternative to a 91-day -- more relative to a 91-day rate. i don't think that's the way we want to do. we want to take the time to try to address this whole set of issues, to do it in a thoughtful way, to understand that one of the big challenges we have is not just the issue of what rate. it's how do we keep college costs in check? how do we provide the kind of education? how do we deal with the interaction between all of these diff

loan. we will start with you, mark. >> absolutely. thank you. i want to thank speaker pelosi for putting this together. i want to thank all of the of for coming out on a smell it -- snowy san francisco date. [laughter] we've been told we should get us know when we go back outside. not sure what to expect. second, i thank speaker pelosi for all the work she did to support the jobs act and before that, the stimulus bill, the original american recovery act bill that allows sba to be able to besba landing more available to small businesses. very important piece of our tools that we have in this really very difficult time for small businesses to get access to credit. finally, i want to find the rest of the folks here, my colleagues on the panel. it is the case that sba works with these organizations to try to help small businesses understand how to get credit and fine tools to be able to do that. sba programs cover a wide range, and i will talk about this range of lending and the kinds of things

guaranteed 275 loans in a year. we expected to 50 or 60 in san francisco this year, and more like 250 or 300 throughout the bay area. if you are hearing something interesting and you want to talk, the dominant in the purple suit has been handing me question cards out. >> i am the ne community federal community union. we are like a bank except we are nonprofit. we are 501 c 14. we are insured up to 250,000. we build credit. what we do a lot is one-on-one counseling. we are also a part of the bank of san francisco, so we do pay their lending -- payday lending. we help people build up their credit before helping them to get a bigger loan amount. especially people who want to start a small business. credit unions offer micro loans. we do a lot of micro loans up to $50,000. this is -- we check credit. we need a business plan. then we look at the three-year tax return and that statement. we do a lot of home care and mom-and-pop shops. we also do start ups. we asked for approval through documents. we work a lot with people

loans. so many borrowers took on private student loans, especially before the financial crisis. the standards were not the best and they are struggling with that day to day. they a tough economy. unlike federal loans that allow ,ou to restructure your debt private student loans do not have that option. we seek so many borrowers saying the same story. -- we see so many borrowers saying the same story. "i am having a tough time finding a job and i want to be able to restructure this that so that i can actually pay." host: is there anything you can do on an individual basis or do you take these complaints and look into the individual companies? , got: borrowers come to us to our website to file a complaint. we send those complaints to the company. often times the lender service is able to find an alternative payment plan. troublened the real people are having affording their student loan payments, particularly private student loans. to significant areas for exploration. one, how can people refi

loan. we will start with you, mark. >> absolutely. thank you. i want to thank speaker pelosi for putting this together. i want to thank all of the of for coming out on a smell it -- snowy san francisco date. [laughter] we've been told we should get us know when we go back outside. not sure what to expect. second, i thank speaker pelosi for all the work she did to support the jobs act and before that, the stimulus bill, the original american recovery act bill that allows sba to be able to besba landing more available ve important piec of our tools that we have in this really very difficult time for small businesses to get access to credit. finally, i want to find the rest of the folks here, my colleagues on the panel. it is the case that sba works with these organizations to try to help small businesses understand how to get credit and fine tools to be able to do that. sba programs cover a wide range, and i will talk about this range of lending and the kinds of things we do, but in many ways

loan. what that really means -- and i think if you break it down, the first year that you qualify for a subsidized loan, you can borrow up to $3,500. now, $3,500 in today's higher education world doesn't go very far. you're also allowed to borrow $2,000 of unsubsidized. that means you would have been paying 3.4% on the $3,500, 6.8% on the unsubsidized. so as you can see, it's not all clear cut. so then on the second year, you can borrow $4,500 subsidized and $2,000 unsubsidized. it goes to $5,500 and it stays at $5,500 your fourth year. the thing that happens is the unsubsidized loans, if you're looking at unsubsidized loans, at 6.8% they are staying. we have had some say it's better to leave it alone, do nothing, let it go ahead and double at 6.8% and leave it where it is. we have along the lines of a proposal by the president. also we have had the so-called house republican proposal. our proposal is much different. this is not a republican piece of legislation or a democrat. it's a bipart

the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time five senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. got five u.s. senators to meet with us and to ask us to take no one forced an action against the largest violation of our rules adopted as part of regulation in the history of our agency and we said no but then they got new head of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and lincoln savings was allowed to grow in its frauds to increase and it became the most expensive in the savings and loan debacle and also f

and made loans to people yeah. because the bank had very little liability even though that bank made that loan that they knew was very risky where they may be lending one hundred percent of the value where they may be lending it to a person with bad credit where they may be lending it to a person who they haven't even verified their income they were turning around and within thirty days selling that loan to an investor taking away their liability so they made all their fees and their money upfront in originating the loan but then had very little at risk because they were able to package all these loans sell it to investors. and that's that's the reason why they made them that's the reason why the thing went wild during that period and you know it's it's the big mortgages and i'm not not mortgage but the big institutional banks that package the soul of the international investors europe was definitely in impacted by buying these. what were supposedly safe investments because they were backed by homes in real estate

this is the undergrad stafford loan. this green line is the graduate stafford loan. and this is the plus loan for parents. as you can see, they accelerate dramatically because of the ten-year treasury bill rate that has been chosen by supporters of the other proposal and because of the likely increase in that rate. and it reached to the point -- and here, interest rate exceeds current law in 2016. by 2016, these loans will be much more expensive. this is a classic case of enjoy two or three years of low interest and be prepared to pay a lot for it in the future. it is early recommend miss ent of those proposals to refinance your house with an adjustable rate uncapped mortgage and get rid of that old-fashioned fixed rate which was so prevalent in the first decade of the 2000's which caused so much havoc and still is causing so much havoc. c.b.o. estimates that if you look from 2017-2023 alone, students will pay $37.8 billion more under the proposal of the so-called bipartisan financial relief act. now, students are smart. they can figure it out, but there is something

the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time five senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. even got five u.s. senators to meet with us and to ask us to take no inforced an action against the largest violation of our rules adopted as part of re regulation in the history of our agency and we said no but then they got new head of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and lincoln savings was allowed to grow and it's frauds to increase and it became the most expensive for audit in the savings and loan

the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time five senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. got five u.s. senators to meet with us and to ask us to take no inforce an action against the largest violation of our rules adopted as part of regulation in the history of our agency and we said no but then they got new head of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in. california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and lincoln savings was allowed to grow in its frauds to increase and it became the most expensive for audit in the savings and loan debacle it

the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time five senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. got five u.s. senators to meet with us and to ask us to take no one force an action against the largest violation of our rules adopted as part of regulation in the history of our agency and we said no but then they got new head of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and the lincoln savings was allowed to grow in its frauds to increase and it became the most expensive for audit in the savings and loan debac

the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time five senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. got five u.s. senators to meet with us and to ask us to take no one forced an action against the largest violation of our rules adopted as part of regulation in the history of our agency and we said no but then they got new ahead of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and lincoln savings was allowed to grow in its frauds to increase and it became the most expensive for audit in the savings and loan debacle

loans. but because some kids who didn't know this red-head, freckle-faced kid from claire decided this is an important value for america, this is an important value for our state, i had a chance to work hard and follow the rules and make it. and who would have thought i'd have the opportunity to be here today. i want that opportunity for every young person in michigan and every young person, every person going back to school in this country. fundamentally that's what this is about. it's not about numbers. it's not about numbers. it's about whether or not when we see that we subsidize all kinds of things -- banks and even the farmers that i fight for, we help them with their crop insurance. we do all kinds of things where we subsidize rates or insurance to be able to do things because it's good for the economy. why in the world would we walk away from that with students, the most basic set of values? colleagues on the other side of the aisle say let's do something where we peg a rate -- it's

the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time for. five senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. even got five u.s. senators to meet with us and to ask us to take no inforced an action against the largest violation of our rules adopted as part of regulation in the history of our agency and we said no but then they got new head of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and lincoln savings was allowed to grow and its fraudster increased and it became the most expensive for audit in the savings and loa

brokers made more money steering borrowers and to loans that cost more to risk your loans made for a better return and so there was no reason for them to give someone a decent loan when they could make so much more money giving them a bad one a lot of us do not understand their needs trade language. defined prints especially you know people were required to what is. this that i am although. in the academic education. it becomes difficult at times to read all the specifics about very complicated documents. rescission of the two thousand and six. return of title. two. it is sad. so the poppy is initially mine is back in my hands. see the trash signed it. two times. leap. than now is not the american dream now no. not for me if i have the money i go back makes it go on up just in a movie by will smith caught a pursuit of happiness when used in a self that would have no border so my son might not day and i'm not i don't think it'll be a cell phone like that before de connick crash we have a good gap and we pay out of me is like everybody else like you know you guys have an x. ray card bu

>> i already have an sba loan. i went to wells fargo for a line of credit and they would not give me one. >> i can speak to you about it. when we look at funds that are needed, the biggest thing we look at our cash flow. i can address that with you. unless there is an issue, at that point -- [inaudible] >> let's talk, ok. >> i have a couple of more questions. i know that the panelists have agreed to stay after for those who have specific questions. i do have one question for wells fargo. what are the typical rules for applying for sba loan of less than $50,000? how much money do we need to have in your bank to apply for a loan? >> i am on the smaller side of the bank. i am a transaction guy. i do not technically require one to have an account to do a loan with. what i look for, i generally start at 100,000 and up. when it is a requirement of 50,000 or less, i tend to call of the micro guys to help me out. that is right in their box. for us, the capacity for us to do the smaller side is not there as much as it is fo

the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time five senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. even got five u.s. senators to meet with us and to ask us to take no inforced an action against the largest violation of our rules adopted as part of regulation in the history of our agency and we said no but then they got new head of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and lincoln savings was allowed to grow in its frauds to increase and it became the most expensive for audit in the savings and loan debac

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the savings and loan crisis was one of the biggest financial scandals in u.s. history at the time fly. senators known as the keating five were accused of trying to prevent an investigation into lincoln savings and loan association this was a loan bank and the collapse of which cost taxpayers over three billion dollars i spoke earlier with william black associate professor at university of missouri kansas city about his interaction with the keating five. even got five u.s. senators to meet with us and to ask us to take no inforced an action against the largest violation of our rules adopted as part of re regulation in the history of our agency and we said no but then they got new head of the agency and they intimidated him and he removed our jurisdiction we were the regional regulators in california he removed our jurisdiction over lincoln savings because we refused to withdraw our recommendation that the government take it over and lincoln savings was allowed to grow and it's frauds to increase and it became the most expensive for a lot in the savings and loan

brokers made more money steering borrowers and to loans that cost more to risk era loans made for a better return and so there was no reason for them to give someone a decent loan when they could make so much more money giving them a bad one they're not averse to not understand the new strange language. defined prints especially you know people who are weak tied to what is able like. this like i am although. in our academic education. it becomes difficult at times to read all the specifics about very complicated. were plentiful rescission of the six that gone every turn of tire on. me. to mission will hate it is saturday. so the poppy is a shiny mine is back in my hands thank you see the trash signed it on traction two thousand. now is not the american dream now no. not for me if i have the money i go back mexico i don't know if that's going to move by will smith caught a pursuit of happiness we use myself to what is no border so my son might not and i'm not i don't think it'll be a celt of like that before de connick crash we have a good jap and we pay out of me like everybody else like y

- the longer-term loans - first of all, auto loan rates are at record lows right now. but, when you stretch that loan term out to longer and longer loans, you're not getting a lower rate. if anything, you're getting a higher rate, because there's a higher risk of default the longer you stretch that loan out. but, the fact of record-low interest rates means that even on those 7-, 8-year auto loans, you're still getting a pretty attractive interest rate. but, it's going to be at least as high, if not higher, than what you would have gotten on a 5-year loan. - are dealerships passing this along? are dealerships pushing this? - look, the dealership is going to push whatever it takes to get the deal done, and if you've got a perspective buyer sitting in your office whose budget is tight, and you can stretch that loan term out a little bit longer and get that payment down to an affordable level where you can get them qualified and they can buy the car, of course they're going to do it. as a consumer, i think the way you've got to look at this is, you're not doing yourself an

on the loan amounts. the most we can do -- in terms of other qualifications, again, this is a loan program, loan fund. these are not grants. they are credits. we will look at the capacity to avoid loan payments and also the totality of the situation, taking into consideration whether there are legal fees or remediation fees that need to be paid. but i will say that we want to be an alternative for folks that cannot obtain financing from a bank. this may be a combination of that. maybe they need to go to a bank and get something and we can fill the rest or if they get decline by a bank, we can come in and assist with financing. >> [inaudible] you can only do so much to get people here. that is why we are asking for help from not only our media partners, but those of you in the room. people do not often come to ask for assistance until they are hit with a lawsuit. until they receive a complaint letter or a threat of being sued, they do not take the issue very seriously. by that time, a lot of your investmen

parents and graduate students taking out plus loans, these are the parent loans will never pay above 10.5%. so that's the first thing. that's the first principles to have these upfront caps. secondly, the principle to get as close to budget neutral as possible. so the composition of this bill places us about as close to budget neutrality as possible, meaning that billions of dollars will not be generated off the backs of students to reduce our budget deficit, something that was included in the version of this legislation that passed the house and was a key feature on an earlier republican bill that received a vote in the senate, an passing vote but received a vote. and, again, these are the compromises made on the republican side. they had several billions of dollars to raise on the student loans in the future. we didn't, so we've compromised down and it's basically $715 million over ten years. and since there's going to be over a trillion dollars in student loans over ten years, $715 million is not much compared to the trillion dollars in student loans that will be taken out over th

well britain is closing in on its burgeoning illegal loan sharks some of which are hitting the floor with i watering interest rates of over five thousand percent well here what's being done about that story. and starving in sympathy and we speak to a human rights attorney who has started his own hunger strike this in solidarity with the guantanamo prisoners who are being subjected to painful force feeding his opinion coming up in just a bit. the u.s. appears determined to go ahead with deliveries of four f. sixteen fighter jets to egypt and that this even after the army had toppled the islamist president mohamed morsi last week now washington has been reluctant to deem the egyptian overhaul a cousens that would essentially bar systems to the volatile state although president obama has said that the aid program should be reviewed even so it doesn't really look like the egyptian people are satisfied with the role that the united states is playing in their homeland now american researchers have conducted concluded pardon me that about eight out of ten egypt are negative towards the unit

he went running to the imf for a loan and knowing new with the loan was used for. pushed her the constitution so basically, it is become say but it has undeniably evident that he was of governing in the interest egypt. opportunitymazing to actually have a muslim brotherhood regime or government that actually worked for the , and hadof the people egypt in his hands and he lost that. every day has been a chance for in, to have aople dialogue, to follow the map people have put in place. he hasn't done that. now he is clearly not hesitating [indiscernible] man,m brotherhood, young to put them in a direct confrontation with the rest of the country and the military. skirmishes in the districts just outside to rear people have been killed -- talk tahrir. it will largely be the making of the muslim brotherhood leadership. >> ahdaf soueif, i want to play a clip from your nephew. we spoke to him soon after mubarak fell. this is your nephew. dream that we don't need to deal with the complexes of the current constitution, which was created by an illegitimate government anyway.

debt i did propose that we forgave all student loan debt as a means of stimulating the economy that was four and a half years ago obviously the president and congress didn't take my advice and so you know at that time the outstanding student loan debt was about seven hundred billion dollars today it's one point one trillion so in just those four and a half years it's grown by that much and it's just growing every day so i don't necessarily think that forgiving all student loan debt is a necessarily a viable proposal but it's certainly something that could jumpstart the economy and give a helping hand to those who are trying to better themselves and we just have about thirty seconds left yes or no is college worth the cost right now. just yes or no yes it's worth the cost robert after obama executive director and director of the student debt crisis dot org thank you so much thank you for having me. and that's may do it for now for more on the stories we covered go to youtube dot com slash r.t. america and don't forget to check out our well our web site for the latest and greatest inf

for an auto loan it's about 3.8%. they are fixed loans, if you took those loans out today. and that's exactly what this compromise creates. is that there will be real borrower certainty and protection, unlike the bill that wrecklessly and on a partisan, party-line basis flew out of this chamber on may 23. this is a better deal for america's students, it's why, again, the process that we went through was worth it. and again it's certainly worth people's support. at the end of the day, though, let's remember, students are still paying into the deficit of this country. congressional budget office has told us over 10 years, $184 billion of revenue is going to be generated through this program towards the deficit. we need to change that. that's not the purpose of the stafford student loan program. when senator stafford from vermont passed it many years ago. it was about providing an affordable system of access for higher education, not a cash windfall for the coughers of the government. and that's why we have more work to do, that's way we need to pass a higher education authori