see at bottom for documented example how healthcare and medicaid gets bailout too directly from education bonds, tuition/fees, and state aid as collateral
As well as strategy with IRB to make extra 15% off future workers for 25 years
fed does it and they cant lose, they are bailing out banks since laws prohibit their past home lending practices! sorry will give you theirs and their kids money though!
With IRB, income based repayment, only federal loans can be used, its basically a 15% tax on income for 25 years, only doesnt work fiscally unless you are making 200k-250k a year. For most it will make sense
the fed now gives student loans and keeps the variable low, lowest ever and hasnt changed since 2008, to make profit difference between rates/fees for themselves and banks. Banks dont have to compete for student money, even though credits tight, and in the future Federal loans can only be consolidated by the fed so no bank competition when students do make money. See how low a rate private loans are, and these give banks a federal insurance, even though student loans are the hardest to escape
The variable has been its lowest ever and not moved since 2008. You think theyd let these fixed loans ever get higher when they set the variable and it would cripple them and banks? These loans are federally backed yet still get rates of 6.8,7.9. A lone citizen with cosignor with moderate income and decent credit can do way better, plus no consolidation limits
Its a way the fed government, and state/city/university, can tax students/fill their deficits/take a piece of students tuition while they only worry about inflation and variable. how much money is that? you can not go into bankruptcy for student loans which forgives debt on credit report after 10 years, only way to escape is die, do a government repayment, or IRB which is still like a tax of 15% of income for 25 years if you dont make 6 figures this is the route most people will be going, so the government gets a 15% tax plus your regular income tax. This income based repayment plan is getting alot of fed attention
they wont lose on deal, not a coincidence that fed does this at same time variable lowest ever and set by them since 2008 this low.
Also its a way for state/city/healthcare bailouts and corporate profit, why your tuition rate really goes up at public schools all about buying each others bonds:
public colleges/universities in states use education building bonds (selling a bond is basically getting a loan from buyer), see NJEFA site example, to collect money and at the same time they buy state/city government bonds, a way to kickback money to them from tuition I bet, and corporate, banks that buy their own school bonds.
Bonds with a fixed rate, as only public school converted their variable too on njefa, have a predicable payout of interest and return for ones bought so when they give annual report the bottom line ends evenish. they choose the amount, term, and then its rated by wall street based on that and who they are. its crazy bailing out states and hospitals with student money from loans they pay the federal government interest on,
much higher than the variable and all state/university/city/corporate bonds return, so they end up making money. the one umdnj is only one higher than 6.8 but still higher than plus loans, either way the fed is safe because the variable has been stuck at .25 or whatever since 2008, which they set. The exact same time njefa shows public school abandoning their variable rate bond
see how a school like umdnj uses to bailout medicaid debt and healthcare costs:
this situation meets fraud definition:
The law has a specific definition what constitutes actionable legal fraud. "Although the word 'fraud' maybe used in common parlance to connote any practice involving shady or underhanded dealing, in law it is a term of art with a precise definition." Banco Popular N. Am. v. Gandi, 184 N.J. 161, 175 (2005). In order to assert a legal fraud claim the moving party must establish the following five elements by clear and convincing evidence: “(1) [a] material misrepresentation of a presently existing or past fact; (2) knowledge or belief by defendant of its falsity; (3) an intention that the other person rely on it; (4) reasonable reliance thereon by the other person; and (5) resulting harm.” Jewish Ctr. of Sussex Cty v. Whale, 86 N.J. 619, 624-625 (1991); see also Simpson v. Widger, 311 N.J. Super. 379, 392 (App. Div. 1998) (holding that “fraud must be proven by clear and convincing evidence”).
education building only bond used to pay medicaid debt, fraud charge by medicaid and other UH non educational debt, as well as tuition/fees revenue to pay interest rate of 7.47% and state education funds as locked up collateral in a bank and I doubt interest paid on it
http://www.umdnj.edu..._09_BOT_res.pdf
see above link
essentially University hospital is broke and always in debt to state and others so they use a bond/loan thats for educational buildings only from NJEFA, to wipe non education debt. the state also gets money they are owed.
school says its budget cuts reason for 18% tuition hike last year and all others, no mention of this. State gave same budget next year but we will still get a hike, always do
The state forgives half their medicaid debt, $46 mill, $9 of which is a charge for fraud. UMDNJ pays the rest from 2013-2028. They get some debt service fund.
And the to pay the woping 7.47% on the $260 million dollar bond, for non-educational use, as well as other bonds with they use any revenue, inlcuding tuition/fees, and use our state tution aid at least as collateral and some bank holds all this maybe without paying federally required interest on it. Thats like $12.7 mill a year in interest for just that one bond
The lien on the state money is kept in an actual lockbox in a bank, 70% of umdnj bond portfolio have this crazy lien, and state money thats restricted like charity care is held as well till bond interest is paid.
This is the only reason that 2009 was first year UH didnt lose 20-30 million that year in at least a decade, I bet the CEO makes their bonus. Same Year they sold bonds, 3 months before annual report, see board meeting 4/28/10 online 2 days beforebonds sold with great news of fiscal turnaround
its not the students job to bailout UH and the state through tuition/fees/state subsidy
There was an 18% hike in tuition last year, another this year despite no state budget difference, they make $100 mill from tuition alone then fees, $170 mill from state for education, grants, contracts, housing fees, and $30 billion a year of state money goes to UMDNJ as a whole
They also buy state/ city government/corporate, the banks that buy their bonds I assume, bonds that return a much worse interest than 7.47%. This allows their consolidated report to yield predictable even bottom lines as well as a public disclosure. With only fixed interest rates being used, they choose the bond amount and period, they never have surprises that would raise an eyebrow about their "investments"
Part of this $260 million paid old education bonds, 1999 and 1995, and I bet my eye the rate was better than 7.47%. Further increasing burden to students.
They can take another $215 mill per the attached. I have other resources if any gaps missing, see 4/28/10 umdnj board meeting for report of miraculous turn of fiscal events by CEO, bonds went on sale 2 days later. She gets millions for such a fiscal turn around that is just a new loan that students foot the bill for
why else they so scared of losing RWJ and school of public health?
sourceshttp://www.njefa.com...ty/recent/2009/
http://www.bondsonli...A=view&RID=2977
http://www.theuniver...tes_4_28_10.pdf
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