(Sapurah Lashari)

Senators Chastise Govt. For Making Money Off Struggling Student Loan Borrowers, Not Offering Enough Relief

For several years now the government has offered federal student loan forgiveness programs aimed at helping borrowers to avoid defaulting on their debts. While recent reports have shown that the popularity of the programs has exceeded expectations, a group of six senators say the Department of Education could do more given the billions of dollars in payments it receives from federal loans each year. [More]

A group of 15 Corinthian College students are refusing to repay their federal student loans.

Current, Former Corinthian College Students Go On “Debt Strike,” Refuse To Pay Private & Federal Loans

With for-profit educator Corinthian Colleges Inc. selling off campuses and closing schools, thousands of Everest, WyoTech, and Heald College students are waiting to learn the fate of the more than $1 billion in private and federal student loan debt used to finance their education. While the Department of Education and the Consumer Financial Protection Bureau have worked to secure deals in which some of that debt will be forgiven, some students are increasing the pressure on such deals by staging a “debt strike.” [More]

(Mike Mozart)

Target Owes Minnesota-Based Businesses $3.8M Over Failed Canadian Stores

Target Corporation isn’t the only company losing money by closing its Canadian division. The retailer owes nearly $3.8 million to more than 60 businesses in Minnesota. [More]

(Meneer Dijk)

New Requirement Aims To Curb Inaccurately Reported Medical Debt

Medical bills account for nearly half of all collections notices on consumers’ credit reports, affecting more than 43 million Americans. Meanwhile, it’s been shown that medical billing is fraught with errors and many consumers sent to collections for these debts are penalized too harshly. A new federal requirement hopes to reduce this overly negative impact of medical debt on credit reports. [More]

(daniel lobo)

Poll: 1-In-5 Consumers Say They’ll Die While Still In Debt

Millions of Americans dream of the day that they exit the dark, desolate tunnel of debt and can live their lives without owing money to anyone. But sadly, a new report finds that most consumers actually have little hope of ever being debt-free. [More]

Debt Collection Is A Great Line Of Work For Ex-Cons

When a debt collector calls you, there’s a good chance that he or she might be an ex-convict calling you from a strip mall in Buffalo, New York. Buying and collecting debt is a lucrative business, and some people who had a rough upbringing have a real gift for it. Learn about the “Buffalo Talk-Off” and the Excel Spreadsheets of Doom. [NPR] [Planet Money]

(Roger Shaw)

Why Does Negative Info Linger On Your Credit Report For Up To 7 Years?

Credit-related mistakes can follow you link a stink you can’t wash off. Have an account go into collections, miss payments on your student loans, credit cards, mortgage, car loan, and that info can linger on your credit report for up to seven years, even if it’s just a fluke. This is particularly a problem with medical debt, where even someone with otherwise pristine credit is unable to pay a huge hospital bill. So why is seven years? [More]

The amount of student loan debt held by older Americans has increased in the last few years.

Report: Student Loan Debt Isn’t Just An Issue For Young Americans

When we talk about student loan debt it’s easy to picture a spry, young 20-something who is struggling to get out from under mountains of high-interest loans. But, as a new report points out, that’s not always the case, sometimes those who graduated even decades ago continue to struggle in paying back their student loans. [More]

Medical Debt Still Stinks, But New Credit Score Change Will Make It Hurt Your Life Less

Medical Debt Still Stinks, But New Credit Score Change Will Make It Hurt Your Life Less

Credit reporting behemoth FICO is making changes in the way it calculates credit scores. And for once, there’s some good news. The changes are expected to make it easier for most Americans to access credit — that is, to borrow money and take out loans — and will punish fewer consumers for incurring some debts that were out of their control. [More]

Parents Stuck With $200K In Student Loan Debt After Daughter Dies

Parents Stuck With $200K In Student Loan Debt After Daughter Dies

The last thing families want to deal with after the death of a loved one is a phone call reminding them of their departed’s debt. But that’s the case for a number of parents who have inherited the obligation to repay the student loans they co-signed for their deceased child. [More]

Study: One Third Of Americans Have Debt In Collections

Study: One Third Of Americans Have Debt In Collections

Sometimes debt isn’t so bad, and sometimes it is, but one thing is clear: 80% of Americans owe someone, somewhere, some money. It might be a mortgage or student loan, or a five-year-old fee that got forgotten about, but the vast majority of us have some outstanding debt. And worse: a third of the country may have debt collectors chasing after them for that cash. [More]

Illinois Files Suits Against Debt Settlement Companies That Allegedly Scammed Student Loan Borrowers

Illinois Files Suits Against Debt Settlement Companies That Allegedly Scammed Student Loan Borrowers

We already know that some debt settlement programs provide little relief for debtors, and consumers who contributed to the $1.2 trillion student loan debt tab appear to be the top target for these companies. Today, the Illinois Attorney General announced lawsuits against a pair of debt-settlement companies that targeted, and allegedly misled, student loan borrowers. [More]

Expected Bill Would Allow Private Student Loan Debt To Be Discharged In Bankruptcy

Expected Bill Would Allow Private Student Loan Debt To Be Discharged In Bankruptcy

If at first you don’t succeed, try again with a more drastic measure. Just two weeks after a bill to allow private student loan borrowers to refinance at lower interest rates failed to gain traction in the Senate, a new bill expected to be introduced this week takes things a step farther. [More]

Report: Millennials Feel Overwhelmed By Debt, But They See A Bright Future Ahead

Report: Millennials Feel Overwhelmed By Debt, But They See A Bright Future Ahead

In news that is in no way shocking, millennials say they are overwhelmed by debt. [More]

Bill To Allow Students To Refinance Private And Federal Loans Dies After Senate Debate

Bill To Allow Students To Refinance Private And Federal Loans Dies After Senate Debate

A bill to allow consumers to refinance their student loans to the rate currently being issued on new federal and private student loans succumbed to a painful death on the Senate floor Wednesday despite being championed by consumer advocates. [More]

Consumers Have Paid Down $32.5B In Credit Card Debt So Far This Year, But It’s Still Not Enough

Consumers Have Paid Down $32.5B In Credit Card Debt So Far This Year, But It’s Still Not Enough

While the economy may be bouncing back from the Great Recession, the rate in which consumers are able to pay off credit card debt continues to decline. [More]

Report: Debt Collectors Now Using Court System To Unfairly Force Consumers To Pay Up

Report: Debt Collectors Now Using Court System To Unfairly Force Consumers To Pay Up

Debt collection is a big business that doesn’t look to be shrinking anytime soon. But along with the rapid expansion of the industry, there has been an increase in abusive and predatory collection practices. One of those practices, obtaining default judgements against consumers, has led the Center for Responsible Lending to call for stricter regulations over the process of selling debt to collectors. [More]

FTC: Deceptive Debt Collectors Must Pay $3.3 Million In Consumer Refunds

FTC: Deceptive Debt Collectors Must Pay $3.3 Million In Consumer Refunds

We here at Consumerist are always a little happy when deceptive debt collection businesses get what’s coming to ‘em from the Federal Trade Commission. But those feelings grow exponentially when we find out said company will be forking over millions of dollars to refund abused consumers. [More]