Sallie Mae Spinoff Navient Could Face CFPB Lawsuit Over Student Loans

Sallie Mae Spinoff Navient Could Face CFPB Lawsuit Over Student Loans

In the short time since Navient – the nation’s largest student loan servicing company – spun off from Sallie Mae, the company has come under scrutiny for it allegedly unfair practices of overcharging and imposing excessive fees on consumers’ loans. While those practices resulted in a $97 million settlement with the Depts. of Education and Justice, and the Federal Deposit Insurance Corp, they could soon lead to a lawsuit from the Consumer Financial Protection Bureau. [More]

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Dept. Of Education Plans To Overhaul Loan Forgiveness Program For Students Defrauded By Schools

As thousands of former Corinthian College students continue to wait to learn whether or not they’re on the hook to repay billions of dollars in student loans they took out to attend the now defunct for-profit college, the Department of Education announced plans to overhaul the loan forgiveness process for students who believe they have been defrauded by their colleges. [More]

Groups Say Proposed Student Loan Plan Doesn’t Provide Enough Assistance

Groups Say Proposed Student Loan Plan Doesn’t Provide Enough Assistance

The Dept. of Education recently proposed regulations intended to make the student loan repayment process less burdensome and drawn-out. Nearly two dozen consumer advocacy groups say that while these rules should help borrowers, more could be done to ensure that all students benefit. [More]

Why Didn’t Dept. Of Education Find Problems With Loan Servicer Fined $100M?

Why Didn’t Dept. Of Education Find Problems With Loan Servicer Fined $100M?

Last May, investigations by the Department of Justice and the Federal Deposit Insurance Corporation into student loans servicing resulted in a $100 million fine against government-contracted servicer Navient for allegedly violating federal laws limiting the amount of interest that can be charged on servicemember student loans. Following those investigations, the Department of Education undertook a review that found its four servicers – including Navient – weren’t cheating military personnel. With such conflicting reports, members of Congress are now getting involved, calling for an investigation into the Dept. of Education’s review process. [More]

When Comparing Colleges, It Would Help To Know If A School Is Under Investigation

When Comparing Colleges, It Would Help To Know If A School Is Under Investigation

Many consumers thinking of pursuing a higher education weigh the pros and the cons of a specific college: tuition, convenience, available areas of study. Last month, the Department of Education announced it would make the college shopping experience a little easier for prospective students by creating a consumer-facing online college comparison system. While the tool will no doubt be helpful, consumer advocates warn that, as it stands, the system will be missing a vital information: whether or not schools are party to investigation, lawsuits or settlements over harmful and deceptive practices. [More]

Gainful Employment Rules Survive Another Hurdle, Judge Strikes Down For-Profit College Industry Lawsuit

Gainful Employment Rules Survive Another Hurdle, Judge Strikes Down For-Profit College Industry Lawsuit

Gainful employment rule: 2, for-profit education industry groups: 0. A federal judge struck down a second lawsuit to block new regulations aimed at reining in for-profit colleges set to take effect in just one week. [More]

Congress Takes Another Stab At Undercutting Gainful Employment Rules Two Weeks Before Implementation

Congress Takes Another Stab At Undercutting Gainful Employment Rules Two Weeks Before Implementation

The Department of Education’s long-awaited gainful employment rules – aimed at reining in the for-profit college industry – go into effect on July 1. But just because there are only 14 days before implementation, doesn’t mean those opposed to the regulations are giving up their fight. [More]

Judge Upholds Gainful Employment Rule, Throws Out For-Profit Industry Lawsuit

Judge Upholds Gainful Employment Rule, Throws Out For-Profit Industry Lawsuit

The Department of Education’s gainful employment rules, aimed at reigning in the for-profit college industry, came one step closer to its July implementation today as a judge threw out a for-profit industry lawsuit that attempted to further weaken the upcoming law. [More]

Aaron Poffenberger

Dept. Of Education Proposes Rules To Govern College Prepaid Credit & Debit Cards

College students’ federal aid has increasingly been put at risk by the cozy relationship between institutions of higher education and credit card issuers over the years. While consumer advocates and legislators have debated whether or not products like student IDs that double as credit or debit cards provide an actual benefit to students or if they’re just a way for schools and banks to rake in the big bucks, the Department of Education finally took steps today to ensure students are afforded proper protections from excess fees and other harmful practices with the proposal of regulations targeting the college debit and prepaid card marketplace. [More]

Legislator Demands Department Of Education Investigate For-Profit Chain ITT Technical Institute

Legislator Demands Department Of Education Investigate For-Profit Chain ITT Technical Institute

Following the Securities and Exchange Commission’s decision earlier this week to file fraud charges against current and former executives with ITT Education Services – the operator of for-profit college chain ITT Technical Institute – for their part in concealing problems with company-run student loan programs, one legislator is calling on the Department of Education to further investigate the company. [More]

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Attorneys General Coalition Urges Dept. Of Education To Clarify Corinthian Students’ Options

A week after nine senators urged the Department of Education to provide support to the thousands of students affected by the closure of now-bankrupt Corinthian Colleges schools — Everest University, Heald College, and WyoTech — the top prosecutors in 11 states are adding their voices to the chorus encouraging the Dept. to protect students and clarity their options following the company’s final downfall. [More]

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Senators Urge Dept. Of Education To Provide Support To Students Affected By Corinthian Colleges Closure

Ever since now-bankrupt Corinthian Colleges Inc. began its downward spiral, consumer advocates, students and legislators have urged the powers that be to provide relief for students of Everest University, Heald College and WyoTech. Today, that plea continued as nine senators called on the Department of Education to provide support to the 16,000 students affected by the company’s final closure. [More]

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Senators Call For Attorney General Investigation Into Executives Of Corinthian Colleges

Bankrupt for-profit college chain Corinthian Colleges Inc. is already party to a number of state and federal investigations related to the alleged deceptive recruiting practices at its Heald College, WyoTech and Everest University campuses. Now, a group of senators are hoping to add another investigation to the roster. [More]

Corinthian Colleges Inc. Files For Bankruptcy

Corinthian Colleges Inc. Files For Bankruptcy

A week after embattled for-profit college chain Corinthian Colleges Inc. closed its remaining Everest University, Heald College and WyoTech campuses, the company filed for bankruptcy, essentially closing the book on the company’s long downward spiral.  [More]

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Petition Calls For Loan Relief For Corinthian College Students

Ever since for-profit education chain Corinthian Colleges began its downward spiral last summer, consumer groups, students and legislators have urged the Department of Education to provide current and former students relief from student loans they took out to finance an education based on deceptive recruitment practices. Now that CCI has closed its remaining Everest University, Heald College and WyoTech campuses, consumer advocates say discharging federal student loans held by these students – and protecting students of other for-profit institutions – should be of immediate concern for the Department. [More]

Corinthian Colleges Completes Collapse, Closes Remaining Campuses Effective Immediately

Corinthian Colleges Completes Collapse, Closes Remaining Campuses Effective Immediately

Although it was nearly a year in the making, the largest collapse in U.S. higher education finally occurred Sunday, as embattled for-profit education chain Corinthian Colleges Inc. – the operator of Everest University, Heald College and WyoTech – announced it would close the remainder of its campuses effective Monday. [More]

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Senators Want To Close Federal Funding Loophole Exploited By For-Profit Colleges

Each year for-profit colleges receive billions of dollars in Post 9/11 GI Bill benefits by exploiting a loophole in the rules that govern how these institutions collect federal funds. Once again, a group of senators has set out to change the way in which these schools count student aid, this time by urging the Department of Education to take an aggressive stand. [More]

Corinthian Colleges Fined $30M Over Falsified Job Placement Rates At Heald College

Corinthian Colleges Fined $30M Over Falsified Job Placement Rates At Heald College

The Department of Education continued its crackdown on deceptive for-profit college practices Tuesday by levying a $30 million fine against embattled Corinthian Colleges Inc. – operator of Everest University, Heald College and WyoTech – over the use of misstated and inaccurate job placement rates to recruit students. [More]