(Scott Cimakosky)

Man Allegedly Takes Out $262,000 In Student Loans Under Stepdaughter’s Name, Doesn’t Use It For Tuition

Here’s the thing, when you take out student loans you sign a promissory note saying you’ll use the funds to pay for tuition related costs. If you don’t, then you’re committing something called student loan fraud. That’s apparently the case for a Pennsylvania man who must now stand trial for taking out hundreds of thousands of dollars worth of student loans in his stepdaughter’s name only to use the money himself. [More]

(Adam Fagen)

CFPB Takes Action Against Two Alleged Student Debt Relief Scams

Student loan borrowers have enough to worry about, so they shouldn’t have to deal with being hounded by so-called debt relief companies promising to provide consumers with repayment benefits that actually come free of charge with federal loans. Today, the Consumer Financial Protection Bureau took action to put a stop to two such relief scams that reaped millions of dollars from thousands of consumers. [More]

(Sapurah Lashari)

Deal To Keep The Government Running Cuts $303M From Pell Grant Program

Congress’ deal to keep the federal government up and running may be coming at the expense of some of the nation’s poorest prospective college students. The spending package is poised to cut $303 million from the Pell Grant program. [More]

Senators Ask Dept. Of Education To Discharge Student Loans For Everest, WyoTech, Heald Students

Senators Ask Dept. Of Education To Discharge Student Loans For Everest, WyoTech, Heald Students

While Corinthian Colleges — the failing for-profit educator behind schools like Everest University, WyoTech, and Heald College — sorts out new owners for most of its properties, several thousand of the schools’ students are left in limbo, unsure of who is responsible for their education — and unsure if that pricey education is worth the huge loans they’ve taken out to pay for it. Yesterday, a group of a dozen U.S. Senators asked the Dept. of Education to consider giving these students a way out of their federal student loans. [More]

(Bibin Mohan)

Niagara Falls Tries To Attract Young Residents With Promise To Help Repay Student Loans

It’s not unheard of for a corporation, non-profit organization or even the federal government to entice prospective employees with the promise to repay their student loans in exchange for a certain number of years of work. The city of Niagara Falls appears to be taking that idea and making it its own; offering to repay a portion of recent graduates’ student loans in exchange for living in the city for two years. [More]

For-Profit College Hired Exotic Dancers As Admissions Reps

For-Profit College Hired Exotic Dancers As Admissions Reps

The operators of a now-defunct for-profit college in Florida allegedly told its admissions directors to do whatever it took to sell the school to potential students. Among the tactics used by the school is one straight out of a wacky, low-budget, late-night college movie you might see on Cinemax. [More]

(Donkey Hotey)

69% Of 2013 College Graduates Left With A Degree And An Average Student Loan Debt Of $28,400

By now we are well aware that college tuition continues to rise and consumers continue to take out hefty student loans to meet those growing costs. So it should come with relatively little surprise that the average debt graduates leave college with remains high; this year with an average of $28,400. [More]

(TheTruthAbout)

Wells Fargo to Sell $8.5B In Government-Backed Student Loans to Navient

Earlier this year, Wells Fargo announced plans to get out of the payday loan-like business of direct deposit advances. Now it looks like the banking giant is getting ready to shed another aspect of its business: government-guaranteed student loans. [More]

(Newton Free Library)

Treasury Dept. Urges Student Loan Servicers To Do A Better Job, Try Incentives

Hot of the heels of a report from the Consumer Financial Protection Bureau detailing how loan servicers trick consumers into paying more, top officials with the Department of Treasury implored the industry to fix their often nefarious ways. [More]

(darrenleno)

Student Loan Servicers Tricked Borrowers Into Paying More, Made Illegal Collection Calls

As if student loan borrowers needed more bad news, the Consumer Financial Protection Bureau released a report this week detailing how some student loan servicers have tricked consumers into paying higher fees and misrepresented balances due. [More]

(Michael)

New Plan Expands Availability Of Some Federal Student Loans For Consumers With Tarnished Credit Histories

Families hoping to assist their child in paying for college may soon have greater access to federal student loans under a plan recently finalized by the Department of Education and Obama administration. [More]

A vast majority of complaints received by the CFPB relating to private student loans involve issues with repayment and servicing of loans.

CFPB: Private Student Loan Companies Provide Few Options For Borrower, Driving Them To Default

By now we all know that for many consumers taking out private student loans is the only option when it comes to financing their higher education. We also know that many of those same borrowers will ultimately end up defaulting on their debt. A new report from the Consumer Financial Protection Bureau suggests that it’s not borrowers’ lack of willingness to repay that lands them further in debt, but a lack of resources provided by lenders that drives consumers to default. [More]

The percentage of students from affluent families that leave college with student loan debt more than doubled in the past 20 years.

Percentage Of Rich Kids Needing Student Loans Has Doubled Since 1992

At one time, prospective college students from affluent families could count on having their tuition paid for by their parents or college savings accounts. But times have changed and now even students from the highest income brackets are borrowing to finance their high education dreams. [More]

Xavier J. Peg

From Ketchup-Tasting To Funeral Home Flirting, How Consumerist Readers Paid For College Without Loans

One day long ago someone made a joke to the effect that if you wanted to pay your way through college you’d have to work as a stripper. While I’m sure stripping is a very lucrative career, there are thousands of other ways to pay for your higher education – and some don’t even require taking out burdensome student loans. [More]

The number of students defaulting on some federal loans within three years of beginning repayment has decreased.

650,000 Student Loan Borrowers Who Began Repayment In 2011 Have Defaulted On Federal Loans

Maybe more consumer are realizing the long-lasting negative effects that can come from not repaying their student loans. Or maybe not. we don’t really know why, but we do know that the number of borrowers defaulting on some federal student loans is decreasing. [More]

Group Makes Debt Disappear, Pays $3.9M Toward For-Profit Students’ Outstanding Private Loans

Group Makes Debt Disappear, Pays $3.9M Toward For-Profit Students’ Outstanding Private Loans

If you’re one of the millions of consumers saddled with hard to repay student loan debt, you’ve probably dreamed of the day when your repayment obligation is finished. While it will take most of us years to reach that fine day, others are finding their student loan debt have been paid in full by a group of strangers. [More]

Senate Once Again Blocks Bill To Allow Borrowers To Refinance Federal And Private Student Loans

Senate Once Again Blocks Bill To Allow Borrowers To Refinance Federal And Private Student Loans

A bill that would have allowed millions of private and federal student loan borrowers to refinance their debts to the lower rate currently being issued on new federal and private student loans was once again blocked in the Senate. [More]

Bank Allows Federal Student Loan Borrowers To Refinance At Lower Rates, Convert To Private Loans

Bank Allows Federal Student Loan Borrowers To Refinance At Lower Rates, Convert To Private Loans

While we continue to wait for the Senate to take up a bill that would make it possible for borrowers to refinance private and federal student, one bank is taking matters into its own hands. Citizens Financial Group announced today that it would begin accepting applications from both parents and students to refinance loans at possibly lower rates. [More]