(Great Beyond)

Couple Used Stolen Identities To Obtain $270,000 In Federal Student Loan Funds

There’s no doubt that student loans are a big business. While that business is meant to assist students in attending college, two con artists used the system to line their own pockets, all at the expense of unknowing consumers and the federal government. [More]

(Great Beyond)

College Students Leaving $3B In Grant Money Unclaimed By Not Filing FAFSA

College students and financial supporters of college students: Remember when we told you at the end of the year that you needed to get your Free Application for Federal Student Aid in ASAP? Maybe you pinned it on the cork board in the kitchen or made a mental note that disappeared as soon as you had to remember the finer points of the infield fly rule. It’s because people didn’t get around to filing their FAFSA that there are billions of dollars in unclaimed grant money just sitting around gathering dust like that post-it note on which you wrote “File FAFSA. Buy bread.” [More]

(Hammerin Man)

Proposed Program Would Pay First Two Years Of Recent New York Graduates’ Student Loans

With the average graduate now leaving college with more than $28,000 in student loans, it can be difficult to envision just how one might manage to land on their feet. If you happen to be a resident of New York and attended an instite of higher education within the state’s borders, repaying those debts could be a bit easier under a recently proposed student loan repayment program.

[More]

(Coyoty)

White House Proposes Free Community College For Dedicated Students

The cost of a college education has outpaced inflation for the last few decades, making school less affordable for millions of Americans and driving student loan debt past the $1 trillion mark. And in the last decade, the for-profit education industry has taken in many billions of dollars in federal student aid for schools with high dropout rates. Today, President Obama offered a suggestion: Free community college educations for those willing to stick to it. [More]

(Jeff)

Michigan College Guarantees Graduates Make $37,000 A Year, Or It Will Help Pay Off Their Student Loans

A small, private college in Michigan is giving new meaning to the idea of “gainful employment.” While the government’s recent rule was implemented to protect students from predatory for-profit colleges, non-profit institution Adrian College is making a guarantee to students aimed at helping them weather the high cost of student loans: make more than $37,000 a year after college or get some or all of your student loans reimbursed. [More]

FAFSA deadlines vary wildly from state to state and from school to school, so it just makes sense to get yours filled out right away.

To Anyone Paying For College: Start Your Year Off By Filling Out Your FAFSA

Among all the resolutions you should make for the new year — saving money, losing weight, quitting black tar heroin — there’s an easy one that gets left off that list by parents of college students or anyone else paying for a higher education: Filling out that Free Application for Federal Student Aid Form as soon as possible. [More]

(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]