(Jeff)

Legislation Would Require Private Student Loans Be Forgiven If Borrower Dies

Shortly after the death of their daughter, a New York couple’s grief was interrupted by a battle with an entity they never imagined: her private student loan lender. Inheriting a dead child’s student loan debt is a problem too many parents have had to face, and one that a new piece of legislation aims to eliminate. [More]

(Tim Schreier)

Senators Introduce Legislation To Make Private Student Loans Dischargeable In Bankruptcy

Since 2005, student borrowers have been unable to discharge their private student loans through the process of bankruptcy. But that could soon change after a group of 12 senators introduced a bill aimed at addressing the current student debt crisis by restoring the bankruptcy code to hold private student loans in the same regard as other private unsecured debts. [More]

(Tim Schreier)

Student Aid Bill Of Rights Aims To Overhaul Federal Student Loan Repayment, Servicing Process

The way in which borrowers pay back their federal student loans – from checking the balance to filing complaints against servicers – is set to change with the signing of a presidential memorandum Tuesday. [More]

Banks & Credit Card Companies Saving Millions By Taking Away Your Right To Sue

Adam Fagen

Tens of millions of American consumers have clauses in their credit card, checking account, student loan, and wireless phone contracts that take away their rights to sue those companies in a court of law, and more than 93% of these people have no idea they’ve had this right taken away from them. The companies involved are presumably quite happy about this lack of awareness, as it results in millions of dollars in savings that aren’t being passed on to you. [More]

(pshorten)

U.S. Department Of Education Cuts Ties With Five Debt Collection Agencies To Protect Borrowers

Consumer advocates applauded the Department of Education’s announcement last week to end contracts with five private collection agencies that provided inaccurate information to borrowers. [More]

(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]

The Federal Reserve Bank of New York found that borrowers with the least amount of student loan debt were actually more likely to default.

Why Are Borrowers With Less Student Loan Debt More Likely To Default?

Just days after the Federal Reserve Bank of New York showed that student loan delinquency rates were once again on the rise, a new Fed report finds it’s student loan borrowers with the lowest levels of debt who typically are the most delinquent.
[More]

(Phil Jones)

Student Loan Debt Increased $77B In 2014, One In Nine Loans Now Past Due

Student loan debt reached an all-time high and delinquency rates continued to rise last year, according to a new report from the Federal Reserve Bank of New York found. [More]

(thisisbossi
)

Study: Student Loan Debt Linked To Poor Mental Health In Recent Graduates

We already know that student loan debt can have adverse effects on borrowers; from not being able to purchase a home to dinging credit reports. But a new study claims there’s also a link between the piles of debt and poor mental and psychological functioning among young adults. [More]

Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

When student-loan servicing company Educational Credit Management Corporation revealed it would purchase 56 campuses belonging to embattled for-profit college chain Corinthian Colleges, regulators and consumer advocates began working to ensure that students affected by CCI’s collapse would be protected under the deal. Today, the Consumer Financial Protection Bureau and the U.S. Department of Education announced some students would receive the help they deserve in the way of $480 million in debt relief. [More]

(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]