CFPB Asks Google, Bing & Yahoo To Help Stop Student Loan Debt Scams That Imply Affiliation With Feds

CFPB Asks Google, Bing & Yahoo To Help Stop Student Loan Debt Scams That Imply Affiliation With Feds

The Internet is teeming with scammers, fraudsters, and hustlers determined to part consumers from their money, and as a $1.2 trillion venture, student loans often present an attractive avenue for these ne’er-do-wells. In order to better protect individuals from such schemes, the Consumer Financial Protection Bureau is enlisting the help of the country’s major search engines.  [More]

CFPB Report Finds 90% Of Student Loan Borrowers Who Seek Co-Signer Release Are Denied

CFPB Report Finds 90% Of Student Loan Borrowers Who Seek Co-Signer Release Are Denied

Last year, the Consumer Financial Protection Bureau brought our attention to a relatively new phenomenon in which more and more private student loan borrowers found themselves placed in automatic default – even if they were up-to-date on payments – when their co-signer died or filed for bankruptcy. While the agency and consumer advocates urged these borrowers to seek co-signer release from their lenders, a new report finds that’s simply hasn’t been possible. [More]

Students At Closed Corinthian Colleges May Ask For Federal Student Loan Relief

Students At Closed Corinthian Colleges May Ask For Federal Student Loan Relief

Getting a student loan discharged is not easy. Even bankruptcy is not usually enough to shake off that debt. But recent students at schools under the Corinthian Colleges Inc. [CCI] umbrella (Everest, WyoTech, Heald) will get the chance to request that some of all their federal student loan obligation be lifted. [More]

Student Loans Are The New Robo-Signing Crisis

Student Loans Are The New Robo-Signing Crisis

You may remember the term “robo-signing” from the recent financial crisis, where lenders would put homeowners in foreclosure without an actual person reviewing the documents, which is required in many states. The same thing is reportedly happening again with s different debt crisis: student loan lenders are robo-signing those, too. [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]

(Newton Free Library)

CFPB Wants To Hear Your Comments On Student Loan Servicing Practices

Outstanding student loan debt now totals more than $1.2 trillion in the U.S., and it’s only going to grow as college tuitions continue to outpace inflation. Meanwhile, student loan servicers aren’t exactly making it easy for borrowers to pay down that debt with confusing and inconsistent policies and an apparent reluctance to work with troubled borrowers. In an effort to see if the repayment process can be made less byzantine, the Consumer Financial Protection Bureau is asking for you to share your thoughts on the state of student loan servicing. [More]

(fblumongoose)

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]

SEC Charges Current, Former Executives Of For-Profit Chain ITT Educational Services With Fraud

SEC Charges Current, Former Executives Of For-Profit Chain ITT Educational Services With Fraud

Back in September ITT Educational Services – the operator of for-profit college chain ITT Technical Institute – revealed it was facing increased scrutiny by several government agencies. That scrutiny turned to action this week as the Securities and Exchange Commission filed fraud charges against current and former executives with the company for their part in concealing problems with company-run student loan programs. [More]

(Tim schreier)

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]

Larry Troy

More Banks Are Offering Student Loan Refinancing, But Is It Really Safe & Beneficial?

For the last several years legislators have repeatedly introduced a bill that would allow student loan borrowers to refinance their private and federal student loans to the lower interest rates at which new loans are currently being issued. Although the legislation hasn’t managed to make it into law, that hasn’t stopped banks and credit unions from creating their own refinancing programs to help alleviate the debt burden for student loan borrowers. [More]

Billions In College Aid Will Go Unclaimed Again Because Students Won’t Fill Out A Stupid Form

(Xavier J. Peg)

Don’t say we didn’t warn you. Way back in December, we advised high school seniors who planned on attending college to not be stupid and go fill out a Free Application for Federal Student Aid [FAFSA] form right away. Every year, billions of dollars in grant and loan money goes unclaimed because students and their parents never get around to filling out this paperwork, and it looks like the upcoming school year will be no different. [More]

(thisisbossi)

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]

(Chris Goldberg)

Can’t Pay Your Student Loans? In Some States It Might Cost You Your License To Drive Or Work

In addition to causing irreparable damage to their credit scores, student loan borrowers who default on their debts face a much more devastating and counter-intuitive danger: the lost of their driver’s or occupation licenses, including those used by nurses, doctors, teachers and emergency personnel [More]

(Michael)

Student Loan Borrower’s Bill Of Rights Would Reform Disclosure And Servicing Standards

In recent weeks, legislators have introduced a range of bills aimed at addressing student loans and revamping the laws governing those debts. Today, that push continued with the reintroduction of a bill that would ensure student borrowers are treated fairly and understand the range of options at their disposal. [More]

(Larry Troy)

Legislators Once Again Introduce Bill That Would Allow Student Loan Refinancing

If at first you don’t succeed try again…  and again, and again. That appears to be the approach members of Congress are taking when it comes to a bill that would allow student loan borrowers to refinance their private and federal student loans. [More]

thisisbossi

You Can’t Discharge Your Student Loans In Bankruptcy Because Of Panicked 1970s Legislation

Although bankruptcy should only be viewed as the last option for consumers drowning in a sea of debt, even this final-straw course of action won’t help Americans with getting out from under hefty student loans — but it wasn’t always this way. [More]

(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]