Four years after federal regulators shut down a debt relief operation that promised to help customers pay down credit card debt, but in reality only relieved customers of their cash, a man who worked for the scheme has been ordered to spend two years in prison and to refund $1.2 million to his victims. [More]
With college tuition continuing to increase, it probably won’t surprise many people to learn that college graduates are leaving school burdened with more loan debt. According to a new report, the average amount of student loan debt for new graduates has passed $30,000 for the first time. [More]
The abrupt closure of ITT Educational Services’ 130 ITT Tech campuses left tens of thousand of current students sitting in limbo with regard to both their education and all the student loan debt they had amassed. Likewise, a number of recent ITT grads are holding degrees they believe are now worthless. A group of nearly 200 stranded ITT students and graduates are the latest to join the ongoing “debt strike” started after the collapse of Corinthian Colleges.
You probably wouldn’t be surprised to learn that your cable company has perks or discounts it will only reveal when asked, but you’d hope a government agency wouldn’t deliberately hide a program intended to help families struggling to pay off student loan debts of a deceased loved one. [More]
One of the most common complaints about debt collectors is that they harass people over debts that are either no longer owed, or weren’t owed in the first place. Federal regulators are now proposing rules that — among other protections — would cut down on these annoying, bogus collections actions by requiring that debt collectors have some sort of evidence that the person they are calling actually owes money. [More]
As the Department of Education is working to wipe away millions of dollars in federal loans owed by former students of now-defunct Corinthian College Inc. schools, some former students continue to receive monthly bills for private loans they took out in order to attend the for-profit colleges. Now one former Corinthian student has filed a federal class action against the financial firms that currently hold the private student loans. [More]
Each year millions of students take out thousands upon thousands of dollars in student loans and other financial aid to help pay for a college education. But as we found out yesterday, many of these prospective students are woefully unprepared for the reality of student loan debt. From reading through piles of paperwork to making payments each month and keeping track of loan servicers, financing your education can be overwhelming, but that doesn’t mean you shouldn’t learn as much as possible before you end up under a mountain of loan debt. [More]
John Oliver made a huge splash this week when, to prove a point on his show, he purchased $15 million worth of medical debt for $60,000… and then promptly forgave it all. A lot of that debt was “zombie debt,” which, like its namesake, keeps coming back from the dead to bother people who would much rather be left alone and unbitten.
For-profit college chains often market themselves to non-traditional students — single parents, lower income individuals, military servicemembers — as a viable path to better job prospects and more money. However, a new report suggests that enrolling in of these sometimes costly schools may not help students reach their goals. [More]
When a debt collector decides to file a lawsuit against an alleged debtor, that decision might have more to do with where the defendant lives than with how much they allegedly owe. [More]
For years, parents have assisted their children in shouldering the increasingly high cost of college: co-signing private student loans, taking part in federal loan programs, and saving for years to contribute. Private student loan lenders have been offering parent loans as an alternative for several years. And now the country’s largest lender plans to enter the fray with its own version. [More]
Any help graduates can get when it comes to repaying their mountains of student loan debt is often welcome: from cities offering debt forgiveness to keep young adults in their areas to programs in which states will pay for portions of their education. Now, more employers are jumping on the assistance train by providing student loan payment contributions as part of their compensation plans. [More]
When you’re going through the often-tedious process of refinancing your mortgage, getting some bad information can only serve to make things worse. That’s why a West Virginia woman is suing Wells Fargo, alleging that the bank told her to stop making loan payments then put her into collections and foreclosure.
Fifty years ago, Congress created the federal loan program as a way to help Americans realize their dreams of a better life through higher education. While millions of students have no doubt benefited from the program, millions of others have found themselves burdened by mountains of debts, fielding calls from debt collectors and loan servicers, and watching as their paychecks are whittled down by garnishments. Today, seven million former college students are in default with a record $115 billion in federal loans. While those figures may be oppressing borrowers, it’s providing a stream of income – and profit – for companies contracted by the government to collect payments from debtors. [More]
Debt Collector Must Pay $2.5M In Refunds, Penalties For Illegally Collecting Consumers’ Old AT&T Debt
When you hear about someone defaulting on their student loans, you might assume this borrower took out several tens of thousands of dollars to pay for their education. But a look at the data shows that those borrowers who are most likely to default are often the ones who owe the least.