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]
debt
7 Things To Know About Why So Many Debt Collection Lawsuits Are Filed In Nebraska
By 5.2.16
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]
Sallie Mae To Offer Increasingly Popular Parent Student Loans
By 3.29.16
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]
Are Employee Student Loan Contributions The Next 401(K)?
By 3.18.16
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]
West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations
By 2.1.16
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.
[More]
Law Firm Must Pay $3.1M For Operating Automated Debt-Collection Lawsuit “Factory”
By 12.28.15
A Georgia-based law firm behind hundreds of thousands of debt-collection lawsuits, and its principal partners, have agreed to pay a total of $3.1 million in penalties to settle federal accusations that they were operating a lawsuit mill in violation of the law. [More]
7 Things We Learned About Federal Student Loans & The Companies That Profit From Them
By 12.11.15
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
By 12.7.15
Federal regulators continued their fight against unscrupulous debt collectors today, ordering a Massachusetts organization to pay $2.5 million in refunds and penalties for illegally collecting unverified debt and providing inaccurate information to national credit reporting agencies. [More]
Data Shows Borrowers With Less Student Loan Debt More Likely To Default
By 12.2.15
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.
[More]
Student Loan Debt For Recent College Graduates Increases Again
By 10.27.15
With college tuition prices continuing to rise, you might assume that college students are entering the real world with more debt on their shoulders. According to a new report, that assumption would be correct.
[More]
Wells Fargo Reportedly Under Federal Investigation Related To Student Loan Servicing
By 10.9.15
According to a new report, Wells Fargo is the latest big-name bank to be scrutinized as part of the Consumer Financial Protection Bureau’s ongoing investigation into student loan servicing practices.
[More]
Legislation Once Again Takes Stab At Allowing Borrowers To Refinance Student Loans
By 9.23.15
Lawmakers have renewed their support for students buried under piles of educational debt by — yet again – introducing a bill that would allow borrowers to refinance their student loans. [More]
Accounting Giant PwC Unveils Plan To Help Pay Down Employees’ Student Loans
By 9.22.15
When you’re a huge international consulting and auditing firm that hires some 11,000 recent college graduates every year, you want to have a benefits package that appeals to candidates’ needs. That’s why PricewaterhouseCoopers has unveiled a new program to help pay down employees’ student loan debt.
[More]
The Country’s Two Largest Debt Buyers Must Refund Consumers $61M Over Illegal Collection Practices
By 9.9.15
Encore Capital Group and Portfolio Recovery Associates are two of the biggest names in the debt-buying game, and according to federal regulators they have often used deceptive and harmful tactics to collect their newly acquired debts. Now, as a result of these actions, the companies must refund consumers $61 million and pay $18 million in penalties. [More]
Corinthian Students Continue To Wait For Debt Relief As Department Of Ed. Reviews More Than 7,800 Claims
By 9.4.15
The tens of thousands of students seeking debt relief from the federal government after for-profit education chain Corinthian Colleges Inc. closed its Everest University, WyoTech and Heald College campuses, will have to wait a little longer, the Department of Education said Thursday as it provided an update on the number of federal student loans it has discharged and that are currently under consideration. [More]
Are Student Loan Forgiveness Programs Just A Free Pass For Grad Students With More Than $100K In Debt?
By 8.19.15
Just two years ago, the Consumer Financial Protection Bureau estimated that nearly 33 million American workers eligible for student loan forgiveness weren’t taking advantage of the programs. Times have certainly changed, as the federal government earlier this year revealed that these program were now so popular they cost nearly $22 billion more than they anticipated. But it doesn’t appear the increase in use for such plans is by those who might benefit the most. [More]
Auto Loan Debt Tops $1 Trillion For First Time; All Consumer Debt Nearing $12 Trillion
By 8.13.15
Now that the Great Recession has gone from “is it really over?” to “remember when?” more Americans are buying cars, pushing auto loan debt beyond the $1 trillion mark for the first time in U.S. history. [More]
Citigroup Facing Federal Investigation Into Student Loan-Servicing Practices
By 8.3.15
Just last month federal regulators announced that an ongoing probe into potentially unscrupulous student loan-servicing practices resulted in nearly $18.5 million in refunds and fines from Discover Bank. Now, regulators appear to have Citigroup in their crosshairs, as the financial company announced it was party to an investigation. [More]
