The federal government and 11 states have joined together to accuse 30 purported debt relief operations of using deception and false promises to swindle more than $95 million from student loan borrowers. [More]
student loan borrowers
CFPB Asks Education Secretary DeVos To Not Give Up On Protections For Student Loan Borrowers
By 9.8.17
A week after Secretary of Education Betsy DeVos essentially broke up with the Consumer Financial Protection Bureau, ending the agencies’ agreements to work together to root out bad players in the student loans servicing arena, the CFPB is firing back, accusing DeVos of misunderstanding just what the Bureau does. [More]
People Paying Back Student Loans Could Also Be Hurt By Outage Of FAFSA Tool
By 5.3.17
A Department of Education decision take down an online tool that helped student loan applicants file for aid isn’t just making things difficult on students. It’s also a problem for those who are repaying their student loans through a federal payment plan. [More]
Some Student Loan Borrowers Improperly Denied Payment Assistance
By 11.1.16
Each year, more than five million student loan borrowers are better able to manage their debts thanks in part to government-based loan repayment plans. But yet another report has found that not all students qualified to participate in these income-driven repayment plans are able to, though at no fault of their own. [More]
4 Ways To Avoid The “Student Loan Tax” Scam
By 6.6.16
Being on the hook for thousands of dollars in student loan debt is pressure enough for most people. They shouldn’t also have to worry about being taken advantage of by “student loan tax” fraudsters in what appears to be the latest iteration of the IRS impersonation scam. [More]
Feds Will Notify Disabled Borrowers Eligible For Student Loan Discharge
By 4.13.16
Under the law, borrowers who are permanently disabled are eligible to have their federal student loans discharged. While the government has taken steps in the past to make the process more streamlined for consumers, the Department of Education will now proactively seek out eligible borrowers. [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]
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]
Discover Bank Must Pay $18.5 Million Over Illegal Student Loan Servicing Practices
By 7.22.15
As federal regulators continue to probe potentially unscrupulous student loan servicing practices, the Consumer Financial Protection Bureau has ordered Discover Bank and its affiliates to pay nearly $18.5 million in refunds and fines for, among other things, overstating amounts due on student loans and failing to notify borrowers of their rights. [More]
