student loans

HerArtSheLoves

Student Lender, Debt Collector To Refund More Than $3.5M To Borrowers

Two months after private student loan lender National Collegiate Student Loan Trust came under scrutiny amid reports that the company, along with its debt collector TransWorld, filed illegal student loan debt collection lawsuits against defaulted borrowers without citing proper or correct paperwork, federal regulators have ordered the companies to pay $21.6 million in refunds and penalties, and revise their collection practices.  [More]

Adam Fagen

CFPB Asks Education Secretary DeVos To Not Give Up On Protections For Student Loan Borrowers

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]

ken fager

Major Student Loan Company Accused Of Overcharging, Delaying Forgiveness For Some Borrowers

A student loan servicing company that handles accounts for millions of borrowers nationwide now stands accused of preying on people in a federal program that forgives the loans of borrowers who work in public service and education jobs. [More]

HerArtSheLoves

$183M Settlement Means 41,000 Former Corinthian Students Will Get Private Loan Forgiven

Nearly 41,000 former students of now-defunct for-profit educator Corinthian Colleges will soon receive refunds for the private student loans they received to attend college, after a coalition of state attorneys general and federal agencies reached a $183.3 million settlement with Aequitas Capital Management, the issuer of these loans.  [More]

HerArtSheLoves

From Forbearance To Garnishments: 5 Things We Learned About Student Loan Debt Collection

Student loans are big business, both for private lenders and the federal government. And with $1.4 trillion dollars in education debt outstanding, it should come as no surprise that these companies and the government would want to recoup these costs. However, that often comes at a cost to borrowers, from those who have fallen on hard times, to those failing to receive proper notice and options from servicers, or those who believe they were defrauded by the educators who promised them a better life. [More]

Jeff

Student Loan Company With Allegedly Shoddy Recordkeeping Under Investigation

New York Attorney General Eric Schneiderman’s office has opened an inquiry into the business practices of National Collegiate Student Loan Trust following reports that the company often files collection lawsuits against defaulted borrowers without proper or correct paper. [More]

Sapurah Lashari

$5 Billion In Private Student Loans Could Be Wiped Away Because Of Shoddy Record Keeping

Wiping away private student loans is a difficult, almost impossible task, for borrowers. But some debtors are finding their tabs zeroed out as the result of a long-running legal battle between former students and a group of student loan creditors attempting to collect on defaulted loans. In the end, the courts could forgive up to $5 billion in private education loans if the creditor continues to fail in providing critical paperwork.  [More]

Great Beyond

Memphis Offers To Help Pay For City Employees’ Student Loans

While the Department of Education looks ready to drop its program that forgives the debt of federal student loan borrowers who work for the government, one city is picking up the slack, saying it will help its workers pay down their student loan bills. [More]

HerArtSheLoves

States To Education Secretary DeVos: Stop Delaying Loan Forgiveness For Students Deceived By Corinthian Colleges

Two months after the Attorneys General from dozens of states sent letters to former students of defunct for-profit college chain Corinthian Colleges reminding them to apply for federal student loan discharges, a number of those same state officials are calling on Education Secretary Betsy DeVos to stop delaying loan forgiveness. [More]

Feds Shut Down Alleged Scam Promising Student Loan Relief & Forgiveness

Feds Shut Down Alleged Scam Promising Student Loan Relief & Forgiveness

A federal court has shut down a Florida-based operation that charged customers $1,200 up front and $50/month with allegedly false promises of getting their student loan payments reduced or forgiven, sometimes in the impossible timeframe of only three years. [More]

Head Of $1.3 Trillion Federal Student Aid Office Resigns Amid Tension With Betsy DeVos

Head Of $1.3 Trillion Federal Student Aid Office Resigns Amid Tension With Betsy DeVos

New Education Secretary Betsy DeVos is making sweeping changes to federal student aid programs, like taking away protections from borrowers and putting all loan servicing in the hands of one private firm. Now the top official at the Office of Financial Aid has resigned after reportedly butting heads with DeVos and warning his colleagues concerns with the Department’s management. [More]

(MeneerDijk)

DeVos Education Budget Could Make It Harder To Obtain, Repay Student Loans

Days after the Department of Education revealed it would give all student loan accounts to one servicing company and strip away more protections for federal student loan borrowers, Secretary of Education Betsy DeVos outlined the Department’s proposed budget, which goes even further by eliminating or completely overhauling programs intended to make student loans more accessible and easier to repay. [More]

Education Secretary DeVos To Give All Student Loan Accounts To One Company; Strip Away More Protections

Education Secretary DeVos To Give All Student Loan Accounts To One Company; Strip Away More Protections

Education Secretary Betsy DeVos has made another sweeping change to the student loan system that consumer advocates claim favors student loan collectors over the American people repaying those loans. [More]

(Hammerin Man)

Lawmakers Ask Education Secretary DeVos To Explain Delayed Loan Forgiveness For ITT, Corinthian Students

Thousands of former students at bankrupt for-profit schools run by ITT, Corinthian Colleges, and others are still on the hook for millions of dollars in student loans, even though the Department of Education approved their claims for a refund. Now, lawmakers want Education Secretary Betsy DeVos to explain why. [More]

Xavier J. Peg

Trump Administration Looking To End Student Loan Forgiveness Program

This October will mark the first time that student loan borrowers who have worked for 10 years with the government or a qualifying non-profit will be eligible to have their debts wiped clean. It may also be the last time, as the Trump administration is reportedly targeting this and other Department of Education repayment programs for elimination.
[More]

Jeff

90% Of At-Risk Student Loan Borrowers Not Signed Up For Affordable Repayment Plans

Paying back tens of thousands of dollars in student loan can be difficult, and more than 1 million Americans defaulted on their federal student loans just last year. But why are nearly all of these same borrowers failing to take advantage of programs to help them avoid defaulting again? [More]

MeneerDijk

The System To Collect Defaulted Student Loans Is No Longer Functioning

Consumers who expected their student loan payments to be deducted from their bank accounts this month have reportedly found the funds untouched, and their calls to the companies unanswered thanks to a Department of Education’s order prohibiting the debt collection companies from working on default accounts in response to two lawsuits against the agency.

[More]

Adam Fagen

Complaints About Student Loan Servicing Increase In Nearly Every State

Newly released complaint data from the Consumer Financial Protection Bureau appears to support recent claims by nearly two-dozen states that Education Secretary Betsy DeVos may be making a big mistake by rolling back protections for student loan borrowers.  [More]