More than a century ago, the U.S. did away with the idea of debtor’s prison, and the Fair Debt Collection Practices Act explicitly forbids debt collectors from using the threat of jail time as a way to collect on owed money. So how does a Texas man end up with U.S. Marshals at his door, ready to arrest him for a nearly 30-year-old student loan debt? [More]
Under federal law, student loan borrowers may be eligible to have their debts discharged if they prove the school they attended deceived them with false promises related to their future careers. However, the measure has been used only sparingly in the past and few clear rules outline the forgiveness process. Now, after nearly two decades on the books, federal officials are finally getting around to crafting rules that could remove one roadblock for students seeking relief. [More]
For many recent graduates, repaying their education debt obligations can be a struggle. For some in New York, that struggle just got a little less cumbersome thanks to a recently launched student loan forgiveness program that aims to help the debtors land on their feet after graduation.
Now that 2015 is done and we finally learned that Luke Skywalker is actually Faye Dunaway’s daughter (and sister!), it’s time to take off the party hats, sweep up the confetti, and do the walk of shame forward into the uncharted territory of the year to come. [More]
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]
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.
When you think of Xerox, photos of large, office printers is likely the first thing to come to mind. But it turns out the company also dabbles in the education business. And it’s that venture that federal investigators are probing after discovering nearly a decade of errors. [More]
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.
Retirement always feels like forever away when you’re in your early twenties. But for the young adults among the most recent cohort of college graduates, the age of retirement really is receding further and further into the distance than it is for their older peers.
Consumers who took out federal student loans through private lenders are more likely to default on their debts than their counterparts who received federal loans through the Department of Education, in part because these borrowers have difficulty obtaining adequate information on repayment options. [More]
The federal government has ramped up its efforts to protect consumers from unfair and deceptive for-profit colleges in recent years: implementing so-called gainful employment rules this summer, discharging millions of dollars in student loans for students who were defrauded by Corinthian Colleges and restricting the University of Phoenix’s ability to participate in tuition-assistance programs for active-duty servicemembers. Still, these steps appear to have done little to keep questionable for-profit colleges from getting their hands on billions of dollars in funding straight from the government. [More]
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.
With schools looking for ways to bolster their bottom lines without having to rely on federal funding, a growing number of colleges are paying recruiters to bring in well-heeled students from overseas — even though some of these agents have been caught trying to fake applicants’ transcripts. [More]
After 57 years of assisting nearly 20 million low-income students to finance their dreams of obtaining a higher education, the Federal Perkins Loan program could soon be grinding to a halt. [More]
Earlier this year, the Consumer Financial Protection Bureau launched a public probe into potentially anti-consumer practices of the student loan servicing industry. More than 30,000 people responded, leading the Bureau, along with the Departments of Education and Treasury, to release a framework they hope will curb these questionable practices, promote borrower success, and minimize defaults. [More]
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]