For a number of years, we have been writing about the problems facing borrowers trying to consolidate their loans out of default and into Income Based Repayment (IBR). The Department of Education was placing borrowers in ICR even if they selected IBR as their preferred payment plan.
2012 is almost over and it’s time for our annual “look back” at the year that was. Student loan issues were a hot topic this year. Much of the attention centered on legislation this summer that temporarily prevented student loan interest rates from doubling. The l
We have long argued that the Department of Education should tie its standards for student loan disability discharges to Social Security standards. At last, we are starting to see some progress in this area. Some changes are already in effect, but most will not kick in until next year
Now that the election is over, we hope that policymakers and the Administration will focus on fixing the student aid system. In order to do this, it is critical to agree on the goals of federal student aid policies. As Professor Sara Goldrick-Rab explained in an article this summer,
We wrote a few weeks ago about the September 8 New York Times article, “Debt Collectors Cashing in on Student Loans.” The article explains how student loan servicers and collectors lack incentives to prevent student loan defaults. Among other reasons, companies are not p
The Department of Education released new student loan default rate information in September and it’s not pretty! The overall two year cohort default rate increased to 9.1% (FY 2012 data). This official two year rate requires the Department to track borrowers for a very short two yea
A recent New York Times article about student loan debt collectors raises a number of important issues that we will be writing about in a series of blogs. The article explains how student loan servicers and collectors lack incentives to prevent student loan defaults. Among other reas
The Second Circuit recently issued an important decision that highlights student loan collection agency abuses. The court found that a collection agency’s notice to a student loan borrower stating “Account Ineligible for Bankruptcy Discharge” was exactly the kind of abusive debt coll
The Senate Health, Education, Labor and Pensions Committee’s July 2012 report on for-profit higher education contains a wealth of important and shocking information about the for-profit education industry. Among other themes, the report focuses on the disproportionate default rates i
Please understand that we do not provide legal advice about individual cases. This web site includes links to other resources for those who seek individualized legal advice or other help not offered here. This site is for people who already have student loans and want to know more about their options and rights.