We wrote earlier about potential problems with the Department of Education’s new “servicer choice” consolidation application system. At that point, most, but not all borrowers were required to use the new system in order to consolidate with the Direct Loan program.
Comments on the Department of Education’s proposed “gainful employment” regulation are due next Tuesday May 27. This is the Department’s second attempt to define what it means for career education programs at public, nonprofit and for-profit colleges to prepare students
The Consumer Financial Protection Bureau’s (CFPB) April 2014 update on student loan complaints highlights a particularly insidious problem in the private student loan industry—the practice of “auto default” in which borrowers in good standing are immediately placed in default on thei
It can be confusing to figure out interest rates on student loans because the rates keep changing. Congress passed a law last year tying the federal student loan interest rates to the financial markets. This led to lower interest rates last year. The question many new borrowers are
The U.S. Senate Health Education Labor & Pensions Committee (HELP) held a very important hearing a few weeks ago on federal student loan issues. This was part of a series of hearings to collect ideas for the reauthorization of the Higher Education Act. The hearing began with test
The U.S. House Committee on Education and the Workforce held a hearing this past week examining mismanagement in the federal student loan rehabilitation process. The hearing coincided with a damning report from the General Accountability Office (GAO), Better Oversight Could Improve D
We sent a letter last week to CFPB Assistant Director and Student Loan Ombudsman Rohit Chopra and Department of Education Chief Operating Officer James Runcie outlining our concerns about the new Direct Loan Consolidation application system. Although we agree generally with enhanced b
Lack of financial resources and the growing costs of college have a clear impact on college success rates, yet there are social trends at work that also provide significant challenges. Our new report addresses the root causes of poverty and social isolation while also presenting prac
The Consumer Financial Protection Bureau’s (CFPB) announced yesterday that it filed a lawsuit against the for-profit school ITT Educational Services based on allegations of predatory lending and other unfair, deceptive, or abusive practices. According to CFPB Director Richard
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