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
Our June 2013 report “Searching for Relief” highlighted abuses in the for-profit student loan “debt relief” industry. We wrote since then to debunk the argument that these companies are just like tax preparers. The CFPB echoed these warnings in this July 2013
Our June 2013 report Searching for Relief highlights problems with the emerging student loan “debt relief” industry. Since then, the CFPB issued an advisory reminding borrowers that they do not have to pay money to get assistance with student loans. Senators Boxer and Ha
Federal Agency Student Loan News November 2013 Department of Education The Department announced a number of important new changes and programs in November, including: 1. Another round of negotiated rulemaking. The Department announced its intention to establish a negotiated rulemaki
The government shut down has lasted over a week now. This is having a big impact on higher education. However, at least for now, the Department of Education says that there should be minimal impact on schools, lenders and guaranty agency’s ability to administer the federal ai
When we released our “Finding a Way Out” report five years ago, we were extremely concerned about the lack of reliable and affordable resources for financially distressed student loan borrowers. Unfortunately, the situation has not improved despite the increased numbers o
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.
The Student Loan Default Trap: Why Borrowers Default and What Can Be Done, a new report released on Monday from the National Consumer Law Center’s Student Loan Borrower Assistance Project, addresses questions about the causes of default and the effectiveness of programs intended to
The Department of Education posted a new web site for borrowers in default. It is intended to be a central point of entry for borrowers in default with information about consequences of default and on-line access to account information. The new site allows borrowers to request collec
We have written a number of posts about ongoing operational problems at the Department of Education. We received some encouraging news this week that some of these problems may be fixed, including: 1. We wrote earlier about problems with borrowers seeking to consolidate out of defau
Please understand that we do not provide legal advice about individual cases. We request that users first review the information on this site and call or e-mail only with general questions not answered here. 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.