We support today’s action taken by the CFPB and the Florida Attorney General to shut down College Education Services and in a separate CFPB action to file a lawsuit against Student Loan Processing.US, student loan “debt relief” businesses. NCLC highlighted concerns about the student “
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.
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
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