President Obama announced new executive actions last week to address rising student loan debt burdens. The proposed changes to income-based repayment received the most attention. The current Pay As You Earn plan has the most favorable terms for borrowers, but is only available to ne
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
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
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
We have written previously about the problems with parent PLUS loans. This new issue brief summarizes the ways in which parent PLUS loans can be very dangerous products for borrowers and reasons why schools have incentives to push these loans. Parent PLUS loans can be very dangerous
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.