The U.S. Senate Banking Subcommittee on Financial Institutions and Consumer Protection held a hearing earlier this week, “Private Student Loans: Providing Flexibility and Opportunity to Borrowers?” In our testimony, we called on Congress and regulators to act now to
July 1 was an important date for many student borrowers. Key changes to student aid programs include: 1. New students without high school diplomas or GEDs will no longer be eligible for federal aid. (There is an exception for students who were home schooled). 2.
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 c
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 consolida
Today, the National Consumer Law Center’s Student Borrower Loan Assistance Project released a new report: Borrowers on Hold: Student Loan Collection Agency’s Complaint Systems Need Massive Improvement. Overview: The U.S. Department of Education (the Department
As Stephen Burd of Education Sector writes in a recent report, the federal student aid programs initially focused on providing resources to those who would not be able to attend college without the help. This has changed over time to a point where government funds increasingly s
Thanks to all of you who have responded to the story about my client Mr. A. Many of you have asked why Mr. A has not tried rehabilitation or consolidation to get out of default. We have discussed these options with Mr. A many times. They are useful for many borrowers
This is dedicated to my client Mr. A in hopes that he will keep his dignity and not lose hope. Some basic facts about Mr. A: He is 83 years old and a veteran of the Korean War. His sole source of income is Social Security. He has an unfortunate array of medical probl
A recent Washington Post article highlights the numbers of older individuals struggling with student loan debt. The Federal Reserve Bank of New York published new data showing that Americans 60 and older still owe about $36 billion in student loans. We have cautio
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.