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 collection hearings on-line. This includes garnishment and offset hearings. […]
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) relies on an increasing number of private collection agency contractors to recover defaulted student loans. By contracting out its […]
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, but there are drawbacks. […]
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 problems, both […]
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 cautioned for some time that student loan burdens are not only a “young persons” problem. Many […]
It seems that we were just looking back at 2010….and yet another year has passed. As we get ready for a holiday vacation at Student Loan Borrower Assistance Project, we offer a few thoughts on 2011: It was a year of ups and down in the fight against abuses in the for-profit higher education sector. Senator […]
The Department of Education has unprecedented powers to collect defaulted student loans. The agency can take tax refunds (even earned income tax credits), garnish wages without first getting judgments, and even seize portions of federal benefits such as Social Security. There is no statute of limitations for student loan collections, meaning that the government can come […]
We submitted these comments to the Department of Education last week. We will write a number of articles the next few weeks with more details about key proposals. Our recommendations focus on strengthening relief for borrowers who are harmed by school abuses or who cannot repay due to personal circumstances, such as disability. We also […]
A recent report released by the Institute of Higher Education Policy found that for every federal student loan borrower that defaults, at least two others become delinquent without default. Access to higher education was the mantra at a New America forum held in March to discuss the report. Despite the talk about access, few experts […]
It is almost the end of yet another year, a very important year in the student loan world. During this December time of reflection, we include below noteworthy articles and blogs from 2010. This is not an exhaustive list by any means and we will include some additional selections in Part 2, but it is a […]