A recent New York Times article about student loan debt collectors raises a number of important issues that we will be writing about in a series of blogs. The article explains how student loan servicers and collectors lack incentives to prevent student loan defaults.  Among other reasons, companies are not paid enough to talk borrowers […]

The Senate Health, Education, Labor and Pensions Committee’s July 2012 report on for-profit higher education contains a wealth of important and shocking information about the for-profit education industry.  Among other themes, the report focuses on the disproportionate default rates in this sector and the harm this causes to students and society.  Among for-profit students who […]

 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 assist borrowers in default. Highlights include: A summary of existing research […]

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 default.  The Department was placing borrowers in ICR even if they […]

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 […]

The current debate about student loan debt generally spotlights the struggles of young college graduates.  The image of a young adult, unable to find a job, maybe even moving back in with her parents, often comes to mind because this best fits our own experiences or because these are the borrowers most often depicted in media accounts. […]

Joe Nocera wrote in the New York Times last week that profits and education shouldn’t have to be such an ugly combination.  Nocera notes that defenders of the for-profit higher education industry are often ignored when they point out that their higher student loan default rates are inevitable given the higher risk populations they serve. Nocera […]

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 […]