Now in Effect: Rules on Student Loan Relief for School Closures and Misconduct, and Limits on Forced Arbitration
October 25, 2018
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This month, in a victory by and for student loan borrowers, a court ordered that the Department of Education had illegally delayed giving effect to an important rule from 2016 designed to protect student loan borrowers and taxpayers from school closures and misconduct. The court
Continue Reading →96 Out of 28,000 Borrowers Approved for Public Service Loan Forgiveness … What Does This Mean for Everyone Else?
October 05, 2018
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It has been one year since student loan borrowers have been theoretically eligible to have their loans forgiven under the Public Service Loan Forgiveness (PSLF) program. And yet, out of the 28,000 borrowers who applied, only 96 have had their loans forgiven. That is less than 1 percen
Continue Reading →Who is the Department of Education Looking Out For? Another Delay of Student Protections Follows a String of Actions Protecting Industry Profits Over Students
May 24, 2018
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Today, the Department of Education announced that it does not plan to implement new rules designed to protect students in online degree programs from being taken advantage of by schools that load students up with debt but offer useless degrees. The “Program Integrity and Improve
Continue Reading →Tax on Death and Disability Discharges Is Gone … For Now
February 08, 2018
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Student loan borrowers who apply to have their loans canceled due to their disability or the death of their child can worry about one less thing: possible tax consequences. When a borrower dies or becomes permanently disabled before paying off student loans, the loans can be discharge
Continue Reading →Scammers Cost Student Loan Borrowers Millions of Dollars
October 18, 2017
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Many of the 44 million borrowers are struggling to repay their more than $1.4 trillion in student loan debt in the United States. The options for federal student loan borrowers can be good, but as the Consumer Financial Protection Bureau’s many reports and recent lawsuit against
Continue Reading →Education Should Not Rush Into Another Failing Debt Collection Contract
August 16, 2017
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According to Politico, late Monday night, the Department of Education told a federal appeals court that a court order blocking its ability to send any newly defaulted student loan borrowers to its hired debt collectors has cost taxpayers more than $5 million in lost collections since
Continue Reading →Education’s New Servicing Plan Eliminates Helpful Options for Borrowers
June 16, 2017
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Earlier this week, over 150 Members of Congress sent a letter to Secretary of Education Betsy DeVos highlighting concerns surrounding the U.S. Department of Education’s (ED’s) decision to make changes to the student loan servicing contract procurement process. A month afte
Continue Reading →Borrower Defense Rules to Protect Students Live Another Day
April 07, 2017
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Advocates for student loan borrowers breathed a sigh of relief on March 30, when the deadline passed for Congress to introduce a resolution to roll back the new “borrower defense” rules. These rules are designed to protect students and taxpayers from harm by predator
Continue Reading →Defrauded Corinthian Students Sent Confusing 1099-Cs
March 15, 2017
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According to the IRS, if you went to a Corinthian school and had your loans canceled under the borrower defense rule, you should not owe taxes on the canceled amount. Unfortunately, we have learned that the Department of Education and its servicers sent IRS forms 1099-C to Corinthian
Continue Reading →Sen. Warren to Department of Education: Why Are You Seizing Money from Defrauded Corinthian Borrowers?
September 29, 2016
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This morning, U.S. Senator Elizabeth Warren sent a scathing letter to the U.S. Department of Education highlighting some troubling data about the way that the Department treated Corinthian Colleges borrowers eligible for fast track relief. The Department announced that these bor
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