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. Congress agreed at
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 defau
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 increas
Congress made a number of changes to the federal student aid programs at the end of 2011. This legislation passed without much substantive debate because it was part of the budget process. President Obama signed the legislaton on December 23, 2011 (Public Law 112-74). The Department
We wrote in December about operational breakdowns at the Department of Education, focusing on the Department’s failure to properly place borrowers in “forced consolidation” into IBR. Shockingly, the Department has yet to fix this problem. Department staff now tell us it will be reso
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 hig
A December 2011 article in the Chronicle of Higher Education reveals numerous problems with the Department of Education’s online system for managing student loans. Unfortunately, this is not news to our clients and other borrowers. We have been pointing out operational breakdowns for
President Obama announced a plan this week to help alleviate student loan burdens. The President’s plan shows that the Administration is hearing the voices of struggling student loan borrowers. It is a good step in providing some relief, but much more needs to be done. There are a
State tuition recovery funds (STRFs) can be a valuable source of relief for defrauded students when a school is insolvent and when the student cannot obtain a federal discharge. STRFs contain deposits of money collected from schools approved to operate in the state. The funds are dis
We wrote previously about the dangers of promoting financial literacy efforts INSTEAD of regulating abusive credit products and INSTEAD of providing relief for financially distressed student loan borrowers. We noted the shocking lack of evidence that financial literacy is effective.
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.