Last month, the Department reversed a DeVos era notice which said that federal student loan servicers were not subject to state consumer protection laws. The Devos interpretation said that states’ laws that protect borrowers from servicers’ false and misleading practices were “preempted” by the Higher Education Act (HEA). Preemption is a legal doctrine in which […]

A borrower defense to repayment (“borrower defense”) allows borrowers who were misled, defrauded, or subject to illegal behavior by their school to discharge the federal student loan debt they borrowed to attend the school. Borrowers can request a discharge by submitting an application to the Department of Education (“ED”) detailing the school’s misconduct. Given recent […]

On the campaign trail, President-Elect Biden made a number of student loan promises that would alter the lives of millions of Americans. In response to the COVID-19 crisis, he promised to provide wide-spread cancellation to all federal student loan borrowers(here at 1:10, here at 16:22, here at page 26, here). As we have written before, […]

This week, Congress is ramping up its debate about what protections it should extend as student loan borrowers continue to weather the Coronavirus crisis. These protections cannot come soon enough; on August 1, borrowers will begin to receive notices that the relief provided by the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES […]

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 Navient demonstrate, accessing those options can be a confusing […]

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 after withdrawing guidance intending to ensure greater consumer protections in the contracting process for student […]

Since the election of Donald Trump for President, we have heard from many people asking us, “what does this mean for student loan borrowers.” The honest answer is that we do not yet know. We have very little actual information about what the next administration plans, and it is still too early to speculate.  The […]

Last week, the Consumer Financial Protection Bureau’s (“CFPB”) Student Loan Ombudsman released its midyear report analyzing complaints submitted directly by consumers about their student loans. Importantly, the CFPB’s Student Loan Ombudsman announced that it is now officially accepting complaints about federal student loans. Although it has actually been accepting federal student loan complaints for a […]

Student loan borrowers should be aware of a proposed rule by the Federal Communications Commission (FCC) issued on May 6, 2016.  It implements a new law that allows robocalls and texts to be made to a cell phone without the consumer’s consent “to collect a debt owed to or guaranteed by the United States.” This […]

Last week was full of announcements about student loans. The U.S. Department of Education (ED), along with the Consumer Financial Protection Bureau and the U.S. Department of Treasury, announced last week that it plans to take steps to improve consumer protections and enhance the student loan borrower experience. ED’s announcement focused on four areas: helping […]