The Consumer Financial Protection Bureau on Thursday announced an enforcement action against a student loan servicing company, fining it $1 million for allegedly making deceptive statements to borrowers and misrepresenting the forgiveness and repayment options related to the Public Service Loan Forgiveness program. The action, taken against Edfinancial, comes a …
Read More »Report Calls Out Federal Student Loan Servicer for ‘Sloppy’ Work
A report released by the Student Borrower Protection Center and the Communication Workers of America is accusing one of the largest student loan servicers of a number of misdeeds, including unfair debt collection, unlawful wage garnishments, and “sloppy” student loan servicing. The report calls out Maximus Federal Services, which is …
Read More »Berkeley College to Cancel $20M in Unpaid Loans, Revamp Collection Procedures in Settlement with NYC
The City of New York has reached a settlement with a for-profit university that will force the school to stop collecting on $20 million of unpaid student loans while also paying a fine of $350,000 for, among other allegations, collecting debts that were not owed, concealing its identity from former …
Read More »Many Borrowers Left Out of Navient’s Settlement with States: Report
Most individuals who had loans owed to Navient are learning the hard way that they are likely not part of a settlement that was announced last month where the student loan servicing giant announced it was canceling $1.7 billion of delinquent student loans. Those who scrimped and sacrificed to keep …
Read More »CFPB Announces Crackdown on Student Loan Servicers Over PSLF Program
The Consumer Financial Protection Bureau has launched another flare into the night sky, this time warning student loan servicers about making sure they are not making misrepresentations or making deceptive statements with respect to the Public Service Loan Forgiveness program, which offers individuals the opportunity to have their student loan …
Read More »N.Y. University System Makes Changes to Debt Collection Practices
The State University of New York system, a network of 64 campuses spread throughout New York state, is reviewing its debt collection practices, with an eye on no longer blocking students with unpaid debts from re-enrolling for classes, according to a published report. SUNY’s board of trustees also decided not …
Read More »Ed. Dept. Cancels More Student Loan Debts, Announces New Regs Coming
The Department of Education announced yesterday that it is canceling $415 million in student loan debt under the borrower defense to repayment plan, including the debts of 1,800 former students of DeVry University. This marks the first time that the Education Department has canceled the student loans for a for-profit …
Read More »Ed. Dept. Will Not Use Tax Refunds, Social Security to Collect on Defaulted Student Loans Until November
The Department of Education has announced it will suspend the seizure of tax refunds, Social Security payments, and other government payments to collect on defaulted student loans through November. The announcement comes a week after the Education Department said it would not seize child tax credit payments sent to individuals …
Read More »Virginia AG Halves Fees Charged For Collecting Student Loan Debt
The Attorney General of Virginia announced yesterday that it is reducing the fees it will charge when collecting on unpaid student loans for individuals who attended certain state colleges or universities. And the AG’s office is asking other colleges and universities to lower their collection fees, too. The intention behind …
Read More »Report Reveals Millions of Student Loan Borrowers Eligible for Bankruptcy Discharge
A report that has been published by the Student Borrower Protection Center suggests that there are “tens of billions” of dollars in unpaid student loans that are eligible to be discharged via the bankruptcy process and that “industry schemes have robbed borrowers of their right to discharge.” A copy of …
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