student loans

Consumer Protection Agency Probing Student Loan Services; Researchers Analyze Borrowing At For-Profit Colleges (Progress Illinois)

Public feedback is being sought by CFPB on "industry practices that create repayment challenges, hurdles for distressed borrowers and the economic incentives that may affect the quality of service." The public comment period opened May 14 and will run through July 13.

CFPB's probe into the matter is part of a collaboration with the U.S. education and treasury departments to "identify initiatives to strengthen student loan servicing."

Consumer advocacy groups are encouraged by CFPB's broad review into industry practices.

From the President: Graduation

Written by Dory Rand on May 27, 2015 - 10:10am
I want all children to have the same opportunities that Joel had to attend and graduate from college without being saddled with debt that could inhibit future opportunities. Higher education is often the best path out of poverty and towards opportunity for children born into lower-income and lower-wealth households.

Digging into diplomas — Corinthian bankruptcy battle brewing — Presidential library to be built in Chicago (Politico)

DIGGING INTO DIPLOMAS: The U.S. is on track for a 90 percent high school graduation rate by 2020 after hitting a record high 81 percent this year. That’s according to the GradNation campaign’s sixth annual report released by America’s Promise Alliance, the Alliance for Excellent Education and others. The 10 largest states, including California, Florida, Georgia and North Carolina, are driving progress, the report says. A quarter of the nation’s largest school districts also made significant improvements, largely signifying gains for low-income students and students of color.

Student Loan Servicers Should Show a Good Faith Effort Toward Better Outcomes, Says CFPB (Main Street)

Today, anyone clicking on Contact Your Student Loan Servicer at ED’s student aid Website, loan servicer advice is limited to phone etiquette -- keeping “careful notes on all conversations you have" and making the suggestion that the Federal Student Aid Ombudsman Group should be contacted "only as a last resort."

With ED's web-based portal a no-show, the Consumer Financial Protection Bureau (CFPB) mounted a road show which opened in Milwaukee last week in an attempt to deal with this nagging problem.

Report: Many students at for-profit colleges are more likely to take out student loans than other students, even in similar circumstances

“It’s well known that for-profit college students borrow—and default—more than students at public and nonprofit schools,” said Katie Buitrago, senior policy and communications associate at Woodstock Institute. “This research shows that even when for-profit students have socioeconomic backgrounds similar to students at other schools and attend schools with similar costs, many students are still more likely to borrow at for-profits than at other schools. Something is happening at for-profit schools that is driving students into debt.”
 

Corinthian students should not be saddled with debt

The Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Education have taken action against for-profit colleges, most notably Corinthian Colleges. In the past year, the CFPB and the Department of Education cut off Corinthian Colleges’ access to federal loans and it agreed to sell most of its campuses in July 2014.

As Rising Student Loan Debt Nears $1.2 Trillion, Durbin Introduces Legislation To Address Crisis (Sen. Durbin Press Release)

Our nation continues to face a student debt crisis, with students and graduates carrying nearly $1.2 trillion in outstanding student loan debt. Balances of student loans have surpassed both auto loans and credit cards, making student loan debt the nation’s largest form of consumer debt outside of mortgages.

Department of Education ends relationships with deceptive student debt collectors

According to the Federal student loan website, loans are considered to be in default after 270 days of no payments, if monthly payments are scheduled. When loans are in default, the Department of Education uses debt collection agencies to collect money from borrowers. Debt collectors often garnish the wages of borrowers in default.

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