The Consumer Financial Protection Bureau (CFPB) made a splash earlier this month by taking action against two student “debt relief” scam companies, banning one from the industry and suing another. While this isn’t the first time this year that these companies have come under fire for their predatory business practices,… Read More»
Over the past three months, Jobs With Justice, Coworker.org, and part-time faculty who are members of AFT 6161 at Palomar Community College campaigned to get Palomar’s administration to take the Consumer Financial Protection Bureau pledge to notify employees about their eligibility in Public Service Loan Forgiveness. On November 13, Palomar… Read More»
In an important step forward, as reported in Huffington Post, the U.S. Treasury Department will create a pilot program to serve as the debt collector on federal student loans, a function currently performed by private contractors. As soon as early 2015, the Treasury Department could task federal employees with helping… Read More»
A new report released today by the Consumer Financial Protection Bureau (CFPB) reveals data that both federal and private student loan servicers are using illegal tactics to maximize their profits at the expense of borrowers. These illegal practices include charging unfair late fees and making harassing debt collection calls –… Read More»
Last week, the Consumer Financial Protection Bureau announced that it is suing Corinthian Colleges for illegal predatory lending and debt collection practices and is calling for all private student loans they issued to be forgiven. While this is a huge step forward in protecting student debtors holding private student loans,… Read More»
We’ve all heard about the meteoric rise of student debt: it now totals over $1.2 trillion and affects more than 40 million Americans. And while stories often focus on the unsustainable rise in college tuition costs and the incredible pace at which this debt multiplies, we must also pay close… Read More»
Earlier today, federal regulators ordered Sallie Mae to pay $96.6 million in penalties and restitution to student loan borrowers harmed by the company’s lending practices. Sallie Mae agreed to settlements with both the U.S. Department of Justice (USDOJ) and the Federal Deposit Insurance Corp (FDIC) for violations of the following… Read More»
On Tuesday, Jane Timm published a piece on MSNBC.com titled, “Students seek loan forgiveness in overwhelming numbers.” The piece claims that student loan borrowers are enrolling in the Department of Education’s flexible student loan repayment plans, some of which include debt forgiveness, in “record numbers.” Unfortunately, Timm drastically misses the… Read More»
The Department of Education’s federal student loan program has come under growing scrutiny in the past month, particularly in Congress. Recently, the chief operating officer of the Federal Student Aid Office, James Runcie, was called to testify before both the Senate and House committees that focus on higher education where… Read More»
One in five American households holds education debt,i posing an increasingly large threat to our economic recovery. As politicians at the federal, state and local levels consider possible solutions to this growing crisis, one government agency finds itself at the center of the student loan debate. The U.S. Department of… Read More»
