Department of Education Extends Contract for Debt Collector Previously Under Fire
Despite heavy opposition from student, union, and trade groups, the Wall Street Journal is reporting that the U.S. Education Department will extend the contract of Navient Corporation, a student-loan servicer and collection agency that was formerly a division of Sallie Mae, despite allegations it has overcharged borrowers. Navient’s work for the federal government was worth $106-million last year, and its contract would have expired this month. Sallie Mae, which in April was divided into two companies, Navient and Sallie Mae Bank, agreed…
Heather Talks With Maria Shriver About Student Loans
Heather sat down recently with Maria Shriver to talk student loans. Read the article here.
Senate Republicans Vote Against Senator Warren and Students Again!
Update: As expected, Senate Republicans united to block Senator Warren's bill, the Bank on Students Emergency Loan Refinancing Act, in a 56-38 vote Wednesday that fell short of the 60 votes needed to proceed to debate on the measure. The bill would have allowed people with student loans to refinance their student debt at today's lower rates. The Obama administration said it could have helped nearly 25 million borrowers save approximately $2,000 each. To learn more about the proposed bill, read on. Elizabeth Warren is my hero…
Details About Obama’s New Student Loan Initiatives to Develop Over Time
Yesterday, President Obama set out three actions he is taking to help people pay off student debt. We all have lots of questions about exactly who will get help and how and when. PAYE expansion requires changes to regulations and the president has given the Department of Education one year to complete the regulations and ordered that they take effect on December 31, 2015. I'll be advocating for the best interests of student loan borrowers throughout the regulatory process and I'll post details as they develop. President…
Obama: Borrowers with Older Student Loans to Qualify for Reduced Payments
President Obama today announced plans to qualify an additional five million borrowers for lower student loan payments. The president says individuals with older loans—those who borrowed before October 2007 or stopped borrowing by October 2011—will gain access to payments capped at 10 percent of their income. The president also announced plans to renegotiate contracts with student loan servicers widely criticized failing to notify borrowers of all their repayment options. But borrowers will have to wait until the end of 2015 for…
