New CFPB Report: Private Loan Processing Pitfalls to Avoid
Yesterday, the Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman, Rohit Chopra, issued a report analyzing complaints received by the bureau from private student loan borrowers. According to the report, private student loan borrowers face payment processing pitfalls that can lead to increased costs, prolonged repayments, and harm to their credit reports. To help borrowers take control of their private student loans, the CFPB also issued a consumer advisory yesterday to help certain borrowers communicate…
Department of Education to Contact Federal Student Loan Borrowers, Explain Repayment Options
As first reported, September 3, in The Huffington Post in an article co-authored by Shahien Nasiripour and Joy Resmovits, Sallie Mae, the nation's largest servicer of federal student loans, is failing to enroll many of its distressed borrowers into income-driven repayment plans. "Sallie Mae, a.k.a. SLM Corp., has enrolled relatively few borrowers into the Income-Based Repayment program. Sallie Mae dominates the now-discontinued Federal Family Education Loan Program, owning between 37 and 40 percent of the outstanding…
Sallie Mae Needs To Do More to Educate Borrowers on Repayment Options
Sallie Mae, the nation's largest servicer of federal student loans, is failing to enroll many of its distressed borrowers into income-driven repayment plans, critics say. According to documents obtained by The Huffington Post, "Sallie Mae, a.k.a. SLM Corp., has enrolled relatively few borrowers into the Income-Based Repayment program. Sallie Mae dominates the now-discontinued Federal Family Education Loan Program, owning between 37 and 40 percent of the outstanding FFELP debt held by the private sector. But its share of FFELP borrowers…
CFPB Does it Again! New Toolkit Aims to Help Educate Borrowers on PSLF Options.
The Consumer Financial Protection Bureau (CFPB), our new BFF, launched a toolkit yesterday to empower school districts and other public service organizations to help their employees pay off student loan debt. The CFPB is asking these employers to make a pledge to inform their employees of their options. According to a report released yesterday, the CFPB estimates that more than 25 percent of the U.S. labor force is in public service. This includes teachers, librarians, firefighters, military personnel, law enforcement, first responders, nurses,…
Congress to Take Up Bill That Loosens Fraud, Waste, & Abuse Restrictions on Colleges
As many of you may already know, members of Congress are currently enjoying a summer recess. In case you've been longing for the daily accusations of partisan rhetoric flowing freely from both sides, never fear for they return to work September 9, 2013! One proposed bill awaiting discussion in the House of Representatives is particularly offensive to borrowers and their families and should certainly not pass unnoticed. The bill, H.R. 2637, introduced by U.S. Rep. Virginia Foxx (R-NC) and entitled "Supporting Academic Freedom…
