Rohit Chopra and CFPB Piss Off Private Student Lenders
Ombudsman Rohit Chopra of the Consumer Financial Protection Bureau (CFPB) can sleep soundly at night knowing he is doing something right. The Wall Street Journal quotes Richard Hunt, president of the Consumer Bankers Association, as stating “There’s more tension between banks and those in the CFPB’s student-lending division than in all other areas of the CFPB combined.” Why is the private student loan industry so pissed off? The CFPB and Mr. Chopra have persistently pushed private lenders to modify or refinance…
Expanding Pay As You Earn by Negotiated Rulemaking
The Department of Education has announced its intention to convene a negotiated rulemaking committee to develop regulations that expand the President's Pay as You Earn repayment plan by allowing more borrowers to cap their federal student loan payments at 10 percent of their income with the goal of making the expanded PAYE repayment option available to borrowers by December 31, 2015. Negotiated rulemaking is required by law for programs authorized under Title IV of the Higher Education Act of 1965 (unless the Secretary of the Department of Education…
How Income is Established for Calculating Student Loan Payments
Submit the Income-Driven Repayment Plan Request online at studentloans.gov. If you have filed a federal income tax return in the past two years and the income on your most recent federal income tax return is not “significantly different” from your current income, you may use the IRS Data Retrieval Tool in the application to import the most recent year’s Adjusted Gross Income (AGI) into your application. Your monthly payments will be calculated based on that AGI. Married student loan borrowers can choose to either: file…
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.
