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CFPB Highlights Student Loan Borrower Challenges and Relief Impacts

Account Recovery

NOVEMBER 14, 2024

The Consumer Financial Protection Bureau yesterday released the results of a survey of individuals with student loans, offering insights into how debt relief programs and repayment challenges are affecting student loan borrowers across the United States.

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Ed. Dept. Delays Start of Student Loan Collections Until 2025

Account Recovery

OCTOBER 23, 2024

The Department of Education is making its student loan collection on-ramp a little longer, announcing that it will start reporting late or missed student loan payments to credit bureaus in early 2025, a delay from the originally planned start date this month.

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Public Prefers Medical Debt Forgiveness to Student Loan Debt Forgiveness: Poll

Account Recovery

JUNE 14, 2024

With all the talk about medical debt this week as a result of the Consumer Financial Protection Bureau’s proposed medical debt credit reporting rule, it’s perhaps interesting to note that a majority of consumers feel forgiving medical debt is more important than forgiving student loan debt, according to the results of a new poll.

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DFPI Takes Action Against Student Loan Debt Relief Companies

Account Recovery

SEPTEMBER 23, 2024

The California Department of Financial Protection and Innovation (DFPI) continues to flex its enforcement muscle, recently announcing actions against three student loan debt relief companies that will see them pay more than $260,000 in penalties and restitution. The enforcement actions require the companies to: The big picture: With 3.7

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Cordray Lays Out Changes Coming to Student Loan Servicing Sites

Account Recovery

MARCH 15, 2024

The Department of Education’s Federal Student Aid is planning to release “an entirely new federal student loan servicing environment” in 2024, according to FSA’s chief operating officer, Richard Cordray, who laid out the changes that are coming in a blog post yesterday.

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20% of Student Loan Borrowers Making No Payments: Study

Account Recovery

SEPTEMBER 10, 2024

A new study released by Intuit Credit Karma reveals that a large majority of individuals with student loans have not made any payments following the end of the pandemic moratorium and many are worried about their financial stability going forward.

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Judge Dismisses FDCPA Claims in Long-Running Student Loan Case

Account Recovery

SEPTEMBER 23, 2024

The background: The case stems from a series of private student loans taken out by one of the plaintiffs between 2003 and 2007 to attend college, with the other plaintiff — his father — co-signing for the loans.

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Gov’t Cancels $7.4B in Student Loans

Account Recovery

APRIL 15, 2024

billion in student loan debt relief for nearly 300,000 borrowers, many of whom were signed up for the administration’s new income-driven repayment program. The administration touted that this latest round of relief raised the total loan forgiveness to $153 billion, for more […]

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Judge Dismisses Suit Challenging Student Loan Forgiveness Plan

Account Recovery

AUGUST 16, 2023

A District Court judge in Michigan has dismissed a lawsuit that challenged an initiative from the federal government seeking to forgive $39 million of student loan debt, determining the plaintiffs lacked standing to sue. Well, that didn’t take very long.

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Navient Banned From Servicing Federal Student Loans as Part of $120M Settlement With CFPB

Account Recovery

SEPTEMBER 13, 2024

The Consumer Financial Protection Bureau yesterday announced a proposed settlement with Navient, one of the largest student loan servicers in the country. The settlement would require Navient to pay $120 million in fines and restitution to consumers while also banning it from servicing federal student loans.

Student loans

Report Looks at the Impact of Student Loan Debt Forgiveness on Individuals’ Financial Situations

Account Recovery

AUGUST 19, 2024

A report from The Wall Street Journal this weekend looks at the impact that having student loan debt forgiven is having on those individuals, ultimately reaching the conclusion that while some may be sleeping a little easier at night, a better financial situation is not guaranteed.

Student loans

Report Looks at the Impact of Student Loan Debt Forgiveness on Individuals’ Financial Situations

Account Recovery

AUGUST 19, 2024

A report from The Wall Street Journal this weekend looks at the impact that having student loan debt forgiven is having on those individuals, ultimately reaching the conclusion that while some may be sleeping a little easier at night, a better financial situation is not guaranteed.

Student loans

Student Loan Debt Relief Scammers Sentenced

Account Recovery

DECEMBER 9, 2021

The Attorney General of California announced that a group of individuals involved in a student loan debt relief scam have been sentenced — three of them receiving jail time — and paying more than $330,000 in restitution to victims who were “preyed on” because they were struggling to repay their student loans.

Student loans

Millions Still Not Making Payments on Student Loans

Account Recovery

DECEMBER 18, 2023

Nearly nine million people who have student loans have not yet made a payment after the moratorium on student loan payments ended three months ago, according to a published report that cited information from the Education Department.

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Warren Demands DoJ Release Student Loan Bankruptcy Guidance

Account Recovery

SEPTEMBER 8, 2022

is pushing the Department of Justice to implement new guidance related to how student loan debts are handled when individuals file for bankruptcy protection, saying the department needs “to do its part to ensure that borrowers who continue to struggle with student debt have a path toward additional relief.”

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Legal Challenges to Student Loan Cancellation Plan Launched

Account Recovery

OCTOBER 3, 2022

The legal challenges to the federal government’s plan to cancel student loan debt for individuals making less than $125,000 a year have started, with a pair of suits claiming the administration failed to take the proper steps before announcing the plan.

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Dept. of Education Announces Proposal to Change Repayment Plans on Student Loans

Account Recovery

JANUARY 11, 2023

The Department of Education yesterday announced a proposed rule that aims to lower the student loan payments being made by those with student loan debt, while completely pausing payments for individuals who make less than $30,600 per year. A copy of the proposed rulemaking can be accessed by clicking here. The post Dept.

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CFPB Survey Reveals Impacts of Student Loan Debt Relief and Repayment Challenges

Consumer Finance

NOVEMBER 12, 2024

The CFPB issued its first results from its Student Loan Borrower Survey, providing insights into the effects of student loan debt relief programs and the challenges borrowers face in navigating repayment options.

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FTC Sues, Gets TRO to Stop Student Loan Debt Relief Scam

Account Recovery

AUGUST 23, 2023

The Federal Trade Commission on Monday announced it had sued and obtained a temporary restraining order against a number of corporate and individual defendants accused of pretending to be affiliated with the Department of Education so that they could market student loan forgiveness programs that made false promises and collected millions in illegal (..)

Student loans

Biden Announces Student Loan Cancellation Plan, Extends Moratorium on Payments

Account Recovery

AUGUST 25, 2022

Surprising nobody yesterday, President Biden announced that the federal government will forgive up to $10,000 in student loan debt for anyone making less than $125,000 per year and up to $20,000 for anyone with a Pell grant, while also extending the moratorium on making student loan payments through the end of the year.

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Student Loan Moratorium Costing Gov’t $5B per Month, Think-Tank Claims in Suit

Account Recovery

MAY 15, 2023

The moratorium on student loan payments has cost the federal government $160 billion in lost assets and the federal government should be ordered to force individuals with unpaid student loan debts to start repaying them, according to a nonprofit think-tank that is seeking a preliminary injunction against the Department of Education.

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CFPB Sues PHEAA For Collecting on Discharged Student Loans

Account Recovery

JUNE 3, 2024

The Consumer Financial Protection Bureau on Friday announced it had filed a lawsuit against the Pennsylvania Higher Education Assistance Agency (PHEAA), alleging that PHEAA illegally collected on student loans that had been discharged in bankruptcy and provided false information to credit reporting companies.

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CFPB Publishes Supervisory Highlights Report on Student Loan Servicing

Account Recovery

OCTOBER 1, 2022

The Consumer Financial Protection Bureau yesterday published a special edition of its Supervisory Highlights, spotlighting the student loan servicing and collection markets and pointing out some of the issues it has uncovered when examining companies in that market. A copy of the report can be accessed by clicking here.

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Bills Introduced in Congress to Hold Student Loan Servicers More Accountable

Account Recovery

JUNE 11, 2024

Bills have been introduced in the House of Representatives and the Senate seeking to hold servicers of federal student loans more accountable for their actions and to further protect consumers from lower credit scores and other abuses. The Student Loan Servicers Accountability Act of 2024 is being backed by Sen.

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Discover Selling $10B Student Loan Portfolio to PE Firms

Account Recovery

JULY 18, 2024

Discover Financial Services has agreed to sell its private student loan portfolio to investment firms Carlyle Group and KKR for approximately $10.8 Why it matters: This sale marks a significant step in Discover’s efforts to streamline its operations ahead of its pending $35.3 billion acquisition by Capital One.

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Ed. Dept. Releases Student Loan Repayment Data

Account Recovery

APRIL 16, 2024

The Department of Education has released data regarding repayment trends following the end of the student loan payment moratorium with the intention of noting how many borrowers are making their loan payments on time and how the average payment among those making payments has “nearly” returned to its pre-pandemic level.

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Report Calls for ‘Broad-Based’ Cancellation of Student Loans

Account Recovery

JUNE 13, 2022

The … The post Report Calls for ‘Broad-Based’ Cancellation of Student Loans appeared first on AccountsRecovery.net.

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Student Loan Debt Relief Scammer Gets 6 Years in Prison

Account Recovery

AUGUST 24, 2022

A Georgia man has been sentenced to six years in prison while also being ordered to pay $910,417 in restitution after pleading guilty in a scam that led to $48 million of federal student loans being fraudulently discharged through a program intended for disabled military veterans.

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Ed. Dept. Begins Next Round of Student Loan Debt Forgiveness Plan

Account Recovery

AUGUST 1, 2024

Starting today, the Department of Education is going to begin informing 30 million individuals with unpaid student loans about their options, letting them know they have until the end of the month to notify their servicers if they wish to opt out of the forgiveness programs.

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Report Shares Details of Student Loan Restart Proposals

Account Recovery

OCTOBER 19, 2021

The Department of Education is considering proposals that would give borrowers “new flexibility” like initial grace periods when its moratorium on student loan payments ends on January 31, according to a published report.

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Sen. Warren Convenes Hearing to Grill Student Loan Servicer

Account Recovery

MARCH 19, 2024

One of the nation’s largest servicers of student loans is being called before the Senate Banking Committee for a hearing about its performance, following a report that was critical of the servicer’s efforts.

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N.Y. Gov Signs Bill Eliminating Certain Collection Fees on Unpaid Student Loans

Account Recovery

OCTOBER 14, 2022

The governor of New York yesterday signed a bill into law that will eliminate a 22% collection fee on student loans owed to the state. The fee was added when unpaid student loan debts were referred to the Office of the Attorney General’s Civil Recoveries Bureau.

Student loans

Student Loan Debt to Have ‘Major’ Influence on How 30% of Consumers Vote: Survey

Account Recovery

JUNE 20, 2024

Consumers’ views on student loan debt are going to play a major factor in who wins November’s presidential election, according to the results of a survey conducted by Bankrate.

Student loans

CFPB Announces Crackdown on Student Loan Servicers Over PSLF Program

Account Recovery

FEBRUARY 21, 2022

The Consumer Financial Protection Bureau has launched another flare into the night sky, this time warning student loan servicers about making sure they are not making misrepresentations or making deceptive statements with respect to the Public Service Loan Forgiveness program, which offers individuals the opportunity to have their student loan debts (..)

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Settlement Will Cancel $6B of Unpaid Student Loans

Account Recovery

JUNE 24, 2022

The Department of Education yesterday announced a settlement in a lawsuit that will see the debts of 200,000 individuals forgiven, wiping out $6 billion in unpaid loans owed by individuals who had filed borrower defense claims that were left pending for years by previous administrations.

Student loans

Student Loan Debt Holding Individuals Back: Report

Account Recovery

SEPTEMBER 20, 2021

Student loan debt is keeping a lot of people from accomplishing their financial objectives, according to a report released by the National Association of Realtors, including buying a home, taking a vacation, and starting a family, while also forcing more individuals to take second jobs or work where they are not happy to be able … The post Student (..)

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Navient Program to Cancel Student Loan Debt Gets Put in Spotlight

Account Recovery

JUNE 6, 2024

However, a recent development covered by The New York Times highlights a significant, albeit under-publicized, initiative by Navient that offers a lifeline to borrowers with private student loans. This move is particularly relevant given the ongoing scrutiny and […]

Student loans

Report Breaks Down Who Will Benefit From Student Loan Debt Cancellation

Account Recovery

SEPTEMBER 1, 2022

Individuals with higher incomes are likely to get more bang for their buck following last week’s announcement that individuals making under $125,000 are eligible to have up to $20,000 of their outstanding student loan debt forgiven, but lower income households are more likely to have all of their debts forgiven, according to a report released (..)

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Employers Need Education on Student Loan Garnishments

Account Recovery

MARCH 14, 2024

While still a few months off on the horizon, the date on which individuals with unpaid student loans may start seeing their paychecks and bank accounts garnished is approaching.

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PHEAA Announces Exit From Servicing Federal Student Loans

Account Recovery

JULY 9, 2021

The Pennsylvania Higher Education Assistance Agency, one of the largest student loan servicers in the country, announced yesterday that it will stop servicing federal student loans by the end of this year, citing the increasing complexity and cost of handling loans on behalf of the Department of Education.

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Bill Introduced in House to Prohibit Cancellation and Forgiveness of Student Loans

Account Recovery

JUNE 22, 2022

A bill has been introduced in the House of Representatives that, if enacted, would prohibit the federal government from cancelling or forgiving federal student loans because the government does not have the authority to do so and because it’s “unfair for taxpayers who paid student loans or did not attend college to pay for those … (..)

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Report Highlights Struggles for Consumers to Repay Student Loans

Account Recovery

DECEMBER 20, 2021

Even before the COVID-19 pandemic struck the United States, the burden of repaying student loans was weighing heavily on individuals, including those living in New York City, according to a report that was issued by the city’s Department of Worker and Consumer Protection.

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Teachers’ Union Sues MOHELA For Allegedly Mismanaging Student Loan Collections

Account Recovery

JULY 24, 2024

The American Federation of Teachers (AFT) has filed a lawsuit against the Higher Education Loan Authority of the State of Missouri (MOHELA), accusing the loan servicer of widespread mismanagement and failure to fulfill its responsibilities to student loan borrowers.

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