Soaring Student Debt Prompts Calls for Relief

The Wall Street Journal posted an interesting article yesterday about how the soaring student debt has prompted lobbying from numerous private sectors. The concern is not surprising: student debt has tripled over the last ten years to more than $1.3 trillion. For some perspective, the federal government’s loan portfolio (topping $1 trillion) “is big enough… Continue reading Soaring Student Debt Prompts Calls for Relief

Wells Fargo Agrees to Pay $4 Million to Settle Charges of Illegal Student-Loan Practices

Wells Fargo has agreed to pay more than $4 million in fines and rebates to settle charges of illegal student loan practices as part of a deal announced on Monday (Aug. 22nd). They did not admit or deny any wrongdoing. Wells Fargo will pay a penalty of $3.6 million to Consumer Financial Protection Bureau (CFPB). An additional… Continue reading Wells Fargo Agrees to Pay $4 Million to Settle Charges of Illegal Student-Loan Practices

Regulators Propose Massive Overhaul of Debt-Collection Industry

The Consumer Financial Protection Bureau released a new proposal today that states that debt-collectors would no longer be allowed to call consumers multiple times a day and that consumers would have more ability to dispute their bills. Furthermore the new rules would require that “collectors […] have more documentation to prove a debt is owed, and… Continue reading Regulators Propose Massive Overhaul of Debt-Collection Industry

Debt Collector Faces Charges for Targeting 6,000 Consumers

Law enforcement officials have arrested John Williams, a Georgia man whom prosecutors say defrauded 6,000 consumers out of $4.1 million from 2009 to 2014. You read that correctly: $4.1 million. “The prosecution is part of the more aggressive approach taken by Manhattan U.S. Attorney Preet Bharara against consumer-focused scams, filing criminal charges over behavior more often pursued civilly by… Continue reading Debt Collector Faces Charges for Targeting 6,000 Consumers

Department of Education Expands Income Based Student Loan Repayment Plans

The Department of Education has expanded its income based student loan repayment plans.  The new plan will allow up to 5 million borrowers to cap their monthly payment at 10% of their income.  Until now, this option was only available for student loans taken out after 2007 and was only available to those whose debt… Continue reading Department of Education Expands Income Based Student Loan Repayment Plans

40 Million and Counting Have Student Loans

“That has helped to push nationwide student loan debt to an all-time record of $1.2 trillion, an 84% jump since the recession. Unlike other kinds of debt, student lenders are continuing to dish out loans to borrowers so young they don’t have proven financial track records or substantial credit histories.” And I will add they… Continue reading 40 Million and Counting Have Student Loans