Navient is under fire for more student loan issues—this time related to their overall business strategy.
One of the state attorney generals suing Navient said “[t]hese loans were designed to fail . . .”
According to new details from the state lawsuits, Navient allegedly used subprime loans as part of an overall business strategy. Subprime loans, notably, are part of what fueled the mortgage crisis in recent years.
[Read more…] about Lawsuits Allege Navient Issued Loans Designed to Fail
Student loan defaults increased significantly between 2015 and 2016.
According to data from the Department of Education, student loan defaults increased at least 17% between 2015 and 2016. And in terms of real consumers, with real loans, that represents an additional 600,000 borrowers that defaulted on their student loans.
Navient and Pioneer Credit have been sued for their handling of student loans.
The complaint alleges that “Navient has failed to perform its core duties in the servicing of student loans, violating Federal consumer financial laws as well as the trust that borrowers placed in the company.”
[Read more…] about Navient and Pioneer Credit Sued For Student Loan Issues
The only thing worse than being buried in your own student loan debt is being buried by someone else’s student loan debt. Unfortunately, it is a common scenario.
Whether you are considering co-signing for a child, a family member, or someone else, think twice before agreeing to pay someone else’s debt.
If the primary borrower does not pay, you may find yourself contacted by debt collectors, or part of a debt collection lawsuit.
Debt collection of student loans is on the rise, as the number of student loans in default continues to rise.
The good news is that debt collectors collecting on student loans are governed by the FDCPA, which protects consumers against abusive and unfair collection practices. The bad news is that collection of student loans is a booming business.
If you are being contacted by a debt collector about your student loans, here are some things you need to know.
For many consumers, student loan debt is a giant, and seemingly never-ending burden. Most consumers have federal student loans, which provide a variety of statutory rights that do not apply to private student loans.
One of the most important rights is called rehabilitation: the right to make nine reasonable and affordable payments to restore federal loans into good standing.
As of July 1, 2014, there are new rules for student loan rehabilitation, and the changes are consumer-friendly. Here are some of the most important changes.