Blog

The CFPB Accuses Largest Loan Servicer of Failing Borrowers in Default.

Student Loan borrowers with defaulted loans have found themselves aggressively pursued by the Department of Education and private debt collectors. Borrowers in default face garnished wages, decreased social security payments, and may risk having their IRS tax returns withheld, Reuters reported. Seth Frotman, a senior member of the Consumer Financial Protection Bureau (CFPB), told Reuters. “We treat struggling student-loan borrowers the same as deadbeat parents and tax cheats. Even gambling addicts have more protections.” In its report, Reuters found that since 2015, $3 billion in garnished wages and $4.8 billion in withheld tax refunds and Social Security benefits have been seized to collect on delinquent loans. Currently, there are 8…

READ MORE

Why Navient Sucks

Navient Accused On April 9, 2017, the New York Times reported news that rocked the student loan servicing market. State attorneys in Washington and Illinois joined the Consumer Financial Protection Bureau in filing lawsuits against Navient, the giant student loan servicer hived off from Sallie Mae in 2014. Navient manages student loans for more than 12 million customers, worth about $300 billion. Navient, which denied doing anything wrong, stands accused of cheating and misleading borrowers in seven different ways: Improperly steered borrowers into forbearance: Many federal student loan borrowers who have trouble making timely payments are eligible for one of several income-based repayment programs. These programs limit how much a…

READ MORE

Billions of Private Student Loans May Be Wiped Away Due to Missing Critical Paperwork

Tens of thousands of borrowers may find that their private student loan debt could be “wiped” away due to false or missing critical paperwork. Borrowers who have fallen behind on their payments may also be included in this debt wipe out because of clerical errors. The private student loan debt, which estimates to a total of at least $5 BILLION dollars, is part of a legal dispute between student loan borrowers and a group of creditors. These lenders have been aggressively pursuing borrowers who have specifically fallen behind on their payments. Judges have dismissed numerous lawsuits filed against borrowers, effectively wiping out their debt. The reasons for many of the…

READ MORE

Three reasons why Betsy DeVos is failing as the Secretary of the Department of Education.

Before Betsy DeVos was confirmed as Sectary of Education in February 2017, many did not hide their doubts regarding whether DeVos could be an effective leader for the Department of Education. However, it is only fair to give someone a chance to prove their leadership in a new position. Secretary DeVos different stances on education are front and center, especially her stance on k-12 education vouchers and school choice. During his campaign, Trump promised to reduce excess spending by the Department of Education and hold education intuitions accountable for their student success. DeVos is expected by the Trump administration to reach those goals but also keep the best interest of…

READ MORE

Education Secretary DeVos faces lawsuit over delays on Borrower Defense Rule, affecting students and taxpayers from predatory for-profit schools.

Eighteen attorney generals including Attorney General Lisa Madigan filed suit on July 6 against the US Department of Education and the Education Secretary Betsy DeVos for failing to implement critical federal protections that were scheduled to go into effect on July 1. Filed in the US District Court in DC, the lawsuit accuses the Department of Education of violating federal law by not enforcing the Borrower Defense Rule. The Borrower Defense Rule cracked down on educational institutions that frauded and deceived their students. The rule allowed those students to obtained loan forgiveness. After the public collapse of a network of for-profit colleges known as Corinthian Colleges like Everest College, which…

READ MORE

Federal Student Loan Interests Rates are Expected to Rise on July 1

College students and their families will be paying more this fall semester if they plan to use federal student loans to cover tuition costs. On July 1, interest rates will rise for new federal loans for the 2017 – 2018 school year. The new rates have been set during the Treasury Department May 10 Auction of 10-year notes. As a result, new undergraduate federal student loans provided from July 1, 2017, to June 30, 2018, will have an interest rate of 4.45 percent. The new rate is an increase from the previous year’s rate of 3.76 percent. Graduate students will also pay higher rates. Graduates student that take out loans this…

READ MORE

The CFPB Publishes Report Criticizing One of Its Student Loan Servicing Contractors

The Washington Post published a recent article by Danielle Douglas Gabriel about the findings from Consumer Financial Protection Bureau regarding the Public Service Loan Forgiveness program. The Consumer Financial Protection Bureau was very critical with how one servicer company; the FedLoan was handling the program. From March 2016 to February 2017, of the 8500 complaints, about 10% of these complaints were related to how the loan forgiveness plan was being handled. The Consumer Financial Protection Bureaus published their recent findings with details of a flawed payment process and a system of botched paperwork and inaccurate information that kept hundreds of students from receiving the student loan forgiveness they were entitled…

READ MORE

DeVos Names Student Loan CEO to Manage Federal Student Loan Organization

The U.S Secretary of Education Betsy DeVos has announced her selection to lead the Federal Student Aid. The Federal Student Aid is the largest provider of student loans in the nation. The Secretary of Education announced that she would be appointing Dr. A Wayne Johnson to run the organization. Dr. Johnson is a financial service executive and the CEO of Reunion Student Loan Services. The organization provides student loan products such as student loan origination, services, and refinancing private student loans. Johnson will be replacing James Muncie who recently resigned from the Federal Student Aid after he refused to testify in front of a congressional oversight committee. Johnson is the…

READ MORE

North Carolina Attorney General Josh Stein Criticizes Department of Education Delays

North Carolina Attorney General Josh Stein is among some the growing number of voices that are criticizing the current direction of the Department of Education. Recently the Department of Education has announced that it will be delaying the July 1 regulations meant to protect federal student loan borrowers from deceptive schools and colleges. The Attorney General did not hide his displeasure at the news. According to him, “education is one of the best reasons I can think of to borrow money. But unfortunately, there are some in our world who take advantage of those who are vulnerable – and that includes student borrowers. As North Carolina’s Attorney General, protecting people,…

READ MORE

Trump Plans to Revamp Student Loan Servicing

Navient may become the largest student loan servicer if it succeeds in winning the new federal servicing contract. The Trump Administration plans to completely change student loan servicing and choose a single company to service these student loans. “The existing student-loan servicing requirements, put in place by the Obama administration, created a chaotic system that has resulted in numerous consumer complaints,” U.S. Secretary of Education Betsy DeVos wrote in an op-ed Friday in the Wall Street Journal. What are student loan servicers? Student loan servicers provide customer service while assisting support for repayment. Student loan servicers send monthly invoices, collect loan payments and answer question for student loan borrowers. It is…

READ MORE

Trump Administration Proposes the Elimination of Public Service Loan Forgiveness

The Washington Post has reported that the Trump administration has proposed brand new changes that are likely to affect student loan borrowers severely. According to the administration education budget, it is proposing an end to the Public Service Loan Forgiveness (PSLF) program. In 2007, the Public Service Loan Forgiveness was used to award federal student loan forgiveness to public sector and nonprofit workers that meet the requirement listed by the program. However, according to the report published by The Post seem to suggest that the program may be in jeopardy. The Public Service Loan Forgiveness boast about 550,000 borrowers that have been approved and are expected to receive forgiveness through…

READ MORE

Interest Rates on Federal Student Loans are Expected to Rise

First-time student loan borrowers may be paying more for their loans in the upcoming academic year. Interest rates on the Stafford Loans for undergraduates are expected to jump from 3.76% to 4.5% during the 2017 to 2018 school year.  Graduate students, as well as parents, will also see an increase in their respective student loans options.  Stafford Loans for graduates are to increase to 6% from 5.31% during the 2016 to 2017 academic year. PLUS loans, used by parents and graduates will rise from 6.31% to 7%. While the Department of Education has yet to announce the new rates,  student loan costs will increase beginning July 1, 2017.  That is…

READ MORE

Changes to Fannie Mae Rules Can Help Home Buyers and Home Owners

In a recent survey, about 71% of many student loan borrowers cite student loans as a reason for delaying their first home purchase. However, relief might be on the way for many student loan borrowers after a recent announcement made by Fannie Mae. In 1938, Fannie Mae was created to help banks fund mortgages. It is one of the biggest secondary markets for homes loans in the United States. Recently, it has announced that it would be making three significant changes to its underwriting requirements related to customers with student loans that would be effective immediately. Of the changes, two of the new rules will relate to how consumers will…

READ MORE

Trump Administration Makes Big Student Loan Changes

It may be time for student loan borrowers to pay close attention to recent changes implemented to student loan programs under the Trump Administration. The new Administration has begun to take steps signaling the kinds of position it will take for student loan debt. The Department of Education removed protections and policies that affect borrowers who hold FFEL federal student loans. Recent survey respondents believe that at least 4.2 million loan holders are currently in default on their loans. Policy changes that made into effect on March 16, 2017, have impacted millions of those who have defaulted on their FFEL loans. In 2015, the Obama administration had issued guidelines that…

READ MORE

GREAT AMAZiNG RACE

  The Student Debt Doctor Loves to Support our Local Charity Events. Click the link above and get your souvenir shirt today!   It’s all about TEAMWORK! Modeled after the TV show, THE GREAT AMAZING RACE is a fun adventure race in which 2 person teams race around a cross country course completing a variety of fun-filled tasks. Each tasks requires the cooperation of both teammates in order to complete. How well you work together with is the most important skill to winning the race. Walk, jog or run – and be prepared to get a little dirty & wet. It’s way more fun than a 5K race!  Waves begin every…

READ MORE

New Regulations for Borrower Defense

On October 28, the Obama administration finalized new rules for discharging student loan debt under the borrower defense to repayment law.  The defense to repayment law allows the discharge of loans for eligible borrowers who attended a school that committed fraud, misrepresented its services, or in any way violated state law related to federal loans or the educational services provided. The new rules are an attempt to respond to the growing number of claims filed by disgruntled students who attended now defunct, for-profit schools. The collapse of schools such as Corinthian College and ITT Tech had already produced over 11,000 borrower defense claims as of March 2016.  In addition, eligible…

READ MORE

CFPB Aims to Improve Sloppy Student Loan Servicers

The Consumer Financial Protection Bureau has become a watchdog of sorts for the student loan repayment system. The CFPB is a government agency who strives to “protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law.”  The Bureau also serves as a resource of information and tools for people to make informed decisions about their finances. In 2015, the CFPB joined the Department of Education and the Department of Treasury in issuing a framework to strengthen student loan servicer communication, increase public access to data on student loan performance, and to continue providing an emphasis on accountability and regulation entitled the Joint Statement of…

READ MORE

5 Things to Know Before Financing Your Future

While the majority of college graduates enter the workforce with student loan debt, there is a troublesome lack of knowledge for many young students on the details of borrowing such large amounts of money to fund their education.  In recent years, borrowing money for rising tuition costs has become the norm and many students are cavalier in their ability to easily gain access to money through financial aid. At the end of the day, however, college life ends and the man will come knocking for the loans to be paid.  Many students will be surprised by high interest rates or complicated repayment terms.  Here are some tips to better understand…

READ MORE

$4 million for illegal practices – Wells Fargo Student Loans

[divider color=”” ] The Consumer Financial Protection Bureau (CFPB) has come after Wells Fargo for illegally charged late fees. The fee is for borrowers that had paid on the last day of their grace period or made partial payments. Along with these discrepancies, Wells Fargo has been accused of improperly reporting early or partial payments to the credit bureau. The negligent and perhaps criminal behaviour on Wells Fargo’s part is evident. More examples of investigator findings include the spreading of payments across loans to trigger late fees and informing people with more than one loan that paying less than the full amount due would not count. “Wells Fargo hit borrowers with illegal…

READ MORE

Who Got rich off the Student Debt Crisis

[divider color=”” ] Related Video [divider color=”” ] Student Debt has eclipsed credit card debt as the largest debt in America.  It has also been a cash cow for the federal government and wall street.  Over a generation ago the government privatized student loans.  Year by year there has been changes made that have made interest rates and fee’s go up fattening the pockets of student loans servicers, collection companies, and wall street executives.  The program was originally supposed to give Americans more access to education and the American dream.  Student Loans are notoriously known for the easiest debt to acquire and the most difficult to complete paying. There are millions…

READ MORE

The Student Loan Bubble: How to get out before it pops

The Student Loan Bubble: How to get out before it pops As the cost of higher education continues to rise, salaries remain stagnant, and unemployment rates soar.  For the millions of Americans who have taken out student loans in hopes of a financially stable future, many are finding that the gamble is not paying off. According to American Student Assistance’s 2015 Annual Report, 62% of student loan borrowers have put off saving for retirement or other investments while 55% of student loan borrowers are delaying purchasing homes, with ripple effects on the national economy. Much like the housing bubble that sent the American economy into a tailspin nearly a decade…

READ MORE

Have You Tried This Easy Way To Raise Your Credit Score?

Have You Tried This Easy Way To Raise Your Credit Score? A good credit score can mean money in your pocket.  Many people think the only incentive for having a good credit score lies in the securing of a loan or a line of credit, however, the benefits don’t end there.  A good credit score can not only secure you the amount of money you would like to borrow but can also lower your interest rate or relieve you of certain fees and charges. So how do you improve a bad credit score?  While paying your bills on time, keeping balances low, and paying past due accounts may seem intuitive,…

READ MORE

Free Money: Incentive programs for student loan borrowers

While millions of Americans deal with the reality of paying off their education, healthcare professionals, in particular, are riddled with some of the highest average student loan balances on the books. According to the Association of American Medical Colleges, the average amount of debt for medical school graduates is $183,000. While it is implied that physicians will make enough over the course of their career to easily pay off this amount, things such as added interest and declines in physician reimbursement can make repayment an issue. And it’s not just doctors. Nurses, physician assistants, dentists, and pharmacists are also feeling the pinch. As tuition rates for graduate health degrees continue…

READ MORE

Faces Of The Student Debt Crisis In America

Student debt has been an issue for far too long. These are some examples of the burden these students have for the rest of their lives. I hear the stories day in and day out. “I was promised a career, success, and to be able to pay my loans off within ten years.” Yet, the facts of college education in America today reflect a much different reality. That a college education is inflated and does not provide the adequate education our current job market needs. This is why I started Student Debt Doctor. We are here to help people with these exact situations. We are here to help people find…

READ MORE

Navient Sued Again

Navient is not only misleading borrowers and our active military but they are also lying to their stockholders.  It’s not bad enough their stock has plummeted from $22.37 per  share in February 2015 to as low as $8.20 per share on February 11, 2016. ” Navient’s loan servicing practices were not in compliance with applicable federal regulations, that  Navient’s non-compliance with federal regulations could subject Navient and its subsidiaries to restitution, civil monetary penalties, and corrective actions, and that as a  result, defendants’ statements about Navient’ business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.” The student loan giant has been in a lot of…

READ MORE

Can you be arrested for Federal Student Loans?

From Isiah Carey – “Last Thursday seven people in combat gear with automatic weapons showed up at his home and took him to jail for a 29 year old student loan. Those people were U.S Marshals, Deputy U.S Marshals right here in Houston…” These are the headlines coming from your TV speakers today. Someone had to endure a raid onto their very own home with the possibility of death for a nearly 30 year old debt. A Houston Texas man has been arrested for a $1,500 dollar federal student loan of over 25 years. According to Isiah Carey of Houston’s Fox 26, Paul Aker was arrested and presented to a judge…

READ MORE

Holiday Charity Event

We like to promote a family atmosphere so this year we decided to get together with Joy Taylor and help her out with her annual charity drive called Joyful Closet.  If you don’t know who Joy is she is the charismatic, witty, funny, bubbly, sharp talk show host on WAXY 790 AM “The Ticket”.  She also happens to be the sister of Miami Dolphins legend Jason Taylor. The event called for South Florida to come together and donate coats, shirts, pants, hats and shoes to help out Women in Distress of Broward County and a local homeless shelter called Camillus house.  Our team went above and beyond bringing in over 50 bags…

READ MORE

Student Debt Exceeds 1.3 Trillion

Student Loans have surpassed auto loans and credit cards as the largest debt in the country.  They have also surpassed grocery’s as the highest monthly house hold expense.  More then 25% of graduates are graduating with “excessive” debt.  What that means is student loan debt is affecting the way graduates live.  Not that they can’t buy a Porsche but they can’t afford a Chevy.  10% of those are not having kids, getting married or buying a home.  The other 20% are taking less paying jobs outside of their field to make the monthly payment on the loans.  It is estimated the national student loan debt grows $2,000.00 every second.  …

READ MORE

Navient is about to get what they deserve

After a 2 year investigation from federal and state authorities have determined they have enough evidence to sue the largest student loan company in the country.  The Dept of Justice accused the company back in 2014 of over charging active duty troops.  They were forced to refund nearly 64 million dollars.  Now the student loan giant has moved on to the American public.  They are charged with overcharging and mistreating borrowers.  The CFPB is also investigating them for the way their debt collection unit treat distressed debtors and Navient’s customer service practices.  Instead of finding the correct solution for the borrowers they threaten them with wage and tax garnishment leaving…

READ MORE

Student Loan Delinquencies increase as the crisis spreads

Defaulted loans are rising once again. New data has confirmed out of the $1.2 Trillion dollars in student loan debt $136 Billion dollars is either delinquent or defaulted.  This spreads across 43 million borrowers.  Student Loan debt has out weighed all other house hold debt such as credit cards, mortgages, auto loans, home equity lines of credit and personal loans.  It’s the elephant in the room no one is Washington seems to know how to handle.  The servicers such as Navient, Nellnet, Fed Loan, Mohela, and AES are part of the problem.  Instead of listening to the borrowers situation and working with them they stick them in a forbearance or…

READ MORE

Student Debt Crisis

No matter what your political affiliation is, the government should not be making the money they do off of student loans. Donald Trump and Dave Ramsey agree. Interest rates are way too high. Putting an unsubsidized student loan into a forbearance for 12 months on a $30,000 loan will cost you about $2,000. Why?!?! Add in the fact that the job market (although recovering) is far from booming and annual salary’s are down makes it very difficult to make a two or three hundred dollar a month student loan payment. Once loans fall into default collection fee’s can range up to 40% of the balance depending on litigation etc. Typically…

READ MORE

Mid-Continent University settles

Yet another instance of Universities and colleges having to settle for deceptive practice toward their students. Learn more form the following breaking article.. Read More…

READ MORE
mautic is open source marketing automation
Disclaimer: This site does not negotiate, adjust or settle debts. All federal student borrowers are able and encouraged to apply for any federal repayment or forgiveness programs through the US Department of Education for free without paying fees to any entity. Nothing on this site constitutes official qualification or guarantee of result. Student Debt Doctor offers fee-based services to assist with application preparation for federal student loan and other programs.
+ +