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Category Archives: Student Loans

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Beating a dead horse: CFPB announces default judgment against Corinthian

Posted in CFPB Enforcement, Student Loans

The CFPB announced that it has obtained a final default judgment against Corinthian Colleges, Inc. from the Illinois federal court in which it sued Corinthian in September 2014.  In May 2015, Corinthian filed a petition under Chapter 11 of the Bankruptcy Code and in August 2015, the bankruptcy court entered an order confirming a liquidation… More >

CFPB Student Loan Ombudsman highlights FFELP loans in fourth annual report

Posted in Student Loans

The CFPB released its fourth Annual Report of the Student Loan Ombudsman discussing complaints received by the CFPB about private and federal student loans and the lessons drawn by the Ombudsman from those complaints.  (The report was issued by Seth Frotman, who is currently serving as Acting Student Loan Ombudsman after the departure of Rohit… More >

CFPB, DOE, Treasury Issue Joint Statement on Student Loan Servicing

Posted in Student Loans

A new Joint Statement issued by the Consumer Financial Protection Bureau, Department of Education, and Department of the Treasury presents a framework to standardize student loan servicing practices across the various federal and private borrowing programs. The agencies expect the new principles will guide rulemaking for better servicing practices and, ultimately, reduce student loan defaults…. More >

Interagency task force issues recommendations on federal student loan servicing contracts

Posted in Student Loans

Pursuant to a March 2015 Presidential directive, an interagency task force consisting of the Department of the Treasury, Department of Education, Office of Management and Budget, and Domestic Policy Council has issued recommendations on best practices in performance-based contracting intended to ensure that federal student loan servicers “help borrowers responsibly make monthly payments on their… More >

CFPB seeks information on income-driven student loan repayment plans

Posted in Student Loans

In a new blog post, the CFPB tells borrowers, that in response to its solicitation of borrower “stories” about problems with student loans, it has heard “about problems related to enrolling in income-driven repayment plans that ended up costing you hundreds of dollars in unexpected payments.”  The blog post includes “some helpful advice and information”… More >

CFPB issues new report on servicemember student loans

Posted in Military Issues, Student Loans

A new CFPB report entitled “Overseas & Underserved: Student Loan Servicing and the Cost to Our Men and Women in Uniform” contains the CFPB’s findings regarding student loan servicing problems faced by servicemembers.  According to the CFPB, it has handled more than 1,300 complaints from military borrowers relating to the servicing or collection of student… More >

Chopra joins Center for American Progress

Posted in Student Loans

Despite a reported endorsement from Senator Elizabeth Warren, it appears that, at least for now, Rohit Chopra, the CFPB’s  former student loan ombudsman, will not be moving into the job of Superintendent of the New York Department of Financial Services. According to Politico, Mr. Chopra has joined the Center for American Progress, where he will… More >

CFPB update on student loan complaints continues to highlight co-signer release issues

Posted in Student Loans

The CFPB has issued a “Mid-year update on student loan complaints” that analyzes the approximately 3,100 private student loan complaints received by the CFPB between October 1, 2014 and March 31, 2015.  The update also analyzes the approximately 1,100 debt collection complaints related to student loans during the same period.  There is no indication as… More >

CFPB alerts Google to student loan debt relief scammers

Posted in Student Loans

Rohit Chopra, the CFPB’s outgoing Student Loan Ombudsman, has sent a letter to Google to alert the company that “student loan debt relief scammers may be targeting student loan borrowers through the company’s search products.” In his letter, Mr. Chopra describes some of the efforts of federal and state law enforcement agencies to stop such… More >

Rohit Chopra to leave CFPB

Posted in CFPB People, Student Loans

The Wall Street Journal and Politico have reported that Rohit Chopra, the CFPB’s student loan ombudsman, will be leaving the CFPB next week.  According to the reports, Mr. Chopra did not indicate in his resignation letter to Treasury Secretary Jacob Lew what his next position would be. Seth Frotman, the CFPB’s Deputy Assistant Director for… More >

CFPB Holds a Field Hearing on Student Loan Servicing Issues

Posted in Student Loans

On May 14th, the same day that the CFPB launched a public inquiry into student loan servicing loan practices (the “Request for Information”), the CFPB held a public field hearing in Milwaukee, Wisconsin to address issues with the student loan servicing industry. After a brief introduction by Zixta Martinez, Assistant Director of Community Affairs for… More >

CFPB issues request for information regarding student loan servicing and re-launches its “Repay Student Debt” tool

Posted in Student Loans

Consistent with its continued focus on student lending, the CFPB issued a new request for information regarding student loan servicing. The request for information seeks input from the public regarding all aspects of student loan servicing, including industry practices that may create repayment challenges or hurdles for distressed borrowers, and the economic incentives that may affect… More >

CFPB to hold May 14 field hearing on student debt

Posted in Student Loans

The CFPB has announced that on May 14, 2015, it will hold  a field hearing in Milwaukee on student debt.  Similar to other field hearings, Director Cordray will give remarks and witnesses will include members of consumer groups, industry representatives, and members of the public. Since field hearings typically coincide with a related development, such… More >

Cordray remarks signal continued CFPB attention to student loan servicing and campus financial products

Posted in Campus Financial Products, Student Loans

Student loan servicers and providers of campus financial product were the focus of remarks given yesterday by Director Cordray at the Ohio College Presidents’ Conference. Director Cordray stated that the CFPB estimates that eight million Americans “are now in default on a student loan – and strengthening student loan servicing is essential to getting this… More >

CFPB seeks information from industry on student loan modification options and issues guidance on private student loans with graduated repayment terms

Posted in Student Loans

As a follow up to a January 2014 meeting with private student loan lenders and servicers convened by Director Cordray and Education Secretary Arne Duncan, the CFPB sent letters last week to certain “market participants” requesting information about current and planned loan modification options.  The letters reference guidance on private student loans with graduated repayment terms… More >

CFPB announces lawsuits against student loan debt relief companies

Posted in CFPB Enforcement, Student Loans

On December 11, the CFPB announced lawsuits against two student loan debt relief companies alleged to have deceived borrowers into paying upfront fees for federal student loan repayment benefits that are available for free. The action against College Education Services LLC and its individual owners, which was filed jointly by the CFPB and the Florida… More >

CFPB highlights alleged credit reporting errors relating to discharged student loans of disabled veterans

Posted in Credit Reports, Military Issues, Student Loans

In a new blog post, the CFPB provides credit reporting advice to service-disabled veterans who take advantage of federal student loan forgiveness available from the Department of Education for veterans who receive a 100 percent disability rating from the Department of Veterans Affairs.  The CFPB encourages veterans who use this benefit to confirm that their… More >

CFPB highlights unlawful practices relating to mortgage and student loan servicing, debt collection, electronic fund transfers and consumer reporting

Posted in CFPB Exams, Credit Reports, Debt Collection, Electronic Payments, Mortgages, Student Loans

While mortgage and student loan servicing violations cited by the CFPB in its Fall 2014 Supervisory Highlights have grabbed the headlines, the report also includes noteworthy observations regarding the violations found by the CFPB in debt collection, electronic fund transfers and consumer reporting. The report covers supervision work completed by the CFPB between March 2014… More >

CFPB Student Loan Ombudsman Files Third Annual Report Highlighting Bureau’s Hot Button Issues in Student Lending

Posted in CFPB Enforcement, CFPB Exams, CFPB General, Student Loans

The CFPB released its third Annual Report of the Student Loan Ombudsman, Rohit Chopra, discussing complaints received by the CFPB about private student loans and the lessons drawn by the Ombudsman from those complaints.  Before turning to the substance of those complaints, and the conclusions drawn by the Ombudsman, we think it important to put… More >

Rohit Chopra from CFPB focuses on student loan modifications at ABA Consumer Financial Services Committee program in Chicago

Posted in Student Loans

I attended a program this morning entitled “All I Need to Know I Learned from the Government: A Look at the Regulatory and Enforcement Landscape for Student Lending .” Among the panelists was Rohit Chopra. Rohit serves as an Assistant Director at the CFPB where he leads an office that focuses on issues facing students… More >

Brookings student loan study updated; CBA launches website to dispel student loan myths

Posted in Student Loans

We previously wrote about the June 2014 Brookings Institution report which suggested that charges coming from various quarters, including the CFPB, that student loan debt is causing young adults to postpone home ownership are overblown.  The report found that the typical household with debt is no worse off today than a generation ago, with increases… More >

Department of Education adopts new procedures for lenders and servicers of federal student loans to use to determine SCRA eligibility

Posted in Military Issues, Student Loans

This past May, we wrote about the $60 million Servicemembers Civil Relief Act (SCRA) settlement announced by the Department of Justice (DOJ) and Department of Education (ED) with a major student loan servicer and expressed our concern that the settlement could be seen as changing the rules for when all servicers must reduce the interest… More >

CFPB announces higher education memorandum of understanding

Posted in Military Issues, Student Loans

The CFPB announced that it has entered into a “Joint Higher Education Memorandum of Understanding” with the Departments of Veterans Affairs (VA), Defense (DOD), and Education (ED) as part of a joint effort by the agencies “to prevent abusive and deceptive recruiting practices by schools serving servicemembers, veterans, spouses and other family members.”  The MOU… More >

Media reports on student loan debt: distortions abound

Posted in Student Loans

Two recent articles highlight how student loan debt is often the subject of distorted reporting.  An article from Hamilton Place Strategies observed that news stories often include anecdotal stories about families burdened by student debt.  After examining about 100 articles with such stories over a three month period, the authors found that the new stories… More >