Student Loan News

Well, I wrote something good about a student loan

Student Loan News
Student Loan News

servicer last week, but, Student Loan News this week

reverts to form.

Student Loan News:  Wells Fargo fesses up

Sort of.

As part of a deal announced Monday, the San Francisco banking giant did not admit or deny wrongdoing but agreed to pay a $3.6-million penalty to the Consumer Financial Protection Bureau, plus $410,000 in refunds to borrowers who paid fees that the bureau said should never have been charged.

My favorite, denies any wrongdoing.  They just had an extra few million laying around that they did not know what to do with, so, they decided to pay it to the government in fines.  Right.

Further minimizing their conduct:

Wells Fargo spokesman Jason Vasquez said all of the CFPB’s allegations relate to practices that Wells Fargo changed several years ago and that affected only a small number of borrowers.

Mmm-hmm.  Right again.  We only screwed a few people, and we already stopped doing it years ago. Like, even before we were caught.  Sounds like a middle school delinquent explaining smoking in the boys’ room.

Student Loan News:  Student Loan Servicers and Repayment Plans

The government is so damn big it wars with itself.

The Department of Education has one plan, and the Consumer Protection Finance Bureau (CFPB) has another.

The CFPB has effectively become borrowers’ main advocate in their battle against the Department of Education unit responsible for student loans and the department’s contractors. It created a form (PDF) for borrowers to use when communicating with loan servicers. It is actively soliciting complaints from borrowers. The bureau even created a Twitter hashtag (#ApplicationAbyss) to drum up publicity about its concerns.

One of my recurring themes:

Too few borrowers in distress know they can reduce their payments simply by sharing a few recent pay stubs or a copy of their most recent tax return. Something in the repayment system is clearly broken, and so last month federal education officials moved to scrap it—slowly. In a few years, the Education Department hopes, loan companies to which it outsources collections will prioritize showing debtors how little they can pay to remain current over collections.

I could almost, nah, feel sorry for the poor student loan servicers caught between these two Federal government agencies

Except, if they did their jobs correctly, neither one would be after them.

The whole student loan mess needs overhauling.  There has to be an easier way to discharge student loan debt in bankruptcy, and there has to be a halt to the floodgate of student loans out of the Federal government that created the college tuition bubble, and student loan mess, in which we find ourselves.

Student Loan Update

I collect links to student loan stories every day, then I look through the student loan update file for the news across the nation for topics to post on this blog. The student loan stories just keep piling up. Student Loan Update: Servicers Nothing new here, another servicer concealing the best student loan repayment plans… Continue Reading

Student Loan Servicers & Smorgasbord

Student loan news all over the place this week, including some new stuff on Student Loan Servicers. Yes, election year. What about that Libertarian candidate? Eliminate the Department of Education? That is one of Mr. Johnson’s proposals, though a few Republican candidates have tossed that one out before. He shares my views on student loans driving… Continue Reading

Student Loan Update

Like most of my Student Loan updates, more of the same. More student loan horror stories. More inadequate government responses. Why Not Just Forgive All Student Loans? It works for millennials. Hey, who does not want a free lunch, let alone free college? Not all student loan borrowers were created equal. Some of those with… Continue Reading

Student Loan Apocalypse

Great info on Student Loan Apocalypse on the mybudget360 website.   OK, they call it Student Debt Apocalypse. So I googled Student Loan Apocalypse, and, there are multiple entries going back two and three years. Student Loan Apocalypse:  Crying Wolf? I think not. From the mybudget360 site: Student debt apocalypse: Median wages up 1.6% over last 25… Continue Reading

Student Loans and Law School

Student loans have created a bubble of overpriced colleges. Tuition costs rose way over the inflation rate, and colleges spent that money:  hiring more administrators. The biggest bubble: law schools. I have filed personal bankruptcy for lawyers making $14 an hour.  As lawyers.  Doing temp work for law firms. Value of Law Degree? First, the… Continue Reading

Student Loan News Update

Blogging once a week on Discharge Student Loan is  insufficient to keep up with student loan news. So, a smorgasboard post this week. Student Loan Debt & Home Ownership Another story on how the burden of student loan debt delays home ownership. Duh. Delays?  Prevents. Seventy-one percent of non-homeowners with debts from student loans said… Continue Reading