In early March, the Department of Education, led by Secretary Elisabeth Dee DeVos, began informing some former students at campuses once owned by the now-defunct Corinthian Colleges, Inc. that it will forgive only fifty percent or less of their federal student loans. In fact, DeVos had announced her intent to adopt such a plan, a
In general, the federal government provides student loans to qualified Americans regardless of their credit history. To facilitate repayment and avoid borrower default, it offers numerous programs, including income-based repayment schemes and, for now, loan forgiveness for public service. Naturally, once a borrower defaults, the government enjoys an extraordinary range of powers for securing
On March 15, Governor Jay Inslee of Washington signed the Washington Student Education Loan Bill of Rights. This law had been in the works since 2017 when a report, released by Attorney General Bob Ferguson in December, documented significant disparities across gender, income, age, and race in student loan borrowing and highlighted a handful
A companion to a bill sponsored by Rep. Robert Scott (D-Va.), America’s College Promise Act, or “ACPA”, introduced in the United States Senate on March 1, strives to minimize the financial hurdles that have induced an extraordinary reliance on private and federal student loans by over 44 million Americans. This previously-introduced bill currently boasts
Nearly a decade after the financial crisis of 2007-08, the Senate recently advanced the most significant overhaul of the Dodd–Frank Wall Street Reform and Consumer Protection Act, signed into federal law by President Barack H. Obama on July 21, 2010. Specifically, on March 14, 2018, the Senate passed the Economic Growth, Regulatory Relief,
On February 12, the White House released its budget proposal for Fiscal Year 2018, a document that calls for numerous changes to the repayment and forgiveness of federal student loans taken out after July 1, 2019. While Congress, of course, retains responsibility for any appropriations legislation, this document’s wish-list reflects the apparent priorities of the
As summarized in the March 2018 issue of the American Bankruptcy Institute Journal, ABI’s Consumer Bankruptcy Committee has recently issued several recommendations and made several observations regarding the treatment of student loans under the Bankruptcy Code, codified in Title 11 of the United States Code.
First, the Committee intends to fashion a program
On March 9, PNC Financial Services Group, Inc. moved to dismiss a class action complaint filed by Damian McCoy in the Western District of Pennsylvania. McCoy sued PNC after his conditional employment offer was revoked when a 2011 arrest was discovered during his criminal background check. Allegedly, the report indicated that the felony and misdemeanor
In the student loan market, servicers play a critical role. These entities maintain account records regarding borrowers, send periodic statements advising borrowers about amounts due and outstanding balances, receive payments from borrowers, allocate those payments among various loans and loan holders, answer borrowers’ questions, report to creditors and investors, and strive to prevent default by
The Republican Congress’ ongoing effort to overhaul the Dodd-Frank Wall Street Reform and Consumer Protection Act, as embodied in the Economic Growth, Regulatory Relief and Consumer Protection Act, may yet extend a helping hand to struggling student loan borrowers. On March 8, Sen. Richard (“Dick”) Durbin (D-Ill.), the Democratic Minority Whip, introduced an amendment to