I keep writing about student loan news, yet it is the same
old story, student loan debt up, defaults up, student loan servicers screwing up.
I keep saying, there is 1.4 trillion dollars of education loan debt out there, and it ain’t all getting repaid.
The Consumer Protection Finance Bureau continues to be busy, busy, busy:
Using data through the Department of Education and the National Student Loan Data System, the CFPB discovered that as of June 2013, more than 7 million borrowers were in default on federal or private college loans, meaning they are more than 270 days late at a payment.
Which, of course, does not count poor people saps still in school, 146 billion, and yet another 90 billion forbearance.
All of which counts as assets for the government’s books.
Too many of those still in education, are still in school, just to kick the can in the future, and delay the start of mandatory education loan repayment.
The Washington Examiner kicks in with a lot more:
The share of U.S. student debt delinquent for at least 90 days rose slightly to 11.45 percent during the second quarter, according to the latest variety of household debt and credit through the Federal Reserve Bank of New York.
That percentage has nearly doubled at a decade earlier, when it was 6.71 percent.
Only 37 percent of student borrowers happen to be in repayment and up-to-date on their payments, because roughly part of them are still in school, in deferment, or perhaps in another program that permits them to avoid payments.
It is tough enough for all those 37 per cent to manage to earn money and still keep current with their debts, without the student loan servicers ripping them off.
Sallie Mae already changed its name to its lousy reputation, but the CFPB might be pounding them again:
Navient, which processes more student loan payments than any firm near your vicinity, has been under investigation for around two years by several federal and state authorities for allegedly overcharging borrowers and otherwise mistreating them violating the law. The Department of Justice accused the firm in 2014 of intentionally cheating active-duty troops on his or her student loans for?nearly 10 years.
and still more:
Last year in May, Navient as well as its predecessor, Sallie Mae, agreed to pay $36.Six million in fines and restitution once the Federal Deposit Insurance Corp. alleged it processed payments in a fashion that maximized late fees while the company also misled borrowers about how precisely they could avoid late fees.
Still, there\’s help.
If you have government student loans, there are payment plans.
If you are being sued, especially by National Collegiate Trust, there will probably be defenses.
And, it is possible to discharge student loan debt in bankruptcy.