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Articles and Updates

1407, 2015

Department of Education Updates List of Troublesome Colleges

The U.S. Department of Education has published their list of of schools facing extra scrutiny as of June 1, 2015, and it's a good idea to check if yours is on the list. A total of 483 colleges are being closely monitoring due to concerns over their ability to handle federal funds, down from 543 schools in March 2015. The new list includes three public institutions -- Northern New Mexico College, Mesalands Community College in Tucumcari, N.M., and Copiah-Lincoln Community College in Mississippi -- all of which were added for

807, 2015

Education Department To Screw Married Student Loan Borrowers With New Payment Options

The U.S. Department of Education, as part of a continuing public relations effort to look like it's trying to help federal student loan borrowers, on July 7, 2015 announced an enormous expansion of the highly-regarded Pay-As-You Earn repayment program. Under the expansion, an additional six million federal loan borrowers would be able to cap their federal student loan payments at 10% of their disposable adjusted gross income. Unpaid balances would be discharged after the borrower makes 20 years of payments if the borrower does not owe any money for graduate school, and after 20

707, 2015

Navient and Sallie Mae – Same Thing, or Different?

For millions of student loan borrowers, Sallie Mae is synonymous with educational finance. Now there's a new name in town - Navient. Founded in 1973, Sallie Mae (the nickname of The Student Loan Marketing Association) operated as a Government-Sponsored Enterprise (GSE) - a private financial institution set up by the U.S. Congress - until 1994 when it became a private corporation. Originally created to support the guaranteed student loan program created by the Higher Education Act of 1965, the company eventually expanded to handle all manner of private as well

607, 2015

Why Filing for Bankruptcy Isn’t Smart

In over 19 years of being a bankruptcy lawyer I've heard - and been part of - both sides of the discussion about how smart it is to file for bankruptcy. After much consideration, I've concluded that it's a stupid conversation. There's a lot of misinformation out there about bankruptcy. Credit counselors and debt settlement companies will tell you it's the worst thing for your credit, in spite of the fact that even the Federal Reserve Bank of New York (you know, the folks who run the banking system) says

2906, 2015

Student Loans, Debtfare and the Poverty Industry

Susanne Soederberg, a professor of political studies and global development studies at Queen’s University in Canada, is calling for the student loan industry to be, "revealed, attacked, and uprooted." In her article on Dollars & Sense, Soederberg says the educational finance is not part of the natural order of things. Rather, it's part of the poverty industry, which includes educational lending, but extends to other forms of consumer credit—such as payday loans, credit cards, sub-prime housing loans—all of which feed off of and reproduce marginalization and insecurity. The increasing reliance

1006, 2015

Student Debt Clock Shows Scary Growth In What We Owe

There's a new clock out there to obsess over - the student debt clock. It shows that we're racking up more and more debt by the second - in fact, America's student-loan debt is growing by a whopping $3,055 every second. If that doesn't make you start asking questions about where this is all headed, nothing will. | StartClass As the kids say, I can't even.

806, 2015

Department of Education Announces Debt Relief For Corinthian Colleges Students

In the wake of the collapse of Corinthian Colleges, tens of thousands of student loan borrowers have faced what can best be described as an uphill battle in their quest for student loan debt relief. This led to the Corinthian 100 (now the Corinthian Collective), a group of former students who flat out refused to pay their student loans. They got a lot of flack from the mainstream media, but they sure got the attention of the right people. On June 8, 2014 the US Department of Education announced new

2805, 2015

Texas Court Rules Against Borrower In Student Loan Bankruptcy Discharge Case

Just because you list a student loan debt on your bankruptcy case doesn't mean it's wiped out once the case is over. You need to take additional action - but before that, you need to do your homework. Once upon a time, student loans were dischargeable in bankruptcy court. As the years went by, more limits were placed on people who wanted to wipe out those debts. Congress gradually increased the required age of the past due federal loans to be discharged automatically, and then in 2005 put the final

1905, 2015

Los Angeles Loses Discriminatory Lending Lawsuit To Bank of America

In the battle between one of America's largest cities and one of America's largest banks, the money reigns supreme. At least, that's what a federal judge in Los Angeles thinks. On May 15, 2015 A federal judge threw out a lawsuit by the city of Los Angeles that accused Bank of America of discriminatory mortgage lending. The suit, which was originally filed by the city in 2013, claimed that Countrywide Home Loans (a unit of Bank of America) violated the U.S. Fair Housing Act by making loans to minorities on

1805, 2015

Mortgage Delinquencies Fall To Lowest Level Since 2007

The TransUnion Industry Insights Report, released on Monday, May 18, 2015, reveals that the rate of borrowers 60 days or more delinquent on their mortgages declined to 2.95% in the first three months of 2015 – the first time the variable has been below 3% since prior to the recession in 2007. This also marks the 13th consecutive quarterly drop in the mortgage delinquency rate. The quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry, isn't all wine and roses. The delinquency rate for subprime consumers

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