News

This Parent Trap Involves $71 Billion of Federal Education Debt | Bloomberg

The U.S. government is sitting on a growing pile of debt backed by little more than parental love.

Read More

Student Loan Relief Sought by AG Healey | New Boston Post

In an effort to help borrowers struggling to repay student debt, Attorney General Maura Healey on Tuesday announced a new student loan assistance unit and a crackdown on unlawful debt relief companies.

Read More

Little for Students in ‘Historic’ Settlement of Education Management Case | The Chronicle of Higher Education

The U.S. attorney general, Loretta E. Lynch, and the education secretary, Arne Duncan, announced the settlement of a false-claims lawsuit against the Education Management Corporation on Monday.

Read More

Update | Two Project on Predatory Student Lending Alumni Testify to Department of Education

Two alumni of the Project on Predatory Student Lending testified to the Department of Education in support of the rights of borrowers treated unfairly by for-profit colleges to a fair, effective, and efficient process to get their federal student loans discharge

Education Department Delays Relief For Defrauded Student Loan Borrowers | Huffington Post

Students who claim they were defrauded by for-profit schools owned by Corinthian Colleges Inc. into taking out federal student loans will have to wait several more months before the Obama administration decides whether to cancel their debts, the Department of Education said Thursday.

Read More

The U.S. Government’s Predatory-Lending Program | Politico

Most parents will do just about anything for their children, especially when it comes to education. Predictably, at a time when college costs are exploding and students are staggering under more than $1 trillion in debt, one opportunistic lender is making huge profits on loans to their doting moms and dads.

Read More

Update | Summary of Proposed New Federal Student Loan Repayment Plan

The U.S. Department of Education is proposing a new federal student loan repayment plan, called REPAYE. It is based on the existing Pay As You Earn (PAYE) plan. Key differences from PAYE are summarized below. For more information about LSC’s work on behalf of student loan borrowers, visit the Project on Predatory Student Lending.

U.S. Must Face Lawsuit Over Beauty School Student Loans | Reuters

A U.S. appeals court in New York revived a lawsuit seeking to stop the government from collecting on loans made to students of a nationwide beauty school chain, since it knew the now-defunct company routinely falsified student eligibility for those loans.

Read More

This For-Profit College Failed, but its Students are Left with the Wreckage | The Washington Post

Last week, one of the country’s biggest career college chains completed its collapse. Corinthian Colleges once ran 107 campuses of Everest Institute, WyoTech and Heald Colleges that served more than 100,000 students.

Read More

Update | Project on Predatory Student Lending Releases Poster Explaining Rights and Options of Students Who Attended Closed Everest Schools

LSC’s Project on Predatory Student Lending, along with the National Consumer Law Center’s Student Loan Borrower Assistance Project, released a poster showing rights and options of students at the two Massachusetts Everest schools, as well as other Corinthian-owned schools that closed or are in the process of closing.