News

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.

A Little-Known Student Loan Protection Remains Mired In Mystery | Buzzfeed

A group of Democratic senators identified a clause in federal student loan contracts that could lead to billions in debt being forgiven. But nobody, including the Education Department, knows how the clause works in practice.

Read More

Update | Students Reflect on LSC’s Role in their Pursuit of Public Interest Careers

In a recent post on the HLS Admissions Blog, two students of the Project on Predatory Student Lending wrote about Building a Public Interest Career at HLS. They name four building blocks for a career in public interest law, including clinical work.

Update | Project on Predatory Student Lending Student Saves Client Over $40,000

The Project on Predatory Student Lending recently helped save a client over $44,000. A problem in his federal student loan consolidation left him with several defaulted loans.

Update | Project on Predatory Student Lending Student Saves Client Over $40,000

The Project on Predatory Student Lending recently helped save a client over $44,000.  A problem in his federal student loan consolidation left him with several defaulted loans.  He came to the clinic because he was struggling to repay his loans, and because he did not understand why he still had defaulted loans after his consolidation.

For-Profit Colleges Face Big Questions, Regulations, Lawsuits In Mass. | WBUR

Right now in Massachusetts, for-profit colleges are facing big questions, new regulations and lawsuits. The state attorney general is investigating about 12 of them — amid charges of low graduation rates and deceptive sales tactics that leave too many students mired in debt.

Read More

Update | The Project on Predatory Student Lending Submits Comments Regarding the Upcoming Negotiated Rulemaking to Expand “Pay As You Earn”

On November 4, 2014, the Project on Predatory Student Lending of the Legal Services Center, in partnership with the National Consumer Law Center, submitted comments to the Department of Education arguing that more low-income people should be entitled to greater relief in repaying their student loans.