student loans

Servicers of private student loans offer relief to borrowers

04/22/20

More than a dozen firms have struck agreements with nine states to provide forbearance to customers struggling to make payments in the midst of the coronavirus pandemic.

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PSLF update

04/20/20

The success rate for Public Service Loan Forgiveness applicants has doubled. From 1% to 2%.

Thinking they have completed their 10 years of payments, 140,000 student loan borrowers had applied for cancellation through February 29, and about 3,000 had received a discharge, including 1,300 under the “temporary expanded” PSLF who were put in the wrong repayment plan by their servicers.

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First Republic is tackling 'modest' number of hardship requests

04/14/20

The San Francisco bank said the amount of loans that could go into forbearance so far represents a small percentage of its total portfolio.

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11th Circuit: Student Borrower Consumer Claims not Preempted by HEA

04/14/20

An 11th Circuit panel ruled last week that student loan borrowers may assert state law misrepresentation claims against a student loan servicer that falsely told them their FFEL loans qualified for Public Service Loan Forgiveness.

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CARES ACT student loan relief

03/31/20

The CARES Act signed into law last week suspends payments and eliminates interest accrual for all federally-held student loans for six months, through September 30. These measures exclude private loans, privately-held FFEL loans and Perkins loans. The other five subsections of section 3513 mandate important additional relief. Under subsection (c) the six suspended payments (April to September) are treated as paid for purposes of “any loan forgiveness program or loan rehabilitation program” under HEA title IV.

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Student loan relief for public service workers: repeal the 15-day rule

03/24/20

More than one million public servants – nurses, soldiers, first responders, teachers—should be eligible now or soon for student loan cancellation under existing law – the Public Service Loan Forgiveness program. Congress and the Administration can accelerate this process now.

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Fed announces aggressive actions to boost liquidity amid virus turmoil

03/23/20

The Federal Reserve committed Monday to conducting more asset purchases of Treasury securities and mortgage-backed securities and announced $300 billion in new financing for credit facilities.

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Coronavirus testing loan servicers’ mettle

03/17/20

The pandemic has upended staffing plans, sparked concerns about servicers’ capacity to handle the expected crush of missed payments, and even raised questions about their ability to stay afloat.

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Discover's student loan-servicing actions investigated by CFPB

02/27/20

Discover Financial Services is being investigated by the agency over student loan-servicing practices and its compliance with a 2015 consent order involving the business.

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Senators alarmed by study linking loan rates to college choice

02/13/20

Elizabeth Warren, Sherrod Brown and three other Democrats asked nonbank lenders to ensure they comply with fair lending laws following a report suggesting they charge higher rates to those who have attended historically black or predominantly Hispanic colleges.

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