Student Loan Collections Resume Today
Account Recovery
MAY 5, 2025
After a five-year hiatus, the Department of Education will resume involuntary collections on federal student loans today, impacting millions of borrowers already in default.
Collections Education Loans 
Bankruptcy Court Blocks Collection Efforts on Discharged Student Loans
Account Recovery
MAY 13, 2025
A Bankruptcy Court judge in New York has granted a plaintiff’s motion for a preliminary injunction that will block the collection efforts on thousands of student loans that individuals allege were discharged in bankruptcy, ruling that there was no legal interest in continuing to collect on these debts. Judge Elizabeth S.
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Ed. Dept. Delays Start of Student Loan Collections Until 2025
Account Recovery
OCTOBER 23, 2024
The Department of Education is making its student loan collection on-ramp a little longer, announcing that it will start reporting late or missed student loan payments to credit bureaus in early 2025, a delay from the originally planned start date this month.
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Ed. Secretary Commits to Further Student Loan Collection Reforms
Account Recovery
AUGUST 16, 2021
The Department of Education will continue to reform how student loan debts are collected while strengthening oversight and enforcement, according to a published report citing a letter that was written by Education Secretary Miguel Cardona to a pair of leading Senate Democrats.
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Ed. Dept. Expands Moratorium on Collection of Defaulted Student Loans
Account Recovery
MARCH 31, 2021
Expands Moratorium on Collection of Defaulted Student Loans appeared first on AccountsRecovery.net.
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Ed. Dept. Will Not Use Tax Refunds, Social Security to Collect on Defaulted Student Loans Until November
Account Recovery
FEBRUARY 16, 2022
The Department of Education has announced it will suspend the seizure of tax refunds, Social Security payments, and other government payments to collect on defaulted student loans through November.
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Student Loan Debt Collection System Driving People Into ‘Deeper Hole’, Says Ed. Dept. Official
Account Recovery
AUGUST 12, 2022
The only good thing that happens when an individual defaults on his or her student loan is that debt collectors make money, according to an Undersecretary at the Department of Education who was speaking during a virtual panel discussion earlier this week.
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Ed. Dept. Discharges All Remaining Loans for ITT Tech Students
Account Recovery
AUGUST 17, 2022
The Department of Education announced yesterday that it is canceling all the remaining federal student loans for anyone who attended ITT Technical Institute between 2005 and its closure in 2016. This will result in the cancellation of loans for 208,000 individuals who collectively owed $3.9
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Ed. Dept. Issues Guidance About Post-Moratorium Collection Efforts
Account Recovery
DECEMBER 6, 2022
Individuals with student loans will be able to avoid facing collection attempts for one year once the moratorium on making student loan payments ends, according to guidance released by the Department of Education’s Federal Student Aid office last week. The post Ed.
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State Regulators Ask Ed. Dept. To Rescind Guidance and Make it Easier to Investigate Student Loan Collectors
Account Recovery
JULY 8, 2021
To Rescind Guidance and Make it Easier to Investigate Student Loan Collectors appeared first on AccountsRecovery.net. The letter was written by … The post State Regulators Ask Ed. The letter was written by … The post State Regulators Ask Ed.
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PHEAA Agrees to One-Year Extension of Servicing Student Loans
Account Recovery
NOVEMBER 15, 2021
Less than five months after it announced it was exiting the student loan servicing business, the Pennsylvania Higher Education Assistance Agency — more commonly known as PHEAA — disclosed on Thursday that it had reached an agreement with the Education Department to extend its contract for one year to allow more time to transition students (..)
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FTC Sues, Gets TRO to Stop Student Loan Debt Relief Scam
Account Recovery
AUGUST 23, 2023
The Federal Trade Commission on Monday announced it had sued and obtained a temporary restraining order against a number of corporate and individual defendants accused of pretending to be affiliated with the Department of Education so that they could market student loan forgiveness programs that made false promises and collected millions in illegal (..)
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Report Shares Details of Student Loan Restart Proposals
Account Recovery
OCTOBER 19, 2021
The Department of Education is considering proposals that would give borrowers “new flexibility” like initial grace periods when its moratorium on student loan payments ends on January 31, according to a published report.
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Ed. Dept. Hands Out Student Loan Contracts to Six Companies, Toughens Contract Terms
Account Recovery
OCTOBER 18, 2021
Hands Out Student Loan Contracts to Six Companies, Toughens Contract Terms appeared first on AccountsRecovery.net. The … The post Ed.
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Ed. Dept. Cancels Contracts With Private Collection Agencies
Account Recovery
NOVEMBER 8, 2021
The Department of Education last week notified the private collection agencies it had been using to help recover payments on defaulted student loan debts that it would no longer be placing accounts with them. Cancels Contracts With Private Collection Agencies appeared first on AccountsRecovery.net.
CFPB Sues PHEAA For Collecting on Discharged Student Loans
Account Recovery
JUNE 3, 2024
The Consumer Financial Protection Bureau on Friday announced it had filed a lawsuit against the Pennsylvania Higher Education Assistance Agency (PHEAA), alleging that PHEAA illegally collected on student loans that had been discharged in bankruptcy and provided false information to credit reporting companies.
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Compliance Digest – May 27
Account Recovery
MAY 27, 2025
After sifting through it all, it appears that the plaintiff in this case is taking the position that the student loan debt at issue should be discharged because the loan was not made from a bona fide nonprofit institution and because the loan exceeded the costs of her higher education attendance. More details here.
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Paycheck Pinch: How Even Six-Figure Earners Are Feeling the Squeeze
Account Recovery
FEBRUARY 27, 2025
Why it matters: For the credit and collection industry, the takeaway is that financial vulnerability cuts across a broader demographic than ever. Rising consumer debt, limited emergency savings, and unpredictable economic pressures mean more borrowers may rely on short-term loans, subprime credit cards, or buy now, pay later plans.
CFPB Denies Petition in Student Loan BK Collection Discharge Investigation
Account Recovery
SEPTEMBER 21, 2023
The Consumer Financial Protection Bureau has denied a petition from the Pennsylvania Higher Education Assistance Agency to set aside a civll investigative demand into whether the servicer maintained adequate policies and procedures to determine whether loans were dischargeable in bankruptcy and if attempts were made to collect on loans that had been (..)
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CFPB Sues Student Loan Servicer PHEAA for Pursuing Borrowers for Loans Discharged in Bankruptcy
Consumer Finance
MAY 30, 2024
The CFPB sued student loan servicer Pennsylvania Higher Education Assistance Agency for illegally collecting on student loans that have been discharged in bankruptcy and sending false information about consumers to credit reporting companies.
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Problems With Debt Collection Tactics Cited in CFPB Report on Student Loans
Account Recovery
OCTOBER 25, 2023
An annual report released yesterday by the Consumer Financial Protection Bureau’s education loan ombudsman notes that three out of every four complaints filed by consumers about student loans had to do with how those loans are being serviced and collected, and references “coercive debt collection practices” related to the collection (..)
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Teachers’ Union Sues MOHELA For Allegedly Mismanaging Student Loan Collections
Account Recovery
JULY 24, 2024
The American Federation of Teachers (AFT) has filed a lawsuit against the Higher Education Loan Authority of the State of Missouri (MOHELA), accusing the loan servicer of widespread mismanagement and failure to fulfill its responsibilities to student loan borrowers.
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Millions Still Not Making Payments on Student Loans
Account Recovery
DECEMBER 18, 2023
Nearly nine million people who have student loans have not yet made a payment after the moratorium on student loan payments ended three months ago, according to a published report that cited information from the Education Department.
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Q4 Industry Insights: Looking Good on Paper, Feeling Bad in Wallets, Everyone’s Uncertain on Financial Outlook
True Accord
JANUARY 21, 2025
With inflation proving more sticky than policymakers had hoped and uncertainty around how the new administrations policies might affect it, it may take longer for people to see lower interest rates on their mortgages, car loans and credit card balances, which could prove challenging to household budgets. Whats Impacting Consumers?
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Appeals Court Upholds Dismissal of FDCPA Case Over Collection of Post-BK Student Loan
Account Recovery
APRIL 5, 2022
The Court of Appeals for the Third Circuit has affirmed the dismissal of a Fair Debt Collection Practices Act case against a student loan servicer for continuing to attempt to collect a student loan debt after it had been discharged in bankruptcy because the plaintiff failed to follow the proper procedure.
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Are You a Consumer Struggling with Debt? Take Control with These Proven Strategies
American Profit Recovery
MAY 15, 2025
From mortgage and rent payments to credit card debt to auto loans as well as outstanding bills to local businesses and service providers. The Know My Debt website was created by ACA International with a goal of educating consumers on several areas of financial literacy. While it may be stressful, it’s time to list all your debts.
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Continuous Financial Education for Women Small Business Owners
Fico Collections
JULY 21, 2022
Continuous Financial Education for Women Small Business Owners. FICO-hosted panel at NAWBO’s 2022 Advocacy Days discusses how financial education impacts access to capital and business growth for small businesses. There is a main asset that entrepreneurs use to start up their business and qualify for a small business loan.
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20% of Student Loan Borrowers Making No Payments: Study
Account Recovery
SEPTEMBER 10, 2024
A new study released by Intuit Credit Karma reveals that a large majority of individuals with student loans have not made any payments following the end of the pandemic moratorium and many are worried about their financial stability going forward.
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Steps Involved in Recovering Unpaid Student Loans
Nexa Collect
JUNE 27, 2023
Recovering unpaid student loans is a systematic process. Just like mortgage recoveries, the steps can vary depending on the jurisdiction and the terms of the loan. Employ a Collection Agency : If the borrower is unresponsive or unwilling to pay, employ the services of a collection agency.
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Student loan companies can set borrowers up to default
Roths Child Law
APRIL 15, 2021
Taking out a student loan is supposed to be a financial investment in your future. It can be very difficult for college graduates to balance their daily financial needs with the obligation to repay massive student loans. Some of these borrowers will eventually end up defaulting on their loans.
Education Loans Hit Hardest As Bad Debt Rises In Personal Loans
Collection Industry News
JUNE 21, 2024
Bad debt in the personal loans sector is increasing, with defaults highest in the education segment and lowest in housing, according to an RBI report. Non-performing assets or NPA in education personal loans are at 3.6 percent in auto loans, and 1.1 percent, compared to 1.8 percent in credit cards, 1.3
Impact of Collection Agency Letters on Debtors
Nexa Collect
JUNE 23, 2023
Collection agency letters can impact debtors, depending on factors such as the debtor’s financial situation, emotional state, and knowledge of their rights and responsibilities. Here are some potential impacts: Stress and Anxiety : Receiving a letter from a collection agency can cause significant stress and anxiety for debtors.
CFPB Signals Increased Scrutiny Over Education Lenders
Troutman Sanders
APRIL 20, 2022
On April 18, the Consumer Financial Protection Bureau (CFPB or Bureau) published a blog post , scrutinizing the practice of withholding transcripts from students with delinquent accounts and who are attending an institute of higher education. Before that, he served as the CFPB’s student loan ombudsman under former Director Richard Cordray.
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CFPB Warns Student Loan Servicers About Collecting on Discharged Debt
Troutman Sanders
MARCH 16, 2023
On March 16, the Consumer Financial Protection Bureau (CFPB) released a compliance bulletin entitled Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts. The compliance bulletin focused on the treatment of certain private student loans following a bankruptcy discharge.
Debtor Education Course After Filing for Bankruptcy
Sawin & Shea
JANUARY 11, 2024
Medical bills, credit cards, payday loans, and struggling businesses – it can seem like the letters and calls from creditors will never stop. Since 2005, a debtor education course from an approved provider is mandatory for anyone who files for bankruptcy. Staring down mountains of debt can feel overwhelming.
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Education Department announces revamp of its student loan program
Collection Industry News
MAY 30, 2022
Chalk up another move in the right direction for student loans. The DOE says it has high expectations for loan servicers going forward, including hitting two key objectives – reducing borrower delinquency and default. As it stands now, loan servicers support borrowers through their time in school and then as they repay their loans.
Congress Passes Relief for Student Loan Borrowers in CARES Act
Titan Consulting
JUNE 7, 2020
Congress recently passed legislation in the CARES act that provides direct and indirect benefits to Federal Student Loan borrowers. Benefits include a suspension of payments, no negative credit reporting, no collection activity, and no accrual if interest until September 30, 2020. Help Available for Borrowers with Student Loans.
Federal Student Aid Office to Get Overhaul as Search for Cordray’s Replacement Continues
Account Recovery
MAY 31, 2024
In a letter sent to all staff yesterday, Secretary of Education Miguel Cardona outlined a comprehensive plan to improve Federal Student Aid (FSA) for students, families, borrowers, and schools. FSA is responsible for servicing and collecting on […]
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California Private Student Loan Collections
Collection Industry News
AUGUST 8, 2022
15 provides the Private Student Loan Collections Reform Act, which is contained in Sections 1788.200 to 1788.211. Section 1788.203 requires all settlement agreements between a private education lender or private education loan collector and a debtor to be documented in open court or otherwise reduced to writing.
Education Department’s Oversight Team Cuts: What It Means for Borrowers
Collection Industry News
MARCH 12, 2025
On March 11, the United States Department of Educationannounced it was cutting nearly half its workforce, including staff from its Vendor and Program Oversight Group, which is responsible for overseeing federal student loan servicers.12This 12This could be bad news for student loan borrowers. SPONSORED Trade on the Go.
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Second Circuit Disallows Private Educational Loans from Discharge Under 11 U.S.C. § 523(a)(8)(ii)
ABI
JANUARY 13, 2022
Sallie Mae , the United States Court of Appeals for the Second Circuit held that private educational loans may be discharged under § 523(a)(8)(ii) of title 11 of the United States Code (the “Bankruptcy Code”). [1] 1] Homaidan funded his college education, in part, with two private tuition loans from Navient that totaled $12,567. [2]
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Dep't of Education ordered to cancel student loans of all former Corinthian Colleges students in MA
Public Citizen
JUNE 29, 2020
"A federal judge has ordered the Department of Education to cancel the student loans of all 7,200 former Corinthian Colleges students in Massachusetts. This is the first time a federal court has ordered a borrower defense discharge of federal student loans. "The victory in Vara v.
Managing Compliance and Regulations in Collections in the UK: What Lenders Should Know
Taurus Collect
JUNE 16, 2024
Managing compliance and regulations in collections can be challenging for lenders in the UK. Stay tuned for insights that could make a significant difference in your approach to debt collection. They oversee debt collecting companies to ensure fair treatment of customers.
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Can I Discharge a Private Student Loan in Bankruptcy?
Sawin & Shea
JULY 13, 2022
The majority of people in Indiana who have thought about declaring bankruptcy likely already know how challenging it is to get student loans erased. Although it is not impossible, debtors normally need to pass the Brunner test, which establishes that repaying the student loans will put them in an unreasonably difficult position.
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