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 Student 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.
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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. 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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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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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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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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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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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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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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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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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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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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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.
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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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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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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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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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.
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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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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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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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Q4 Industry Insights: Looking Good on Paper, Feeling Bad in Wallets, Everyone’s Uncertain on Financial Outlook
True Accord
JANUARY 21, 2025
We are entering a year of unknowns across the board, from potential regulatory changes to economic fluctuations to varying consumer sentiments, and theres a lot to consider as it relates to debt collection in 2025. Whats Impacting Consumers? While inflation isnt cooling dramatically, it also isnt showing signs of speeding back up.
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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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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.
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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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.
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.
The 7 Best Student Loan Refi Companies – as of May 2022
Better Credit Blog
MAY 11, 2022
million people carry some form of student loan debt, with most averaging around $39,000 —although many of us have a lot more. Refinancing your student loans could help lower your monthly payments and reduce your overall repayment amount. Additionally, look at our best student loan companies to apply completely online.
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.
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. Borrowers are understandably frustrated when they receive inconsistent information about something as important as their student loans. The post Education Department announces revamp of its student loan program appeared first on Collection Industry News.
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.
Student loans will now take 40 years to repay
Collection Industry News
FEBRUARY 25, 2022
Annual fees will be frozen at £9,250 for another two years and student loan interest rates are being cut to match the retail price index (RPI). The flip side is that school leavers who go on to higher education will be making repayments for up to 40 years, rather than a maximum of 30 at present.
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. As recently as December 2021, U.S.
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Keeping Your Student Loan Out of Default
Debt Guru
JANUARY 27, 2020
Higher education is a noble pursuit. In fact, The Institute for College Access & Success reported that 65 percent of 2017 grads carry student debt – at an average of $29,200. It’s no wonder, then, that defaulting on student debt has become rampant. Unfortunately, in the US, it’s also a pricey one.
CFPB Focuses on Student Loans — Especially Those Made by Schools — in Latest Supervisory Highlights
Troutman Sanders
OCTOBER 4, 2022
On September 29, the Consumer Financial Protection Bureau (CFPB or Bureau) released a special edition of its Supervisory Highlights , focusing on student loan servicing. It’s time to open up the books on institutional student lending to ensure all students with private student loans are not harmed by illegal practices.”.
Navient settles predatory student loan claims for $1.85B
Collection Industry News
FEBRUARY 7, 2022
BOSTON — Navient, a major student loan collecting company, agreed to cancel $1.7 Navient is and has been continually focused on helping student loan borrowers understand and select the right payment options to fit their needs,” Chief Legal Officer Mark Heleen said in a statement. The company agreed to cancel $1.7
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.
CFPB Releases Blog Post on the Dischargeability of Private Student Loans in Bankruptcy
Troutman Sanders
APRIL 14, 2022
On April 12, the Consumer Financial Protection Bureau (CFPB) released a blog post titled “ Busting myths about bankruptcy and private student loans.” In the blog post, the CFPB argues that certain private education loans can be discharged in bankruptcy. The CFPB’s playbook appears to be the same here.
Timing Is Everything: Student Loan Servicer Avoids FDCPA Liability in Sixth Circuit
Troutman Sanders
APRIL 2, 2021
The Sixth Circuit recently confirmed student loan servicers, who begin servicing debts after default and resale, are not liable to borrowers under the Fair Debt Collection Practices Act (FDCPA) because the servicers are not acting as “debt collectors.”. On March 25, in Willison v. Nelnet, Inc. , 1692(a), (b), (e). 1692a(6).
Discharging Student Loan Debt: The Brunner Test
ABI
JANUARY 12, 2022
Generally, student loan debt will not be discharged in a case under title 11 of the United States Code (the “Bankruptcy Code”) unless there is a showing of “undue hardship on the debtor and debtor’s dependents.” United States Dep’t of Educ. , 8]. United States Dep’t of Educ. , State Higher Educ.
CFPB Steps Up Scrutiny of Student Loan Servicers That Deceive Borrowers About Public Service Loan Forgiveness
Collection Industry News
FEBRUARY 21, 2022
Washington, D.C. – Today the Consumer Financial Protection Bureau (CFPB) released a bulletin detailing student loan servicers’ obligation to halt unlawful conduct regarding borrowers’ eligibility and benefits under the Public Service Loan Forgiveness (PSLF) Waiver. Secretary of Education Miguel Cardona. “I Source- site.
Who Is Navient and Why Are They Calling Me?
Credit Corp
MARCH 21, 2023
According to the Federal Reserve, 4 in 10 people who go to college incur debt to pay for their education. Currently, individuals with outstanding student loan debt owe as much as $100,000 or more, with more than 40% owing between $20,000 and $99,999. Navient is a student loan servicer. Why Is Navient Calling Me?
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