The administration said Thursday it will take several months before the federal loans of student borrowers will be forgiven. These students were victims of alleged fraud by the career college chain.
The best news: Foreclosures hit their lowest point in the 16-year history of the New York Fed’s tracking of consumer credit.
But Clinton and two other presidential candidates, Republicans Jeb Bush and Marco Rubio, have ties to for-profit institutions, the class of colleges often blamed for much of the nation’s out-of-control student-loan debt and deceptive marketing practices.
Her plan also includes incentives to states that agree to provide “no-loan tuition at four-year public colleges and universities.”
Rising tuition costs are leaving them with an average of $35,000 in debt, which is roughly twice the debt of previous generations.
On July 13, 2015 the company announced its intention to transfer the website FAFSA.com to the U.S. Department of Education, which manages the federal government’s Free Application for Federal Student Aid program.
“Discover created student debt stress for borrowers by inflating their bills and misleading them about important benefits,” said CFPB Director Richard Cordray.
The Consumer Financial Protection Bureau says it has uncovered “problematic industry practices” that may be disqualifying some consumers from securing a co-signer’s release from their private student loans.
This is very poor advise, according to just about every financial expert familiar with the pitfalls of lingering, defaulted debt from college loans that can haunt a borrower for decades.
A “streamlined process” will be formulated to discharge loans tied to any college found to have defrauded borrowers, according to a statement by the Department of Education.