Category: Uncategorized

SBPC Investigation Uncovers Decades-Long Student Loan Industry Scheme to Deprive Millions of Private Student Loan Borrowers of Bankruptcy Rights

Based on a comprehensive review of securities filings, student loan promissory notes, and government data, SBPC estimates that $50 billion in so-called private student loans taken on by more than 2.6 million borrowers, are, in fact, eligible to be discharged in bankruptcy despite representations to the contrary by lenders and loan servicers.

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$50 Billion of Student Debt Could Be Entitled to Automatic Cancellation in Bankruptcy But Borrowers May Not Know About It

“The SBPC, a Washington D.C.-based advocacy group for student borrowers, estimates that a total of about $50 billion of such loans are out there, and they may be as easy to cancel in bankruptcy as credit card debt or other consumer loans.”

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2.6 Million Student-Loan Borrowers Could Get Rid of Their Debt by Declaring Bankruptcy — But Major Companies are Blocking That

“On Thursday, the Student Borrower Protection Center (SBPC) released a report that found 2.6 million borrowers with private student debt could be eligible for as much as $50 billion in loan cancellation through bankruptcy.”

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$50 Billion of Student Debt Could be Wiped Away in Bankruptcy, Report Says

“A new report indicates that as much as $50 billion in debt, colloquially referred to as private student loans and held by 2.6 million borrowers, could actually be wiped away in bankruptcy court. The findings come from an analysis published Thursday by the Student Borrower Protection Center, an advocacy group.”

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President Biden’s Student Loan Reforms Fails After Repayment Plan Approves Only 32 Borrowers Out Of Millions

As of March, however, only 32 borrowers have been forgiven out of millions, according to Insider. Persis Yu, Policy Director and Managing Counsel at the Student Borrower Protection Center, said millions of borrowers are still struggling to make payments, and the Biden Administration needs to help them.

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Student-Loan Giant Navient Agrees to $1.8 Billion Deal With 39 States, Denies Wrongdoing

According to Shapiro, Navient allegedly originated predatory subprime private loans to students attending for-profit schools and colleges with low graduation rates, even though it knew that many borrowers would be unable to repay the loans. Shapiro called the practice similar to the subprime mortgage crisis that led to the 2008 financial collapse.

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Navient Reaches a $1.85 Billion Deal to Settle Claims of Predatory Behavior.

The deal, announced Thursday, requires Navient to cancel $1.7 billion in private student loan debts for nearly 66,000 borrowers and pay $95 million in restitution. The private loans were crucial to Navient’s ability to make a large volume of lucrative federal loans, prosecutors said.

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Student Borrower Protection Center Statement on Navient’s Settlement with 39 States Cancelling $1.7 Billion in Predatory Private Student Loans

Today, 39 states settled lawsuits and investigations against the student loan giant Navient Corporation (Navient) related to allegations of predatory lending and illegal student loan servicing that harmed borrowers nationwide. Per the terms of the settlement, with a bipartisan group of 39 state attorneys general, borrowers will enjoy $1.7 billion in cancellation on dangerous, high-cost private student loans.

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Navient, El Administrador de Préstamos Estudiantiles, Cancelará $1,7 Mil Millones en Deudas

La fiscal general de Nueva York, Letitia James, declaró que la empresa “contribuyó a la crisis nacional de la deuda estudiantil al atrapar de forma engañosa a miles de estudiantes en más deudas”.

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Navient Will Cancel $1.7 Billion in Student Loans—Here’s When Borrowers Will See Relief

The student loan cancellation will impact approximately 66,000 private student loan borrowers. Eligible private student loan borrowers should receive a notice from Navient by July 2022, along with refunds of any payments made on the canceled private loans after June 30, 2021.

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