Rhode Island treasurer Seth Magaziner is leading a group of investors in demanding answers from Navient, the country’s largest student loan servicer, regarding its role in the national student debt crisis.
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Most students who graduated from Virginia’s public colleges and universities last year left not only with a degree, but also with a financial burden: an average student loan debt of about $30,000.
A bill before the governor would identify predatory practices that add to school debt and hamper the economy.
Massachusetts, Maine, and others want to police companies that collect loan payments. The Department of Education says they can’t.
The Massachusetts state senate passed a bill that would create an ombudsman to monitor student loan companies and handle borrower complaints. The bill would also require student loan servicers operating in the state to obtain a license.
The Massachusetts Senate unanimously passed a bill on Wednesday regulating student loan servicers, which, if it becomes law, will likely set up a clash between Massachusetts and the federal government.
The Massachusetts Educational Financing Authority, a student loan agency, announced Wednesday that it is ending its membership in a national group that has been lobbying the US Department of Education to ease regulations on loan servicers.
The U.S. Education Department wants states to defer to federal oversight of the companies that service the billions of dollars in student loans that it issues, but the states are not going down without a fight.
A new report has revealed the extent of student loan debt in Massachusetts, finding that 855,500 borrowers owe a total of $33.3 billion.
A confidential draft memo drawn up by the U.S. Department of Education lays out the case for why states, including California, should abandon their own laws for student-loan servicers and let the feds allow these for-profit companies to skate by with considerably less oversight.