How the student debt crisis and the need for state oversight is making local news
NJ Spotlight
September 4, 2019 |CPAS: Action From Congress Needed Action from Congress Needed to Help Reduce Student-Debt Load
In New Jersey, more than 1 million people had outstanding student loans totaling more than $43 billion as of the end of last year, according to the nonprofit Student Borrower Protection Center. The average loan balance for each indebted New Jersey resident totaled nearly $40,000, according to the Washington, D.C.-based organization.
Insider NJ
August 29, 2019 |Advocates File Amicus Brief to Defend Students Against Navient Corporation
Shapiro alleges Navient violated Pennsylvania’s laws by steering borrowers towards costly repayment programs or into forbearance, which allows students to temporarily postpone repayment while interest continues to accrue.
The Philadelphia Inquirer
July 12, 2019 | New Jersey passes ‘student borrower bill of rights’ in a bid to crack down on loan servicers
The New Jersey legislature has passed a “student borrower bill of rights” that regulates companies that service student loans, part of a national trend as America deals with its $1.6 trillion student-debt crisis. The bill forces companies like Navient, FedLoan, and other student-loan servicers to register with the Department of Banking and Insurance and comply with borrower-friendly protections. Violations would attract a $10,000 fine the first time and $20,000 for subsequent ones. It also creates a student loan ombudsman in the state agency.
NJ Spotlight
June 7, 2019 | Lawmakers Approve Oversight for Companies Servicing Student Loans
The Assembly Higher Education Committee on Thursday passed S-1149/A-455 which would establish a student-loan ombudsman within the state Department of Banking and Insurance (DOBI).
NJTV
June 6, 2019 | How NJ Plans to Protect Residents with Student Loan Debt
The Assembly Higher Education Committee discussed a bill that would give the state tools to go after student loan companies.
NJ.com
September 4, 2018 | Paying for College Just Got a Lot Scarier. N.J. Needs a Student Loan Rep
“When you put the word student in front of the word loan, people think it’s harmless or somehow it’s not a ‘real’ financial product. Nothing could be further from the truth.”
Philadelphia Inquirer
November 8, 2018 | PA., NJ Students Plunged Deep into College Debt by High Tuition, Broken Programs and Customer Service Horrors
“When you put the word student in front of the word loan, people think it’s harmless or somehow it’s not a ‘real’ financial product. Nothing could be further from the truth.”
WBGO 88.3
October 16, 2018 | Report Calls For NJ To Act On Abusive Student Loan Servicer Practices
“New Jersey can enact legislation to hold services accountable to essentially prevent them from engaging in unfair practices such as misapplying payments, losing paperwork, telling people which payment plans they are eligible for, very common-sense solutions that would make a difference in the lives of students and the economy as a whole.”
NJ.com
May 28, 2018 | The 11 Student Loan Companies NJ Hates Most and Why, Explained
“Incessant phone calls. Misapplied payments. Surprise high interest rates. These are just a taste of the complaints submitted by New Jersey student loan borrowers…”