Seth Frotman joins Attorney General Becerra and the State of California in demonstrating how to be a fierce advocate for borrowers’ rights — one that stands up to special interests and fights on behalf of millions of families with student debt.
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To clean up the mess, it’s time for some good old-fashioned debt forgiveness. If Mr. Obama could bail out the banks, Mr. Trump could do the same for students sold on a lousy idea by their government.
The American Federation of Teachers says Navient failed to guide borrowers through a loan forgiveness program.
Statement by Seth Frotman as American Federation of Teachers announced its landmark lawsuit against Navient.
Nearly 30,000 people have applied to have their student loans forgiven under a government program that rewards those who work in public service for at least 10 years while keeping their payments for their loans up to date. Only 96 actually had their loans forgiven.
“In the aftermath of the financial crisis, we learned repeatedly about dubious practices among mortgage servicing companies that made it harder for homeowners trying to repay or renegotiate their loans. Now, similar horror stories are emerging about the companies servicing student loans.”
Traditionally, in bankruptcy court, any loan with the word “student” associated with it has not been dismissed. New York lawyer, Austin Smith, has a different take on the law.
A recent report found that students that graduate with debt in Maryland continue to see the amount of debt they carry after graduation rise.
More than 50 percent of Oregon college grads are in debt, and Oregon is ranked 22nd in the country for its amount of average student loan debt per borrower.
State Attorney General Xavier Becerra accused one of the nation’s largest student loan servicers of cheating perhaps thousands of California borrowers, and on Friday sued the company and its subsidiaries.
The amount of money owed on student loans recently reached $1.5 trillion in the United States, with more than 44 million borrowers still paying off – with interest – the escalating costs of a college education.
Student loans can be hard to navigate, but Friday Governor Northam signed House Bill 1138 into law which will make it easier for students to understand the repayment process.
These are just a taste of the complaints submitted by New Jersey student loan borrowers to the federal government and made public by the federal Consumer Financial Protection Bureau.
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.
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.