Student Borrowers News

education2 years ago•1 min saved

"Predatory Lender Settles $30M Lawsuit, Providing Debt Relief to Student Loan Borrowers"

Minnesota Attorney General Keith Ellison has announced a $30 million settlement with alleged predatory lender Prehired, providing relief to student borrowers. Prehired will refund students' money, void outstanding income shared agreements, and permanently close. The settlement comes after Ellison's previous settlement with student loan debt relief company Network 46, requiring them to pay over $59,000 in refunds.

via CBS News|

#education #keith-ellison #predatory-lender

education2 years ago•4 min saved

Risks of College Tuition Payment Plans: CFPB Report and Consumer Group Warn

A report by the Consumer Financial Protection Bureau (CFPB) reveals that college tuition payment plans offered by many institutions can put student borrowers at risk. The report found inconsistent disclosures and confusing repayment terms in these plans, leading to missed payments, late fees, and accumulating debt. Some institutions also withhold transcripts as a debt collection tool, which is potentially illegal and can have severe consequences for students. The report highlights the need for colleges and universities to review their repayment plans and avoid high fees or coercive debt collection practices. Additionally, the report identifies other risks such as snowballing fees, forced arbitration provisions, and confusing disclosures. The CFPB will continue to monitor tuition payment plans and school-based lenders for potential violations of consumer financial law.

via Consumer Financial Protection Bureau|

#cfpb #college-tuition #debt-collection