‘Unconscionable’: DeVos smacked with two suits, claiming student loan borrowers ripped off

Four states have sued Education Secretary Betsy DeVos, claiming she and her department ripped off thousands of students who filed debt relief claims after the collapse of the massive for-profit education company Corinthian College. The complaint, filed by Attorney General Xavier Becerra (D-California) in the US District Court for the Northern District of California on […]

Banks are cutting back on lending to the riskiest borrowers (TRU)

John Moore/Getty Banks are scaling back on lending to Americans with the lowest credit scores, according to a study from TransUnion.  Lenders processed fewer new personal loans, auto loans, and credit cards for subprime borrowers year-on-year in Q2 for the first time since 2012. Lenders tightened their standards after the housing crisis a decade ago following […]

‘Even gambling addicts have more protections’ than student-loan borrowers

Drew Angerer/Getty Images Borrowers who default on their student loans are pursued aggressively by the Department of Education and private debt collectors, facing garnished wages, withheld IRS tax returns, and decreased Social Security payments, Reuters reported. “We treat struggling student-loan borrowers the same as deadbeat parents and tax cheats,” Seth Frotman, a senior member of the […]

Illinois is set to be the third state to enact laws against ‘scam artists who exploit’ desperate student loan borrowers

Mark Wilson/Getty Images The student loan crisis is starting to feel a lot like the housing crisis of the last decade, warns Illinois State Attorney General Lisa Madigan — a swelling economic disaster with millions of fragile borrowers unable to get timely help or good advice. If that seems like an overstatement of the situation […]