Nearly All Department of Education Loan Programs Seemingly Broken Under DeVos

The Department of Education under Betsy DeVos seems to be broken when it comes to overseeing student loan programs. Deep issues are preventing debtors from getting access to programs and forgiveness under the law. The biggest broken programs are Public Service Loan Forgiveness, Borrower Defense to Repayment, Closed School Discharges, and now a new class-action … Read more

Private Student Loan Exec Named Watchdog of Student Loan Companies at CFPB

President Trump and Education Secretary Betsy DeVos remind me of the two bullies in The Christmas Story: Scott Farkus and Grover Dill, who spend their days terrorizing elementary-school kids. Since Trump was elected, his administration has aggressively signaled that it does it not give a goddamn about student-loan debtors. In fact,  his people seem to … Read more

Suit Against FedLoan Servicing Alleges They Screwed Over Public Service Loan Forgiveness and TEACH Grant Debtors

The Attorney General of Massachusetts has had enough of the complaints of incompetence about FedLoan Servicing (AKA Pennsylvania Higher Education Assistance Agency, PHEAA). In this unrelated case the U.S. Department of Education has been arguing that although their company assigned to manage the Public Service Loan Forgiveness (PSLF) program is making mistakes by saying people … Read more

PHEAA Won’t Get His Student Loans Out of Default – Erin

Question: Dear Steve, Married to man who defaulted on student loan with PHEAA. Past failed attempt at rehabbing loan. We spoke to PHEAA when they were garnishing his wages and had taken his tax refund (before we were married). Arranged an increased payment direct deposit to stop the wage garnishment and tax return taking, were … Read more

Big Case Proving Ability to Discharge Student Loans in Bankruptcy

Times are changing when it comes to being able to discharge student loans in bankruptcy. And while the road has been paved by a few who have been successful, one 2013 case decided by the U.S. Appeals Court in the Ninth Circuit seems like it gives hope to those who want to discharge their student … Read more

Sallie Mae and American Education Services Generate Most Student Loan Complaints

A report out today from the Consumer Financial Protection Bureau outline the major problems facing American’s today when it comes to dealing with private student loans. Not surprisingly, Sallie Mae tops the list of most complained about student loan company, with 46 percent of all private student loan complaints. American Education Services (PHEAA) was a … Read more

Would a Cosigned PHEAA Student Loan Be Forgiven By Disability? – Ron

“Dear Steve, Is the cosigner responsible for pheaa students loans if death or disability of the student occurs? Ron” Dear Ron, Ultimately you’d have to look at the actual loan document. But since the cosigner is guaranteeing to repay the loan if the student did not I would have to imagine that if money was … Read more

Full Time Student, Out of Cash, Wages Being Garnished by AES/PHEAA. Help! – Keith

“Dear Steve, I have a family of four and spouse who is an fulltime student. Income cut in half because of economy. Sinking fast and have exhausted all savings and 401k trying to stay afloat My wages are being garnished by AES/PHEAA for defaulted student loan. I requested an economic hardship hearing in writing at … Read more