Author: Drew Cloud

Default and Student Loans: What Do Borrowers Know?

Quick Links Key Findings and ResultsFull Poll Results & DataMethodology The national student loan default rate is now over 11 percent, and the total outstanding student debt shows no signs of shrinking any time soon. When you think about the 44 million+ borrowers with student loan debt, that default rate is a little more frightening. Millions of borrowers throughout the United States are not making payments and are digging themselves into a hole that is not easy to get out of.Without even considering the issues caused by defaulting, student loan debt causes plenty of other problems. Many graduates move back...

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Richard Cordray Resigns as Director of CFPB

An old picture of Richard Cordray (center) with couple union leaders.In an e-mail to his co-workers, the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, officially announced his plans to leave office by the end of the month.Richard Cordray was among the last government officials to be appointed by the Obama Administration in the banking regulation industry. Although Cordray did not mention anything about his plans, some speculators think he may be a potential candidate for the upcoming Ohio gubernatorial election.His resignation is not a surprise to anyone familiar with the industry. The director of the Consumer...

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Fresh Lawsuits Filed Against Betsy DeVos and Navient Over Student Loan Cancellation

Earlier this week, two student loan borrowers filed a lawsuit against the U.S. Department of Education and the student loan servicer Navient.Tina Carr and Yvette Colon from the Sanford-Brown Institute, a for-profit college in New York, claimed they were defrauded by their education institution. The pair of debtors are looking to have their loans erased. According to their attorneys, the case could become a landmark for the thousands of students seeking loan relief who experienced similar trouble.Originally part of the Career Education Corporation chain of colleges, the Sanford-Brown Institute ended its activities back in 2015, leaving nearly 30,000 students...

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University of Michigan Introduces Free Tuition Policy, Yet Still Struggles with Elitist Label

Pictured above is a building at the University of Michigan, Ann Arbor.“An uncommon education for the common man” has been the rallying cry of the University of Michigan campus and administration for the last 140 years. However, Michigan faces challenges to its “common man” identity in the modern age: elitism.Rising tuition costs and living expenses have put university education out of reach for low-income families like never before, and Michigan’s administration can’t seem to escape their “elitist” label according to an in-depth report from Politico. It has become such a problem that a recent pledge was made, offering free...

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BBC Investigation Uncovers Shady Student Loan Fraud at UK University

A BBC Panorama reporter presented a 10-month-long investigation on student loan fraud involving Plymouth University, a British college in the United Kingdom.The story highlighted how many aspiring students who lacked academic qualification were entering Plymouth University, securing student loans in the process, through “shady education agents.”The investigation revealed dishonest education agents recruiting students to private institutions; the practice opened these students up to taking out student loans who may have been better off without the student debt.The BBC reporters also claimed finding solid evidence of abuse of the student loan system by Greenwich School of Management (GSM), one of...

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