Author: Kate Webster

New Jersey AG Settles with Student Loan Company, Refunds to be Issued to Student Borrowers

New Jersey Attorney General Christopher S. Porrino, pictured on the far left, announced the settlement last Friday.On June 16, New Jersey Attorney General Christopher S. Porrino and the New Jersey Division of Consumer Affairs announced a settlement with a for-profit company that was offering student loan consolidation services to New Jersey consumers without a proper license.Consumer Financial Resources, operating under the name Student Loan Resolve, is to refund $119,606 to 95 New Jersey consumers who used its services. Consumers will receive the restitution over eight installments from June 15, 2017 to March 15, 2019. Through the settlement, Student Loan...

Read More

Questions Continue to Surround Mississippi’s Student Loan Program

A number of state run student loan grants are aimed at keeping Mississippi students in-state at schools like the University of Mississippi, featured above. As higher education expenses continue to rise across the United States, questions have been raised within the state of Mississippi regarding how to continue affording three state undergraduate grant programs, prompting legislative action.Currently, the state of Mississippi has three major undergraduate grant programs. The first is the Mississippi Resident Tuition Assistance Grant (MTAG) which is designed for those with low test scores and low high school grades. MTAG is available to most students, but not those who are...

Read More

Fraudulent Student Debt Relief Company Still in Business After Georgia Ban

Pictured above is the CFPB office. The CFPB is making a serious effort to crack down on student debt relief scams.Academic Debt Alliance LLC, a company that charges borrowers to prepare loan-reduction applications that can be filed for free online, continues to operate throughout the United States despite being banned in the state of Georgia last year.After actions were taken by Georgia’s attorney general in 2016, Academic Debt Alliance was found to be fraudulent, the company was fined, ordered to give customer refunds, and banned from operation in Georgia.However, the fraudulent company still operates throughout the U.S. from a...

Read More

New York Bill Would Give Tax Break to Employers Who Help Workers Pay Off Student Debt

Senator Betty Little of New York at an unrelated hearing.Assemblyman Billy Jones, a Democrat from Chateaugay, New York (NY), helped introduce a bill at the start of May that would offer a tax credit to employers who help their employees pay off student loan debt. While the idea isn’t new, the tax credit in this bill differs from previous efforts. Bill Jones was the author of the legislation according to the NY Assembly website.The legislation, A07491, would give employers a tax credit worth up to $10,000 in exchange for helping their workers repay federal and state student loans. It is...

Read More

New Student Loan Interest Rates Won’t Benefit Taxpayers

The Capitol building in Washington, D.C.By now you’ve probably already heard that as of July 1, federal student loan interest rates will rise. But what you don’t know is that the increase can actually have a negative impact on taxpayers according to Forbes.While some might think that higher interest rates would benefit taxpayers, that is not the case. Why? Simply put, the government runs on a deficit. While student loan interest rates go up, the government’s borrowing costs also rise, but net revenue for taxpayers does not.Another key factor is the emergence of income-driven repayment (IDR) plans and its...

Read More