Student loan debt is the new credit card debt and that seems to have brought increased scrutiny to a labyrinthine field. As a journalist, I consider sunshine and scrutiny good things. If you are one of the millions of Americans still toiling to pay off your college education, keep your eye on these developments to see if any of them will be financially meaningful for you.
•A Boston federal appeals court is considering a case which would allow the plaintiff to discharge student loan debts through bankruptcy, which is practically impossible now. The plaintiff argued that his loans constitute an undue hardship.
•The Consumer Financial Protection Bureau has put out a detailed report about problematic student loan servicing practices. The report includes recommendations for how to overhaul how the student loan servicing marketplace is regulated.
•In June the Department of Education announced that it would forgive student loans for students who attended Corinthian Colleges, which were for-profit schools that closed and went bankrupt, leaving students in the lurch.
Having problems with YOUR student loan? Your issue is on the nation’s radar. Contact the Consumer Financial Protection Agency to voice your concerns and you could be part of a reform movement that makes student loan problems passe.