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Student Loans Financial Services Industry Borrowers

Sheppard Mullin Richter & Hampton LLP

CFPB Settles Action Against Student Loan Servicer with Industry Ban

On September 12, 2024, the Consumer Financial Protection Bureau (CFPB) filed a proposed order which, if entered by the court, will ban a student loan servicer from servicing federal student loans and require it to pay $120...more

Orrick, Herrington & Sutcliffe LLP

District Court approves $3.65 mil. settlement against student loan servicer

On June 24, the U.S. District Court for the Western District of Pennsylvania approved a class action settlement involving student loan borrowers brought against a student loan servicer....more

Alston & Bird

CFPB Seeks Permanent Enforcement – Will this Further its Repeat Offender Agenda?

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On May 31, 2024, the Consumer Financial Protection Bureau (CFPB) sued student loan servicer Pennsylvania Higher Education Assistance Agency (PHEAA) for illegally collecting on student loans that have been discharged in...more

Orrick, Herrington & Sutcliffe LLP

CFPB sues student loan servicer over discharged student loan collections

On May 31, the CFPB announced its lawsuit against a Pennsylvania-based student loan servicer (the defendant) for allegedly collecting on discharged loans. According to the complaint, the defendant lacked policies and...more

Sheppard Mullin Richter & Hampton LLP

CFPB Settles Action Against Student Loan Servicer and Securitization Trusts

On May 6, 2024, the CFPB resolved an enforcement action against a group of Delaware student loan trusts and a loan servicer (found here and here) for their failures to adequately respond to borrowers’ requests for relief,...more

Sheppard Mullin Richter & Hampton LLP

Third Circuit Ruling Gives CFPB Green Light to Enforce Against Student Loan Trusts

In a significant ruling on March 19, the Third Circuit Court of Appeals held that the CFPB can proceed with its lawsuit against a group of Delaware student loan trusts rejecting their claims that they are just passive...more

Orrick, Herrington & Sutcliffe LLP

CFPB releases consumer advisory for student borrowers notifying them of April deadline to cancel

On March 11, the CFPB published a consumer advisory notifying student loan borrowers that they may have an opportunity to cancel or receive credits toward the cancellation of their student loans but some borrowers will need...more

Troutman Pepper

Massachusetts AG Settles With Major Student Loan Servicer for $1.8M Over Faulty Notices

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On January 11, Massachusetts Attorney General (AG) Andrea Joy Campbell announced a $1.8 million settlement with Nelnet, Inc. (Nelnet), one of the largest federal student loan servicers in the U.S., for allegedly sending...more

Orrick, Herrington & Sutcliffe LLP

Student loan servicer fined $1.8 million by Massachusetts Attorney General

On January 11, the Massachusetts Attorney General (AG) announced a $1.8 million settlement with a student loan servicer, to resolve allegations that the company did not properly communicate Income-Driven Repayment (IDR) plan...more

Orrick, Herrington & Sutcliffe LLP

CFPB finds student loan servicer issues in new report

On January 5, the CFPB released a report on how student loan borrowers may face customer support challenges as their student loan payments resume. Federal student loan repayments resumed for the first time in over three...more

Ballard Spahr LLP

CFPB Report Identifies Challenges Faced by Borrowers in Resumption of Student Loan Payments

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The Consumer Financial Protection Bureau highlighted its observations of the resumption of federal student loan payments by consumers after more than three years of a payment moratorium due to COVID-19 in a report released on...more

Ballard Spahr LLP

Dept. of Education issues framework for student loan servicer accountability

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The White House signaled last week that, with the resumption of federal student loan payments, federal student loan servicers can expect to face increased scrutiny. The Department of Education issued a “Framework for Student...more

Orrick, Herrington & Sutcliffe LLP

CFPB releases education ombudsman’s annual report

On October 20, the CFPB Education Loan Ombudsman published its annual report on consumer complaints submitted between September 1, 2022, and August 31, 2023. The report is based on approximately 9,284 student loan complaints...more

Orrick, Herrington & Sutcliffe LLP

CFPB, states sue company over deceptive student lending and collection

On July 13, the CFPB joined state attorneys general from Washington, Oregon, Delaware, Minnesota, Illinois, Wisconsin, Massachusetts, North Carolina, South Carolina, and Virginia in taking action against an education firm...more

Orrick, Herrington & Sutcliffe LLP

Nevada to regulate student loan servicers and lenders

On June 14, the Nevada governor signed AB 332 (the “Act”) which provides for the licensing and regulation of student loan servicers. The Act also implements provisions for the regulation of private education loans and...more

Orrick, Herrington & Sutcliffe LLP

CFPB highlights student loan borrower risk as payment suspension set to expire

On June 7, the CFPB released updated figures on risks facing student loan borrowers when payments paused during the pandemic are set to resume 60 days after June 30. Examining a deidentified sample of credit records, the...more

Orrick, Herrington & Sutcliffe LLP

CFPB scrutinizes discharged private student loan billing and collection practices

On March 16, the CFPB released a compliance bulletin discussing student loan servicers’ practice of collecting on private student loans discharged in bankruptcy. ...more

Shipkevich PLLC

CFPB Issues Bulletin to Warn Student Loan Servicers Who Ignore Bankruptcy Court Orders

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On March 16, 2023, the Consumer Financial Protection Bureau (CFPB) issued a bulletin cautioning loan servicers about their responsibility to stop any illegal activity related to private student loans that have been discharged...more

Ballard Spahr LLP

CFPB issues bulletin on handling of discharged student loans by servicers

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The CFPB has issued a new bulletin (2023-01) titled “Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts.” The bulletin warns servicers that they risk engaging in a UDAAP...more

Frantz Ward LLP

Student Loan Forgiveness at Risk after Skeptical Justices Focus on Fairness and Authority

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Earlier this week, the United States Supreme Court heard oral arguments in a challenge to the Biden administration’s effort to cancel $400 billion in student debt. The litigation was initiated by a group of six right-leaning...more

Spilman Thomas & Battle, PLLC

All Consuming - Financial Litigation Insights, Volume 3, Issue 12

Student Loans - Supreme Court Likely to Rule that Biden Student Loan Plan is Illegal, Experts Say. Here’s What that Means for Borrowers - “Long before the president acted, Republicans had criticized student loan...more

Troutman Pepper

CFPB Examines Potential Impact of Student Loan Payment Reinstatement

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On November 2, the Consumer Financial Protection Bureau (CFPB) released a blog post, exploring the potential impact of student loan payment reinstatement. The CFPB found that student loan borrowers are increasingly likely to...more

Sheppard Mullin Richter & Hampton LLP

CFPB Supervisory Examinations Find Violations by Student Loan Servicers and University-Owned Lenders

On September 29, the CFPB released a special edition of Supervisory Highlights on student loan servicing practices of loan servicers and schools lending to students directly. The report highlights three notable findings...more

Ballard Spahr LLP

Oregon finalizes student loan servicer regulations with July 1 effective date

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On June 27, the Oregon Department of Consumer and Business Services’ (“Department”) Division of Financial Regulation (“Division”) finalized new regulations implementing Senate Bill 485, which requires companies to obtain a...more

Sheppard Mullin Richter & Hampton LLP

CFPB Targets Student Loan Debt Relief Scam Reboot

On June 9, the CFPB filed a complaint and proposed order in California federal district court seeking final judgment against the owner of a student loan debt relief company for allegedly withdrawing more than $240,000 from...more

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