Category Archives: Student Loans

Are we going to see UDAAP statutes used against discrimination? The Student Borower Protection Center hopes so

The SBPC issued a report, DISCRIMINATION IS "UNFAIR": Interpreting UDA(A)P to Prohibit Discrimination. Here's the Executive Summary: This Article explores a theory that discrimination is a type of “unfair” practice covered by federal and state laws prohibiting unfair, deceptive (and sometimes abusive) acts and practices (“UDA(A)Ps”). An “unfair” practice is defined by statute as something […]

Jackson & Mark paper asks whether the executive branch can forgive student loan debt without congressional action

Howell E. Jackson and Colin Mark, both of Harvard, have written May the Executive Branch Forgive Student Loan Debt Without Further Congressional Action? Here's the abstract: On April 1, 2021, the Biden Administration announced that Secretary of Education Michael Cardona will consider whether the President has legal authority to forgive up to $50,000 per debtor in […]

The NY Times on the latest in illusory consumer protections: the 12-minute DeVos system to decide student loan forgiveness

by Jeff Sovern Consumer law is filled with illusory consumer protections, and one form they take is the supposed obligation to give serious consideration to the possiblity that the provider is wrong in its claims. Examples include credit bureaus' obligations to conduct a reasonable investigation of consumer disputes–an obligation which has historically been discharged in […]

Cox & Engel paper critiques federal student loan program

Minnesota's Prentiss Cox and Suffolk's Kathleen C. Engel have written Student Loan Reform: Rights Under the Law, Incentives Under Contract, and Mission Failure Under ED, Harvard Journal on Legislation, Forthcoming. Here's the abstract:  The federal student loan program is a disaster. Over five million people are in default even though Congress provides all borrowers with the […]

Do We Have To Tax Student Debt Forgiveness?

Student debt forgiveness is gaining traction among Democrats, with Senate Minority Leader Chuck Schumer calling on Joe Biden to forgive $50,000 of student debt via executive action during the first 100 days of his Presidency — that is, to adopt Senator Warren's plan from the primary. Last night, Jason Furman—one of President Obama's top economists—tweeted […]

Matt Bruckner article on the roles of the states in protecting student loan borrowers from misbehaving schools

Matthew A. Bruckner of Howard has written The Forgotten Stewards of Higher Education Quality, 11 U.C. Irvine L. Rev. 1 – 41 (2020). Here's the abstract: A “triad” of regulators is supposed to ensure that student loan borrowers are not harmed by low-value institutions of higher education, including exploitative profiteers operating fly-by-night or predatory institutions of […]

Supreme Court bans debt collection robocalling to cellphones

by Stephen Gardner Today, the Supreme Court held that collecting government debt by robocalling cellphones didn’t deserve special First Amendment treatment. In Barr v. American Assn. of Political Consultants, Inc., the Court held that a 2015 amendment to the Telephone Consumer Protection Act, which allowed cellphone robocalls to collect federal debts (such as student loans […]

Trump waives interest on government student loans, but payments won’t change

by Jeff Sovern Yesterday, as part of his response to the coronavirus, President Trump announced that he was temporarily waiving "interest on all student loans held by federal government agencies." According to the NY Times, monthly payments won't change. Instead, the monthly payments will go to reducing the principal, which will ultimately reduce the amount […]