There’s been a lot going on in the world of student loans during the past couple of weeks. Here’s a summary:
- This week, the Massachusetts State Senate passed a bill limiting the use of credit checks in hiring. This could provide some much-needed relief to consumers who have a negative credit history (such as a prior student loan default), which can cause ongoing problems in securing employment and housing. The bill now goes to the House.
- The Massachusetts State Senate also passed a landmark bill providing substantial new protections from debt collectors. This has the potential to be a game-changer here in terms of student loan collections, especially for private student loans. The bill will be sent to the House, where we hope it will pass.
- The U.S. Justice Department has launched a probe into whether Bridegepoint Education, the owner of Ashford University and the University of the Rockies, is violating a law that prohibits for-profit colleges from getting more than 90 percent of their operating revenue from federal student aid funding. This is just the latest for-profit college chain to come under legal scrutiny.
- Non-profit and for-profit colleges are having a bit of a panic attack as the U.S. Dept. of Education moves forward with new rules allowing for student loan forgiveness for borrowers whose schools engaged in fraud and misrepresentations. The rules still have to be finalized and will not be implemented until sometime in 2017.
It’s rarely a slow news day in student loan law. Expect more robust articles on these stories as they develop.