US EditionStudent Loan Borrowers Get A Big Court Win, But Legal Battles Continue
- Judge Amy Berman Jackson issued a lengthy and scathing ruling on Friday against the Trump administration's efforts to shut down the Consumer Financial Protection Bureau .
- The ruling came after the Trump administration tried to shut down the CFPB, an agency created less than 20 years ago in response to the 2008 financial crisis and designed to protect consumers from predatory financial practices.
- The judge deemed the Trump administration's actions illegal, stating they showed a complete disregard for Congress' decision to establish the agency and its specific functions to protect borrowers, while the CFPB student loan team sifted through 10,000 complaints and uncovered illegal conduct.
- The judge quoted the need for the agency to exist and perform specific functions to protect the borrowing public, while the CFPB has already returned at least $21 billion in compensation to millions of Americans.
- Student loan borrower advocates and consumer groups praised the decision as an important early victory, allowing the CFPB to resume its work of protecting people from predatory financial practices; however, the order is technically temporary and litigation continues amid unprecedented uncertainty in the federal student loan system, with 4.2 million borrowers being more than 90 days late on payments as of March 7 and 9 million borrowers late on their payments.
47 Articles
47 Articles
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Key Student Loan Repayment Applications Reopen, but Processing Is Paused
The Education Department reopened the application for all income-driven repayment (IDR) plans on Mar. 26, after a month-long suspension that blocked federal student loan borrowers from enrolling in an IDR plan or recertifying their income. While you can now submit…
Why are student loan borrowers falling behind on payments?
Student loans are coming due, but they are not necessarily getting paid. Missed and late payments are surging to record levels right as the Trump administration attempts to dismantle the agency that oversees the loans.A "record share" of student loan debt is delinquent, said Axios. Nearly a quarter of borrowers — roughly 9 million Americans — are behind on their payments, a development that threatens to hurt the credit scores of young borrowers.…
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