CRL in the News
Hannah Hudson was one of the few high school graduates lucky enough to take a European summer vacation before the long slog of adulthood.
Little did she know, she’d spend a half-day wondering how to cover her next meal after a series of overdraft fees from Bank of America left her more than $100 in debt. Halfway around the globe and nine hours ahead of California, Hudson was unable to contact financial reinforcements with her parents fast asleep in Orangevale.
Sallie Mae, the student loan provider once sponsored by the government, is expanding into credit cards.
The company this month unveiled a suite of three credit cards aimed at college students, recent graduates and young professionals. Its new cards offer rewards for responsible financial behavior. They come 18 months after the company introduced personal loans.
For California borrowers trapped in loans with triple-digit interest rates, a proposed bill to impose a 36% cap might seem like a godsend.
If passed, Assembly Bill 539 would end a decades-long practice of allowing installment loans of $2,500 to $10,000 to carry such high interest rates by limiting that number to 36%.
Millions of Americans have filed Chapter 7 bankruptcy to eliminate crippling debt and get a fresh financial start, but nowadays it isn’t unusual for people to come out of the process still owing much of their debt in the form of student loans, according to a report issued Tuesday by LendEDU.
Based on anonymized data from 1,083 bankruptcy cases across the nation supplied by Upsolve, a nonprofit that helps low-income people file for Chapter 7 bankruptcy free of charge, 32 percent of filers had student loan debt.
Bringing “real accountability to the Wild West of student loan servicing,” Maine lawmakers passed a “Student Loan Bill of Rights,” which will give the state the authority to investigate and intervene when borrowers complain of abusive or deceptive practices by student loan lenders.
Tim Worstall recently took issue with the Center for Responsible Lending’s position that payday loans should be capped at a 36% annual rate. He seemed troubled by the fact that with such a rate cap in place, payday lenders choose to no longer make their predatory loans.
State lawmakers have again taken aim at the growing student-debt crisis in New Jersey, releasing a bill that former Gov. Chris Christie let die when he left office.
You’ve seen them scattered along the outskirts of highways. It seems that around every corner, you’re bombarded with the opportunity to “get cash now!” And though the promise of instant funds is captivating, how wise is it to get that cash now?
Not very, according to statistics.
Payday loans, as they’re commonly referred to, are less about receiving money instantly and more about the heaps of interest piled atop the instant cash.
Civil rights organizations are urging the director of the Consumer Financial Protection Bureau to step up oversight of the student-loan servicing industry and root out discrimination.
It has been two years since the bureau identified student-loan servicing as posing substantial risk of credit discrimination and pledged further investigation into disparate outcomes for borrowers. That level of evaluation requires records and data from servicing companies that manage student-loan payments on behalf of the federal government and private lenders.