Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Consumer Financial Protection Bureau to Investigate Student Loan Servicers
Author: Joel R. Glucksman
Date: May 26, 2015
Key Contacts
Back
The Huffington Post reports that the newly created Consumer Financial Protection Bureau is beginning a wide-based investigation into the student loan servicing business.
Given that over 40 million youngsters have student loan debt, this may be a significant development in ensuring that students are treated fairly. At the least, it vindicates the decision for the Consumer Financial Protection Bureau to take a strong role in the area, which covers roughly $1.2 trillion in current loan balances. The Huffington Post reports that “dodgy practices” are common in the industry.
“As a growing share of student loan borrowers reach out to their services for help, the problems they encounter bear an uncanny resemblance to the situation where struggling homeowners reached out to their mortgages servicers before, during, and after the financial crisis,” according to the Consumer Financial Protection Bureau Director Richard Cordray. He continued that the Consumer Financial Protection Bureau has concerns that this is contributing to the growing problem of student loan defaults.
The Huffington Post notes that student loans are second only to household mortgages as the largest source of household debt in the country, and they have roughly doubled since 2008. The growing amount of debt that graduating students now hold is preventing them from forming households, buying cars, and otherwise contributing to the consumer society. Analysts believe that this is one of the reasons why the country has been so slow in recovering from the 2008 Great Recession. With nearly 8 million Americans currently in default on their student loans, according to the Huffington Post, and millions more delinquent or otherwise delaying payments, there is a significant drag on the country’s economic growth.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.