Student Debt Profiteers Exposed

Yesterday, The Huffington Post reported on new efforts by the CFPB to crack down on banks, including Sallie Mae, to curb bad practices in student lending. In reviewing complaints from student loan borrowers about what the obstacles were in repayment, the agency discovered there was a financial incentive for lenders to make it challenging for borrowers to pay off their loans early. According to the story, the CFPB “publicly cautioned that servicers, or companies that deal with debtors and handle their student loan payments, may be cheating borrowers by not allowing them to apply excess payments to their private student loans that carry higher interest rates.”

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