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Is Your Student Loan Servicer Ruining Your Credit? - Forbes

Loan Company Demands Payment, Family Has Proof They Already Paid - ABC News

Since the government has passed the buck, what is a student to do if the company handling the loan messes up? You need to be vigilant What Student Loan Servicers Do The student loan servicing companies are designated by the Department of Education to collects payments, responds to customer service inquiries, and perform other administrative tasks associated with maintaining a federal student loan. Once you apply for a Federal Student loan, the Department of Education assigns your loan to one of its designated loan servicing companies. These companies will disperse the loan to your school, send your statements, and then collect your payments once you graduate. These companies are also the ones that can help with different student loan repayment plans, as well as deferment and forbearance needs. Finally, they are also the ones that will try to collect on loans that havent been paid, including reporting borrowers to the credit bureaus and seeking wage garnishments. These companies are essentially the paperwork keepers for your student loan. How Student Loan Companies CanAccidentallyHurt Borrowers Credit Scores Its the last area that these companies can really impact student loan borrowers these are the companies that report borrowers to the credit bureaus and seek repayment on student loan debt. They can also cause tax nightmares for borrowers because of this. The problem lies in the fact that these companies transfer student loans back and forth amongst themselves all the time. Its not common for a borrower to have their loan transferred two or three times before they graduate.
Puedes ver la version sin traducir en http://www.forbes.com/sites/robertfarrington/2014/06/03/is-your-student-loan-servicer-ruining-your-credit/

Making borrowing a crime may discourage borrowers from reporting loan-shark harassment or coming forward to seek help. In turn, this may result in an increase in loan-shark harassment. A better approach would be to partner family service centres and voluntary welfare organisations to educate the public on the dangers of borrowing from loan sharks. In Britain, some primary and secondary schools include this topic in their character and citizenship syllabus. Children are also taught the difference between debt and credit, and how to manage their money wisely. The hope is that the children can share what they have learnt with their parents, who can then make better financial decisions. Of course, parents too have a role to play in educating their children not to take part in loan-sharking activities. They can remind their children of the severity of the offences and intervene if their children display signs of involvement. TV advertisements can serve a similar warning role. Perhaps there could be a documentary where former loan-shark borrowers talk about their experiences.
Puedes ver la version sin traducir en http://www.straitstimes.com/premium/forum-letters/story/everyone-has-role-fighting-loan-sharks-20140606

Student Loan Servicing: The Borrower?s Experience

The company has lost a huge amount of marketshare and its billion dollar poly plant remains shut, as it is not economically viable. Improvement in technology has made this plant obsolete and the company has not been generating profits. The companys share were delisted from NYSE and the company sold equity stakes to Chinese state funds for a pittance, as it was desperate to raise cash to run operations. NoteSuntech(STP) has already become bankrupt, with most of its assets sold to Shunfeng. Bankruptcy in China remains a hazy process as state owned funds keep running even zombie companies to protect jobs. LDK Solar (NYSEARCA:TAN)was the largest solar wafer producer and had diversified into all parts of the supply chain. But increasing competition from the like of GCL Poly eroded its competitive position and its huge pile of debt made operations almost impossible.$64 millionof the loan will be used to resurrect the dead poly plant that LDK had built over the last 3-4 years. The plant never ran to even half of its capacity as price of poly went below $20/kg. LDK had no money to improve the equipment. I think it is a bad move on the part of the banks to pour more money into a company that has already defaulted on $3 billion of debt. The company should be sold off to other more capable companies, which can make use of the capital equipment.
Puedes ver la version sin traducir en http://www.wallstreetsectorselector.com/investment-articles/analyst-desk/2014/06/cdb-loan-ldk-solar-320-million/

Everyone has role in fighting loan sharks

Increases in Federal Higher Education Subsidies Federal higher education subsidies have increased substantially over the past decade, and now represent 71 percent of all student aid. [5] Federal student loans. According to the College Board, during the 2012-13 academic year, 43 percent of all student aid was in the form of federal student loans. [6] Thirty-four percent of undergraduate students took out federal student loans that year, up from 24 percent during the 2002-03 academic year. The College Board notes that, over the past 10 years, the number of students borrowing through federal student loans increased by 69 percent, from 5.9 million students during the 2002-03 academic year to 10 million in 2012-13. [7] Federal grant aid. Since 2008, grant aid per full-time enrolled student has increased over 30 percent. Between the 2007-08 academic year and the 2012-13 academic year, federal grant aid doubled in real terms, and state grant aid increased 11 percent. [8] Pell Grant funding, which is available to income-eligible students and does not have to be repaid, has more than doubled in real terms since the 2002-03 academic year, increasing from $14.8 billion to $32.3 billion. [9] Increases in total Pell expenditures are due in large part to increases in the number of grant recipients, which has grown from 4 million during the 1992-93 academic year to 8.8 million during the 2012-13 academic year, [10] nearly doubling in the past decade. Student debt. Approximately 60 percent of students who earned a bachelors degree during the 2011-12 academic year left school more than $26,000 in debt.
Puedes ver la version sin traducir en http://www.heritage.org/research/testimony/2014/06/student-loan-servicing-the-borrowers-experience

CDB to Loan LDK Solar $320 Million

It took about a month, but eventually Ocwen was able to get your account properly credited and remove the threat of foreclosure. Robert Kaltenbach, director of Ocwen's office of the ombudsman, told us that everything should be fine going forward, though the company never gave us an explanation for why this happened. You said the story you got was that when they took over the loan, someone apparently inputted the terms into their system incorrectly. From there, it spiraled out of control, resulting in the supposed late payments and $7,098.75 in mysterious added "fees/expenses." You are correct that Ocwen has had bigger troubles than this. In March, a federal judge finalized a consent judgment between Ocwen and the U.S. Consumer and Financial Protection Bureau, 49 states and the District of Columbia over allegations that Ocwen deceived consumers about their loans and engaged in illegal foreclosures. The company did not admit any wrongdoing, but it agreed to provide $2 billion in principal reduction to consumers with underwater loans and refund $127.3 million to consumers who were foreclosed upon. Under the terms of the settlement, Ocwen also said it will adhere to a number of consumer protection measures. One last note -- you said the Ocwen rep assured you that the correct payment history will be sent to the credit reporting bureaus. That's good.
Puedes ver la version sin traducir en http://abcnews.go.com/Blotter/loan-company-demands-payment-family-proof-paid/story?id=23991963

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