On February 26, 2014 it was announced by the Consumer Financial Protection Bureau (CFPB) in a press release that it had filed a lawsuit against the for-profit school ITT Educational Services based on allegations of predatory lending and other unfair, deceptive, or abusive practices.
According to CFPB Director Richard Cordray, “ITT marketed itself as improving consumers’ lives but it was really just improving its bottom line…We believe ITT used high-pressure tactics to push many consumers into expensive loans destined to default. Today’s action should serve as a warning to the for-profit college industry that we will be vigilant about protecting students against predatory lending tactics.”
Private student loans are a major problem for my Houston-area bankruptcy and student loan clients, because as a rule, they cannot be discharged in bankruptcy.
Also, private student loans often come with high interest rates, and they have very few repayment options. Federal student loans are much better in terms of repayment options, if you have the choice.
And according to the complaint filed in the CFPB v. ITT case, most ITT students drop out without obtaining a degree. So all of their claims about earning a high salary after graduation are inherently misleading, alleges the CFPB.
But if you are struggling with student loans and need help dealing with them, and you live in the Houston area, call our office at 713-772-8037 for an in-office or telephone appointment to discuss your situation. The first visit is free, and we can offer you a low-cost analysis of your student loan situation, and the options available to you.
Do you think the law should be changed, so that private student loans are discharged in bankruptcy again? If not, what if anything should be changed about student loans?
We handle bankruptcy and student loan cases for residents of all of the following Texas towns and cities: Alvin, Angleton, Arcola, Baytown, Bellaire, Bellville, Brazoria, Brookshire, Bunker Hill Village, Cleveland, Clute, Conroe, Dayton, Deer Park, Dickinson, Freeport, Friendswood, Fulshear, Galena Park, Galveston, Hedwig Village, Hempstead, Hitchcock, Houston, Humble, Jacinto City, Jamaica Beach, Jersey Village, Katy, Kemah, Kendleton, La Marque, Lake Jackson, La Porte, League City, Magnolia, Manvel, Meadows Place, Missouri City, Mont Belvieu, Montgomery, Nassau Bay, Needville, Orchard, Pasadena, Pattison, Pearland, Richmond, Rosenberg, Sealy, Shoreacres, Simonton, South Houston, Southside Place, Splendora, Spring, Stafford, Sugar Land, Surfside Beach, Sweeny, Texas City, Tiki Island, Tomball, The Woodlands, Thompsons, Waller, West Columbia, Willis, West University Place.