Tags: Government | Student loan | collection | rules

US Government Mulls New Student Loan Collection Rules

US Government Mulls New Student Loan Collection Rules

(AP Images)

By    |   Tuesday, 09 August 2016 11:26 AM

The Consumer Financial Protection Bureau may enact stricter rules on student loan debt collection, including the frequency of collection phone calls and the switching of loan service providers.

According to the Washington Examiner, the U.S. government has $1.25 trillion in outstanding student loans and contracts with around 20 companies that work to collect loan payments. New rules would regulate how those payments are actually collected.

For one, the number of collection phone calls would be limited to six per week. There have also been complaints that borrowers' loans are being transferred between other companies without much notice.

Lawmakers such as Massachusetts Sen. Elizabeth Warren have advocated for the system to be cleaned up in favor of borrowers' rights. The Department of Education announced updated rules last month that were more borrower-friendly.

A report last month said consumer debt was on the rise, largely due to student and auto loans.

Democratic presidential candidate Hillary Clinton has vowed to fix the student loan industry, saying she will provide free college tuition and will help "liberate" people riddled with student loan debt.

© 2019 Newsmax. All rights reserved.

   
1Like our page
2Share
Newsfront
The Consumer Financial Protection Bureau may enact stricter rules on student loan debt collection, including the frequency of collection phone calls and the switching of loan service providers.
Government, Student loan, collection, rules
179
2016-26-09
Tuesday, 09 August 2016 11:26 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved