U.S. Department of Education warns student loan borrowers about predatory lending practices hitting veterans. Below is a summary of this week's news and how it may affect your student loans.
The following is one current trend with regard to student loans for the week of March 28, 2022
United States veterans are being warned of predatory practices by the Biden administration
Due to the U.S. Education Department's analysis it reported a lot of service members and veterans were misled about financial aid.
Several veterans maintain that college advisors made them believe the U.S. government would cover the entirety of their college education costs under the GI Bill, but this is not always the case. For the 2022-23 academic year, tuition assistance at private or foreign colleges has a cap of $26,381.37.
Whistleblowers at predatory college companies supposedly were told to hide the fact that tuition at private colleges was higher than what the GI Bill covered. Many borrowers report being pressured to take classes that did not qualify for benefits or to take student loans midway through their education - and a number of borrowers discover that they were responsible for unapproved student loans.
A warning of this nature has been issued by the Education Department's Enforcement Office, which was reestablished earlier this year to monitor U.S. schools as well as to protect students from misleading practices.
In a fresh bulletin, the Education Department warns colleges that do predatory lending to veterans could be kicked out of the federal grant aid program. It is also possible for borrowers who believe that they have been misled to initiate a borrower defense to repayment, which discharges the student loans taken out for those schools and which the schools could be expected to repay.
Here are some tips for preparing
Keep in the loop on how your student loan rates could change, whether you're new to student loans or well into repayment. More opportunities for reduced loan amounts or for loan forgiveness could become available during 2022; be sure to follow our student loans news hub for the latest developments.