Who the Hell is Maximus – Aidvantage That Will be Swimming in Federal Student Loans

On October 20 of last year, the Department of Education announced that Navient, a giant student-loan servicer, was turning its business over to Maximus, a government services company. [Ed: They will be providing services as Aidvantage.] DOE spokesperson Richard Cordray said this about the switchover: “We are confident this decision is in the best interest … Read more

Navient Stock Worth More Even After Private Student Loan Settlement

Forty state attorneys general sued Navient Corporation for deceptive lending practices in its student loan business. Navient settled the lawsuits last week for $1.85 billion. The loan giant admitted no wrongdoing, saying the claims against it were “unfounded.” The participating states will split $145 million, and Navient will forgive 66,000 private student loans. In addition, … Read more

College In-House Lending Practices to Get CFPB Attention

The Consumer Financial Protection Bureau (CFPB) announced it will begin examining the operations of post-secondary schools, such as for-profit colleges, that extend private loans directly to students. The CFPB is issuing an update to its exam procedures including a new section on institutional student loans. As the CFPB begins its supervision, the exam procedures inform … Read more

My Deep Dive Into What Navient’s Student Loan Settlement Agreement Actually Says

There has been a lot of stories that have appeared about the Navient student loan settlement agreement that will forgive student loans but let’s look at what it actually says. The hype has been $1.7 billion in student loans will be forgiven but as always, the devil is in the details. The Attorney General settlement … Read more

Navient Enters Massive Student Loan Forgiveness Settlement. Details Clear-ish.

It was announced today that many, but not all states that participated in a lawsuit against Navient in 2017. At the time Navient called the suit, “completely unfounded” but the announcements today reflect the opposite. Details of Settlement We have both a lot of information and a lot of unanswered questions about how all of … Read more

Why It Costs Way Too Much to Go to College

During my years at the University of Houston, I parked my modest Honda in the faculty parking lot next to other modest cars driven by UH professors–mostly Hondas, Toyotas, Nissans, and Fords. Then I would walk through the parking lot reserved for administrators, and all the vehicles were luxury cars: Audis, Lexuses, BMWs, and expensive … Read more

Why the Government Can’t Forgive All Student Loans

When Joe Biden was running for President, he said he would cancel $10,000 of every college borrower’s student debt if Congress consented. But Congress hasn’t acted. Senators Elizabeth Warren and Charles Schumer have urged President Biden to cancel $50,000 of every borrower’s federal student loans, saying he has the executive power to do so. But … Read more