CONCORD, N.H. (AP) — U.S. Sen. Maggie Hassan is looking for an investigation into whether or not some pupil mortgage suppliers mislead tens of millions of debtors about their rights in the event that they declare chapter.
The New Hampshire Democrat stated Saturday that she’s signed onto a letter along with her Senate colleagues searching for a evaluate by the Client Monetary Safety Bureau.
She cited a latest report from the non-profit Pupil Borrower Safety Middle that discovered that some lenders providing “non-qualified” loans have misstated the small print about how completely different loans could be discharged by way of chapter. Whereas certified pupil loans can solely be discharged attributable to undue hardship, non-qualified non-public loans don’t carry that requirement.
Greater than 2 million debtors with non-qualified loans might not have understood their rights underneath chapter, in response to the senator’s letter.
“Non-public pupil mortgage lenders took benefit of the widespread perception that every one non-public pupil loans are non-dischargeable in chapter and that lenders marketed their non-qualified training loans underneath this false pretense,” the Senators wrote of their letter.
The letter urges the CFPB to evaluate the middle’s findings and take applicable motion towards lenders who aren’t being clear with debtors.