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CONCORD, N.H. (AP) — U.S. Sen. Maggie Hassan is asking for an investigation into whether or not some scholar 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 together with her Senate colleagues looking for a evaluation by the Client Monetary Safety Bureau.
She cited a latest report from the non-profit Scholar Borrower Safety Heart that discovered that some lenders providing “non-qualified” loans have misstated the small print about how completely different loans might be discharged via chapter. Whereas certified scholar loans can solely be discharged on account of 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 scholar mortgage lenders took benefit of the widespread perception that every one non-public scholar loans are non-dischargeable in chapter and that lenders marketed their non-qualified schooling loans underneath this false pretense,” the Senators wrote of their letter.
The letter urges the CFPB to evaluation the middle’s findings and take applicable motion in opposition to lenders who aren’t being clear with debtors.
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