1. Carolyn Fast Special Counsel New York State Attorney General’s Office Bureau of Consumer Frauds & Protection Getting it Paid Back: Student Loan Servicing and Student Loan Debt Relief Scams

2. Student Loan Servicing Areas of concern: Servicer practices that may discourage distressed borrowers from enrolling in income-driven repayment programs; Inadequate customer service; Practices related to allocation of payments; and Errors and delays in processing paperwork.

3. Income-Driven Repayment Plans “IDRPs”: Limit monthly payments to 10 to 15% of discretionary income. Can help distressed borrowers avoid delinquency or default. Approximately 25% of all student loan borrowers are delinquent or in default. Borrowers enrolled in IDRPs have lower rates of delinquency. Many distressed borrowers who are eligible for IDRPs are not enrolled.

4. Why aren’t more eligible distressed borrowers enrolling in Income-Driven Repayment Plans? Complexity Servicer practices Incentives may not be fully aligned Inaccurate information and instructions Delays in processing enrollment/recertification paperwork.

5. Regulatory Responses The CFPB, the Depart. of Ed, and the U.S. Treasury working jointly on industry-wide reforms, including: Standardizing communications Creating a single online repayment portal Developing a “Payback Playbook” Developing new rules concerning how student loan debt appears on credit reports Enforcement actions.

6. Student Loan Debt Relief Scams

7. Scam companies: Target distressed borrowers with offers to lower monthly payments or eliminate student loan debt. Often fail to provide the promised services. Complete a service that can be done for free. Fail to disclose fees. Charge illegal upfront fees. Make misrepresentations about their relationship with government agencies.

8. Enforcement Actions CFPB actions State actions, including: Florida Attorney General Pam Bondi Illinois Attorney General Lisa Madigan Minnesota Attorney General Lori Swanson Massachusetts Attorney General Maura Healey New York State Department of Financial Services Washington Attorney General Bob Ferguson