Student borrowers sue US Bank

[eridani]

http://www.huffingtonpost.com/news/us-bank-lawsuit
A new federal class action lawsuit claims three student loan lenders and servicers aimed to keep borrowers trapped in debt.

Cindy Breitman filed a lawsuit in a Manhattan Federal Court this week against Affiliated Computer Services (ACS), a student loan servicer; NextStudent, a student loan lender; and U.S. Bank, Courthouse News reports. She's seeking class certification and treble damages for breach of contract.

U.S. Bank, NextStudent and ACS schemed to keep "borrowers trapped in student loan debt that borrowers were actively seeking to repay as fast as possible to lower the total cost of borrowing," the lawsuit claims.

[patrice]

1. big! phat! K&R!

[Mnemosyne]

2. Daughter owed $7000 a few months ago, now up to $20,000. AES = Criminals. nt

[ms.smiler]

3. Mnemosyne, I’ve been researching securitized mortgages and foreclosure for the past 4 years

and I know that auto and student loans are securitized in addition to mortgage loans.

MERS and other parties breach the mortgage contract because the mortgage and Note do not travel together as stated in the contract. Mortgage servicers misapply payments and manufacture supposed loan defaults. The contracts themselves often include increases in the interest rates. Mortgage servicers even add expensive forced placed insurance that greatly increases the supposed mortgage payment that is due.

The experts I read expect student loans to be the crisis which follows the foreclosure crisis. I don’t doubt that the supposed amount due can triple in only a few months time. I’m wondering how it triples. Did the interest rate change? Were payments misapplied? Were large and various fees added to the supposed balance? Are there other tricks used with student loans not in common with mortgage loans?

I suspect the banksters engage in the same accounting tricks with auto & student loans that they employ with mortgages. If the banks can collect multiple times on a securitized mortgage via Credit Default Swaps and government guarantees, why wouldn’t they also do it with student loans?

[Mnemosyne]

4. These are apparently non-secured private loans which were pushed by her college's financial aid

office, if I understand correctly. I tried like hell to make her understand what she was getting into, but they kept pushing the 'you'll be making this much so it won't be a problem' meme to her. She had to do a 200 hour internship to graduate. She ended up helping set up a rural city free clinic for it. They hired her after for 35hrs at $10 per, plus she does volunteer work there too.

It is a mess. She so wanted to do it without asking for much help.

Welcome to DU, ms.smiler!