The United States Largest Servicer Of Student Loans Is Accused Of Violations

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We’ve highlighted below some of the most recent developments and occurrences in youth-related news and events.

Russian students choose to study abroad

Growing cost of tuition fees at Russian universities forced a great number of students to go abroad. Moscow city government report states that approximately 35,000 Russian students decided to study somewhere else this year. Popular destination among them are Central and Eastern Europe, but also the United States, the United Kingdom and Switzerland. Demand for studying in UK and the USA rose by 13 per cent compared to previous year. Because of great relationship between China and Russia, many Russian students decide to go to China, and from 2012 the total number of Russian students in China increased from 5000 to 16000 in 2016.

After UK inflation surge student loan interest rate set to rise by a third

Students appear to be paying a heavy price for the UK’s inflation surge after the Brexit vote, which will drive the interest rate up. Current students and a sizeable number of graduates will see the interest rate on their student loan jump to more than 24 times the official Bank of England base rate. Those who took out their student loan on or after 1 September 2012 and who have now graduated will from this autumn be charged between 3.1 per cent and 6.1 per cent, depending on their income.

Navient accused of violations

The United States largest servicer of student loans is accused of violations and exstensive mistakes. Lawsuits against Navient have been filed by the Consumer Financial Protection Bureau and state attorneys general in Washington and Illinois. Students have little hope of repaying them, and some of borrowers’ stories are shocking. Some of the students who borrowed around $60.000 now owe double amount of money. Even though they earned their degrees, they made themselves slaves to loaning company because they have to repay their loan for years to come. This scenario makes them feel like university was the biggest mistake of their life.

Photo: Shutterstock

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