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Richard Cordray
Consumer agency opens review of student loan services

The Consumer Financial Protection Bureau opened a public inquiry Thursday into student loan servicing practices that it says can make paying back loans "stressful or harmful." Private and federal student loan debt totals more than $1.2 trillion. Loans often are not serviced by lenders but by a company that processes monthly payments, assists borrowers with repayment options if they lose their jobs, and performs a variety of other tasks. Such service companies — among them Navient, Nelnet, American Education Services, and Great Lakes Higher Education Corp. — typically get a flat monthly fee per account. Eight million student loan borrowers are in default, and the...

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