CFPB Settles With Owners of Wall Street's Worst Student Debt
Borrowers getting their wages garnished could get a temporary reprieve.
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As many as hundreds of thousands of borrowers accused of defaulting on their student loans may not have to pay a dime over the next several months, or perhaps ever, under an unusual settlement Monday between federal regulators and the owner of a series of trusts that form one of the nation's largest owners of private student debt.
The agreement with the Consumer Financial Protection Bureau, which was filed in Delaware federal court and still requires a judge’s approval, calls for an audit that consumer lawyers have called unprecedented.