Student Loans
Firms the government said it would fire may still be deceiving student loan borrowers, advocates say.
"The problem is the regulators, not the company," said Leon Cooperman, founder of the hedge fund Omega Advisors.
The loan industry claims it could help millions of borrowers avoid default if it's allowed to widely use auto-dialers.
Three reasons that help explain what's happening.
WHAT'S HAPPENING
The education secretary leaves behind 1 in 4 borrowers in distress.
Unfair, Kafkaesque practices torment borrowers, the Consumer Financial Protection Bureau says.
In a new report, 73.1 percent of loans with one servicer ended up in default.
With the average student loan bill totaling over $35,000, the offer looks pretty attractive.
"If the department continues this inaction and refuses to hold its servicers to a higher standard, millions will suffer."
"The federal government has abdicated its responsibility to properly serve student loan borrowers."