The Consumer Financial Protection Bureau (CFPB) is cracking down on a company that finances an alternative type of student-loans over findings of misleading borrowers and evading federal consumer law.
Income share agreements (ISAs) finance student loans by requiring a borrower to pledge a certain portion of their income to the lender in exchange for money to pay for college. But the CFPB released a consent order on Tuesday that found one ISA provider — Better Future Forward — misrepresented its product by saying the money they were giving borrowers was not a loan and therefore not affected by consumer protection law.
I heard this information when the conflict first started. I think they should make the loan for students more favourable.
For many students, borrowing money — a loan — is a way to make their college dreams come true. But unlike other types of financial aid, loans must be repaid with interest. Colleges may award these loans to students with the highest financial need using federal government money. A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you're in college. Navibanker.com can analyze different banks to choose the best one for your needs.