Loan Consolidation Dispute Snowballs
The consolidation delay issue has snowballed into a major controversy now with the Education Department receiving nearly 80 inquiries about delays. Education Department officials have now stated that the department can impose money penalties on lenders and, in extreme cases, can bar them from participating in federal loan programs. Civilrights.org reports:
Banks and other lenders say that if there are lags in processing applications, they are the result of the sheer number of students who have applied to consolidate their loans; one consolidation company received 40,000 applications in June alone. There is no central database that tracks the pace of consolidation activity.
Read more: Dispute on Loan Consolidation
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