Last week, the Trump administration issued its first policy on student loans. As a result, loan guarantee agencies that collect on defaulted debt can charge borrowers who have defaulted on their federal student loans fees up to 16% on their student loan balances - even when these borrowers promise to make good on their student loans within 60 days. “Congress gave borrowers in default on their federal student loans the one-time opportunity to rehabilitate their loans out of default and re-enter repayment,” Warren and Bonamici wrote. Bryana Bible, a student loan borrower, sued USA Funds after being charged $4,547 in collection costs on a loan on which she defaulted in 2012. Although Bible signed a rehabilitation agreement with USA Funds to set a reduced payment schedule, USA Funds charged her the fees.

Source: Forbes March 23, 2017 12:00 UTC