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But the business is in a cyclical slowdown, as a weakening economy makes it difficult for borrowers to meet obligations.
But consumer advocates and some industry lawyers say that the safe harbor provision, in practice, will make it difficult for borrowers to pursue an exhaustive legal inquiry.
There is no statute of limitations on collecting federally guaranteed student loans, unlike credit cards and mortgages, and Congress has made it difficult for borrowers to wipe out the debt through bankruptcy.
Amid the foreclosure crisis, however, critics have contended that the registry actually served to hide the true owner of a mortgage, making it difficult for borrowers to get help in working out their loans.
Falling prices throughout the economy make it more difficult for borrowers to pay their debts, but when the banks move more aggressively to collect or foreclose, they force companies out of business and make deflationary pressures worse.
The new rules attempt to make it more difficult for borrowers to roll over their loans, and also aim to cut down on the number of times that lenders can take money out of borrowers' bank accounts without getting additional authorization.
Similar(45)
"It would have been difficult otherwise for borrowers to make the case for deceptive practices".
Mr. Lieber described how extraordinarily difficult it is for borrowers to expunge their student loans in bankruptcy court.
The mortgage industry — which has carefully cultivated friends on both sides of the political aisle — will press for a bill that makes it as difficult as possible for borrowers to seek bankruptcy protection.
It could help vulnerable, low-income borrowers by putting an end to deceptive advertising and balloon payments that make it impossible for borrowers to close out a loan.
The report found that many loan servicers — the companies that collect the payments for the lenders — make it extremely difficult for student borrowers to manage their debts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com