CFPB: Predatory Tuition Plans Leading to Debt and Dropped Classes for Some Students

Some students are kicked out of classes and rack up debt from shady tuition payment plans with little legal protection, according to a CFPB report.
The plans can have predatory terms like high late fees, aggressive debt collection, and waiving rights to class action lawsuits.
Students can face fees up to $300 for a single late payment and be sent to collections for missed payments.
Schools can withhold transcripts, deactivate campus cards, remove meal plans, and kick students off teams for missed payments.
The CFPB will continue monitoring schools' payment plans to ensure compliance with consumer protection laws.

businessinsider.com

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Posted 9/16/2023, 10:15:00 AM