Debt Collection Act (Fair Debt Collection Practices Act – FDCPA)

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you. The FDCPA is Title XXXVI of the Crime Control Act of 1990, Pub. L. No. 101-647, 104 Stat. 4789, 4933 (Nov. 29, […]

Debt Collectors

The federal definition of debt collector is “any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due […]

Debt Relief Services

The reorganization of debt in any shape or form, so as to provide the indebted party with a measure of relief, either fully or partially, from a huge debt burden. Debt relief can take a number of forms: reducing the outstanding principal amount (either partly or fully), lowering the interest rate on loans due, extending […]

Defaulted Loans

Loan delinquency is a failure to make loan payments when they are due. Extended delinquency can result in loan default. Loan default is the failure to repay a loanaccording to the terms agreed to in the promissory note. A lender may take legal action to get the money back. An institution may submit a defaulted […]


Deferments allow eligible borrowers to postpone paying back their loans under certain circumstances. They are a benefit of federal student loans that allows you to temporarily stop making payments. Interest is generally not charged on subsidized loans during deferment. Interest will continue to be charged on your unsubsidized loans and PLUS loans. Student loan borrowers […]

Delinquent Loans

The term “delinquent” commonly refers to a situation where a borrower is late or overdue on a payment, such as income taxes, a mortgage, an automobile loan or a credit card account. There are consequences for being delinquent, depending on the type, duration and cause of the delinquency. (1) Delinquency on a loan begins on […]

Demand Letters

Demand letters are sent with seriously delinquent loans. If the Secretary of Education makes the determination described in paragraph (e)(1) of this section, the Secretary sends an ineligible borrower a demand letter that requires the borrower to repay some or all of a loan, as appropriate. The demand letter requires that within 30 days from […]

Department of Education (DOE)

DOE’s mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Itwas created in 1980 by combining offices from several federal agencies. DOE’s 4,400 employees and $68 billion budget are dedicated to establishing policies on federal financial aid for education, distributing as well as monitoring those […]

Direct Consolidated Loans

A borrower may consolidate education loans made under certain Federal programs into a Direct Consolidation Loan. Loans consolidated into a direct consolidation loan are discharged when the direct loan is originated. A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead […]

Direct Loans

The U.S. Department of Education (DOE) offers loans through the William D. Ford Federal Direct Loan (Direct Loan) Program. It is the largest federal student loan program, with the DOE as the lender, and there are four types of Direct Loans. An agreement with any institution of higher education for participation in the direct student […]