Lisa Madigan

Illinois, feds take on abusive student loan practices they say trap young people

Illinois, feds take on abusive student loan practices they say trap young people

With student loan debt totaling about $1.3 trillion and continuing to mount, Illinois and the federal government are going after allegedly abusive lending practices they say trap consumers and make it difficult for them to move past their school years.

It's debt that could wreck credit scores, and it's similar to a problem Illinois Attorney General Lisa Madigan has been fighting for years.

Many of the subprime student loans in question were designed to fail, she alleges, just like the subprime mortgages she investigated that were at the heart of the 2008 financial crisis and Great Recession.

"The mortgage lenders had an economic incentive to get into these bad...

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