Today we are going to take a look at the programs available to private student loan borrowers.
We will analyze six of the top student loan servicers and give tips for how to pay off private student loans.
Unfortunately, those companies often make errors or fail to let struggling borrowers know what their full range of options are.
On Tuesday, the Consumer Financial Protection Bureau released a report on borrowers’ experiences with student loan servicers, or companies that take payments on a borrower’s loan and monitor payments.
Unsurprisingly, trade associations representing those in the student loan servicing industry said those policies are ill-advised because student loans are far too different from mortgages and credit card debt.
However, nearly two dozen law professors quoted in the report disagree, and advocate for similar protections, especially since student loan debt is a quickly growing share of overall consumer debt.
Unlike mortgages and credit cards, there is no federal statutory or regulatory system in place for student loan servicers that would protect student loan borrowers.
The report is a major step forward for advocates who want to see the U. Department of Education acknowledge serious deficiencies in the way student loan servicers communicate with struggling borrowers.
This is important because 70 percent of borrowers who are in default qualified for income-based repayment plans, according to the U. Treasury’s 2012 analysis, and borrowers are largely unaware of their options.
The scammers apply for income-based repayment plans even though borrowers can do this on their own for free.
Google search results make it even more difficult for borrowers to find government sites that explain how to apply for repayment plans and companies insist that the process is to complicated to navigate by oneself.