Monthly Features

White House to Reform Student Loan Servicing

Among the 43 million Americans who are burdened with over $1.3 trillion in student loan debt, at the end of March 7.9 million had not made a loan payment for at least nine months, up 8% over the same period a year ago. 70% of those in default were eligible for a lower monthly income-based payment. No surprise, many of those that fall the furthest behind on their payments dropped out of college without a degree and thus are not able to get a job that pays well enough to cover their loan payments.

With our thanks to the Washington Post’s coverage of U. S Secretary of Education, John B. King’s conference call with reporters Wednesday, initiatives have been put in place to improve the way the government collects payments on education loans. There are five income-related contingent repayment plans as a part of the government’s work to streamline the system.   

To see the full Post article, go to: https://www.washingtonpost.com/news/grade-point/wp/2016/04/28/white-house-steps-up-effort-to-reform-student-loan-servicing-to-stave-off-rising-defaults/.

To see the software “Pick a student loan repayment plan in 5 steps or less,” go to:  https://studentloans.gov/myDirectLoan/repayOptions.

 



Publication Date: May 2016

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