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The Consumer Financial Protection Bureau issued a report this September that analyzed complaints from student loan borrowers and issued recommendations for much-needed reform.
In the process, the report uncovered startling data like: Student loan borrowers are experiencing more financial distress and burden compared with every other type of borrower with consumer debt. In fact: More than one in four student loan borrowers are either delinquent or have defaulted in paying back their loans.
This high distress and burden is a tall order for the 41 million Americans who are estimated to owe around $1.2 trillion in student loan debt.
The Government Accountability Office found that around 51 percent of student loan borrowers around the country were eligible for more favorable repayment plans based on their income — and yet only 15 percent of borrowers are enrolled in these plans.
Loan forbearance should be a last-ditch option for borrowers who are unable to pay back their loans. It’s a last-ditch option that loan servicers should only recommend once they have thoroughly detailed all other repayment options (loan forgiveness, repayment plans based on in come, lower interest rates for active duty, etc.) Unfortunately, loan servicers like to jump to this last-ditch effort much too fast. Meaning student loan borrowers who are already suffering are pushed onto an even more expensive long term repayment plan. And some student loan servicers even charge borrowers a $150 fee when they put their accounts into forbearance! It’s wrong — it’s lazy on the part of the loan servicer, and there are better options for Americans across the country who dared to get a higher education.
You May Be Able to File a Lawsuit If One or More Of Your Student Loan Servicers Failed to Inform You About Any of The Above Repayment Options. A student loan debt lawsuit can help you get on the right path to repaying your student loans. It can help you hold your servicers accountable when they do things that they are not supposed to do, or fail to help you or offer alternatives when you are struggling.
Let’s end student loan debt and hold deceptive student loan servicers accountable when they wrong our nation’s future.