There are 44 million student loan borrowers holding a total of almost $1.5 trillion in student-loan debt. Figures Said Ten million or more federal student-loan borrowers are in default. As Per Survey By Student Loan Help Center, There CEO Bruce Mesnekoff said One in seven borrowers will default on federal student loans within three years of repayment. In total, more than 50 percent of people saddled with student debt are unable to pay their debts at all.
Bruce Mesnekoff Said Under Graduate or Just Graduate borrowers are finding it difficult to keep up with their monthly payments, choosing to delay starting families and buying homes Older borrowers also are affected, with over one-third of borrowers over the age of 40 troubled to remain current on their loan payments.
The Student Loan help Center Team with Bruce Mesnekoff in Our Studio and talking about Free Federal Schemes, As Bruce Mesnekoff Said “Many borrowers are unaware of the free federal-government programs that exist to help ease their debt burden. The student-loan servicing companies hired by the Department of Education often fail to provide enough information to accurately inform and assist the borrower, leaving room for unscrupulous companies who charge unwitting borrowers thousands of dollars to enroll in free government programs.“
Increase Awareness about Government Plans
As per Bruce Mesnekoff from Student Loan Help Center Said USA Gov. Provides Four income-driven repayment plans:
- Revised Pay As You Earn Repayment Plan (REPAYE Plan)
- Pay As You Earn Repayment Plan (PAYE Plan)
- Income-Based Repayment Plan (IBR Plan)
- Income-Contingent Repayment Plan (ICR Plan)
Due to Less Awareness People should know about these plans through official Website.
Refinance Student Loans A Better way!
Bruce Mesnekoff Suggests those Officials should establish More Programs and Projects to refinance both federal and private student loans.
- Federal refinancing could help private student-loan borrowers take advantage of the repayment programs and additional protections of federal loans. Under one proposal, 25-30 million student-loan borrowers could lower their interest rate and monthly payments, saving an average of $5 thousand over the life of their loans.
Make Repayment Options Easy (including PSLF)
Expand and protect repayment options and create simplified systems for enrollment.
- There are currently over 30 different repayment plans, with confusing and sometimes onerous requirements to enroll and maintain benefits.
- Backdoor tax surprises on loan forgiveness in current law should be eliminated.
- Automatic renewal systems, instead of the current annual recertification process, would prevent borrowers from accidentally losing their repayment plan benefits.
- Public Service Loan Forgiveness can be made proportional for each year of service.
Student Loan Servicer Accountability and Consumer Protections
- The servicing companies the Department of Education presently contracts with too typically contribute to the student-debt crisis.
- Student-loan-servicer accountability measures embrace cutting contracts with lawbreaking servicers; absolutely implementing President Obama’s Borrowers Bill of Rights; and providing a personal right of action against loan servicers.
- Consumer-protection measures embrace extending the protections that federal borrowers relish to personal student-loan borrowers, as well as caps on interest rates, versatile reimbursement choices, and sure cancellation rights.
- Cracking down on personal student-loan “relief” corporations.
- Ending Social Security offsets for recipients with defaulted student loans.
- Providing a lot of economical teach-out programs for defunct for-profit faculties and immediate loan forgiveness to victims of closed/sold colleges or those under investigation.
- Under current bankruptcy law, discharging student debt is almost impossible.
- Loan modification options and bankruptcy protections for all student loans, including private loans, would alleviate a major burden for struggling or insolvent borrowers.
- Provisions of the 2005 bankruptcy code, which were more consumer friendly, can be restored to allow easier discharge of student loan debt.
The next president in 2017 of the USA will have the immense responsibility of finding a student-loan-debt crisis that is constraining the potential of a full generation and, in the process, imperiling the Long Run of the Whole country.