Government Gives More Support to Student Loan Borrowers

(Newswire.net — July 15, 2016) Boca Raton, Florida – The U.S. Department of Education has recently announced that it has taken further action to support the many Americans who are saddled with federal student loan debt. This action is being coordinated with both the U.S. Department of the Treasury and the Consumer Financial Protection Bureau (CFPB) and further builds upon the Joint Statement of Principles on Student Loan Servicing, released in 2015.

The latest enhancements are in three distinct areas: credit reports, service guidelines, and the development of a landing page. 

This initiative proposes a way to update the way student loan debt appears on credit reports of borrowers to ensure accurate repayment history and documentation. Student loan repayment is often how consumers first establish credit, therefore it is essential to have correct data to represent the borrower fairly.   

Also introduced in this proposal is a set of guidelines to better service and protect student loan borrowers.  Detailed in this document are borrower’s rights, which includes their right to accurate and actionable repayment options, their right to transparent information and their right to consistent and accountable service.

Additionally, a new landing page studentloans.gov/repay will provide comprehensive information about which repayment options may suit borrowers best based on specific circumstances. This enhancement is designed to be user-friendly, and make the information more accessible and easy to understand.

The Obama Administration has introduced several new works in an effort to reduce to the burden of debt for over 40 million Americans who have federal student loan balances. One of these initiatives was the Joint Statement of Principles on Student Loan Servicing. Released in 2015, it provided a plan for improvement in servicing student loans, boosting borrower success and reducing the number of defaulted loans.

“The Obama Administration continues to look for ways to make college more affordable and accessible for all families. A college degree is one of the best investments a student can make in his or her future, and it remains the clearest path to the middle class,” U.S. Secretary of Education John B. King Jr. has been quoted as saying in a recent U.S. Department of Education press release. “We want student borrowers to know that they have the support they need to manage their debt and navigate the options available to them to pay back their loans.”