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Loan Servicers

All articles tagged with #loan servicers

education2 years ago

The Troubling Impact of Student Loan Servicers' Failures on Borrower Repayment

Student loan borrowers are facing delays and billing errors from loan servicers, with new providers entering the process after three companies exited in 2021. Around 44% of federal student loan borrowers have a new loan service provider, leading to administrative forbearance for some borrowers while errors are corrected. The Department of Education has identified issues such as miscalculated payments, incorrect billing amounts, late or no billing statements, and placing borrowers with pending discharges back into repayment. The Education Department is holding loan servicers accountable and taking steps to improve outcomes for borrowers. Borrowers are advised to update their account information, enroll in income-driven repayment plans, consolidate loans, and be cautious of student loan scams.

via Yahoo Finance|
#borrower-repayment#department-of-education#education
education2 years ago

"Student Loan Nightmare: Botched Rollout of Biden's Plan Leaves Borrowers Paying More"

The rollout of President Biden's new income-driven repayment (IDR) plan for federal student loans has been botched, causing confusion and frustration for borrowers. Many applicants, including Juniper, have experienced discrepancies between the repayment plans shown on the Federal Student Aid website and those provided by loan servicers. At least 420,000 borrowers have had their payment calculations miscalculated, and the total number of affected borrowers could be much higher. The U.S. Department of Education is working to rectify the errors and has placed affected borrowers in forbearance until the payment amounts are corrected. The newly created Saving on a Valuable Education (SAVE) plan, touted as a more affordable option, has been particularly affected. Borrowers will be offered refunds for any recent payments, and time spent in forbearance will count toward loan forgiveness programs. The botched rollout has left borrowers frustrated and questioning the lack of planning and preparation by loan servicers and the Department of Education.

via Fortune|
#biden-administration#education#enrollment-issues
education2 years ago

Navigating the Challenges of Student Loan Repayments: Insights and Advice

As the Biden administration resumes student loan payments for millions of Americans, borrowers are facing a challenging environment with incorrect bills, long wait times, and confusion. The Student Loan Servicing Alliance acknowledges the difficulties and divergent call hold times. Recent government announcements, including debt cancellation, have added to borrower confusion about eligibility and relief timing. Other issues arise from changes in servicers and incorrect calculations under a new income-driven payment plan. The Supreme Court's ruling on Biden's debt cancellation plan warned of ongoing confusion and higher default rates. The transition to the new SAVE payment plan has led to billing errors, with borrowers receiving incorrect bills. Miscommunication between servicers and data integrity issues from the Department of Education have also contributed to the problems. Consumer advocates warn that these issues erode borrowers' trust in the lending system and can strain their finances.

via CNBC|
#biden-administration#borrower-confusion#education
education2 years ago

Navigating Student Loan Repayment: Essential Tips and Options

Federal student loan borrowers will resume making monthly payments starting in October, after a pandemic-related pause that began in March 2020. Interest will start accruing again on September 1, and borrowers can expect their monthly payment to be the same as before the pause. Income-driven repayment plans are available for those struggling to afford payments, and a new repayment plan called SAVE offers generous terms for lower-income borrowers. The government is providing an "on-ramp period" until September 2024, during which borrowers are shielded from certain consequences of missing payments. Borrowers who fell into default before the pause can apply for the Department of Education's "Fresh Start" program. The Supreme Court blocked President Biden's student loan forgiveness program, but the administration has made it easier to seek forgiveness through existing programs.

via CNN|
#borrowers#education#interest-rates
finance2 years ago

"Brace Yourself: Student Loan Payments Set to Resume"

As the end of the student loan payment pause approaches, economists and advocates warn that it could be a jarring experience for tens of millions of people. However, borrowers can still prepare and even apply to see if they can keep their payments as low as they have been: nothing. Borrowers have more debt than they did before the payment pause, and for about 40% of borrowers, the company that handles their payments will be different than before the pause. Borrowers should check their student loan servicer, watch out for scammers, and consider income-driven repayment plans.

via USA TODAY|
#debt#finance#income-driven-repayment
finance2 years ago

"Preparing for the Resumption of Student Loan Payments: Tips and Programs to Consider"

Over 14 million Americans will face complications as federal student loan payments resume after a payment pause of over three years. More than four-in-10 borrowers will return to repayment with a new student loan servicer, which could complicate the transition to repayment. Lack of congressional funding for the office of Federal Student Aid (FSA) could limit the resources and programs it can effectively carry out. Additionally, many borrowers are not financially ready to return to monthly student loan payments, with more than one in 13 student loan borrowers currently behind on their other payment obligations.

via Yahoo Finance|
#delinquencies#federal-funding#finance
politics2 years ago

"Updates on Biden's Student Loan Forgiveness Program and Supreme Court Ruling"

The fate of President Biden's student loan forgiveness program, which could provide up to $20,000 in debt relief to millions of borrowers, is in the hands of the Supreme Court, which is expected to make a decision in late June or early July. The program has been on hold due to legal challenges from Republican-led states and conservative groups. If allowed to move forward, the program would forgive federal student loan debt for qualifying borrowers who made less than $125,000 in 2020 or 2021 and received a federal Pell grant while enrolled in college. Payments for federal student loans are set to resume in October, and borrowers are advised to contact their loan servicer with any questions.

via CNN|
#biden-administration#debt-forgiveness#loan-servicers
finance2 years ago

The Impending Student Loan Crisis: Americans Brace for Financial Fallout.

Americans who have not been required to pay their student loans since March 2020 due to legislative and executive action during the pandemic are bracing for the resumption of payments for direct federal student loans on August 29. Advocates worry that the resumption of payments and the legal challenges to President Joe Biden's plan to cancel up to $20,000 in student debt can result in catastrophic consequences for vulnerable borrowers. The resumption of payments is complicated by the logistical hurdle of suddenly resuming payments for millions of Americans, which a Department of Education spokesperson described as "unprecedented" and "herculean."

via ABC News|
#biden-administration#debt#finance
finance2 years ago

Prepare for Long Wait Times as Student Loan Payments Resume

Student loan repayments are set to resume soon, causing a surge in calls to loan servicers who have been hit by budget cuts. Servicers advise borrowers to contact them now to avoid long wait times. The Department of Education has modified its contracts with loan servicers, including cutting their pay and reducing the minimum number of hours customer service centers must open each week. Nelnet, a publicly traded company that owns two major student loan servicers, has cut 550 jobs due to these changes. Borrowers are urged to contact their servicers now to confirm personal information, loan amounts, and payment plans.

via USA TODAY|
#budget-cuts#customer-service#finance