Student Loan Debt Project: Recent Updates from the Department of Education
As part of the Student Loan Debt Program, Judge Waites and the Student Loan Workshop Committee would like to pass along recent updates from the Department of Education that may be helpful to counsel in assisting clients with student loan issues.
Recently, the Department of Education reported that one in four student loans are either in default or are at risk of imminent default. The Department also reports that 70% of borrowers qualify for an income driven repayment plan but that few borrowers seek alternative repayment options. Therefore, the Department of Education, in coordination with the Consumer Financial Protection Bureau and the Department of Treasury, have announced an initiative to increase awareness of these alternative repayment options and to improve the customer service provided to student loan borrowers. Summaries of the recent developments made as part of this initiative are attached here, including:
(1) The new Department of Education website for alternative student loan repayment plans
(2) The Consumer Financial Protection Bureau’s Payback Playbook
(3) The Consumer Financial Protection Bureau’s Servicemember Student Loan Action Guide
(4) The Department of Education’s solicitation for Total and Permanent Disability Discharge.