WASHINGTON, D.C. — Today the customer Financial Protection Bureau (CFPB) education loan Ombudsman circulated a written report projecting that more than the following couple of years, one-in-three rehabilitated student loan borrowers could possibly be driven back in standard because of gaps between education loan programs. The report examines business collection agencies and servicing issues plaguing the programs that are federal to assist millions of defaulted education loan borrowers can get on track and into affordable repayment plans. The Bureau estimates that the breakdowns over the course away from standard shall price borrowers billions of bucks, including over $125 million in unneeded interest costs within the next 2 yrs. The Bureau is calling for an overhaul of the scheduled programs so that you can assist in improving the healing up process for troubled customers.
“The customer defenses guaranteed under federal legislation should ensure it is extremely difficult for the many consumers that are vulnerable be caught in standard, ” said CFPB Director Richard Cordray. (more…)