After news of Secretary of Education, Betsey Devos’ plan to roll back Obama-era student loan protections, Student Loan Attorney, Jay Fleischman said it best, “It’s all ‘borrower-beware.’ It’s on you to find all the information…“
And the truth is that this was the case even with the Obama-era protections in place. Student loan borrowers not only need to be well informed about the income-driven repayment plans available to help them avoid default but also need to educate themselves about how their student loan works and how to avoid accumulating excessive debt in the first place.
None of the Obama-era protections –
- Required in-depth financial education about how student loans work by college financial aid offices & staff or the U.S. Department of Education.
- Prevented the negative amortization of student loans for income-driven repayment plans.
- Stopped the rapid rate of new student loan defaults: one every 29 seconds.
What The Obama-Era Protections Didn’t Do
If you are considering using student loans to pay for college, start informing yourself by:
- Understanding your student loan life cycle.
- Limiting the amount of debt you take on to your expected starting salary after graduation.
- Applying for scholarships year-round to reduce your reliance on student loan debt.
- Obtain college credit by examination to reduce education costs.
For those of you who have already borrowed heavily and you are confused by how to navigate repayment, understanding your student loans will be even more important, in addition to making a solid plan to pay off your debt.
No student loan servicer or presidential nominee will do that for you.