CFPB – new report “Innovation Highlights: Emerging Student Loan Repayment Assistance Programs”
Consumer Financial Protection Bureau “CFPB” released a new data finding that nearly half of student loan borrowers leave school owing at least $20,000 – double the number of borrowers a decade ago. The Bureau also found that more borrowers are taking out student loans later in life, and fewer borrowers are paying down their student debt in five years.
Suggestion on saving for your child’s education and know the key changes in the way consumers borrow and repay student debt.
- More than 40 percent of student loan borrowers leave school owing $20,000 or more.
- Half of student loan borrowers are older than 34 when they start repayment.
- 30 percent of borrowers are not paying down their loan balances after five years in repayment.
- More than 60 percent of borrowers not reducing their balances are delinquent: Among these borrowers, those with less than $20,000 in student loans are even more likely to be in poor standing, with 75 percent delinquent on at least one of their loans. More information can be found in the Bureau’s explainer blog on this topic.
The CFPB provides a Repay Student Debt tool, which helps borrowers get unbiased tips on how to navigate student loan repayment, along with other sample letters they can send to their student loan servicers. More information is available at: consumerfinance.gov/students.
Plus CFPB has lots of other resources dealing with student loans, consumer credit card, car loans, payday loans and more.
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
In Case You Missed It
Published On: June 29, 2024
From the National Consumer Law Center "NCLC" a toolkit to deal with your student loans, 5/2024 Whether you are just starting your student loan journey or have been dealing with student loan debt for decades, [...]
Published On: September 2, 2023
NEW STUDENT LOAN REPAYMENT PLAN, plus UPDATES (at end of this article) SAVE – “SAVING ON A VALUABLE EDUCATION” “SAVE” – New Student Loan Repayment Plan (8/23) [...]
Published On: July 19, 2023
IMPORTANT PROGRESS FOR STUDENT LOAN BORROWERS WHO HAVE BEEN IN REPAYMENT TWO DECADES OR MORE Posting from the National Consumer Law Center Important Progress for Student Loan Borrowers Reposting from NCLC, July [...]
Published On: April 18, 2022
Education Loans Can Be Discharged in Bankruptcy Busting myths about bankruptcy and private student loans By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau "www.CFPB.gov". The following is an [...]
