The Consumer Financial Protection Bureau (CFPB) has been gathering information about problems with private student loans for quite some time. From this information, the CFPB put together a comprehensive report about the horrors of private student loans. I’ve also blogged about the problems with private student loans myself. In short, private student loans stink.
Now, the CFPB is seeking input on how we can solve one of the biggest problems with private student loans: repayment management. As you probably know, one of the main issues with these loans is inflexible repayment options. Programs such as Income-Based Repayment, loan consolidation, and loan forgiveness, which are offered for many federal student loans, generally do not exist for private student loans, and it can be difficult to postpone your payments during periods of economic hardship. Often, your only choice is to either pay your minimum monthly payment under the only repayment plan that is offered by your lender, or default. The CFPB is trying to gather information on what private student loan borrowers need to stay afloat, and how they can obtain things like loan modifications or repayment plan adjustments that can make loan repayment more manageable and affordable.
The CFPB wants YOUR input. To read more about what the CFPB is looking for and how you can contribute your thoughts, experiences, and ideas, click here. Submissions must be received by April 8, 2013, so don’t delay!