27 Mar Student Loan Collections
The article writes about the abusive tactics collectors use when attempting to collect a debt, and also indicates that bill collectors do not tell borrowers about income contingent repayment plans that may be available to the. The reason for this is that the collectors do not get any commission if the payment is not large enough, so they will coerce individuals into payments that they cannot afford.
The moral of the story for student loan borrowers is to check out your income contingent repayment options, before relying on debt collectors to set up a payment for you. If you cannot afford rent and food for your family, you should be eligible for some relief from federal student loan. When you are taking out student loans you should stick with federally guaranteed student loans and avoid private student loans, the federal loans offer more generous repayment terms if you find yourself unable to pay back the debt. The Bloomberg article is only the tip of the iceberg when it comes to student loan debt, we will be seeing a lot of problems with student loan debt in the coming years. Congress will have to do something to help people alleviate the student loan debt, or make affordable payments on the debt, if it cannot be discharged in bankruptcy. If you are currently receiving collection calls regarding student loan debt, you need to find out if you can reduce your payments based on your income, before agreeing to a payment you cannot afford.