There is no doubt that the student loan repayment process could be easier and simpler for the US students who take out such loans during their college education. Well, it seems the students have found a new ally and he could not be any more high-profile and powerful. We are, of course, talking about the big man himself, President Barack Obama.
Last Tuesday, the President addressed students at Georgia Tech and he told them that it is his intent to do everything in his power to ensure the process of repaying student loans is made more understandable and easier to manage.
In front of more than 9,500 super-excited students, he said, “We’re going to require that the businesses that service your loans provide clear information about how much you owe, what your options are for repaying it, and if you’re falling behind, help you get back in good standing with reasonable fees on a reasonable timeline.”
In order to get the ball rolling, Obama spelled out a series of tweaks in the policy, as well as a number of projects envisioned to help people with student loans pay them back. He has also approached the Treasury and Education departments, as well as the Consumer Financial Protection Bureau and he asked them to provide his administration with a report that will show whether laws of regulations and bankruptcy laws for student loans should be changed. The report is due on October 1st.
In addition to this, The White House will also push for clearer disclosures by companies that provide student loans, which will hopefully help the borrowers understand their loans and the repayment plans better.
By July 1, 2016, President Obama will also have the Education Department create a system which will oversee and handle complaints from borrowers concerning lenders, collection agencies and servicers.