I collect links to student loan stories every day,
then I look through the student loan update file
for topics to post on this blog.
The student loan stories just keep piling up.
Student Loan Update: Servicers
Nothing new here, another servicer concealing the best student loan repayment plans available.
Some restaurants have secret menus, special items that you can only get if you know to ask. New Jersey’s student loan program has secret options, too — borrowers may be able to get help from the agency, but only if they know to ask.
Another refrain of mine, the student loan servicers are like mortgage servicers, they make more money for themselves, and their actual client, the creditor, by, messing up.
Yes, giving you accurate information hurts their bottom line. So why are we surprised when they are disingenuous at best, deceitful at worst.
New Jersey has the largest state-based student loan program in the country, with particularly stringent terms that can lead to financial ruin, as ProPublica and the New York Times recently detailed. The agency overseeing the program says it has a policy to help some families if the children who were supposed to benefit from the loans die.
But internal emails show that staffers at the Higher Education Student Assistance Authority, or HESAA, have been instructed not to tell families that they may qualify for help unless they explicitly ask.
Student Loan Update: Alternative Repayment Plans?
Each day, more of us learn that the current student loan system is unworkable. It is a bubble waiting to burst.
Are there other ways?
Flexible student loan payment plan.
How about this concept?
- Flexible-payment systems work best when they are connected to educational programs that have strong, highly predictable payoffs for graduates. That’s especially true for masters’ programs that may turn a $60,000-a-year teacher in to a $120,000-a-year principal. But other examples aren’t hard to find. The key objective is to find a program where there’s plenty of economic gain can be divided between the newly minted principal and the education financiers in the background.
- Read the whole story.
- Contact me with your student loan questions.