Even the head of one of the largest FedLoan Servicing Agencies says it’s time to make things simpler for people to pay back student loans.
The Obama administration has given Americans a wealth of options for repaying their student loans by expanding programs that cap monthly payments to a percentage of earnings, known as income-driven repayment plans. The sheer number of plans, however, has drawn criticism from lawmakers, advocacy groups and the companies charged with managing payments — student loan servicers. Jack Remondi, president and chief executive of Navient, one of the largest servicers in the country, argues that it’s time to simplify the suite of repayment plans. – Danielle Douglas-Gabriel
While much has been done by the Obama Administration to make things simpler for people to pay back student loan debt they haven’t gone far enough in making changes. Right now paying back student loan debt is about as hard as filing taxes as a freelancer.
Without a professional accountant you can really lose your appetite sifting through all the options, and requirements. Realistically the federal government should create a centralized database, and online platform to organize your student debt and make payments. Right now it’s all a complicated disaster that is crippling many people’s personal finances. In turn it weakens the economy.
Through student loan refinancing, borrowers can refinance high-interest student loan debt and potentially score a lower rate, saving thousands of dollars in interest over time. Those savings can then go toward extra payments to get out of debt even faster. Additionally, borrowers can select a longer term to obtain a lower monthly payment as well.