The number of recent college graduates that are defaulting on their student loans has declined thanks to an improved economy and lower unemployment rate. There are still some people that will fall behind on their student loan repayments and as a consequence risk a damaged credit report and having the government garnish their wages. This column discusses some important options that student loan borrowers should consider to avoid falling behind. Borrowers should consider some of the federal repayment options that are available. They might want to also check out some private repayment plans or consider changing their servicer. For more information student loan borrowers should consider contacting the Federal Student Aid Ombudsman and the Consumer Financial Protection Bureau.
See Liz Weston, A game plan for grads struggling with new loan payments, Reuters, October 28, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
