College attendance is on the rise, but unfortunately, so is student loan debt. While employment rates for college graduates are gradually going up as the recession becomes distant, students are still having trouble paying off their student loans. If you or your young adult child took out student loans to help pay college tuition, you may know what it’s like to fall behind on payments. Stress, credit problems, not to mention the barrage of calls from collection agencies.
But if you’re facing these financial problems, there’s some good news. New regulations are helping student borrowers take greater control of their debt and making it easier to report collection agencies that violate the borrower’s consumer rights. It’s a step in the right direction for young people who may be struggling with student debt.
The Graduate Dilemma with Loans and Collection Agencies
Collection Agencies Can Find You But Can You Find Them?
In the past, government-contracted collection agencies had no difficulty contacting borrowers. Borrowers, on the other hand, had plenty of difficulty contacting these agencies. If a graduate needed to contact a collection agency to file a complaint, it meant hours of digging through the Education Department’s website.
And, like working with most government agencies, there always seemed to be too many hoops to jump through. The process was simply more difficult than it ought to be.
Even after borrowers finally complained, many collection agencies continued to harass them over the phone.
Progress In Addressing Loan Collection Agencies
Finding College Collection Agencies Just Got Easier
But that’s changing. A new article from the New York Times Business Bucks blog details how student federal loan borrowers can deal with collection agency harassment and other issues in the digital age.
“Previously, information about how to file a complaint was buried on the site. Now, all relevant complaint information is in one place,” Jillian McLaughlin, a research assistant at the National Consumer Law Center, told the Times.
Information about how borrowers can address their loans and deal with collection agencies, such as challenging the garnishment of wages, is now available at the easy-to-navigate site Myeddebt.com.
Aggressive Collection of Student Loans
While graduates may see this as a welcome change, collection agencies won’t be adopting less aggressive practices just yet.
Another article published by the Times details the aggressive collection practices and offered partial solution to students who defaulted on their loans:
A better complaint system can help restore a needed balance between borrower rights and “draconian” collection powers, the report said. “The current system of collections for student borrowers in default is unforgiving,” the report noted. “The department has nearly unlimited power to recover defaulted student loans.”
It may not be an ideal solution just yet, but it marks a move in the right direction for graduates dealing with federal loans. Dealing with student loans is stressful enough. A centralized website where users can properly address issues is always welcome, especially when it comes to student loans.
What Do You Think?
Do you have an outstanding college loan? What are your experiences with loan payments and collection agencies? Let us know in the comments section!
If you’d like to file a complaint about a debt collection agency or any other company, click here to get started on Scambook.
See Also
Don’t Let Payday Loans Trap You in a Vicious Cycle of Debt
Debt Collection Scams: Warning Signs & Safety Tips
Instant Mortgage Approvals? Online Mortgage Scams
The sad truth is that many college graduates find that for the first 10-15 years after they have graduated college, they are essentially indentured servants to their student loan debts. There are many reasons for this and different college graduates will find different things about their student loans when the appropriate time comes. First of all, those taking out student loans need to understand that a college degree does not guarantee a high starting salary. Beyond that, a college degree is no guarantee that there will be employers lining up to take your name and number upon graduation. The truth is that most college grads take anywhere from 6 months to a year to find a job in their fields and even then the starting salaries are often far less than anticipated. Learn how to reduce or eliminate your students loans.
I graduated and owed 60,000 because it takes time to be licensed in my field to make the kind of money I needed to pay back the loan I had to use forbearance and deferment. When I finally could pay I called them and at the time they refused to take what I could pay and demanded a higher amount, and I could not do it. Every time my income gets higher I call them and try to set up a payment plan and every time they will not take lesser payments and insist on an amount I cant afford, 13 years later I now owe 1 million dollars and they will not take less then 8,000 a month although now I make good money but I cant afford that. I cant buy a car or a house, I cant live in a decent place because no one will rent to me….. I am a slave to them for the rest of my life.. which is basically ruined, I can not so much as get one credit card. I am 50 years old now and see no hope of ever making a dent in paying this back. I tried bankruptcy, but they will not do that for student loans. I should have skipped collage and worked at McDonalds, by now I could have been some type of higher management with a nice house and car.
ok on yahoo there is a group call accepted4V saying our certificate of live birth on the back has a number called the cusip and that sending your bills in like student loans the dept of treasury will pay them and other things. i have most of the information except for 2 pieces.. so has anyone tried this? god it be nice if it was true for i figures a way to get on my feet by doing this and get off of SSI and retirement with my own business and at 64 have a more comfortable life for my life has been hell and this sure would be nice for my last few years