“A vast majority of the more than 10 million Americans who have defaulted on or are behind on repaying their student loans could have benefited from income-driven repayment plans that are intended to ease pressure on distressed borrowers and keep them from defaulting on their federal loans.These plans can allow borrowers with low income or high debt — or both — to pay less each month, or even nothing, until their finances improve without being penalized or going into default. But many borrowers never even hear about these payment plans, thanks to poor customer service by the companies that are paid more than $600 million a year by the government to manage these accounts, process monthly payments and enroll distressed borrowers in alternative repayment plans.”
Here is a comment from the Times which I suport:
“Student loan companies are not “failing” borrowers. They’re intentionally obfuscating, mismanaging information, or flat-out lying to borrowers in order to keep them trapped in debt bondage forever. Go ahead and look up the consumer reports of any major debt servicing company. They are filled with tales of grift and harassment; companies that just happen to “lose” huge amounts of money paid towards a principal or that conveniently forget about payment plans in which their borrower participates. In the meantime, these companies can sell massive debts to one another at pennies on the dollar, while charging interest rates that break the orbit of our now permanent zero interest rate policy.
We are way past the point of effete “oversight.” These deadbeat companies should be nationalized, their assets should be redistributed to the borrowers that they have defrauded, and their execs should stand trial. Or, we can wait for this problem to manifest itself, once again, in the streets. ”