Student loans are now over one trillion, wow! That is one big number. Now Big Bro, Uncle Sam, and the big dog are coming to look at that servicers books and practices. With student debt rising and so called "predator" lending practices the Obama administration is going to dive into the practices of the servicers. I am not sure where this originates but you can bet it has to do with rising student debt coupled with poor employment numbers. The Consumer Financial Protection Bureau is now being commission to look at the top seven student loan servicers.
Are they going to find any problems? Hmmmmm? Will the IRS find any problems if they audit any personal income tax return in the U.S.?
If they look hard enough they are going to find something but I am not sure that is where the problem resides. Let’s look at the economy and the hardships our young graduates are facing in the job market.
If you take a look at the German economy right now they are thriving due to a inherited hatred for debt. We americans, students and parents alike, need to be conscience of our debt levels including student loan debt.
Every day we see students that are saddled with student loan debt and are unemployed or underemployed. Thankfully, student loans have myriad methods of obtaining positive repayment outcomes by enabling students to utilize methods available from their servicers.
So let’s not go looking for insignificant issues within the servicers. We work with all the servicers and they are mostly excellent in what they do. The real issue is the economy and the willingness of students to take on debt.