In its article, CFPB Sues Nation’s Largest Student Loan Company Navient for Failing Borrowers at Every Stage of Repayment, the Consumer Financial Protection Bureau details its lawsuit against Navient, formerly a division of SallieMae. The alarm sounded in the article should reverberate throughout the middle class, even putting aside Navient’s alleged bad behavior. Consider the following:
$130 billion has been defaulted on by student loan borrowers
44 million borrowers have generated an estimated, staggering $1.4 Trillion
For generations, college has been thought of as an automatic ticket to the middle class. This assumption has been supported historically by statistically higher wages and lower unemployment rates for individuals with a college degree vs. individuals without a college degree. Unfortunately, over the last several decades the benefit of higher wages and lower unemployment has been diminished by this overwhelming debt that is now the 2nd largest consumer debt market (www.cfpb.org).
“With the growing burden of student loan debt increasing and the number of Americans that are being impacted by this long-term debt, we are seeing many borrowers being attracted to consolidation and refinancing plans,” said Pam Webb, outreach coach for Transformance, a financial education non-profit organization. “It is so important for financial education to be available for borrowers to understand the pros and cons of these financial products.”
If you are someone who is struggling with student debt, you should talk with someone like Pam. Transformance is a 45 year-old 501c3 agency accredited by the Council on Accreditation and the National Foundation of Credit Counseling. They have trained Coaches that help individuals with student loan debts with budgeting, making action plans and even helping to implement those plans all for a nominal fee. You can contact us directly at 800-249-2227 or check out our website at www.transformanceusa.org/studentloans.
Coaches like Pam have a passion for helping others, even if it’s only to educate the misinformed or point out some new options for those working feverishly to repay their loans.
“Many clients are unaware of the repayment options of federal loans and as a result may be forfeiting the benefits of the federal student loan programs,” she said. “Helping our clients that have student loan debt with a holistic approach gives our clients renewed hope as they gain understanding about their unique options to gain financial relief.”
Neil Israel is also owner and COO of Next Level Performance, an operations excellence company, focusing on helping companies develop their staff and recruiters develop their candidates through affordable, professional education and certifications. Learn more at nextlevelperformance.us.