Updated: Apr 28, 2020
So ultimately there is a problem with Federal and Private Student Loans.
The discussion on student loans in the media almost ALWAYS leaves out private loans. That is a different discussion altogether. More to follow on that topic specifically.
The servicer problem however, IS the problem. There are so many points to go over as to why- which will need a detailed article but we can sum it up.
Servicer Problems Summary:
The government contracts for Federal servicers aren't suitable for this industry
The servicer has defrauded or literally lied to the borrower
The borrower is negotiating with the very people that make money from the debt
The third-party system is frowned upon and resisted by the government
The third-party system because unregulated is steeped with scammers
There actually is a solution- but no discussion thus far about it being comprehensive
There are some proposed ideas- like in this Forbes article.
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