Keep Student Loans out of Default!
This petition had 79 supporters
The Default rate on Federal Student Loans is at an all time high.
Hello, my name is PJ Willoughby and I own www.GoGradLoans.com
We specialize in getting students out of Default on their Federal Student Loans.
Many students, especially those who stop going to school before graduating, have not received proper information in regards to their rights to avoiding default.
For instance, they have 3 years of Deferent meaning they can prove that they aren't making enough money to be able to afford their payments.
They also have 3 of Forbearance meaning they can afford their payments but would prefer to spend their money elsewhere.
Default has a very serious impact on people lives. It can damage their credit rating, offset their income tax return, keep them being able to take out more student loans to finish college, and the IRS can garnish their wages up to 20%.
It would be beneficial to all involved if the Servicers of the loans automatically put the borrowers into forbearance for the 3 years they qualify for instead of sending their files to a collection agency who can then charge them up to 18% of the loan for pursuing them.
Also, Consolidation, which lowers their monthly payments by about half used to be handled by private companies who were then paid well by the banks... Companies like mine would travel to schools conducting free in person exit interviews before graduation to inform students of their Free Federal Rights.
But now the only people in charge of the exit interviews are the schools (who are trying but are often are short handed so exit interviews are done online with no one around to ask questions to) and Lenders/Servicers who do not seem to care for the students as they once did when the loans could be consolidated by a private company and sold to a competitor.
DOE please help lower the default rates by giving automatic forbearance to students who miss payments and allowing private companies to reach out as in the past when student loan default was at an all-time low.
Graduate Funding Services
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