September 10, 2018 by Administrator
September 10, 2018 – This is serious, people. As of September 1, Seth Frotman is no longer the Student Loan Ombudsman in the Consumer Financial Protection Bureau (CFPB). Why should that matter?
Well, in what was his former position, he played an essential role in protecting the consumer by providing assistance to student loan borrowers and potential borrowers, answering questions and resolving issues regarding student loans. He also reviewed thousands, yes thousands, of student loan complaints regarding private lenders, student loan servicers and student loan debt collectors.
In his resignation letter to CFPB Acting Director Mick Mulvaney (keep an eye on him, sketchy) he wrote, “it has become clear that consumers no longer have a strong, independent Consumer Bureau on their side.” He continued, “Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting…Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America.”
This is no joke and once again emphasizes the importance of taking control of your own finances. Especially useful are the dfree® principles regarding Student Loans. Here are a few:
The most important tool is to use a strategy to repay student loans. Using strategic planning goes a long way. See if refinancing the terms of your loan could allow you to pay a lower interest rate and extend the repayment period.
Depending on your income, you may also qualify for loan deferment or forbearance. (Both paths are temporary. Deferment can last up to 36 months and forbearance 12 months.) The federal government also offers income-based repayment plans, which limit the percentage of income qualified applicants must pay towards their loans.
In all cases, be sure to examine ALL of your options before making any changes to your student loans, as some changes may preclude you from future options/benefits.