Graduates Keep Struggling With Private Student Loans
Career College Central summary:
The Consumer Financial Protection Bureau noted earlier this year that outstanding student debt would shortly hit the $1.2 trillion mark. The bureau issued a report that goes through types of trouble borrowers have had recently with their student lenders and offers some key conclusions.
Lenders Want Your Business. Just 4 percent of the complaints to the CFPB had to do with obtaining loans, strongly suggesting that most of those who need financing aren't having banks turn them away.
Competition Is Limited. Looking at which lenders got the most complaints, Sallie Mae (SLM) was the winner by far, with nearly 800 complaints representing almost 40 percent of the total complaints received during the report's six-month scope. That's more than four times what the No. 2 lender received.
Repayment Problems Are Paramount. The largest group of borrowers' complaints focused on the inability to get their lenders to agree to modifications of their loan terms.
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