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Fri Feb 9, 2018, 02:23 PM

One company will now handle close to half of all student-loan payments

Every month, approximately 40 million Americans make payments to a company they know almost nothing about.

There are just four major firms contracted by the federal government to process the nation’s student loan checks and after the just-announced merger of two of these firms — Nelnet NNI, -3.46% and Great Lakes — one company will handle more than 40% of all payments.

While it might not seem to matter who processes the payments, these companies have an outsize role in the shape of America’s $1.4 trillion student-loan burden. Though the rising cost of college and stagnant wages are the most cited reasons for our nation’s student debt problems, borrower advocates, law enforcement officials and the Consumer Financial Protection Bureau have said the student loan industry itself is also to blame. These processors can often make the difference for struggling borrowers between successfully paying down a debt or the nuclear option of default.

In an ideal world, no federal student loan borrower would default on his or her debt thanks to the myriad of programs available through the government, but in reality, roughly 1 million defaulted last year — a sign, advocates say, that student loan servicers aren’t doing enough to work in borrowers’ best interests.

more
https://www.marketwatch.com/story/one-company-will-now-handle-close-to-half-of-all-student-loan-payments-2018-02-09

Nothing could possibly go wrong...

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Reply One company will now handle close to half of all student-loan payments (Original post)
n2doc Feb 2018 OP
NCTraveler Feb 2018 #1
Angry Dragon Feb 2018 #2
PJMcK Feb 2018 #3

Response to n2doc (Original post)

Fri Feb 9, 2018, 02:25 PM

1. I make my last payment to Great Lakes next month!!!! nt.

 

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Response to NCTraveler (Reply #1)

Fri Feb 9, 2018, 02:28 PM

2. GOOD!!

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Response to n2doc (Original post)

Fri Feb 9, 2018, 02:38 PM

3. The student loan debt issue is stunning

Our niece's husband revealed that he has $125,000 in outstanding student loans. He's an opera singer with a masters degree. How will he ever pay that off? Most opera gigs don't pay that well. His parents were very negligent in that they never prepared for his education but ultimately, he has to be responsible for himself.

I've heard the analogy that this level of debt is like giving an unemployed student a mortgage for a graduation present.

I feel pretty fortunate. When I went to college, I only had to borrow $4,000. Although I had 9 years to pay it back, I paid it off in 2-1/2 years. When my son was born, I started a 529 account the next day and eventually, his undergraduate schooling was paid for. I'm so glad he doesn't have that kind of debt!

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