Do You Need A Student Loan Ombudsman?
"As outstanding student loan debt stays above the trillion-dollar mark, many fresh graduates are faced with the seemingly insurmountable task of paying down their loans in a weak labor and economic environment," FOX Business reports. "For many new grads, the student loan payments have started rolling in, but a steady and adequate paycheck might be more elusive, making it hard to make payments. To help sort through their budget and work with lenders, some young adults have started working with student loan ombudsman. An ombudsman serves as a neutral party to review discrepancies and disputes to work with borrowers and loan holders or servicers (lenders, guarantors, collection agencies, the Department of Education) to fix any mistakes and potentially reach a compromise. 'They help the borrower understand his or her specific issue and provide options for the borrower, both immediate and longer term, so future problems can be avoided' says Karen McCarthy, spokesperson for the National Association of Student Financial Aid Administrators. ... The ombudsman’s office can help resolve discrepancies and disputes regarding loan payments, tax offsets, consolidation, default status, interest and collection charges, and other related loan repayment issues, explains McCarthy. 'They can also help borrowers who don’t necessarily have disputes, but need help understanding loan repayment issues,' she says."
NASFAA's "Financial Aid in the News" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.