Based on this research, student loan borrowers clearly need more awareness of their repayment options. The SLA will play a critical role in providing objective education and counseling to improve borrower assistance in this area.
Washington, DC (PRWEB) December 20, 2012
GreenPath Debt Solutions, a national nonprofit financial organization and founding member of the Student Loan Alliance, is helping student loan borrowers find relief. As many as 1.6 million responsible student loan borrowers could benefit from a new order that ties loan repayment to income and family size. Now available, an expanded option called Income Based Repayment (IBR) can reduce monthly loan payments. GreenPath is educating student loan borrowers about IBR and recently assisted a client who was seven months delinquent on their student loan. In qualifying for the Income Based Repayment (IBR) program, the client’s monthly payment was reduced from $639 per month to $142. In addition, the client may be able to write-off the reminder of the loan after ten years.
"We are encouraged by the fact that we were able to assist our client in obtaining such a substantial reduction in monthly payments," said Jane McNamara, president of GreenPath. "We’re excited by the possibility of assisting more clients and helping them maximize the use of these programs," said McNamara.
Nonprofit consumer credit counselors assist borrowers with numerous debt challenges, but student loan debt is increasingly becoming the trend. Considering the numerous options offered today, the Student Loan Alliance (SLA) is working to provide more uniformity in how counseling is delivered to ensure all borrowers in need of assistance receive help. This includes ensuring borrowers receive the best work out option and are in the best position to manage their overall finances.
"We conducted a survey of our existing clients and found that more than half were not given any payment options," said Jo Kerstetter, vice president of education for Money Management International. The survey also revealed the following:
> 22.1% are struggling or have missed payments
> 53.6% stated they weren’t given any option by their servicer for repayment
> 13.7% of respondents didn’t know whether or not their loan was private or federal
> 6.3% didn’t know if their student loan debt was consolidated.
"Based on this research, student loan borrowers clearly need more awareness of their repayment options. The SLA will play a critical role in providing objective education and counseling to improve borrower assistance in this area," said SLA’s President Larry Gilmore.
More information about the Student Loan Alliance can be found at http://www.studentloanalliance.org
About the Student Loan Alliance
The Student Loan Alliance (SLA) is a nonprofit organization focused on developing long-term solutions to address the student loan crisis with a key focus on leveraging independent nonprofit counselors as "trusted advisors." Alliance members deliver efficient counseling and timely assistance by implementing best in class systems and processes. The student loan crisis affects many households across the country and SLA is committed to addressing the crisis by promoting partnership, developing effective outreach and awareness campaigns, and providing streamlined education and counseling.