Imagine being a call center rep at a servicer trying to counsel a borrower on this. Simplification is not easy, and it is not going to materialize any time soon.
OB3 “simplified” repayment plan options for borrowers. And that’s true if you’re a brand new borrower in the future. But during neg reg today, FSA put together a bunch of tables of repayment plan options for current borrowers going forward. Holy cow.
Beware of advocacy organizations that, instead of pointing people toward concrete help (like their loan servicer), try to leverage people’s pain for publicity and fundraising purposes.
This is the kind of garbage from “borrower advocates” I talk about in my most recent substack. Starving FSA funds only results in worse outcomes and experiences for borrowers.
Read more about why we have servicers here: https://t.co/Wly8aZCvaE
Don’t sleep on the BILLION DOLLAR slush fund for @MOHELA and the rest of the student loan industry, with no guardrails and no strings attached.
This is a kickback to buy off their opposition to gutting financial aid for millions of people and jacking up costs for borrowers.
Everyone seems to be framing Trump's freeze on federal grants as a Constitutional fight over powers of the purse & whether presidents can disregard Congressional appropriations. It is that. But also at stake is the fundamental validity of govt contracts! I see much less discussion on this... 🧵
Limiting the amount of debt people can borrow is the opposite of neoliberalism. And anyone who is calling for forgiving all debt should be advocating for reasonable price controls & borrowing limits to ensure people don’t get stuck with debt they can’t repay.
@millennial_debt Lol, so you are offended by certain words. But do you support curtailing the policy of allowing colleges to charge sky high tuition for graduate school and loading it all into students' shoulders? That's the point, it's insane policy.
@millennial_debt Lol, so you are offended by certain words. But do you support curtailing the policy of allowing colleges to charge sky high tuition for graduate school and loading it all into students' shoulders? That's the point, it's insane policy.
‘School lunch debt’ is a term so absurd that it shouldn’t even exist.
That’s why I’m proud to introduce a bill to CANCEL the nation’s student meal debt and stop humiliating kids and penalizing hunger.
https://t.co/mAaKdKo1Af
Call centers are also staffed based on contract pricing and as long as student loans are a political football funding will be in jeopardy. Perhaps a paltry effort at stressing the system could be aimed at Congress next time, encouraging appropriate funding to support borrowers.
Call centers are staffed based on an expectation of normal call volume. Deliberately breaking the system and then claiming it's broken doesn't prove anything except bad faith.
It's like organizing a flash mob at McDonald's and then complaining you have to wait for a Big Mac.
Call centers are staffed based on an expectation of normal call volume. Deliberately breaking the system and then claiming it's broken doesn't prove anything except bad faith.
It's like organizing a flash mob at McDonald's and then complaining you have to wait for a Big Mac.
@Econ_Marshall You and your compatriots are in a bubble of self-righteousness and magical thinking and it's hurting the students you're trying to help.
Worth considering whether the need to believe that everyone who disagrees with you is comically evil and corrupt and the tendency to support political and legal strategies that don't work are two sides of the same coin.