As Protections for Borrowers Fall, What to Do If You Face Trouble Repaying a Student Loan, Consumer Reports, 4/14/17

“The (Obama era) guidelines that were taken away laid out really basic, commonsense guidance for how servicers should act so that borrowers can navigate repayment,” says Suzanne Martindale, a staff attorney and education debt expert at Consumer Reports. “Removing these is incredibly shortsighted and will likely cause greater problems down the road for students and families.”

The guidelines called for major changes in student loan servicer practices, including new standards for responding to borrower problems in a timely way, providing economic incentives to give high-quality customer service, and imposing penalties for poor performance.

In March, DeVos rescinded a 60-day grace period to allow students in loan default to get back on track and avoid a fee of 16 percent of their loan balance.

Also last month, the Education Department said it would delay implementing the gainful employment rule, an Obama-era regulation that penalizes college vocational programs if graduates accrue more debt that they can pay with post-grad earnings.

Last month, the CFPB reported a 429 percent increase in student loan complaints about servicers from December through February, compared with the prior year. Consumers say servicers process payments incorrectly, make it harder for them to enroll in more affordable payment plans, and fail to act when borrowers complain.

Much More: https://www.yahoo.com/news/protections-borrowers-fall-face-trouble-184224571.html