Student Loan Debt

  The Obama Administration has proposed new guidelines that would stop robocalls demanding immediate payment for student loans.  Student loans are a major factors that force people into having to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy.  Although student loans are not dischargeable in bankruptcy, the pressure it puts on a debtor can cause problems with other debts, often making it necessary to file a bankruptcy.  The new proposed guidelines would force student loan collectors from just collecting student loan debt, and would direct the collectors to inform delinquent borrowers of their eligibility for income based repayment plans before demanding they make payments.  It would also require student loan companies to make vigorous efforts to contact borrowers at risk of default and walk them through their options.  The student loan companies would have to form specialized customer service representatives to handle struggling borrowers who call for help, and inform borrowers of potential eligibility for loan cancellations.  These steps are just proposals now, and have to be approved by the Federal Student Aid office, and then have to be written into the contracts of the collectors.  Although this may take some time to complete, these changes will help those in the future who may be burdened with overwhelming student loan debt.