Student loan borrowers share tales of woe with regulators


Advocates organized the event earlier this week to bring attention to the plight of borrowers like Carter to federal and state regulators.
News Story (Nevada)

Jillian Berman
MarketWatch
October 27, 2016
READ THE FULL STORY HERE

Tags: Debt Collection, Student Debt

Organizations mentioned/involved: Mobilization for Justice (New York City), Legal Services NYC (LSNYC)


DETAILS

Ultimately, Carter cured his default with the help of legal advocates through a faster process that the company never told him about, even though he had a right to it under the law the whole time. Now Carter is using a payment program offered by the government that allows borrowers to cap payments as a percentage of their income. He’s able to stay current on his loans by making payments of zero dollars a month.

“This is a very common story we see,” Evan Denerstein, Carter’s lawyer and a senior staff attorney at MFY Legal Services, an organization that provides legal counsel to low-income New Yorkers, told the room.

Denerstein and other advocates organized the event earlier this week to bring attention to the plight of borrowers like Carter to federal and state regulators. These borrowers regularly struggle to access the protections and rights that federal student loan borrowers are guaranteed through their servicers, the private companies hired by the government to handle the student loan repayment process, he said. Instead, these borrowers are turning to legal advocates for help.