Consider This from NPR Fresh Start for Student Loan Borrowers in Default
Nov 16, 2023
In this discussion, Cory Turner, an NPR reporter focused on education and student loans, reveals the Fresh Start program aimed at aiding nearly 7 million borrowers in default. He dives into the personal struggles of borrowers facing the harsh consequences of default, including financial and emotional turmoil. The initiative simplifies the path to recovery and offers benefits like improved credit reporting. Turner also addresses ongoing challenges, such as long wait times and confusion over repayment plans, highlighting the urgency for grassroots outreach.
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Reduced Loan Payment
- Jay Kazmar, a borrower, now pays $58.66 monthly on an income-based repayment plan.
- Before the pandemic, their monthly payment was $300.
Zero Dollar Payment
- Sophie Hernandez-Simeonidis, a freelancer, initially faced a high payment based on an old job.
- After updating with freelance pay stubs, her payment became $0.
Consequences of Default
- Juan Carlos Moreno defaulted on his student loans after facing financial hardship during the Great Recession.
- This led to a cascade of negative consequences, including damaged credit and wage garnishment.