"This change marks a shift toward earlier and more comprehensive engagement with families, ensuring they understand both the opportunities and potential risks of taking on federal student debt before they borrow, By providing clearer guidance and support at the front end of the college journey, we believe students will make more informed decisions that lead to lower debt burdens, stronger repayment outcomes, and greater satisfaction with their educational investment."
"to make careful borrowing decisions and responsibly manage their federal student loan debt,"
An office responsible for handling borrower complaints will also focus on providing students and families with information about benefits and risks of college loans. The office was renamed the Office of Consumer Education and Ombudsman and will continue to respond to borrower complaints. The student loan portfolio totals nearly $1.7 trillion and high default rates motivated the revamp. Ombudsman staff will develop a new manual for all direct loan-collection practices and policies to improve accountability and strengthen oversight of third-party servicers. The aim is earlier and comprehensive engagement so borrowers understand opportunities and risks before borrowing, improving decisions and repayment outcomes.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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