To protect themselves from unaffordable repayment plans and damage to their
credit score, it’s important for student loan borrowers to be familiar with all
of the repayment options available to them. When they are approved for a
student loan, borrowers should review the loan type and know when they need
to start making payments. Borrowers should communicate regularly with their
loan servicer and utilize online account management tools to ensure their loan
is in good standing and their payments are recorded accurately.
BEWARE: Your student loan servicer may attempt to steer you away
from income-based repayment plans that have lower monthly payments
and into standard payment plans that are easier for them to service.
California’s Student Loan Market
54% of California students graduate college with student loan debt balances averaging more
than $22,000. As of January 2015, 4,156,000 student loan borrowers in California owed a
combined $112 billion in student loan debt. 41 million Americans owe a total of $1.2 trillion
in student loan debt, surpassing both auto loan and credit card debts.
Read entire advisory at http://www.dbo.ca.gov/Licensees/Student_Loan_Servicers/SLS_consumers.asp