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Student Loan Debt and the Student Aid Bill of Rights
June 25, 2015

Whether you are just opening your doors, or have a well-established restaurant, you can agree that the legal and regulatory requirements of running your business are a big part of day-to-day operations.

Student loan debt can be a source of much concern and stress for a lot of people. Those of us in the legal profession wholeheartedly understand the effect that undergraduate and graduate debt can have on an individual and their family. President Obama has introduced various initiatives designed to help students manage their loan debt. A recent proposal was launched called The Student Aid Bill of Rights, which aims to identify various problems that some borrowers experience while repaying loans and seeks to help resolve those issues.

Here is the current Student Aid Bill of Rights:

A Student Aid Bill of Rights

  1. Every student deserves access to a quality, affordable education at a college that’s cutting costs and increasing learning.
  2. Every student should be able to access the resources needed to pay for college.
  3. Every borrower has the right to an affordable repayment plan.
  4. And every borrower has the right to quality customer service, reliable information, and fair treatment, even if they struggle to repay their loans.

In order to achieve these ideals, Obama has announced various reforms. One of those is creating a centralized website in which all debt account information can be viewed, as well as where grievances can be filed by borrowers. The use of contractors or servicers by the government in order to collect loans can be confusing and result in a communication gap for borrowers. A single website would reduce confusion and display important information that is helpful to borrower.  Another important directive is to create a framework in which fees charged to borrowers are reasonable and create ways in which borrowers can return their loans to good standing if they are in default.

Although some of the changes announced are vague or uncertain, these, along with various other reforms, have a common goal: to make loan repayment and management easier for the borrower.

For more information about the Student Aid Bill of Rights and other student debt initiatives, visitwww.whitehouse.gov and search student loan debt.

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