A few weeks ago, we announced that we’re gathering information to identify policy options for borrowers to find affordable options on their private student loans.
Here’s a couple of the issues and ideas that have been submitted:
Refinance products and the capital markets: A number of participants, including a and a , described how there may be significant demand for credit-worthy borrowers to refinance their loans and lock-in lower rates, but creative lenders face hurdles in the capital markets to fund loans. have also described how the lack of refinance options impacts them.
Government-sponsored programs to promote affordable loan repayment: Many participants have talked about income-based repayment, and think tanks discussed creating programs and capital vehicles to modify loan terms so borrowers can get affordable payment plans.
Impact on professions: A number of participants talked about how student debt affects their profession. For example, a wrote about the inability to get a lower rate. talked about the difficulty staying in public service. A wrote about how the lack of repayment options on private student loans impacts teacher retention. A talked about the impact of student loans when qualifying for a mortgage.