SPRINGFIELD, Mass. (WWLP) – If you have education debt, listen up. The federal government has launched an investigation into the companies that provide student loans.
They’re trying to find out if loan servicing providers actually make repayment more stressful and more expensive. The Consumer Financial Protection Bureau said the longer it takes you to pay, the more money the loan servicers make. That could lead to policies that benefit them, and not you.
“They’re taking advantage of the fact that the economy and the job market is in such disarray as it is. Personally I’m on a plan to pay back my student loans over the next 25 years. I’m going to be over 50 by the time my loans are all paid off,” said Matthew Yotka, a Western New England University graduate.
The goal of the investigation is to try and help the 40 million people with student loan debt save money and avoid default.