Members of the military who are working to repay private studentloans are facing difficulties in the process. That's the consensusof a new report released by the Consumer Financial ProtectionBureau.
|The report, which is titled “The Next Front? Student LoanServicing and the Cost to Our Men and Women in Uniform” and basedmostly on consumer complaints filed with the CFPB, explains thehurdles servicemen and women face in obtaining the private studentbenefits promised to them under laws and programs implemented byCongress, CFPB said.
|These laws and programs include the Servicemembers Civil ReliefAct, which provides an interest rate reduction to those whoacquired student loan debt before going on active duty, and theIncome-Based Repayment program, which offers lowered monthlypayments according to income level and family size.
|There are three central complaint themes in the report, CFPBsaid: a lack of complete, accurate loan repayment information,difficulty navigating the student loan benefits system, androadblocks for borrowers who are trying to retrieve their benefits,CFPB said.
|“We are concerned that our men and women in uniform are notbeing given the opportunities they have earned under federal law,”said CFPB Director Richard Cordray. “For all the service ourmilitary members give us, the least we can do is protect them fromthis kind of disservice.”
|Student loan debt can negatively affect service members more sothan the average consumer, as defaults can impact their securityclearances and military careers, and debt can be tough to handlewhile serving overseas, according to the CFPB.
|Citing the National Center for Education Statistics, the bureausaid the average, cumulative amount of federal and private studentloan debt for active duty service members who graduated college in2008 was around $26,000.
|The CFPB also announced a new, multi-pronged partnership withthe Department of Defense that aims to raise awareness about thebenefits owed to student borrowers serving in the military.
|As part of the partnership, the bureau said staff members willtrain judge advocate generals and education services officers, aswell as assist personal financial counselors located on militarybases. The agency has also released an electronic guide for servicemembers taking out student loans.
|Back in November 2011, the CFPB asked the general public for feedback on the private studentlending market. The agency published more than 2,000 complaint-ridden comments online inJune, which were followed by the release of a private student loan report with the U.S. Department ofEducation in July.
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