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Student Loan Debt Hits $1.53 Trillion: Navigating Repayment Options

With student loan debt at an all-time high, borrowers need help navigating their options. Debt clinics and awareness campaigns are stepping in to provide guidance.

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Student Loan Debt Hits $1.53 Trillion: Navigating Repayment Options

Student loan debt in the U.S. has reached staggering heights, now standing at $1.53 trillion. To help borrowers navigate their options, various organisations and news outlets are hosting debt clinics and promoting awareness of repayment plans and forgiveness programs.

The American Federation of Teachers (AFT) has been at the forefront of this effort, organising debt clinics in cities across the country, including Houston, Lawrence, Milwaukee, Madison, and Los Angeles in 2018. These clinics aim to educate members about their repayment choices.

The Consumer Financial Protection Bureau (CFPB) has also been active in this space. In 2015, it identified widespread student loan servicing failures, leading to a series of lawsuits against Navient, the second largest federal student loan servicer. CFPB's former director, Richard Cordray, initiated the legal action in 2017, followed by several states' attorneys general (Illinois, Washington, Pennsylvania, and California).

Legal protections for fair treatment in student loan management include transparent loan terms, access to complaint and appeal processes, regulation of interest rates, and timely, clear communication from loan servicers. These protections ensure students are treated fairly throughout repayment.

News organisations can also play a crucial role by hosting their own debt clinics. Panels can include students, recent graduates, and long-term loan payers, providing a range of perspectives. The U.S. Department of Education's student loan website lists various repayment plans and forgiveness programs, serving as a valuable resource for borrowers.

With three-quarters of student loan borrowers qualifying for forgiveness programs, it's vital to raise awareness about these options. AFT's debt clinics, CFPB's actions, and news organisations' initiatives are all steps in the right direction, helping borrowers understand and navigate their student loan repayment journeys.

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