Graduation season has passed, which means that it is time for customers (and staff) to start thinking about student loan repayment! Most former students took out federal loans, and most of those will slowly pay them over time. But sometimes there are things the student has no clue about. Programs that can help him/her lower their monthly payments or even, eventually, forgive the amount they owe.
For someone just starting to figure out the loan repayment process, a resource that covers the basics in easy to understand language is probably best. After all, some borrowers took out loans but never completed their degree, while some have gone on to post-graduate degrees. With different literacy levels, sometimes basic is best.
The Consumer Financial Protection Bureau (http://www.consumerfinance.gov/paying-for-college/) has a great section to help students figure out the best path for repaying loans. It features a widget that walks the borrower through a process to find the right options for his/her specific situation. There is also information for those who have yet to apply for student loans or who need help deciding on what loans to take and in what amount. Everything is easy to read for a high school graduate and features little to no legalese.
American Student Assistance (http://www.asa.org/) is a nonprofit that walks borrowers through everything they need to know in order to stay financially sound while repaying loans. A little wordier than CFPB, ASA nevertheless lays everything out in an easy to understand, clear way. Covering everything from the legal responsibilities of having loans, to repayment calculators, to debt management tools, this is a great all-in-one site to get a recent grad started.
IBR info (http://www.ibrinfo.org/) is a non-profit organization that focuses on the various income based repayment plans available to borrowers. As a site dedicated to this one subject, it covers all aspects of repayment. IBR is as wordy as ASA, but still a useful resource.
It would make sense that the Federal Student Aid Department ( www.studentaid.ed.gov ) is the go-to resource for federal student loan information. However, the literacy level is definitely college level and above, sometimes bordering on law degree level. This website contains all of the information needed about federal student loans, including all forms and contact information, so it is definitely worth knowing. Once the borrower figures out what direction to go, chances are they will need this site for forms and more detailed information about possible forgiveness, etc. But a little hand holding may be necessary on your part.
If you have a customer who is not tech savvy or may prefer to read over a hard copy, there are some great books out there as well that can help them. Generally speaking, scholarship books are not the way to go as they usually consist of scholarship directories. But there are some great paying for college books that also cover handling loans once a student graduates.
501 Ways for Adult Students to Pay for College (2013) by Gen and Kelly Tanabe. This book has a wonderfully detailed section on Loan Forgiveness programs across the United States. While the title suggests it is just for older adults, recent grads could also benefit from this example heavy and straightforward book.
The Financial Aid Handbook: Getting the Education You Want for the Price You Can Afford (2011) by Carol Stack. Another book that covers financial aid from beginning to end, Handbook features lots of information in an easy-to-understand format.
And finally, books that discuss getting out a debt may be helpful as well. Just make sure that they do more than mention student loans, as many will simply give strategies to save money to help repayment (a useful skill, for sure, but maybe after they work out a repayment plan!)
Do you have any resources that you use when helping customers? What about when you are searching for yourself? Please share in the comments below!
OLC - RISD 