According to a recent report by Moody’s Investor Services, approximately half of student loan repayers who began repayment in 2010-12 have not reduced their debt balance. Even borrowers in income-driven repayment have seen their student loan balances grow regardless of their income.
Many student loan repayers who opt for a lower monthly payment extend their repayment term to 20 or 25 years, resulting in a very slow reduction of their principal. Payments always go towards interest first, and loans with high balances can see very little progress towards total payoff.
Why are borrowers not repaying?
Student loans are nowhere near the priority of food, transportation, and shelter. So it’s understandable that a person would let their student loan debt go unpaid.
Many may be holding out for the new president to forgive their loans, others may just be stubborn from dropping out of college before earning their degree. For the majority of borrowers, the truth is they don’t understand what options are available to them.
IonTuition is there for all borrowers
We help everyone from the most defaulted student loan borrowers to the well-qualified employees missing out on the benefits of refinancing. Being able to upload your entire student debt portfolio to the IonTuition portal and viewing insights into income-driven plans and refi options is immensely valuable to the layman who doesn’t want to think too hard about his or her student loan repayment.
Contact IonTuition today to offer student loan repayment management at your company to complete your financial wellness benefits package.