A new year comes with resolutions. You know the most popular - lose weight, get organized, exercise more. Among the top on the list is "manage debt."
So it is really not surprising to hear student loan assistance companies ramping up their advertising campaigns this time of year.
As the cost of higher education increases, the debt burden of our college students increases, and last year the 3-year cohort default rate for students entering repayment hit nearly 15%.
A growing cottage industry that has benefited from this problem are the many “student loan assistance” companies. These organizations charge borrowers to consolidate their loans, help move them into deferment or forbearance status, lower their payment, and do other things that are - quite simply stated - FREE.
A radio ad placed in our market recently spoke of the company's ability to consolidate a student borrower's loans.