A new report from Insider details harsh truths about the predatory nature of student loan companies and new insights from a top Biden official on how to revamp a broken system. From the article:

“President Joe Biden's top student-loan official recently acknowledged what many borrowers have known for years — the repayment process is burdensome and flawed.
That's why he's planning some fixes to the industry, but many borrowers right now are more focused on broad student-loan relief.
On May 19, Federal Student Aid Chief Operating Officer Richard Cordray published a blog post detailing how he plans to revamp student-loan servicing in the coming year. He explained that currently, over 35 million federal student-loan borrowers are paying off their debt to six different student-loan companies, and given that each company has its own process for repayment, the ‘disjointed servicing system is often confusing for borrowers and, frankly, the quality of work has not always met our standards.’
‘Borrowers are understandably frustrated when they receive inconsistent information about something as important as their student loans,’ Cordray wrote. ‘Too often, borrowers miss out on available repayment options, and millions have defaulted as a result.’”

This highlights one of the many troubling aspects of the loan industry and the ways it often misleads borrowers and leaves them to fend for themselves.

Read the full article here.