The new Consumer Financial Protection Bureau has been working to design mortgage documents that makes it clear to homebuyers the cost of their loan and other important details. It has posted sample documents, asking consumers to weigh in on which form is best.
Now, it’s working with the Department of Education to do the same on federal student loans. The CFPB posted a sample loan form, requesting comment.
But that’s not all. The Bureau also launched a tool to help borrowers struggling to repay loan to understand their options. The tool is handy because there are so many options available to borrowers to avoid falling behind on their federal loans.
You can defer payments for years, or seek a forbearance for years if you can’t land a job. You can elect to start out with small payments and then have the payments gradually rise as your pay increases.
And this week, President Obama announced improvements to the Income Based Repayment Plan. Anyone with high debt in relation to their pay should check this out.