PETALUMA, Calif., April 19, 2018 /PRNewswire/ -- As student loan debt rises, and more and more borrowers take on debt to finance their education, student loan servicers affect more and more lives. Particularly servicers of federal student loans, which are the prevalent type of student debt in the United States. But borrowers can sometimes run aground in their repayment efforts—and sometimes it may be due at least in part to student loan servicers. Brandon Frere, an entrepreneur with expertise in student loans and financial services, wants to prepare student loan borrowers to possible processing delays with their student loan servicer.
"While servicers for federal loans have been hired by the United States government to do a job—essentially collect repayments—servicers don't always act in the interest of borrowers or in the interest of the public," Frere said. "It's not always clear what their motivations—if any—are, but the result is often detrimental to the borrower."
Frere is referring to publicly reported examples of these issues, both straight from borrowers or through news outlets. These comments detail absurdly long processing times for paperwork submitted to student loan servicers. And these drawn-out waits are not just a mere inconvenience. If a borrower tries to change or re-verify enrollment in her repayment plan, for instance, and the paperwork is delayed too long, she may end up paying way more for her monthly payment than she should. She may also lose out on valuable payments made towards loan forgiveness.
In a real-life, worst-case scenario, loan servicer issues affected people who weren't even supposed to be loan borrowers in the first place. Many TEACH grants issued by the Department of Education have converted to loans; some teachers say that paperwork issues with the servicers made their grants turn into loans.
"While this type of issue is in no way the borrowers' faults, it's important for them to realize that this is known to happen and they are not immune to these kinds of servicer issues," said Frere. "It's important for borrowers to be vigilant."
Brandon Frere is an entrepreneur and businessman who lives in Sonoma County, California. He has designed and created multiple companies to meet the ever-demanding needs of businesses and consumers alike. His company website, www.FrereEnterprises.com, is used as a means to communicate many of the lessons, fundamentals, and information he has learned throughout his extensive business and personal endeavors, most recently in advocating on behalf of student loan borrowers nationwide.
As experienced during his own student loan repayment, Mr. Frere found out how difficult it can be to work with federally contracted student loan servicers and the repayment programs designed to help borrowers. Through those efforts, he gained an insider's look into the repayment process and the motivations behind the inflating student loan debt bubble. His knowledge of the confusing landscape of student loan repayment became a vital theme in his future endeavors, and he now uses those experiences to help guide others through the daunting process of applying for available federal repayment and loan forgiveness programs.