| ity students currently are taking on record amounts | | | | consolidate her three AES loans because her credit |
| of debt in order to pay for college. Most students | | | | score was too low, and AES would not even take |
| today are finding themselves out of school and with | | | | into account her co-borrower's credit rating. |
| no source of income to repay their student | | | | An article from the FTC, "Facts for Consumers," |
| loans.Because educational costs continues to rise, | | | | provides hope for borrowers "A debt collector may |
| while the amount of federal loans have not, private | | | | not call you before 8 a.m., after 9 p.m., or while |
| loans are becoming almost a requirement for many | | | | you're at work if the collector knows that your |
| students. Because of this students must seek out | | | | employer doesn't approve of the calls. They must |
| private loans to pay for books, rent, and so much | | | | honor a written request from you to stop further |
| more. | | | | contact." |
| Unfortunately, many graduates eventually find | | | | Chase as well as some other loan servicers, like |
| themselves in default on their private loans. Although | | | | American Education Services, who services loans |
| it is fairly simple to put federal student loans in | | | | through the TERI program, are allowed to start |
| forbearance, private loan forbearance is granted at | | | | calling borrowers a week or two after a missed |
| the discretion of the lender. JPMorgan Chase & Co. | | | | payment, and they can call 10 or more times in a |
| gives private student loan products via their Chase | | | | single day with or without leaving a message. This is |
| brand. To qualify for forbearance through Chase the | | | | what one AES representative told a delinquent |
| borrower must provide proof that they can resume | | | | borrower: "Thank you, I will note your account that |
| regular payments after the forbearance period of six | | | | you will make a payment in two weeks. I must |
| months. Individuals without job opportunities typically | | | | inform you that we will continue to call you until that |
| won't be able tot make these obligations. | | | | payment is made." |
| Not only do students have to cope with tremendous | | | | Borrowers who have been subjected to this |
| debt, additionally they have to suffer the pain of | | | | harassment can contact the loan provider in writing |
| nonstop phone calls from lenders. What these | | | | and demand that they cease communication. This, |
| graduates don't know is that they're guarded under | | | | legally, will stop the phone calls. Borrowers may |
| federal regulation, even regarding private loans,and | | | | decide to provide permission for certain kinds of |
| that they can tell the lending company to quit | | | | written communication like monthly statements and |
| harassing them. | | | | offers to reduce monthly payments or forbearance. |
| When applying for both federal and private student | | | | When borrowers insist that lenders interact with |
| loans most students are told that they will be able to | | | | them in a lawful fashion, the incessant telephone calls |
| consolidate these loans together after graduation. | | | | end, borrowers feel less stressed, and they can |
| That is not always the case. American Education | | | | concentrate their energies on working in the direction |
| Services will not consolidate student loans if the | | | | of a financial solution. This really is considerably more |
| borrower does not have a certain credit score, even | | | | productive than wasting energy on the phone arguing |
| if AES already services all of the student loans. One | | | | with a debt collector. Most important, this is the |
| student whose credit rating was too low could not | | | | borrower's right. |