Personalized Support is Key to Addressing the Looming Student Loan Cliff

The landscape of student loan repayment is in a state of constant flux, leaving millions of borrowers adrift in a sea of uncertainty. Changes to repayment rules, legal challenges, and the ongoing saga of loan forgiveness have created a perfect storm of confusion and financial hardship. The good news is that personalized support could help vulnerable borrowers avoid drowning in delinquency and default.

The Perfect Storm

Since the end of the pandemic-era payment pause, nearly half of all federal student loan borrowers have failed to resume payments (Source: studentaid.gov). The constant barrage of news about potential loan forgiveness has left borrowers with whiplash, and many are clinging to hope for widespread debt relief that may never materialize. The recent Supreme Court decision blocking the SAVE Plan and subsequent legal challenges have only deepened the uncertainty (Source: washingtonpost.com).

To help borrowers return to repayment, the U.S. Department of Education created an on-ramp period designed to prevent the consequences of missed, late, or partial payments (Source: studentaid.gov). Although it provided temporary relief, borrowers may be in for a harsh awakening when the on-ramp expires on Sept. 30, 2024 and consequences for missing payments are back on the table (Source: studentaid.gov).

The Impact on Borrowers

The implications of this crisis extend far beyond missed payments. Borrowers are at risk of severe damage to their credit scores, which can have long-lasting consequences for their financial futures. The ability to buy a home or car, go back to school, or even obtain a credit card can be significantly impacted.

Despite the availability of various repayment options tailored to different financial situations, many borrowers are unaware of these programs or how to enroll. And when they do seek assistance, they are often at the mercy of student loan servicers who are struggling to adapt their systems and guidance amidst constant changes from the U.S. Department of Education (Source: nytimes.com).

A Call to Action

With so much at stake, personalized support is essential for helping borrowers navigate this complex and overwhelming process. Employers, colleges and universities, and membership associations are uniquely positioned to provide this support. By offering access to trustworthy, personalized loan counseling, organizations can make a significant difference in the lives of their employees, alumni, and students.

Tools for Student Success

As higher education institutions seek to support their communities, addressing the student loan crisis is a critical step. Attigo by Ascendium provides data-driven outreach, education, and counseling designed to help borrowers avoid default. Using data from the National Student Loan Data system, we can identify borrowers who need your support the most and help you reach out to them with school-branded materials to ensure they receive the assistance they need.

Employee Empowerment

Attigo by Ascendium makes it easy for employers to offer online education tools and personalized counseling support to help student loan borrowers understand their options and take control of their financial futures.

• Our Knowledge Center website provides videos, articles, and guides to help employees achieve their financial goals and navigate repayment. Employees can also access a sophisticated tool powered by Savi that analyzes over 150 repayment programs to identify the best fit for each individual borrower.
• When student loan repayment questions arise, employees can contact our Student Loan Success Center™ through a toll-free phone number without long wait times. Employees can also contact success coaches by email or chat.

By providing easy-to-use tools and expert guidance, Attigo by Ascendium can help you empower borrowers to make informed decisions ahead of the looming student loan cliff and achieve their financial goals.