CFPB Report Reveals Trouble for FFELP Borrowers, Solutions with Income-Driven Repayment

The Consumer Financial Protection Bureau (CFPB) released its annual report on student loan complaints, revealing at least 30% of Federal Family Education Loan Program (FFELP) borrowers – more than five million in total – are behind or in default on their loans. Students who borrowed money through FFELP, a program that ended in 2010, make up nearly a third of all student loan debtors and owe more than $370 billion in outstanding debt.
The report indicates FFELP loans show a higher rate of default and delinquency than the broader student loan market, raising concerns about whether servicers of the loans have adequately informed these borrowers about repayment options. Despite widespread availability of income-driven repayment plans, 95 percent of borrowers are not enrolled in any plan. Learn more about the report’s findings.