The Payback Playbook: How the Government is Helping Student Loans Get Paid

If you’re reading this, there’s a fair chance you’re one of the 43 million Americans affected by the outstanding student loan debt in the US, currently estimated at around $1.3 trillion. And if you’ve defaulted on those student loans, there’s more than a fair chance that you’re in the 70% of those defaulted loan borrowers who could have qualified for reduced, income-based repayment plans.

Understandably, hearing you could’ve avoided the late fees, bad credit, and stress that come with a lack of awareness about better ways to repay student loans can feel a little (or a lot) like rubbing salt in an old wound. But because this is a very common problem, the Department of Education and the Consumer Financial Protection Bureau have put together the Payback Playbook, a personalized guide to student loan repayment options.

Currently, you can view a prototype of the playbook, on which anyone can provide feedback through June 12, 2016. You can also request further information here. Once the program is up and running, borrowers will receive a custom playbook from their servicer which clearly presents three personalized repayment options. If you miss a payment or are at risk for default, another playbook is sent to you with a new plan option that describes how to lower your monthly payment.

Record numbers of student loan borrowers continue to struggle with debt, despite growing repayment options over recent years. That’s why work is being done to get the Payback Playbook into circulation as soon as possible, although it’s still unclear when after June 12 they’ll be available.

In the meantime, there are a few known strategies for paying off your student loans faster, including various ways to have your loans forgiven. Research as much as you can, and avoid any late payments if at all possible.

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