July 11, 2024
Salem – Student loan borrowers faced significant confusion and frustration this past year in navigating the shifting landscape of loan repayment and forgiveness programs, according to a new report issued by Oregon's student loan ombuds. Part of the Oregon Division of Financial Regulation, the student loan ombuds is tasked with helping guide borrowers through their options and navigate the confusing road that has become the world of student loans.
As part of the position, the legislature
requires an annual report that highlights the work of the student loan ombuds. Lane Thompson, who has been in the position for more than two years, recently posted the second annual
report.
Thompson said the past year has been challenging.
“After federal student loan payments were paused during the pandemic, the return to repayment last September was really messy," she said. “There has been a lot of confusion, because the courts struck down some of the (Biden) administration's attempts at a loan forgiveness program, complicating federal agencies ability to produce consistent messaging leading up to repayment."
She said because the rules continue to change, it leads to frustration and confusion for both borrowers and servicers.
“The good news is that student loan cancellation is more available than ever and people are getting resolution through the Public Service Loan Forgiveness program and the one-time account adjustment," Thompson said. “This is especially true for those who have been making payments for a long time."
Going into year three, Thompson said she is excited that her work will be able to help more people get clarity on their options and eligibility for student loan repayment programs.
“I think that's the biggest impact I'm having on a day-to-day basis is that people can get help or answers from me," she said. “We have more resources available and I am out doing more presentations to different organizations."
The other area Thompson said where her office is having an impact is in helping student loan borrowers avoid scams.
“We are doing more outreach to help Oregonians protect themselves," she said. “Fewer people are getting scammed and I think that's because we have the licensing requirements, examinations taking place, and our advocates helping people navigate through difficult situations."
Thompson said during this past year, she has sent information to borrowers in a much clearer way whether through more experience, online resources, brochures, and relationship building.
“They see me and know that there is a real person here to help them and that really helps," she said.
Thompson said more relief could be coming.
“I was on a federal rulemaking committee that worked on specific debt forgiveness rules under the higher education act, and there is some debt relief coming out for people who really need it in the near future," she said. “There will continue to be changes to the rules and I feel confident that our office will continue to be a good resource as circumstances continue to shift."
If you have questions about your student loans or issues with your loan providers, contact Thompson at 888-877-4894 (toll-free) or
Dfr.bankingproducthelp@dcbs.oregon.gov.
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About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon's largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.