Salem, Ore. โ- Oregon โขstudent loan borrowersโค are grappling with confusion adnโค anxiety as โrecent federal changes upend repayment options, leaving many unsure how to navigate โคthe evolving system.โข The uncertainty comes as payments resumed in October after a three-year โขpause, โand as several income-driven repayment plans face a sunset clause in three years.The shifting landscape is prompting borrowers to seek guidance, with manyโข fearing aggressiveโ collection tactics like wage garnishment. Lane Thompson,โ Oregon’s first student loan ombudsmanโ – a newly created position tasked with supporting โคborrowers โand overseeing โขloan servicers โ- encourages proactiveโ engagement. “I always recommend that people face the dragon,โค as it were, and see whatโค might be possible for them right now,” Thompson said.Taking no action, however, โขis detrimental, experts warn. Thompson, while โคunable to โprovide individual financial advice, directs borrowers to nonprofit organizations โand government agencies offering โฃfinancial counseling, such asโ those certified by โฃthe U.S. Departmentโ of housing and Urban Advancement. โThese counselors can help borrowers develop a plan to eliminate student loan debt.
“Pick a plan and stay with it,” Thompson advised. “Get on an income-driven repayment plan and work towards forgiveness or pay down your loans as quickly โขas you can.”
The instability of the system is a key concern for borrowers like Sarah Setti, who expressedโ frustration with the unpredictability. “It’sโค hard to know how your life is going to beโ two โmonths, two years, 20 years from โฃnow,” Setti said. “I โขthink โขa lot of the repaymentโ options are based on this โคidea that weโฃ certainly โคknow what the future is going to look like.”
Setti plans to apply for the Payโค As You Earn program, acknowledgingโฃ her obligationโ toโ repay but worried about making the right choice given the program’s impendingโค expiration. Thompson acknowledged this worry is common,attributing it to a broader societal stigma surrounding money.โ
“The reason we haveโฃ soโ much โขanxiety about ourโ loans is related to a stigma around โฃmoney,” Thompson said.”We need to talkโค to each other about our debt. โฃWe need โtoโ use our resources and face it head-on.We can do thatโค together.”
Thompson’s โคrole was established by โthe โOregon Division of Financial Regulation to provide โฃsupport and oversight as borrowers navigate the โcomplex worldโ of student loan repayment.