Show notes
Host: Stephan Currie
Guest: Tony Raffa of Savi
Topics: With major changes coming to federal student loan programs on July 1, this week’s Podcast 83 episode features a MAC partner that aids counties and their employees in navigating loan repayment rules.
Savi is now operating in nine Michigan counties to aid county employees, or even all of a county’s residents, navigate the dizzying rules of loan repayments
“We are a public benefits social impact company, really founded by a lot of student loan experts and policymakers, to help those many people out there struggling with student debt, trying to better understand their debt and all their options,” explained Savi’s Tony Raffa.
“Probably the most important thing is that collections are back on the table (as of July 1),” he continued. “The biggest concern here is that we've seen 9 million borrowers are currently in default nationally, so about 1 in 4 borrowers. We see about 25 percent of those in Michigan are in this boat. And what that means is it means these borrowers are not currently making student loan payments. Now, that has a few effects
“For starters, anyone who's not making student loan payments is going to see an immediate hit to their credit score. We've seen, on average, credit scores dropping by 57 points, and as we continue to get deeper into defaults and delinquency, we will only see that number increase. We've even seen 2 million people go from prime to subprime credit scores.”
See video versions of all Podcast 83 episodes on YouTube at https://www.youtube.com/@michiganassociationofcount2606
Visit the Podcast 83 page at www.micounties.org
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