UF exploratory freshman Megan Lewis expects to be paying off student loans well into her late 30s.
The 18-year-old said she’s worried about a pile of debt, but she doesn’t have any other choice.
According to a report the U.S. Department of Education released Thursday, Lewis isn’t alone in her worries; the federal loan system is inefficient and needs improvement.
The report, which was developed alongside the Department of the Treasury and the Consumer Financial Protection Bureau, recommends loan providers be more transparent with the loan process. According to the report, there should be safeguards in place to protect students from private companies that overcharge them.
The 20-page report also recommends establishing a standardized income-driven method to repay loans. Their repayment plans would vary based on how high or low their incomes are.
About 18,000 UF students, or about 32 percent of the Student Body, took out loans during the 2014-2015 fiscal year, wrote Richard Wilder, the UF director of student financial affairs, in an email.
Wilder said UF students are responsible borrowers and typically pay their loans back at the right time.
The Department of Education wrote that the loan system is the main fault in student-loan inefficiency.
Lewis expects to be borrowing money for the next seven to eight years as she attends medical school and said transparency is essential.
"It’s important so we know what we’re actually borrowing," she said. "That way, we’re not caught off guard."
Jeffrey Vadala, a UF anthropology graduate student, first began to borrow money for college 15 years ago and has been deferring payment ever since.
Now a 33-year-old, Vadala said he’ll probably still be paying back loans in 20 years.
He said he’s looking for a change in the way he can view his loans.
"I’m getting emails from my loan people, but I’m not sure if I can trust them," Vadala said.
