Generation Snapshot: how Millennials handle debt

Raised in the digital age, it’s no surprise that Millennials prefer text and email to traditional phone calls. Now many of them are postgraduates in their 20s, beginning to pay off their student loans.

The newly appointed CFPB director, Rohit Chopra, has in-depth experience with student loans and has witnessed the bad actors that pursue aggressive collection tactics. Along with abusive practices by certain agencies, there is a push to empower borrowers and supply them with more market power. Consequently, it is expected that Chopra’s administration will place stricter regulations regarding student loan collections. 

Picture of millennials holding tablets and phones

MRS always has, and always will, prioritize compliance as part of our strategy and we are confident that our digital solutions will be suitable in the proposed CFPB rule era. This means that we can reach our customers through their preferred communication channels, be it text or email, and  remaining loyal to Chopra’s new regulations. 

“MRS places a great deal of importance on customer experience and as we’ve pushed forward progressively with a digital transformation of our business, we have seen how well received it’s been from the end customers,” said Chris Repholz, MRS’s Chief Customer Officer. “While some people may want to still speak with an agent on the phone, the vast majority of them want digital solutions. We strongly believe that providing the customer with multiple communication options is the key to excellent customer experience. Self service via technology is the future of the collection industry,” he stated.

Millennials have almost 5 billion dollars worth of outstanding student loan debt, in addition to debt on credit cards, auto loans and other services. Oftentimes, they are not in a financial place to be making large monthly payments, but they still want to make an effort to settle their debt. MRS offers many solutions with flexible payment plans to suit the needs of each individual customer. Everyone’s situation differs and our goal is to ease the pressure, not add to it.

Overwhelmingly, Millennials want to pay back their student loans, but struggle to find the place to start. But MRS knows that the best way to get in contact with a Millennial is actually pretty simple: send a text.