Possible policy and regulatory responses
To deal with this, laws could be developed that allow the borrower to notify the lender that he or she is suffering temporary hardship and is therefore finding difficulty in making loan repayments. The notice might set out the reasons why the borrower is suffering temporary hardship. The lender might offer to either suspend repayments or reduce the amount of the repayments for a specified time. The borrower will ultimately still be required to pay the full loan amount.