Author: Tampa Student Loan Attorney Nancy Cavey

private-student-loan-debt-attorney-problems

Why Private Student Loans Should Be Your Second Choice

Did you know that Americans owe more than $1.2 Trillion on private student loans? Unfortunately, many private loan borrowers don’t understand the difference between private and federal loans when they take out the loans. That lack of information can destroy the financial future of the student loan borrower and the cosigner.

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income-contingent-loan-repayment-plan-attorney

How You Can Use Income Contingent Loan Repayment Plan To Pay Off Your Parent Plus Student Loan

Are you a parent who took out a Parent Capital Plus Loan to put your child through college?  Paying back that Parent Plus Loan can be tough and you can jeopardize your own retirement.

If your having trouble making payment, you might want to consider an income contigent Parent Plus Loan Repayment Plan.  To accomplish you will have to consolidate your loan into a direct consolidation loan by contacting your student loan servicer.

What Is My Payment If I Quality For An Income Contingent Parent Plus Repayment Program?

Income Contingent Repayment caps the payment of 20% of your borrower’s discretionary income.  Remember discretionary income is usually less then the gross amount of income and it’s a term of art in the student loan world?

What Are The Pro’s And Con’s?

The Income Contingent Repayment Plan will result in a lower monthly payment and will allow Parent Plus Loans to be discharged after 25 years.

However, the problem is that the accrued interest charges will increase over time.

You can determine whether an Income Contingent Parent Plus Loan Repayment plan is right for you by comparing how much the forgiveness is worth compared to the added costs.

What Should I Do?

Contact the Student Loan Law Resolution Center at (727) 828-9955 for a consultation.

U.S. Senators Student Loan Debt Legislation

Wouldn’t It Be Nice If Student Loans Could Be Refinanced Like A Mortgage?

Student loans are unlike any other type of loan that exists in the United States.  For example, if you purchase a house and take out a mortgage at a fixed rate, you can refinance your mortgage by paying off the old mortgage and getting a mortgage note at a lower interest rate or shorter period of time.  Unfortunately, you can’t do the same with student loans!

U.S. Senators Are Proposing Legislation To Give College Graduates The Ability To Refinance Student Loans

Members of the United States Congress, including United States Senator Kirtsen Gillibrand, have recognized that most college graduates are burdened by student loans and are struggling to repay the debt.

In fact, she noted that National student loan debt surpasses auto loan and credit card debt and that graduates are having a hard time paying off the loans.

Senator Gillibrand and Senator Warren have proposed legislation in the past to permit graduates to refinance their loans at a lower interest rate.  While the legislation hasn’t passed, we applaud their ongoing effort and urge the United States Congress to address this ongoing issue of crushing student loan debt!

How You Can Control Your Student Loan Debt

Research by the Pew Research Center revealed that Americans under 40 who graduated college without student loan debt have seven times the net worth, nearly $65,000.00 of those who have student loan debt at $8,700.00.  The study also shows that households with student debt are more likely to have car debt and credit card debt.  There are many ways of “getting rid” of your student loan debt over time, including placing your federal student loans in an income driven based repayment plan.

Call Student Loan attorney, Nancy L. Cavey who can prepare a road map for your financial future. Call today at 727-828-9955, for a complimentary consultation.

Student Loan Repayment Assistance Programs LRAP

Student Loan Repayment Assistance Programs LRAP And Your Ability To Participate In the Public Service Loan Forgiveness

Did you know that occasionally, loan assistance programs don’t allow you to participate in both public service loan forgiveness and income driven repayment plans? You should look at these options closely because many times public service loan forgiveness and income-driven plans don’t prevent you from participating in an institutional government or employer loan repayment assistance program.

Make sure that you contact the administrator of your loan repayment assistance program before you enroll in an income driven repayment plan or public service loan forgiveness program.

Whether you enroll into a repayment program or not, let us see what we can do for you in terms of your payments once you get into the program. LRAP is a newer term that you will be seeing pop up a lot more now! LRAP stands for Student Loan Repayment Assistance Programs.

What Can I Do To Learn More About What Options I Have With An LRAP?

Call LRAP Student Loan attorney, Nancy L. Cavey who can help you figure out your federal and private student loans and provide you with a road map in managing your student loan debt.  Call today at 727-828-9955 for a complimentary consultation so we can begin the process of relief from you student loans.

Where Do the Presidential Candidates Stand on Student Loan Debt?

Where do the presidential candidates stand on student loan debt? We researched their policy statements and amassed the data into a handy infographic.

Donald Trump Hillary Clinton Student Loans

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Of all the economic issues facing Americans today, student loans and their accompanying debt have increasingly capture the national spotlight’s attention. According to MarketWatch, “The total outstanding student loan debt in the U.S. is $1.2 trillion, that’s the second-highest level of consumer debt behind only mortgages. Most of that are loans held by the federal government. About 40 million Americans hold student loans and about 70% of bachelor’s degree recipients graduate with debt.” (Berman, Jillian, (2016, Jan. 19th) “America’s growing student loan debt crisis” Found here.)

Long-term effects of the student loan crisis include data supporting a drop in first time home buying as well as a delay of both marriage and families. (Pope-Chappell, Maya (2016, June 15th) “Millennials are delaying adulthood because of crushing student loan debt.” Found here.)

With the firm belief that knowledge is power we offer you this infographic.

Cash Budget student loan debt

Committing To A Cash Budget

Depending on how much student loan debt that you have, we suggest that you put your student loans on a fast track repayment plan.  You might want to sit down and make a list of all of your debt, including student loan debt.

Student Loan Debt Budget System

In order to get financial freedom you may have to be more aggressive in paying back your student loans and turn those minimum payments into the maximum that you can afford.  An old fashion way is to use the envelope system.  You place a weeks worth of money in your envelopes and when the cash is out it’s out.  You can use your debit or credit card to make those spur of the moment purchases. You can use the money you save to accelerate your student loan payments. Budget yourself!

How Should I Tackle My Student Loan Debt?

Pay off those with the highest interest rate first.  That will save you money and allow each payment to reduce the principal.  However, before you do that make sure that your calling your lender and the payment will be applied to the principal and not the interest and make sure that you get that in writing!

Consider An Income Driven Repayment Plan

You may also be able to reduce your student loan payments by getting an income driven student loan repayment plan.  However, you need to be careful about analyzing your over all financial situations and be sure you have picked the right repayment plan.

What Can I Learn About Managing My Student Loan Debt

Call Student loan attorney, Nancy L. Cavey who can prepare a road map for your financial future.  Being placed in an income-based repayment plan and putting a short fuse on your other debt, can result in a significant financial turnaround and put you on the road to purchasing a new car or saving a down payment for a house.  Call today at 727-828-9955 to talk to us about your student loans.

Refinancing Your Student Loan Options Attorney

Is Refinancing Your Student Loan Right For You?

While refinancing your student loan can be a great strategy to manage your student loan debt, student loan refinancing can be confusing.  Worse yet, it can lead to significant financial problems down the road if you don’t make the right decision.

What Should I Consider To Determine If Refinancing Your Student Loan Is Right For You?

  1. What Are The Terms Of My Current Federal Student Loan

You should get our your documents and determine how long your payment plan is, the amount of your payment, the amount of the interest rate and whether it’s variable or fixed, and how much interest you’ll pay over the life of your current repayment plan.

  1. Does the new student loan that you are looking at have a variable fixed interest rate?

You can convert the current variable interest rate to a fixed interest loan or vice versa.  Fixed interest rates are less risky and should you consider a variable interest rate.

  1. What types of loans are you trying to consolidate?

You can’t consolidate Federal student loans into private student loans!

  1. What protections do you have within your refinanced student loan?

Protections of Federal student loans, including deferment or forbearance of income based repayment plans and forgiveness options are rarely seen in private student loans.  These should be key in terms that you should consider when looking for refinancing.  You want to understand what’s considered a default, whether you can defer or forebear payments if you are having financial problems, what your refinance options are at that point and what penalties you would pay, whether your loan is dischargeable as a result of disability or death and if there are any other forgiveness provisions.

Asking the right questions is key before you refinance your student loan.

Don’t make a mistake and destroy your financial future.  Contact student loan attorney Nancy L. Cavey, who will help you understand your student loan refinancing options.  Call today at 727-828-9955.

Eligibility Requirements Student Loan Repayment Program

The Eligibility Requirements For The Student Loan Repayment Program

The Repay program allows all direct loans of student borrowers the ability to cap their monthly payments at 10% of their discretionary income.

What’s Discretionary Income?

Discretionary is defined as the adjusted gross income above 150% of the applicable poverty guideline divided by 12.

What Do I Need To Know About My Eligibility For The Repaye Program?

Repaye program is available to all Direct student loan borrowers regardless of when they took out their student loan.

Borrowers and repaye whose only eligible Direct loan debt is for undergraduate education can have the outstanding loan forgiven after 20 years of repayment.  Borrowers eligible for Direct loan program receiving graduate or more professional education will have their balances reviewed after 25 years!

Income driven repayment plans have become complex!  It can be difficult to pick the right income driven repayment plan for you.

You owe it to yourself to sort out your loans and determine which loans are eligible for which income repayment plan.

Contact the Student Loan Resolution Center to help learn more about what income driven repayment options are right for you and to chart the course for your financial future. Learn about us here.

Call today at 727-828-9955 for a complimentary consultation.

Revised Pay As You Earn REPAY Plan Student Loans Program

What Every Student Loan Borrower Needs To Know About the Revised Pay As You Earn REPAY Plan

One of the newest income driven repayment plans is the Revised Pay As You Earn Plan.  Direct loan student borrowers can cap their monthly payments at 10% of the discretionary income, regardless of how much they borrowed.

The Department of Education estimates that over 5 million borrowers will be able to reduce their payments to 10% of their income.

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Grace-Period-Student-Loan-Debt

What Every Student Loan Borrower Needs To Know About the Grace Period

You know that when you take out a federal student loan, your going to have to repay the loan at some point. But, did you know that you don’t have to start paying your loans right away? There is a waiting period after graduation and before payment begins. It’s known as the grace period. Repayment will start after your grace period is over. But there can be a different grace period for different loans.

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