Category: Student Loan Debt

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.

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.

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

student loan servicers

The Ways That Student Loan Servicers Take Advantage Of You

College education opens doors to opportunity. In fact, a recent TR Research Study showed that graduates ages 25-30 working full time earn about $17,500.00 more annually then peers who had only finished high school. Unfortunately, when it comes time to pay back your student loans, student servicers can make your financial situation worse then a high school graduate.

Continue reading “The Ways That Student Loan Servicers Take Advantage Of You”

buying a home student loan debt

If You Have Student Loans You Might Find it Difficult to Buy a Home

According to the Federal Reserve Bank of New York blog, the Fed has determined that thirty (30) year olds without student loan debt are more likely to own a home while those with student loan debt are not.

According to Meta Brown, Sydnee Caldwell and Sarah Southerland of the Federal Reserve, “student debt holders have levels of education on average, and hence higher income potential.”

Continue reading “If You Have Student Loans You Might Find it Difficult to Buy a Home”

Debt Relief firms

Don’t be Deceived by “Debt Relief” Firms

Have you heard the radio or television ads offering student loans “debt relief” by offering free access to government programs?

Some of these firms charge borrower’s fees as much as $1,600.00 per month in fees for services that are free on the internet.

The Consumer Law Center used mystery shoppers to contact student loan relief companies, analyze websites, and review the contracts and consumer complaints.  You would be stunned by what they found!

Continue reading “Don’t be Deceived by “Debt Relief” Firms”

co signing a private student loan

Why Co-signing on a Private Student Loan Can Ruin Your Credit

Many students who have difficulty financing their college education will often ask their parents, grandparents or other relatives to cosign on a private student loan.  Too often the knee jerk reaction is to say “yes!”  Parents and grandparents feel that a college education is a great investment and are more than willing to help a relative.  However, Co-signing a student loan can be disastrous if the student doesn’t pay the student loan back.

Continue reading “Why Co-signing on a Private Student Loan Can Ruin Your Credit”

bankruptcy code student loan borrowers

Should The Bankruptcy Code Be Amended To Allow A Fresh Start For Student Loan Borrowers?

At the Student Loan Law Resolution Center, we often have to tell our clients that they can’t discharge their Federal or private student loans in bankruptcy unless they can show undue hardship.

Federal Student Loan Options

Our clients with Federal student loans, have greater options for dealing with financial difficulty in repaying student loans. These options include placing our clients in income-based repayment plans based on our client’s disposable income. There is even a discharge program for public service loan forgiveness and a discharge in the event of disability. We, at Student Loan Resolution Center, believe that those are sufficient protections for Federal student loan borrowers.

Continue reading “Should The Bankruptcy Code Be Amended To Allow A Fresh Start For Student Loan Borrowers?”