Student Repayment Solutions

03/18/2019

How do you feel about straight-up student debt cancellation, or if that's too extreme, how you feel about at least allowing people to declare bankruptcy on their student loans?
"I think there should be a comprehensive strategy, and I'm not wedded to an individual element of that. So there may be trade-offs between how generous we want to make different forgiveness programs and what we do around bankruptcy, for example. But I think it should be considered. I mean we consider it in other credit markets, right? As long as it doesn't harm access to credit for a future generation of students. Wiping it away strikes me as a little bit harder to take on for a couple of reasons. Obviously, cost."

Very interesting take on how to solve the Student Loan Crisis!

This mayor is in his 30s and personally familiar with the debt crisis haunting young people.

03/11/2019

Federal student loans are one of the most complex consumer financial products that exist in the United States. The loan program has several different repayment plans, ranging from the ten-year standard plan with level payments to extended plans to income-based repayment plans. There are also multiple and overlapping loan forgiveness programs, each with different requirements and timelines, as well as numerous opportunities for borrowers to avoid paying their loans. It is no wonder that student loan borrowers staring down all this complexity are confused.

Some very interesting alternatives to helping borrowers repay their Student Loans. Do you think that these would ever work?

Unncessary complexity is at the heart of the student loan program's woes.

02/25/2019

FedLoan, the loan servicer for public servants in the forgiveness program, had given him a little parting gift: a delinquency report to the scorekeepers at Equifax, Experian and TransUnion that effectively wrecked his credit. Mr. Shafer was not late with his payments, though the three bureaus had him marked 120 to 180 days tardy. In fact, he had made extra payments in a bend-over-backward effort to make himself bulletproof in the eyes of the federal government and its agents. It didn’t work.

These stories are only going to continue to arise. When will these loan servicers be held accountable for making these borrowers lives a nightmare?

Jed Shafer thought his work navigating the troubled public service loan forgiveness program was finished. He found out he was wrong when Lowe’s turned him away at the register.

02/18/2019

Bloomberg calculated the dollar amounts from the Federal Reserve Bank of New York’s quarterly household-debt report, which includes only the total owed and the percentage delinquent at least 90 days or in default.
That percentage has remained around 11 percent since mid-2012, but the total increased to a record $1.46 trillion by December 2018, and unpaid student debt also rose to the highest ever.

With these numbers continuing to rise it does not look like there is any sight of the numbers going down. People are not making enough money to pay off their Federal Student Loans!

Student-loan delinquencies surged last year, hitting consecutive records of $166.3 billion in the third quarter and $166.4 billion in the fourth.

02/11/2019

The federal government has the right to seek a “tax offset” and seize refunds to collect on debts owed to it. That includes money owed on federal student loans that are delinquent for 270 days or more. The government can seize tax refunds for unpaid child support, back taxes and other kinds of debt too.

Defaulting on your Federal Student Loans is no joke, the government will take your tax return, garnish your wages and in some states will take away your state issued ID.

As millions of Americans file their tax returns, tax professionals warn those who have defaulted on federally funded student loans may be in for a surprise: Your refund might not be yours. The federal government has the right to seek a “tax offset” and se

02/05/2019

The tough decision, though, comes when it’s time to figure out what kind of loans to take out: federal, which are issued by the U.S. government; or private, which are issued by banks, credit unions, and other lenders.

Whenever you take out Private Student Loans you lose out on all the federally subsidized programs that you get when you take out Federal Student Loans. This is a huge decision factor you need to think about when you take out loans for college!

Which is right for you?

01/21/2019

"Income Share Agreement (ISA). Here's how it works: In exchange for an education, students agree to pay a set percentage of their income after graduation for a certain period."

What are your thoughts on an ISA? Do you think that is will help reduce the Student Loan Crisis?

It's called an income share agreement, where college students agree to pay a certain percentage of their income for a period of time post-graduation.

12/27/2018

"For consumers struggling with most other types of debt, filing for bankruptcy is an option. In comparison, while not impossible, the requirements for discharging student loan debt through bankruptcy are quite stringent. These include proving undue hardship that is likely to continue and demonstrating that a good faith effort to repay the loan has been made."

Make sure you are aware that Federal Student Loans are almost impossible to discharge with Bankruptcy! With that being said make sure that you do not get behind on your Loans because the consequences are major!

Give us a call and see how we can make the Repayment of your Federal Student Loans as easy as possible!

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Ignoring student loan debt does not make it go away. Student loans, like all consumer debt, are taken out with the expectation that the borrower will pay them back. All consumer debt can be broken down into two main types, either secured or unsecured.

12/26/2018

"The Brookings Institution suggests that nearly 40 percent of borrowers may default on their student loans by 2023. The most recent data from the Federal Reserve Bank of New York puts student loan delinquency rates at 11.5 percent in the third quarter of 2018."

With the Student Loan Debt Continuing to grow it will only continue to make it harder for the borrowers to purchase major life-changing items like houses!

Having a plan, setting priorities and being disciplined are the key components of a successful student loan repayment strategy.

12/25/2018

Merry Christmas and Happy Holidays!

12/22/2018

Many people don’t realize that grace periods can only be used once. That means that once you use up the grace period on a particular student loan, it cannot be used a second time.

Make sure you are aware of your Grace Period and when you have to start repayment on your Student Loan!

If you recently graduated, your first student loan bill may be arriving sooner than you think.

12/21/2018

"For instance, your monthly payment will increase for those on a regular payback schedule. But if you're on an income-repayment plan, your monthly payment won't change, but a bigger portion will go toward interest rather than principal. Federal student loans have a fixed interest rate set by Congress and are not affected by the Fed's move."

If you carry Private Student Loans your payments might be subject to increase due to this decision. Make sure you are fully aware of your Student Loans and how these financial decisions can and will affect them!

How the latest Fed rate hike affects what you pay on credit cards, mortgages, auto loans as well as your bank savings account.