Student Loan Debt Information
A loan offered to assist with paying education-related costs is referred to as a student loan. The costs a student loan is intended for usually include room and board, tuition, and textbooks. There are federal student loans and private student loans.
With a federal student loan, individuals do not begin paying their student loans back until they have graduated, are no longer attending college or have changed their enrollment status to less than half-time. Many private student loans require individuals to begin making payments while they are still attending college, no matter what their enrollment status is. Interest rates on a federal student loan are fixed; whereas, private loans frequently have variable interest rates.
If you want to learn more about student loans and student loan debt, you can find all of our blog posts related to student loans on this page.
Are you one of those people who let your heart get involved when it comes to money? I often see people with terrific careers doing well financially who let their heart get involved when it comes to money. Intelligence and education have nothing to do with this! What holds most back is the need and desire to help others or let others lead them. Situations Where People Make Financial Decisions With Their Hearts Do you fall into one of these categories that I often see? The “Yes” Sayers Moms/Dads/Grandparents who say “yes” every time their kids/grandkids ask for the latest…Read More
I recently read a Federal Reserve study indicating that 89% of millennials do plan to purchase a home at some point in the future. However, 48% have not been able to save anything towards this goal. According to the study, the problem is student loan debt. Interestingly, the study revealed about 23% of millennials fortunate enough to have no student loan debt could save enough for a down payment over the next five years. But when student loan debt is in the picture, that figure drops to around 12%. For millennials without a college degree, the figure drops even further…Read More
Navient is a publicly-traded student loan servicer familiar to many Americans with student loan debt. The company formally split off from Sallie Mae and contracts with the U.S. Department of Education to service and collect upon student loan accounts. Now, the company is being criticized in an audit conducted by the U.S. Department of Education. What Did the Audit Report About Forbearance? The audit was conducted in 2017 but is just now being released to the public. Navient is accused in a series of lawsuits with steering borrowers into higher cost repayment plans in order to boost its profits. In…Read More
Last week, the Attorney General for the state of New York announced she had filed a lawsuit against nine student loan debt relief companies, a financing company, and two individuals who have leadership roles in these companies. The lawsuit was filed in New York Supreme Court. According to the lawsuit, the defendants used fraud and deception, as well as illegally advertised and sold student debt relief to thousands of consumers nationwide and in the state of New York. What Companies Are Being Sued? The student loan debt relief companies named in the lawsuit are Debt Resolve, Inc.; Hutton Ventures, LLC;…Read More
A few weeks ago, I discussed the strain that student loans have placed on married couples, ultimately leading to a break down in the marriage. Unfortunately, marriage is not the only thing you may lose. You can lose your job, as well. While it varies by location, there are currently 15 states where a borrower can have their occupational license suspended or revoked if they default on their student loan payment. An unsettling fact, considering that approximately one-fourth of the U.S workforce holds an occupational license. Typical methods used to deter defaulting on student loans include lawsuits, garnishments, liens and…Read More
Student loan debt is no longer affecting just the borrower that took out the loan, but the borrower’s family as well. The cost to attend college has been on the rise since the early 1980s, and while that may not be a surprise in and of itself due to inflation, data shows that tuition costs are now more than double what they would have been had they increased consistently with inflation. The Severity of Student Loan Debt Divorce This disproportionate increase in tuition cost has led to a massive increase in student loan debt. The average debt has increased more…Read More
If you are like most parents, you will do practically anything to give your children the best education possible. But for most, higher education is not possible without the assistance of student loans. Many times, it’s grandparents who step up to assist their grandchildren achieve a higher education. A new study by the Consumer Financial Protection Bureau (CFPB) reports that the number of older Americans with student loan debt has quadrupled over the last decade. The Issue with Grandparents Cosigning One of the issues that can arise for a grandparent is the inability to make the required student loan payment…Read More
Student loan debt far outweighs credit card and auto loan debt for most Americans. Because student loans have become such a burden to many people, scammers have found a way to prey on these overwhelmed fears of student loan debt. What Do the Scammers Do? These scammers call your phone, promising to help with student loan forgiveness or to lower the monthly payment. In the heat of the moment and in order to find relief from the debt, you give them personal information and agree to pay them a fee to help you. Then, you hear nothing for months from…Read More
Over the past 12 years, the amount of debt carried by the average undergrad has doubled. In 2005, the average median student debt upon graduation ranged from $11,750 to $27,757, depending on the school and state. A student graduating in 2018 is face with over $37,000 in loans, nearly twice the amount of a student in 2005. In addition, the average student loan payment has increased from $227 to $393. The following Acts have directly affected student loan lending rates and the amounts being borrowed: February 8, 2006 – HERA: The Higher Education Reconciliation Act of 2005 President George Bush…Read More
With student loan debt currently at a record high of $1.5 trillion, many borrowers, in particular women, are postponing marriage and having children in order to try and deal with their student loan debt. Currently, women outnumber men in college. In addition, women are more likely to pursue a graduate degree, according to a recent CNBC report. Therefore, women end up with higher student loan balances and, unfortunately, also tend to earn less than their male counterparts over their lifetimes. CNBC reports the numbers to be very skewed as to women with 42 percent of women owing more than $30,000…Read More