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.
I have long suspected that student loan debt would eventually affect the rate of homeownership in the US. It appears that the Federal Reserve Bank of New York agrees. According to a new report from the Federal Reserve Bank, homeownership rates are far higher for those who graduated from college than those who never earned a degree. But “those with significant student debt” are much less likely to own a home at any given age than those who completed their education with little or no student debt, The report also notes that Americans continue to default on student loans at…Read More
College tuition continues to increase every year! I cringe to think how much it will be when our youngest goes to college. The reality for most families includes getting student loans to finance college. The harsh reality of borrowing via student loans hits when the excitement of graduation comes to an end in four short years. Student loan lenders will charge interest on whatever amount you borrow. Depending on your rate, you will pay back much more than you borrow. To put this in perspective, the average student loan debt in 2016 was $37,172 and let’s say you have a…Read More
Every day I speak to someone who has student loan issues. More recently, I have people coming in asking what they can do once their IBR (Income Based Repayment) plan ends with the federal government. They are afraid of what will happen next. Borrowers now face a new dilemma. According to a recent article in USA Today, the President believes there are too many federal student loan servicers and he wants to move the servicing from nine companies to one. There is a concern from consumer advocates that this would create a monopoly. According to the Secretary of Education, the…Read More
Many people considering bankruptcy relief are aware or soon learn that student loan debt is non-dischargeable in bankruptcy. This is true for both federally guaranteed student loan and student loans issued by private lenders and has been true for many years. Student loan debt has exceeded credit card debt in this country for several years now. Currently it sits at approximately 1.5 TRILLION dollars, with a trillion dollars added in just the last eight years. On the campaign trail, President Trump stated it was “terrible that one of the only profit centers [the U.S. Government] ha[s] is student loans.” So…Read More
We have a high school senior this year and with graduation festivities around the corner, our focus has been how will be pay for college for our daughter the next four years! Whether your student has applied for scholarship opportunities or not, you need to be aware that there are school-based financial priority deadlines for Alabama’s four-year colleges. Cash For College The Alabama Possible Executive Director Kristina Schott states that students need to be aware of financial aid deadlines for the colleges they hope to attend. There is a list of admissions and financial aid priority deadlines for Alabama colleges…Read More
If you are part of a student loan forgiveness program that will forgive your students loans after work in public service, you should pay close attention to this emerging story. More than 550,000 borrowers have signed up for the program, but now some are wondering if the government will hold up its end of the bargain or if they will be left with a large amount of unexpected debt. In 2007, Congress approved a sweeping bipartisan bill that overhauled the federal student loan program. One part of that legislation is a loan forgiveness program that will forgive the balance of…Read More
Auburn University at Montgomery’s Alpha Gamma Delta Chapter invited me to speak to their sorority this week about finances. The number one growing problem I see in my practice is student loan debt. A recent survey by LendEDU found that of 500 students surveyed, that 30.6% of college students with outstanding student loan debt said they had used funds provided by the student loans to help pay for their spring break trips this year. The amount of student loan debt in the United States is a growing concern. In a prior study, LendEDU found that 49.80% of college students incorrectly…Read More
That old adage that “things are never as they seem” aptly describes the current situation with student loan servicers. As reported by the New York Post, servicers like Navient—the largest student-loan servicer in the U.S.— are only making the student debt crises even worse. Here’s how the process goes for many borrowers: Get an undergraduate and/or professional degree with the aid of student loans; Get a job (but fail to make the salary you had hoped); Realize that repaying those loans may prove difficult; and Apply for a repayment program that lessens your monthly obligation. The problem? Your student-loan servicer…Read More
Last year, economists at the New York Federal Reserve released an analysis showing that older Americans were significantly more in debt than in previous years. While this might not be that surprising given the aging population in the United States, a source of the debt might be less obvious: student loan debt. The analysis compares average debt per U.S. resident by age in 2003 and in 2015. From 2003 to 2015, debt borrowers between the ages of 50 and 80 increased their debt balance by roughly 60 percent. In this time, the average student loan balance per borrower more than…Read More
I previously wrote a series of blogs addressing issues with student loan debt. As previously mentioned, student loan debt has now surpassed a trillion dollars in this country. Now the Consumer Financial Protection Bureau has filed a lawsuit against one of the nation’s largest student loan servicers, Navient. In the suit CFPB has alleged that Navient mishandled student loan payments, hid information critical to a successful repayment of student loan debts and complicated the procedure for releasing co-signers from the debts. The New York Times opined that the lawsuit alleges abuses by Navient eerily similar abuses in the mortgage lending…Read More