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.
Can you lose your job if you fall behind on your student loans? In 19 states, government agencies can seize your state-issued professional licenses if you default on your student loans. Thankfully, Alabama is not one of these states. In South Dakota, your driver’s license can be suspended which can make it impossible to get to work. Creditors Using Extreme Measures As student loan debts increase, creditors are taking more extreme measures to collect. Taking ones’ professional license seems especially extreme. Many of the states where the licenses can be taken do not track the information so there is no…Read More
Americans are drowning in student loan debt. More than 3,000 people default on their federal student loans every day. It takes around 20 years for the average student loan borrower to pay off their loans. Today, there are over 44 million Americans with a total student loan debt of $1.4 trillion. But what happens if you can’t make the necessary payments? Missing a student loan payment will hurt your credit score and make it harder to borrow money in the future. What happens beyond your credit score depends on whether your student loan is held by the federal government or…Read More
Just when we think we can’t take any more bad news about student loans we are now finding out that senior citizens are becoming overwhelmed with student loan debt. Not their own student loan debt, necessarily, but rather student loans that they either borrowed themselves, such as a parent-plus loan, or may have cosigned with their children and even grandchildren. Senior citizens who may want to retire and even have retired are now making the tough choices of not buying medicines, going to the doctor or dentist or giving up other important necessities in order to try and pay student…Read More
The cost of a College education is rising each year. I have 2 children, ages 2 and 7 and can only imagine what costs will be in 2028 and 2033. For example, The University of Alabama cost of attendance for the 2017-2018 academic year is estimated to be $30,184 for in-state students and $48,634 for out-of-state students. Direct Cost and Indirect Cost The tuition is broken down into 2 main categories – Direct Cost and Indirect Cost. The Direct Cost for in-state students includes Tuition and Fees ($11,580), Room ($8,900) and Board ($4,324) for a total of $24,804. The Indirect…Read More
First of all, if you have been sued by any of the NCSLT trusts, don’t delay! Failure to answer a NCLST lawsuit will result in a default judgment against you which means you lose. Judgments can have very severe and detrimental consequences to consumers on many different fronts. What is a Judicial Lien? Are You Being Sued or Harassed By a Debt Buyer? Debt Buyer Lawsuits We advise that anyone who has been served with a lawsuit should immediately seek out competent legal representation to review the lawsuit. I cannot stress enough that people shouldn’t delay and just think that…Read More
Recently, CNBC posted an article about concerns that have been raised with Student Loan Servicers giving incorrect or not enough information on the various types of relief from student loan debt that is available. After complaints from many borrowers, the Consumer Financial Protection Bureau (CFPB) recently released a report about these complaints focusing on one particular program provided to manage student loan debt; public service loan forgiveness. The CFPB believes that servicers do not provide borrowers sufficient or correct information about this option. Some borrowers have even reported that their servicer has done something to their account that would render…Read More
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