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.
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
May 29 is National College Savings Plan Day. 529 plans are tax advantaged savings plans that are designed to encourage saving for future costs of high education. 529 plans are legally known as “qualified tuition plans.” They are sponsored by states, state agencies, or educational institutions. The name comes from the fact that the savings plans are authorized by Section 529 of the Internal Revenue Code. While 529 plans can be a great way to save for college, only 29 percent of Americans know about them, according to a recent poll by Edward Jones. This was down from last year,…Read More
According to a recent Time Money article, a new report shows that younger adults burdened with student debt are falling behind their parents’ generation in financial stability. The report compared the wealth of 25 to 34-year-olds in 2016 with the same age group in both 2013 and 1989. One bit of good news: compared with 2013 age group, the 2016 folks made some gains in median income, retirement savings, and assets. But the gaps are still rather large when you compare wealth and earnings between most millennials today and the same age group 25 years ago. College Degrees and Debt…Read More
It’s tax season and millions of Americans dream all year of how they are going to spend their refunds. With tax refunds becoming more substantial over the years due to certain exemptions that can be claimed, many people plan on using their refunds from year to year to catch up on delinquent debts, pay medical expenses, make repairs to homes or cars, or even use the funds to take a vacation. The mindset for most Americans receiving a tax refund is to spend it rather than save it, because many people have been planning for months to receive the refund…Read More
I previously wrote about various programs that are available for individuals struggling with student loan debt. You can find that information here and also a link to the website here. Many people have taken advantage of these programs with success but, sometimes, this does not solve all of their financial issues. Getting the student loans under control is important and it usually relieves some of the financial burden you may have, however, you may still need assistance with other consumer debt. The Issue with Bankruptcy and Income-Based Repayment We have helped many people who are in income-based repayment plans for…Read More
In a month or so, many high school seniors will be walking across that stage to get their diplomas and mark the milestone in life that is high school graduation. Moms, dads, grandparents, siblings, family and friends will be there to cheer on their high school seniors and offer their warm congratulations and best wishes. Many of those graduating seniors will be college bound come the fall. After the revelry subsides and as the focus moves forward towards the freshman year of college, many of these families will be trying to figure out how to pay for that college education….Read More
Recently I had the opportunity to be involved with a “round table” discussion regarding the damaging effects of student loans on at least two generations now as more and more people are getting hooked into the idea that they must get a college education. We were actually discussing the merits of a college education along with whether it was always necessary to graduate from high school and immediately go to college. For the most part, our social norms have moved to that realm. However there was an eighty-year-old individual at the table who explained that years ago, college was the…Read More
A recent CNBC article discusses the ongoing issue of ballooning student loan debt. The new Federal Reserve Chairman, Jerome Powell, said this week that he believes the student loan debt could slow down economic recovery. Education debt tops the scales at nearly $1.38 trillion and approximately 11% of student loan borrowers are 90 days or more delinquent on their loans. Discharging Student Loan Debt? Student loans are very difficult, and in my opinion, nearly impossible to discharge in a bankruptcy. Delinquent student loans linger on borrower’s credit for the rest of their lives burdening their credit abilities. Simple things like…Read More