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.
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
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