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.
Many people considering bankruptcy relief are aware or soon learn that student loan debt is generally non-dischargeable in bankruptcy because student loan debt can only be discharged if the bankruptcy court determines a debtor has met the qualifications for a hardship discharge. In most jurisdictions the hardship discharge is not easily obtained. The decision by a bankruptcy court is driven significantly by the facts of each individual case and evaluated against an onerous test. In the Eleventh Circuit, under which bankruptcies in Alabama are governed, the Brunner test has been adopted to determine if a student loan is dischargeable based…Read More
Large amounts of student loans continue to be a problem for many people. The Washington Post recently reported on a Federal Reserve study concerning student loans and homeownership. According to that study, approximately 400,000 people in their 20s and 30s were unable to buy a home between 2005 and 2014 because of student loan debt. According to the Washington Post article, the Fed examined census data for that age group. The census data reflected an 8.8% drop in homeownership among that group. The Fed estimated that of that percentage, about 2% was due to student loan balances, equating to almost…Read More
Internet ads promise huge savings on student loan debt if you consider refinancing with a specific company. The companies like SoFi, CommonBond, Credible, LendKey and Splash Financial have been under heightened scrutiny by the Federal Trade Commission. The FTC recently sent “final warning” letters recommending they review their advertising claims so as not to make false or unsubstantiated representations. These companies will refinance your federal student loans to give you a lower interest rate and lower payment, but often a longer term. Annie Nova of CNBC writes in her article about these issues. Use an Online Student Loan Calculator Experts…Read More
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