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Here’s How Much Your Student Loan Fees Cost You

Written by adminSeptember 4, 2019

Got student loans? Here are some hidden fees you might be unaware of.

When making a decision between federal and private student loans, most would-be borrowers assume that federal loans are typically the easiest option.

But most borrowers are not aware that federal loans have an origination fee that private loans don’t. What that means is that borrowers that borrow larger amounts at higher interest rates will end up paying more.

The National Association of Student Financial Aid Administrators reported that the federal government has charged almost $8.3 billion in origination fees since 2013, and almost one-third of that amount coming from parent borrowers.

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How Much Are Student Loan Origination Fees?

Origination fees are monies paid to offset a lender’s costs for issuing the loan. This fee is usually applied as a percentage of the total loan. These percentages are usually changed once a year on Oct 1.

The current origination fees for undergrads and graduate students are 1.062% for federal subsidized and unsubsidized loans. For federal PLUS loans for parents and graduate students these fees are at 4.248%.

These fees are usually taken from the loan before the funds are applied to the education costs. For example, if parents take out a PLUS loan of $16,500 which is the average amount as reported by the College Board. Taking into account the rate of 4.248%, roughly $15,800 of that loan goes to the school and $700 goes to the federal government.

Still Think That’s Fair?

Now even though you don’t use that $700, you still have to pay it back with interest. Over four years of undergraduate school, a borrower would owe over $2800 in fees alone. And this number only gets exponentially greater the larger the loan gets.

It must be surprising to borrowers to have to repay money they never received. “This is something that is unnecessary and unfair to students,” says Lori Vedder, director of financial aid at the University of Michigan, adding that “students and families are often confused when they find out they must repay money they never received.”

For PLUS loan borrowers this could seem especially off-putting, considering that PLUS loans have a higher interest rate than other federal loans. PLUS loan borrowers also have no aggregate maximum and can take out more, up to the cost of attendance.

This translates into higher origination fees. A PLUS loan if $13,950 at a 7.08% interest rate would result in an origination fee of $593. The opportunity cost of putting that towards things like textbooks will definitely make them think twice and even consider private loan options.

Private Loans Don’t Include Origination Fees – or Protections

As private loans become a potential alternative to borrowers, it’s pertinent to note that they come with lower interest rates than federal loans and no origination fees.

Vedder says that this could make sense in some cases for people who plan to take a PLUS loan. However, she cautions borrowers that even though private loans can offer savings, they lack certain protections that are built-in for federal loans.

These protections include options to forgive loans in certain situations as well as eligibility to apply for income repayment plans.

Legislation to Remove Fees

Federal loans provide borrower protections but they make the government money by charging these origination fees. These fees were once part of the Federal Family Education Loan (FFEL) program, when private lenders were used to help issue federal loans and charged these fees to subsidize lenders’ costs.

The FFEL program was terminated in 2010, but these fees continue to be charged, lining the government’s pockets.

Bipartisan legislation was introduced this year to eliminate these origination fees. Justin Draeger, president and CEO if NASFAA advises borrowers to write or call their representatives to support this change.

Draeger refers to the origination fees as “literally just an extra tax on needy student borrowers.” This doesn’t make sense for a public benefit program. Let’s make the effort to change that today.

For all other financial advice, feel free to reach out to the Financial Helpers at the number below. We’re always ready to help you.

Call Now 844-332-2079

Written by adminSeptember 3, 2019

Saving , Uncategorized

We don’t intend to hurt anyone’s feelings by saying you’re lazy, but all of us have a few areas in which we could try a little harder. Face it: being lazy has cost us financially. We’ve made bad decisions and moves simply because we didn’t put a little more work into finding alternatives or we just went with the first option to get it over with.

Let’s take a look at 5 ways being lazy can hurt us financially:

1) Going to the Wrong ATMs

Do you often need to stop at the ATM to grab some cash? Most of the time, we’ve had to pay large fees to do just that. The average amount people are paying to pull money out of the ATM is $4.25. That might not seem like a lot, but it really adds up over time! If you use ATMs associated with your bank, most of the time, those transactions are free. This really shows how not just settling for any ATM can cost us in the long run.

2) Stopping by the Convenience Store

Yes, these stores are, well, convenient! The last thing you want to do is stop by the grocery store on your way home. Instead, you might stop at one of these stores or even at a Rite Aid or Walgreens to grab that gallon of milk or a few other items. The problem with this is, these stores overcharge for the convenience they offer. What only costs $2 at the grocery store can be $7 at a convenience establishment. Regularly stopping at these places means you are vastly overpaying for these items.

3) Bothering with Online Meal Kits

Millions of people order their food online through Blue Apron, Hello Fresh, and other companies. It might seem convenient as you get precise ingredients sent directly to your door. But recent surveys found that people who use these companies spend 21% more than you would if you just bought them yourself at the grocery store. Again, it’s all about the convenience of having the food shipped to your door, so it’s up to you to decide if it’s worth the extra cost. You’re certainly not saving money by going this route.

4) Ignoring Your Junk Mail

Most of the time, we immediately toss our junk mail. We get a lot of it, so it can be difficult to sort through it all, but by doing exactly that you can save yourself a lot of money. Stores have weekly sales and clearances. You can save a ton of money every week, taking advantage of the sales and knowing which stores to shop at.

5) Cut Your Own Fruits and Veggies

Have you ever gone to the store and bought fruits and veggies because they were already pre-cut? It can be a hassle doing it yourself, but you can end up paying as much as three times the price. Again, the convenience factor really adds to the price.

Written by adminSeptember 3, 2019

Business

Most companies look for a way to increase profits. If you own your own business and margins are razor-think, there’s a tactic top retailers have used for decades called cross-selling…and it works! If you want your customers to spend more money on products or services related to a featured product, then you need to cross-sell.

In fact, cross-selling is so popular I can guarantee you’ve been sold to in this way multiple times. Odds are, most of us have fallen to this tactic a time or two. Have you ever gone through the line at the supermarket and grabbed an item that was conveniently placed near the check-out? That’s cross-selling.

Another example is often seen when buying online. When you get to the check out portion of your buy on sites like Amazon or Walmart.com, do they attempt to pair your order with another? Usually it’s an ad pop-up saying, “frequently bought with” or “customers also bought”. This is an extremely effective method at getting you to spend more money at checkout.

Cross-selling is an Effective Tool

Cross-selling another way is when two products obviously go together, but are sold separately. How many times have you bought an electronic toy, but it didn’t come with batteries or other essential components? You buy a razor, but the cartridges are separate (and generally much more expensive) than the initial item. Or you get a digital camera, but you also need a memory card. What good is the camera without the card? Yet they are sold separately.

When you go through the drive-thru, they are always anxious to add onto your order. Do you want fries with that? An apple pie or two? Want to upsize the drink for a dollar? There’s no escaping it. Cross-selling is everywhere you go because it’s so successful at getting you to buy more than you originally intended.

So how can you use cross-selling to increase your own profits? Here are a few ideas that will help:

-Think about extra accessories that can go with your product or service. There was one cookbook writer whose recipes became viral. So, she decided to release her own brand of sauces. They are related items that can be paired together. Think about a computer which needs a power cord. Or maybe higher RAM, a faster processor, etc.

-If it’s not included in the original package, find a way to bundle it together, even at a discounted price. This can encourage a quicker buy if the customer feels they are getting a good deal. Price the objects separately at a higher price, but together they are a few dollars cheaper. They’ll eat it right up.

-Find a way to demonstrate how the two products work together. If you have the means, to create a video or some other type of presentation that will entice potential buyers. If you can actually see how they work together (or even how they’re designed to be used), they’ll be more inclined to buy.

As cross-selling is perhaps one of the most popular ways to sell more products, you can learn from these examples to make extra profits in your own business. Take your overall process and work backward so you can find ways to turn one product into two or more, then sell them together for more money.

Written by adminSeptember 1, 2019

Student Loan Consolidation

Student loan debt is a major problem in this country. Millions of people are advocating for the government to step in and offer student loan forgiveness to help take care of the $1.53 trillion debt. There’s plenty of surveys and studies that found that this debt is impacting people’s lives directly. But the big question is whether or not they should actually do it.

This topic is controversial is being debated as we enter the 2020 election cycle. Most of the Democratic candidates have come out in favor of offering some type of student loan forgiveness. They hope to wipe out the entire debt (or most of it) while offering free college. Of course, nothing is ever really free, which is where the other part of the argument comes in.

President Trump hasn’t done much to help people struggling with student debt. In fact, he seems to be against helping anyone at all. He did help to expedite the student loan forgiveness program for disabled veterans, but for the rest of the able-bodied population, he feels that is not fair to put the burden on taxpayers. If you decided to go to college and take out a loan to do that, you’re expected to pay it back in full.

It’s difficult to tell where everyone is going to fall in line on this topic. Let’s take a real look at this topic from both sides and see the pros and cons of offering complete and total student loan forgiveness. If you’re sitting there was student loans, it’s a no-brainer for you. You definitely want the government to step in and wipe that out. But while we’re having the debate, we must be honest about the subject and realize there are several cons to offering it.

PRO: Helping Struggling Borrowers

This is the easy part of the debate. There are definitely people out there struggling under the weight of this problem. There are plenty of economic problems happening because of this debt. More young adults are living at home than ever before. They’re putting off major life decisions, such as getting married, having children, buying a home, and so much more. This is the heartbreaking part of the entire situation. People are just trying to make a better life for themselves.

CON: Not Everyone is in Need

We’re not $1.53 trillion in debt because of the lower or middle classes. There are millions of borrowers who were chasing after graduate and professional degrees. In order to afford that, they’ve taken out six-figure loans. There are many people who only have a few thousand dollars’ worth of student loan debt. This is especially true if they went to a community college for the first two years. When you consider that the largest bulk of the debt comes from people who ended up becoming doctors and lawyers, you can see that not all of it needs to be forgiven.

PRO: The Economy is Up and Down

It would appear as if the student loan debt problem really kicked off in the last decade. What else also happen in the last decade? The great recession. Everyone was going back to school to get a degree in the hopes that it would provide them with a better paying job. The unemployment rate during this time reached as high as 8%. That’s a massively high number of unemployed workers struggling to make it.

Schools use this to their advantage by promising massive hiring rates after graduating, but most of those stories were nothing more than average easements used to lure people back in. Of course, they couldn’t afford to go back to college because they weren’t working. This forced them to take out thousands of dollars in student loan debt.

CON: It’s Your Responsibility to Pay Back What You Borrow

If you took out student loan debt, you knew when you did that you are obligated to pay it back. You essentially borrowed money from the federal government so that you can go to school. You did that on your own. Why are so many people now trying to get out of paying their debt? Yes, we know that it’s causing some economic problems, but again that shouldn’t be put at the feet of everyone else.

Another thing happened during the great recession. Many companies were bailed out during the financial collapse. Billions of dollars were sent to companies who are essentially rewarded for their risky behavior. It taught them nothing and a massive burden was placed on the American people as our deficit double during this decade.

Written by adminSeptember 1, 2019

Mortgage

Searching for a new home requires patience, hard work, and sometimes, a little luck. When the economy is less than ideal, it forces people to make decisions that are not in their best interest. The good news is: right now is the perfect time to buy a house. There are three huge advantages homebuyers must keep in mind before jumping into the market.

The government is preparing for a housing boom. Both Fannie Mae and Freddie Mac have set aside less money than usual to protect themselves in case of a housing market implosion. This is a direct result of faith in the continuing upward trends that have been going on since the economic collapse. Here are the three main reasons why right now is the perfect time to buy a house.

Reason #1: Recovery of the Housing Market

The economy is improving rapidly. According to the National Association of Home Builders, fifty-nine metropolitan areas have completely recovered from the market crash that sent home numbers plummeting. “Our builder members tell us they are starting to see more optimism in the field. Mortgage rates are low, home prices are affordable and with the harsh winter behind us our latest surveys show builders are feeling more bullish about future sales,” said NAHB chairman Kevin Kelly.

Even with issues such as the ability to afford a home and low credit scores, there has been no better time for a potential homeowner to decide to get into the in-town Atlanta housing market.

Reason #2: Buying Is Cheaper Than Renting

With the housing market in full recovery, home prices are rising. Even with that statistic, Forbes released evidence that buying a home is much cheaper than renting. As of right now, a 30-year fixed rate is 38% cheaper according to Trulia. But there’s more to the story. Rising mortgage rates have been closing the gap over the past few years. Last year it was 44% cheaper to buy than to rent, which means the time is now to take advantage of the soft market.

Reason #3: Low Mortgage Rates

In 2014, the mortgage rates were hovering around 4.29%. As of this year, the rates have slowly declined and are now at 3.7% for a 30-year fixed rate. Frank Nothaft, chief economist and vice president of Freddie Mac, commented on the fall: “Mortgage rates continued moving down following the decline in 10-year Treasury yields after a dismal report on real GDP growth in the first quarter.”

If those weren’t enough reasons to entice a potential homeowner to get start his journey, here’s another: Fortune Magazine and Deutsche Bank released a study of “The Best Places in the U.S. to Buy a Home”, and Atlanta, Georgia took the top prize. That’s due to the astronomical cost of renting, which is more than 50% higher than an after-tax mortgage payment.

Atlanta also led the nation in the construction of new homes just before the major real estate crash. This means the supply was high and demand was low, causing home prices to take a tumble. This is also happening all over the country. The great economy has people looking to buy homes and get away from renting.

To keep up with demand, new houses are going up all over the place. Even in once-defunt rust belt cities, like Flint and Detroit. Old houses and blight are being knocked down to make room for new housing developments.

Written by adminSeptember 1, 2019

Business

Several reports have come out in the past week revealing that the teen clothing store Forever 21 is about to declare bankruptcy. The company has about 800 stores all over the world and up until 2016 was growing, adding stores when many other retailers were scaling back and closing down. Online shopping has really hit the industry hard and Forever 21 appeared to be one of the survivors.

Now, it appears as if trying to expand has backfired and the retail apocalypse has come knocking on their door. This is by no means the end of Forever 21, but it allows them the opportunity to start scaling back. When a retail store declares bankruptcy, one of the advantages they have is the ability to close stores and get out of their binding leases.

Stores that cater to the needs of teens and young adults appear to be facing an onslaught of closures. Teenagers don’t go to the mall as they once did as traffic in these stores is noticeably lighter. The younger generations are instead turning towards apps on their phone to shop and order clothes they want. As Amazon grows and expands, more brick-and-mortar shops close up.

Modern-Day Bankruptcy Woes

It’s not just slumping sales impacting the clothing industry. Several other retailers ran into problems because they were bought up by private equity firms. Teen and young adult stores like American Apparel, Delia’s, and Wet Seal have also filed for bankruptcy for this reason. Yet, Forever 21 is still a private company owned by their founders.

Do Won and Jin Sook Chang are a married team who came to the U.S. from South Korea in 1981. It wasn’t but a few short years later when Forever 21 was born. Their first store was centered in Los Angeles, purchased with only $11,000 in their bank. Now they’re considered billionaires, worth $1.5 billion together according to Forbes and employ 30,000 people.

Do Won Chang has been considering whether it’s time to finally restructure, but they only want a deal that will allow them to keep full control of their baby. By making this a deal breaker, Chang has essentially kept anyone from stepping in and providing the funds they are looking for to make the changes.

“We’ll work together on other distressed situations, and let’s face it, there are some out there,” Simon said. “But we’re only going to buy into companies that, we think, have brands and that the volume that is worth doing it.”

Written by adminAugust 29, 2019

Taxes

If you’ve listened to any of the 2020 Democratic candidates, you’d think the rich are skating by and not paying their fair share of taxes. You’d assume they were fully taking care of loopholes so they don’t have to pay a dime, when the poor and middle class are carrying the brunt of the taxes. Well, according to new data from the IRS, the rich do pay well more than their fair share.

The top 1%, the ire of so many Democrats who believe they skate by, actually pay 39.5% of all federal income taxes. That’s a rate 20.6% higher than the income they actually bring in. The lower 50% of the rest of earners in this country only pay 2.7%. In comparison, it’s not even close. The rich do pay way more than their fair share.

So, the question remains why the Democrats keep acting as if this isn’t the case. Why do Bernie Sanders and Elizabeth Warrant continue to go with the narrative that the rich are skating by and taxing them even more will bring out a bit of financial equality? Together, the bottom 90% of all income earners only pay 29.1% of all federal income taxes.

When you really look at it, it makes sense. Most Americans on the bottom end of the scale actually pay very little in taxes and often take more in benefits. Their net contribution is a negative number. The top 1% pay more than the entire middle class combined. Where the Democrats are getting their information is confusing.

Making Investments

Capital investment is how the system works. If you want to create more jobs and improve wages, then investment is key. As businesses grow, there will be an increased need for labor, so they hire more workers. As they expand and invest more money into their business, suddenly thousands of people have jobs and a business can really become a town’s lifeline.

Also, capital investments require business owners to purchase equipment and make other buys in other industries that creates other jobs to make that equipment and others to sell it and marketers to promote it. This is what makes America great and rich people with capital to spend make the entire system go and prosper.

Without rich people, you don’t have a job. If we start cutting in business profits, then that starts to downgrade the whole system. While Democrats decry a tax cut for the wealthy, they propose increasing taxes many, many times over to pay for their socialist agenda programs they know will garner votes. To get it done, they stoke the flames of anger towards the rich who have all the things and money they want. They espouse class warfare talk about wealth inequality.

But they hate the very people who help them keep the lights on and put food on their tables. Another Democrat lie is that cutting taxes and trickle-down economics has never worked. Both President Kennedy and Ronald Reagan cuts taxes, even for the 1%, and saw a major economic boom. They won’t get the economy better than it is by heavily taxing the rich who already contribute way more than their fair share.

This discrepancy might also be why President Trump won in 2016. The Democrats lost a lot of support from the unions and white-collar workers.

Written by adminAugust 29, 2019

Saving

It’s more vital than ever to start preparing for your financial future.

One of the easiest ways to fluff up your nest egg is to simply cut down on expenses and start saving more of your hard earned cash. No matter your current situation, here are 12 golden rules that everyone can use to save on everyday expenses from mortgage bills to utilities.

1.Tax Deductions

Most homeowners know the benefits of lower monthly payments as compared to renting. The tax benefits also make the decision a no-brainer. Here are some deductions that homeowners should be leveraging:

Mortgage interest – If your mortgage doesn’t exceed $750k you can deduct the interest you pay on the loan. This can result in greater deductions come tax time. The Tax Cuts and Jobs Act of 2017 reduced the limit from $1 million and made some additional clarifications on deducting interest from a home equity credit line.
Property taxes – After the TCJA passed in 2017, homeowners can now deduct up to $10,000 from their property taxes. The deduction from state and local income taxes is also combined with the deduction for state and local property taxes.
Tax incentives for energy efficient upgrades – Homeowners can now claim tax deductions on solar energy for both electric and water heating equipment through 2021. However, the deductible amount decreases by 4% each year over the next 2 years.

2. Slash Your Energy Bills

A new policy introduced this year qualifies homeowners who live in certain zip codes to obtain government funding to install solar panels. Most homeowners don’t check to see if they qualify, and thus miss out on the many subsidies and rebates that can cover a lot of the costs associated with installation.

Be a smart homeowner and do your research today, you could find yourself saving thousands a year on your energy bill.

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3. Install CFLs or LED Lights

Lighting technology has made huge strides in recent years. Even though they can cost more than traditional bulbs, CFL and LED bulbs use less energy and can last for years without replacement. You don’t need to replace every light bulb in the house, even switching just five of them can save you $45 or more a year.

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4. Automating Your Thermostat

Save money on your heating and cooling bills by investing in an automated thermostat. These smart thermostats will be able to know when you are home and adjust to pre-set comfort settings, some of them can even qualify you for a rebate from your utility provider.

5. Make A Grocery List

Instead of grocery shopping on impulse, make a list of groceries you need for the upcoming week. That way, you avoid checking out with way more than you need and buy only what you intend to use. This minimizes waste, and your wallet will thank you!

6. Buy in Bulk

One of the easiest things you can do to save money is to buy your necessities in bulk. Retailers like Costco and Sam’s Club often give a much better deal on products such as paper towels and toilet paper. Become a more efficient shopper and start saving today.

7. Concrete Patios, Not Pavers

Patios can add value to a home as an enjoyable outdoor living space. But they can get expensive quickly the more add-ons you get.

Most landscapers would recommend pavers over concrete as it increases durability. But if the cost savings are more important to you, just go for the clean look of concrete. Just make sure to hire a good concrete crew to prep the concrete right to minimize cracks.

8. Get Life Insurance

Nobody wants to think about it, but preparing for the worst gives peace of mind that your family will be taken care of financially. A good life insurance policy can protect your family from inheriting your debts, and cover the cost of a mortgage among other costs.

There is now a service that you can apply to get free life insurance quotes from top insurance companies out there. You may be surprised at how affordable an excellent policy can be. Truth is, life insurance rates are at a 20 year low and thanks to new policies in place you can qualify for a great new policy at a lower rate.

9. Give Your AC a Break

If you have an air conditioner, you need to place it in an area where air flow is unimpeded. If the airflow for your AC unit is restricted in any way, take a few steps this weekend to do the following:

Trim any bushes to give the AC unit at least a 1 foot area of clearance.
Remove any debris or leaves from the ground
If there is any debris clogging up the unit itself, consider having a professional clean it out.

10. New Auto Insurance Policy

Most auto insurance companies won’t notify you of savings, but you should always be on the lookout for a better deal with this auto insurance comparison tool.

Insurance companies are always competing for your business. Join thousands of other drivers and save up to $531 a year with a new policy. All you have to do is to fill out a short form and you can start saving on your auto bill.

11. Veteran’s discounts

Lowe’s offers all active military and veterans a 10% discount on all in-store purchases. This offer is also extended to their spouses.

So be it tools, new appliances or even a kitchen remodel. If you qualify for this discount, head on over to Lowe’s and start saving today.

12. Get Mortgage Relief

Unknown to many homeowners is the government program Freddie Mac Enhanced Relief Refinance Program or FMERR. This program can help millions of Americans to reduce their mortgage payments up to $3k per year.

This federal program is due to stop taking applications at the end of this year however, so take advantage of this program as soon as possible. If you are looking to lower your payments or pay off your mortgage faster, this free program could help you get a better rate than the marketplace.

And that is it. If you found these savings tips useful, please share this post and our page with friends and family. If you need any more help or financial advice, please don’t hesitate to give us a call!

Call Now 844-332-2079

Written by adminAugust 28, 2019

Student Loan Consolidation

Yesterday, President Trump signed a massive executive order that ultimately forgives all student debt incurred by permanently disabled US veterans. While giving a speech at the American Veterans National Convention, he revealed that he would be signing the executive order to allow disabled veterans better financial security by not having to worry about their student loan.

Is not just the loans, either. People who obtain student loan forgiveness often still have to pay taxes on that loan. This Executive Order dictates that no veterans will have to pay any federal income tax for the loans that they had forgiven. Trump can only control the federal aspects of this forgiveness so he is also pressuring states to do the same.

“The debt of these disabled veterans will be completely erased,” Trump said. “That’s hundreds of millions of dollars of student loans debt for our disabled veterans that will be completely erased.”

On Twitter Trump wrote: “It was my honor to sign a Presidential Memorandum facilitating the cancellation of student loan debt for 25K of our most severely disabled Veterans. With today’s order, we express the everlasting love & loyalty of a truly grateful Nation. God bless our Vets, & God Bless America!”

Details of the Deal

The purpose and goal of this Executive Order is to allow disabled veterans to not have to worry about paying back their debt nor any federal income tax as a result of their forgiveness. By signing the order, Trump expedites the process. There have been other bills signed in the past that helps veterans with their student loan debt, but it was still very burdensome on disabled people who fought for our country.

The order takes away those burdens. Only around 20% of all disabled veterans had actually applied to have their student debt removed because the process so difficult and time-consuming. Now, the process will be made much simpler. They will qualify for what’s called Total and Permanent Disability Discharge, or TPD.

TPD is only for veterans who have a disability rating of 100% through the VA. This was a move that came not long after Trump appointed a long-time student loan executive to serve as the Consumer Financial Bureau’s new ombudsman who oversees the student loan debt issue. This hasn’t been an area that the president has tackled, but for the veterans he has come through for them time and again.

Student loan debt is a major talking point as we go into the 2020 election. Nearly every Democrat running has offered some sort of student loan forgiveness promise. The promises include everything from complete and total student loan debt removal to making college free for everyone.

Written by adminAugust 28, 2019

Student Loan Consolidation

Perhaps the biggest story in the news everyone should be paying attention to right now are the wildfires in the Amazon. The Amazon is known as the lungs of the world as it helps trap carbon and produces a large amount of the oxygen we breathe. No wonder so many people are incredibly concerned with the wildfire burning out of control.

As the G7 is underway in France, many of the leaders have announced that they will join in the efforts to help stop the fire. It’s going to take a lot of work to repair the damage, if anything can even be done at all. This is a major ecological disaster of tremendous proportions and it’s going to impact our planet for a long time. The devastation is widespread and continues to grow.

President Trump is one of the G7 leaders who announced that they would be helping out in the fight. The president wrote on Twitter: “Just spoke with President @JairBolsonaro of Brazil. Our future Trade prospects are very exciting and our relationship is strong, perhaps stronger than ever before. I told him if the United States can help with the Amazon Rainforest fires, we stand ready to assist! I told him that if the United States can help with the Amazon Rainforest fires, we stand by ready to assist!”

Greenpeace revealed that the cost is higher than just a forest that’s burning. The fires are claiming the lives of every type of wildlife that survives in the Amazon. “This is not just a forest that is burning,” said Rosana Villar of Greenpeace. “This is almost a cemetery. Because all you can see is death.”

Donations are Pouring In

The Amazon is important to the entire world. It’s not just that it’s the ‘lungs of the world’, but a large percentage of our pharmaceutical drugs are derived from plants that live exclusively in the Amazon. As many as 40 different types of plants make up 25% of the drugs we sell in the United States. These are medications like aspirin and taxol, a cancer treatment drug.

The cost of the wildfire can’t necessarily be totaled up just yet considering the fires are still burning, but surely there will be an economic cost to Brazil. It’s not just big pharma that’s going to feel the pressure. Brazil exports juices, tobacco, oils, and coffee that all come from the Amazon region. How these industries will be impacted is currently unknown.

Leonardo DiCaprio has donated $5 million via Earth Alliance to help cover the costs of putting the fire out and preserving the Amazon rainforest. Fires are used to clear the land to make room for farming. It’s these fires that are getting out of control and rapidly expanding. Fires aren’t uncommon in the region though, as lightning is frequent in this region of the world.

Either way, the cost is going to be catastrophic.

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