The Real Toll of Student Debt on Americans

Written by adminOctober 5, 2018
Student Loan Consolidation

Earlier this year, for the first time in history, student debt reached an appalling $1.5 trillion. Just a decade ago it was $600 billion. This only goes to show us how much this type of debt is crippling the average everyday student. In a lot of cases, if you can’t pay your student loans, you can’t work in your field of choice, making the situation increasingly dire.

The individual numbers get scarier from here. The average grad leaves school about $37,000 in the hole and will spend the next ten years of their lives trying to pay it back, as is the standard repayment plan.

The problem is, due to the economy over the last decade, many graduates left school only to find out that the market doesn’t bear any fruit. 1-in-6 graduates make much less per year than what their debt is worth, meaning they can’t pay their loans back in time and will likely go into default.

Going into default will put a severe hurting on your credit score and can even keep you from being able to re-license in your field. A lot of states have laws that nurses, teachers, and other service-related fields can be denied the opportunity to work if they aren’t current with their loans.

Increased Cost of an Education to Blame

One of the main reasons why we’ve hit this new milestone is a tuition rate increase across the board. As it becomes more expensive to go to school, local and state governments begin to panic and pull out their resources. It’s no longer a sustainable practice to give out loans that push kids into higher education.

Less money from government programs will force them to add to their debt by securing loans. It’s no secret that loan companies don’t make the process easy on students, either. They know they have to pay this money back, so there’s often little give in their demands. Once a student finally gets their debt paid off, a hoard of new students come in.

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It’s really become a vicious cycle where you’ll find yourself unable to work and provide for yourself. A record number of millennials are living at home for this very reason. They don’t have the credit (or the job) to make it out on their own.

Colleges are partly to blame for exaggerating job placement numbers to make the debt seem worth it. Hey, if you’re virtually guaranteed a job when you graduate, you’re more likely to think it’s a good idea. But reality came crashing down. It was predatory tactics to get you in the door all along. They faked their numbers to feed on people’s desperation to find work.

If you need help with your student debt, contact us here at Financial Helpers. We’ve worked with thousands of students to determine their eligibility for student loan forgiveness and other government programs. To find out more, call us at:

Call Now 844-332-2079

Should Student Debt Be Forgiven Across the Board?

Politicians will tell you that the key to living the American dream is getting a college degree. It’s always been the standard argument for going to college. Student debt is rising to levels that almost make it not worth the effort. In fact, there are plenty of people right now who regret going to college and raking up the amount of debt they have now.

Would you go to college if you knew it would take the next 25 years of your life to pay off the debt? Many didn’t realize the burden such loans would have on their lives until later That’s why they’re petitioning the government to wipe away all student debt. Yes, there are student loan forgiveness programs, but it’s not enough.

The problem of student debt is that it’s going to continue to rise. All the issues that caused this mess in the first place don’t look to be hammered out anytime soon. The only tool the government has to combat this is to throw more money at students. The problem is, the government doesn’t seem to want to help. It depends on who is in charge of the administration.

Where former President Obama’s heart was in the right place, it’s not economically sustainable for the federal government to help much longer. Student debt programs were already in President Trump’s scope to be cut from the budget.

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New Lawsuit Accuses Navient of Obstructing Student Loan Forgiveness Cases

Written by adminOctober 4, 2018
Student Loan Consolidation

It would appear as if Navient is in more legal trouble this week. Another lawsuit is being filed against the student loan company. Navient is being accused of preventing potentially millions of service workers from obtaining legally granted student loan forgiveness. Service workers include social workers, teachers, and other public servants.

Named in the lawsuit is the American Federation of Teachers, who claims that Navient purposely misled public servants to prevent them from qualifying for student loan forgiveness. This is a 10-year process. According to federal law, those who work in a service-related field and makes qualifying payments for 10 years can have their debt wiped away.

By giving these workers the wrong information, or counseling them incorrectly, Navient isn’t being honest. That’s nowhere near enough time to counsel them on all their options. Proper understanding and counseling of student loan forgiveness takes quite a bit of time longer.

Navient’s Plan to Disrupt Student Loan Forgiveness

It’s not difficult to see why Navient would want to mislead borrowers. After qualifying payments are made, Navient sends the loan to another company. Instead, they held onto their loans longer by misleading students who qualified for student loan forgiveness.

According to Rand Weingarten, president of the American Federation of Teachers:

Navient “purposefully and systematically trapped teachers, nurses and other public-service workers under a mountain of student-loan debt rather than providing them the opportunities to reduce this debt through the public service loan forgiveness program.”

So far, representatives from Navient have declined to comment about the accusations brought against them.

To see if you qualify for student loan forgiveness, give Financial Helpers a call. We are here to be your advocate against the backdrop of shady and predatory lenders. We’ve helped thousands of students just like yourself find the program they’re qualified for. Even if you can’t get forgiveness, we help students negotiate with their lenders. Call us today at:

Call Now 844-332-2079

Looking for Guidance

Kathy Hyland, a teacher in New York, felt she was doing all the right things to obtain student loan forgiveness. She was paying her bills and did everything Navient told her to do. In her testimony against her lender, Hyland claims they misled her for three years. She found out later that the payments she made didn’t qualify for forgiveness.

“At that moment, I just needed a little bit of help — I didn’t need a handout — I needed a little bit of guidance and a little bit of understanding,” said Melissa Garcia, another teacher from New York. Garcia made 37 qualifying payments. At least, Nevient said they were qualifying, only to deny her later.

http://financialhelpers.com/trump-administration-signs-massive-student-loan-forgiveness-bill/

These are just two of hundreds of similar cases where teachers and other service workers are lied to by Navient. They were advised to take actions that ultimately disqualified them for student loan forgiveness. By disqualifying them, they still were forced to keep paying Navient rather than having their cases transferred over to another company.

Everyone who has a student loan needs to do their own research. Don’t just accept what your lender says. They have every reason to not be truthful. They want their money, and they will get it. Unless, of course, you know your rights. Keep following Financial Helpers for more information about this lawsuit.

What This Means for You

Can you imagine working for months and years paying your student debt down, only to find out your lender was lying to you? Make no mistake about it, they want your money. Lenders will do everything within their power to get every dime. Even if you qualify for programs that make life easier for you, it doesn’t matter. They are on you like sharks smelling blood in the water.

As student loan debt surpasses $1.5 trillion, the lenders are loving every minute of it. Even the government-appointed student loan watchdog has stepped down from his position. There are so many fraudulent cases out there today, it almost seems helpless for millions of Americans.

You’re Not Alone

Don’t let your lender sell you on their lies. If you have student loan debt, help is here for you. A single call to Financial Helpers can determine whether you qualify for student loan forgiveness. We understand the complications and burdens your loans cause, which is why we advocate for thousands of students across the nation.

Even if you don’t qualify for student loan forgiveness, there are numerous options at our disposal to help make repayment manageable. You need a plan that will fit your lifestyle and your budget, not one that prevents you from living life on your terms. Don’t let student loans hinder you any longer. To learn more about qualifying for student loan forgiveness, you can call us at:

Call Now 844-332-2079

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Service Workers Who Default on Student Loans Can Lose their License

Written by adminOctober 3, 2018
Student Loan Consolidation

As millions of people across the country suffer under the burden of their student loans, some have it worse than others. Service workers, like teachers and nurses, qualify to have their loans forgiven after ten years of qualifying payments. That’s a great thing for anyone working in the service industry, but that’s not the whole story.

Service workers are particularly vulnerable to losing their work license altogether if they default on their student loans. Even while working a service job, paying loans and other bills can be a difficult task. If you go into default, it can devastate your credit score and make life difficult. But for service workers, it goes a step beyond.

Service Workers and Student Loans

It happened to Roderick Scott Sr., a middle school teacher in the Dallas area who in 2015 attempted to renew his license, but was prevented to do so. The reason? He defaulted on his loans. Texas is just one of 19 states where teachers can lose their teacher’s license if they don’t pay back their student loans.

http://financialhelpers.com/the-cons-of-strategic-student-loan-default/

Within the next few years, Scott was filing for bankruptcy. His dream job was almost over.

States are taking drastic measures to force people to pay back their student debts, a problem that is being an epidemic. In the U.S. alone, students owe $1.5 trillion in outstanding debt.

Critics of this law states are adopting say preventing people from obtaining or renewing their license and forcing them to lose work is counterproductive. If you can’t work the job you went to college to get, you’re not going to be able to pay back your loan.

Texas has already prevented over 250 teachers like Scott from renewing their license over the last five years.

“You do understand that, basically, I have been fired because you won’t allow [the Texas Education Agency] to renew my certification. You’re going to ‘fix things’ so that I can’t pay anything?” Scott remembers telling his loan officer.

If you work in the service industry and your livelihood is threatened, call Financial Helpers today. Our team of qualified loan experts can determine if you’re qualified for student loan forgiveness and lower overall payments. You can reach us at:

Call Now 844-332-2079

The Pain is Real

In 2015, when Scott felt he took all the right steps to renew his license, he was given the heartbreaking news that he couldn’t renew. His job was threatened. He had no choice but to borrow more money to pay back the loan collector, who also wanted $300/month.

He wasn’t fast enough. By the time he had everything settled, he lost his department chair and his students were moved out from under him, losing a lot of money in the process.

When he couldn’t pay his rent, he was evicted and had to set up a GoFundMe page. The sad part is there are thousands of teachers who are at risk of enduring the same loss that Scott did. He had to sacrifice everything just to keep his job.

All across the country, student loans are becoming a burden many students don’t come back from. It keeps them from making life decisions, pushing things off like buying a house or car, for several decades. Millennials aren’t getting married or having children until later in life. All of this is at a major cost to the U.S. economy.

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How Having Student Loans Can Keep You from Buying a Home

Written by adminOctober 2, 2018
Student Loan Consolidation

A credit score is a precious thing to any person who hopes to live the American dream. If you want to buy a car, a home, or get a loan, then you need a decent score. Most people hope to one day buy a home and raise a family. The problem is, if you have student loans, it can complicate the process entirely.

When prospective home buyers go searching, they are usually told to reduce their debt first. It’s a common practice. Without a good credit score, it’s almost impossible to get approved for a mortgage. Yet, for so many, student loans are a major obstacle in their way. More students than ever are delaying life decisions due to their loans.

A lot of it has to do with how much they’re paying back each month. Students are paying anywhere between $400 and $1,000 each month to their lenders. That is seriously straining their budgets. And the fact that jobs aren’t always available right out of college makes the process even more difficult.

Student Loans Remain a Major Obstacle

According to reports, students who graduate college are delaying homeownership by seven years. That’s much longer than previous generations. They blame student loans for that. 60% of Americans with loans say their debt is the main consideration for why they’re waiting. As debt soars past $1.5 trillion, it’s not hard to see why.

http://financialhelpers.com/racial-wealth-inequality-made-worse-by-student-loans/

Student loans represent as much as 42% of consumer debt in the United States. That’s a 130% increase in the decade since the start of the Great Recession. It proves that the recession itself had an overall impact greater than most realize. While the economy is growing and the job outlook is improving, many millions are stuck.

You don’t have to struggle under the burden of student loan debt by yourself. Most students just don’t know where to look. Financial Helpers is the leading source of information for loan help in the country. Call us today to see if you qualify for student loan forgiveness programs. You can reach us at:

Call Now 844-332-2079

Women are Impacted

A research study by NeighborWorks’ has found one group in particular who struggle the most with student loans: women. More than two-thirds of all loan debt holders are women. They hold as much as $900 billion of the $1.5 trillion. Women of color are particularly at risk of falling behind any other group.

According to the research, they found that 29% of women and 23% of men have student loans. 48% of those loans are carried by women of color. This shows a major contrast that is only perpetuating the racial wealth gap. Compare that number to only 15% of white men who have a student loan.

If you have a lot of debt in your back pocket, qualifying for a mortgage will be nearly impossible. Stacking different types of debt on top of each other isn’t recommended, either. If you can barely afford life renting an apartment, having a mortgage and paying property taxes won’t help. Focus on getting rid of your debt first.

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Legal Battle Over Obama-Era Student Loan Forgiveness Law

Written by adminOctober 1, 2018
Student Loan Consolidation

There’s a legal battle raging in Washington D.C. over the fate of the Obama administration’s law on student loan forgiveness. As the new president was sworn in, President Trump and Education Secretary Betsy DeVos had their own ideas for tackling student loans. It appears as if they are no advocate for the students suffering under mounds of debt.

Last month, the student loan watchdog resigned, claiming no one in Washington cares about students. Instead, the prevailing accusation is that the White House is clearly in the pocket of the big profit schools. Their evidence is DeVos hiring numerous presidents and CEOs of these schools to work in her department.

The Fight for Student Loan Forgiveness

President Trump said he would cut student loan forgiveness, and instead implement a plan that’s fairer for the taxpayers. Yet, in a compromise with Congress, decided to keep the law in place. The problem is, they haven’t really been implementing it. Instead, the Department of Education has been working under their own rules, and not the one signed by Obama.

Democratic consumer advocates and attorneys across the country fought back. They took DeVos to court for purposefully delaying the previous law and won. Yet, no one actually knows when the actual fight will be settled and Obama’s law will take place. It’s a complicated legal mess and the Republicans are fighting back.

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U.S. District Judge, Randolph Moss, put his ruling on the back burner for 30 days. He did this in order to allow the Trump administration ample time to create a defense around why they’re not following the rules. They have until October 12th to create their legal defense. It will be interesting to hear what they have to say.

Student loan forgiveness is available to millions of graduates who qualify! To learn more about your options and how we can help you pay off your student loans, give us a call at:

Call Now 844-332-2079 

Some schools are jumping into the mix as well. The California Association of Private Postsecondary Schools is fighting that the Obama-era rules are unconstitutional. There are students who went to for-profit schools also having their voices heard by the judge. With all sides getting their day in court, it will be interesting to see how the law moves forward.

Bankrupting Schools Sow Chaos in the Case

The students who get to present their case for why Obama-era laws need to be enforced were hit with some bad news. The school they attended, the New England Institute of Arts, recently declared bankruptcy. Now, the California for-profit association is saying that the students have no merit to defend the rule when their own school went bankrupt.

This can leave the Obama regulation without a visible and forceful defender in the court case. The judge needs to hear from both the schools and students the law impacts. Without a good case, we may see the beginning of the end of student loan forgiveness. Trump’s plan has always been to do away with student loan forgiveness.

Instead, their plan is to create a forgiveness platform that’s based on income. If you’re actively making money from your degree, they claim it’s unfair for taxpayers to foot the bill. You still got an education, a degree, and working a high-paying job. The Trump administration is fighting their case, saying Obama-era rules are unfair.

Still, Democrat states are having their attorney generals file lawsuits against the administration to formally intervene. Judge Moss was skeptical about allowing their testimony but allowed for the pause for both sides of the argument to create their case. We’ll learn more about this case on October 9th as the hearing moves forward.

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Disabled Veterans Can Have their Student Loans Forgiven

Written by adminSeptember 28, 2018
Student Loan Consolidation

As student loan debt soars past the $1.5 trillion mark, it’s leaving a lot of misery in its wake. People from all walks of life struggle to be able to afford everyday living costs and pay their student loans. For-profit colleges are under intense scrutiny for their predatory tactics in getting people signed up for their programs.

They promise to have extremely high job placement rates, but in actuality, do nothing to help their students. It’s false advertisement that allows them to make their schools extremely expensive and prey on students looking to improve their lives. The number of people suffering under the burden of their student loans is increasing dramatically.

In an effort to pay for their school, in an economy where jobs were hard to come by, many joined the military. It’s a good option for millions of young people who joined up to pay for school. The U.S. military pays out scholarships and grants for education as an incentive to get young people to sign up.

Veterans and Student Loans

President Trump has made several blunders in this arena. He and Education Secretary Betsy DeVos continue to find ways to cut government spending. This involves dismantling protective measures put forth by the Obama Administration. This time, it appears he got one right in a way that helps struggling borrowers.

President Trump has come out swinging for veterans, which is part of his platform. If you’re 100% disabled from your time in the service, you can have your student loans wiped away. To their credit, the Obama Administration did their due diligence in working to forgive the debt of many disabled Americans.

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About 350,000 of them had their slate wiped clean through the Social Security Administration, which is the agency that handles disability. The problem is, the SSA doesn’t count disabled vets. That’s the job of the VA, meaning veterans often got the shaft when it came to these debt-killing programs. Now, their prayers have been answered.

Student loan forgiveness is available to millions of graduates who qualify! To learn more about your options and how we can help you pay off your student loans, give us a call at:

Call Now 844-332-2079

In April, the Trump Administration announced their plan to forgive all student loan debt for those disabled vets who will most likely never be able to work again, many of whom have suffered under this crushing burden for so long. He hopes that this deal will become an automatic process.

Qualifications for Vets

If you’re a veteran who is 100% disabled, and you have student loans, they can be forgiven. There are tens of thousands of disabled vets who may not know about this option. Here are several of the qualifications you must meet:

• You must have a determination from the VA stating your unemployable due to disability.
• Receiving SSD, SSDI, or SSI benefits
• Determined completely disabled by a doctor
• Have federal student loans.

While this law doesn’t cover private student loans, you can call your lender and see what options they may be able to provide. Many will offer the same type of discharge due to disability. There are as many as 800,000 disabled veterans who qualify for this program.

It’s also important to note that there are no tax consequences to receiving forgiveness. The average student loan forgiveness program will be taxed as profit, so veterans do not have to worry. So, if you’re a disabled veteran, the federal government has your back. There is no need to worry about your student loans.

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Racial Wealth Inequality Made Worse by Student Loans

Written by adminSeptember 27, 2018
Student Loan Consolidation

It’s easy to talk about how student loans are impacting the quality of life for millennials. They’re delaying life decisions until later in life because this repayment of loans is taking priority. Yet, there’s an even larger wealth discrepancy no one is talking about. This problem is hurting young black Americans more than it is whites.

A new study has come to light, published by Sociology of Race and Ethnicity. The study is called, “Racial Disparities in Student Debt and the Reproduction of the Fragile Black Middle Class.” The details in this report are truly shocking. While most college students in the modern era struggle with paying back their student loans, blacks have it much worse.

According to the study, whites pay their debt down at a rate of 10% per year. It’s 4% for blacks. After fifteen years, blacks still hold 185% more of their debt than their white counterparts. Blacks also take on 85% more debt to go to college than white students. All of these this is only widening the wealth inequality gap between whites and blacks.

Student loan forgiveness is available to millions of graduates who qualify! To learn more about your options and how we can help you pay off your student loans, give us a call at:

Call Now 844-332-2079 

Student Loans and Unique Challenges

This new study is revealing the unique challenges black Americans still face. They don’t have as much familial wealth to draw from to go to school. As a result, they take on more debt. After they graduate, finding comparable work is more difficult. These unique challenges only add to the racial wealth inequality in this country.

“The racial wealth gap is both the biggest and has grown the fastest among those with a college education,” said Jason Houle, assistant professor of sociology at Dartmouth College and co-author of the study. “We point to student loan debt as potentially one thing that explains why that’s happened.”

http://financialhelpers.com/the-cons-of-strategic-student-loan-default/

This study has highlighted that as much as 25% of the wealth gap between whites and blacks is caused by student loans. The information was gathered from a previous study, conducted in 1998. It was called the National Longitudinal Study of Youth 1997 Cohort. Over 8,900 students have responded each year since that study.

Upward Mobility at Risk

One of the other challenges to black students are the types of loans they’re taking out and the schools they attend. Black students frequent for-profit schools and take out private loans. For-profit schools have recently come under fire for their predatory advertising. Those often-expensive schools make false promises of helping students find work after graduating.

Taking out private loans is dangerous in itself. They have fewer protections for consumers that federal loans have. These two problems combined make black students more at risk. It is true that blacks have gained greater access to college degrees over the years, but that access is under “exploitive terms,” according to the research.

“Black Americans now have more access to homeownership than they did, but it’s largely on predatory terms,” Houle said. “This similar thing goes on in the student loan market. In a world where we have rising college costs and rising student debt. It raises questions about whether or not that engine may be sputtering out.”

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4 Reasons Why Student Loan Forgiveness Applications Are Rejected

Written by adminSeptember 26, 2018
Student Loan Consolidation

The media is at it again. Maybe you’ve seen the headlines. 99% of all student loan forgiveness applications are rejected.

As student debt is reaching all-time highs, and people want relief. When the story broke that most weren’t getting that relief, there was an uproar. The reason has more to do with the Public Service Loan Forgiveness program.

Of course, there are going to be fewer applications approved in the first year. This isn’t the first year of the program, but rather the first-year eligible debts could be forgiven after the law was signed ten years ago. In order to qualify for student loan forgiveness, the borrow has to make 10-years of qualifying payments.

Qualifying payments had to begin around October in 2007. Some of those qualifications include working in a service or government related job during that time.

Here are 4 reasons why:

1) Their Loans Were Ineligible

To qualify for student loan forgiveness, you had to have a certain type of loan. Only federal direct student loans could qualify. Going back to 2007 when the program was created, only 21% of the student loans out there were direct loans. The rest of the loans at that time were undertaken by a guaranteed program that has gone under.

Today, you’ll find that most loans fall under the federal direct category. The rejected a lot of loans for this reason. Most of the loans taken in 2007 didn’t qualify. Those former students will have to pay their loans back in full. Now that the majority of student loans are federal direct loans, they’ll qualify in the future.

2) An Insufficient Record of Qualifying Payments

Another big reason why student loan forgiveness applications were rejected was fewer borrowers made the payment deadline. You must make 120 qualifying payments, which equates to 10 years. They also have to be working a service or government job during that time. Not reaching these requirements will disqualify you.

http://financialhelpers.com/4-facts-you-should-know-about-student-loan-forgiveness/

It’s been 10 years since they signed the law. That means to qualify for student loan forgiveness, the borrower couldn’t have missed any payments. If they took some time off of work and/or stopped paying for a time, they would still have a few payments left to qualify.

3) They’re on the Wrong Repayment Plan

This is a confusing part of the process. There are several repayment plan options out there, but there’s only one that qualifies for student loan forgiveness. If the borrower selected the wrong repayment plan, their application was denied. There is good news though. Congress has stepped in to allow eligible repayment plans to qualify.

So, while many borrowers had their forgiveness applications denied, Congress approved them. These approvals aren’t in the initial statistics by the media. If you were denied due to being on the wrong repayment plan, go ahead and resubmit as soon as possible.

4) Errors in the Paperwork

28% of all the applications denied for student loan forgiveness was done so due to “missing or incomplete information.” We can’t say how many of those 8,000 applications would’ve received forgiveness if all the information was complete. Yet, the Department of Education has stated that borrowers denied for this reason can resubmit with their complete information.

So, if you see the news headline decrying that 99% of student loan forgiveness applications are denied, there are good, reasonable reasons why. Follow the guidelines and you’ll be fine. It is easier to obtain student loan forgiveness. They are constantly working to create better laws.

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The Cons of Strategic Student Loan Default

Written by adminSeptember 25, 2018
Student Loan Consolidation

As student loan debt soars past $1.5 trillion, the struggle of paying them back is real. A lot of former students are having to delay making major life decisions to pay back their loans. But others are taking a different approach. A new wave of young adults are becoming activists against what they call ‘student loan debt servitude’.

To protest the massively expensive cost of a college education, and their student loan bill, they’re simply deciding not to pay it. They are intentionally diving head first into default with no regrets. They use terms like “a student loan is economic terrorism” and crying out that these debts must be canceled immediately.

Their goal is political activism, and their outcry is understandable. The cost of a college education IS way too high. The problem is, this type of activism is doing nothing for their cause. In fact, it hurts them much more than it hurts the lenders. Banks and the federal government have plenty of money. They also have all the resources they need to make you suffer.

What Happens When Your Student Loan Goes into Default

Once you start missing student loan payments, your account is declared delinquent. After about 270 days of non-payment, you’re considered in default of your loan. That’s about 9 months late with your payments. The consequences of that are often quite severe. Going into default can stall your life financially and professionally. Here’s a list of situations that can happen:

• Delinquency reported to credit bureaus
• Your credit score will tank
• Send the loan to a collection agency
• Will garnish your pay
• You will no longer be entitled to deferments or file for forbearance
• Withhold your taxes
• You will not be eligible to receive more financial aid
• The lender can take you to court
• Revoke your professional license
• Interest will continue to pile on
• Add late fees

“Defaulting on any student loan can have very serious – and very guaranteed – negative consequences, including late fees, collections costs, credit damage, and collections efforts,” says student loan expert Adam Minsky.

Strategic Default Won’t Work on Federal Loans

To get their money back, private lenders have fewer options. They will have to take you to court to fight for their payments. Federal student loans, on the other hand, don’t need to follow that rule. The borrower has absolutely zero leverage against the government. That means they have more power to compel you to pay.

“Defaulting on a federal loan can be particularly dangerous because the government and Federal guarantors have a lot of power to pursue borrowers and take their money without needing to go through the court system,” said Minsky.

http://financialhelpers.com/4-facts-you-should-know-about-student-loan-forgiveness/

“Defaulting on Federal loans generally does not give borrowers leverage – their options are constrained by Federal law. And while it is possible to get out of default on Federal loans, going into default generally does not give people an advantage.”

It really makes no sense in the long run to torpedo your student loan and refuse to pay it. You’re only harming yourself, especially when there are programs available. There refinancing, income-driven payment plans, and student loan forgiveness.

If you have any questions about your loans and want to know more about these programs, give Financial Helpers a call. We’d love to help you sort out your loan situation. It’s better to pay them off the right way. Give us a call at:

Call Now 844-332-2079 

At the end of the day, you borrowed the money. It’s your responsibility to pay it back. If you’re struggling, there are a variety of programs that can help you. Give us a call today.

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AARP Study Finds that Student Loans Are Crippling Young People

Written by adminSeptember 24, 2018
Student Loan Consolidation

When a person graduates college, it’s the beginning of a new life for them. A college degree is meant to allow young adults the opportunity to start off life in the right direction. That’s why we spend a lot of time studying, testing, and working hard to get to that level. The problem is, student loans are setting them back rather than propelling them forward.

For a lot of graduates, a college degree isn’t what it used to be. In fact, a new study conducted by the American Youth Association and AARP found that student loans are crippling young people in the crux of their life. Millennials are being hit the hardest with debt that prevents them from saving money for huge milestones.

Imagine having to pay anywhere from $400 to $1,000 each month to keep compliant with loan repayment. It can be nearly as high as a mortgage, not including other expenses, like the electric bill, phone bill, and rent. Even if millennials do find meaningful work right after graduation, it’s rarely enough to overcome the payments and afford everyday life.

AARP Study on Student Loans

According to the AARP study, this problem is hitting millennials more than any other age group. Nearly half of all millennials (48%), are struggling under the burden of student loan debt. Only 34% of Gen Xers and 12% of Baby Boomers have this problem. A lot of it has to do with millennials living through the Great Recession and the cost of college rising dramatically.

http://financialhelpers.com/kevin-olearys-advice-for-paying-off-student-loans/

Because the cost of going to college has risen so significantly over the last decade, more people are forced to take out student loans to pay for it. The worst part is, they’re saddled with this debt for the next decade or two. Some repayment plans take 25 years to complete. How can they save for retirement or buy a house?

The Burden Isn’t Just on Students

If you have a full generation of adults coming up now where half of them can’t afford to move out of their parent’s home, that impacts the economy greatly. Research already is showing that this generation is delaying marriage, having kids later in life, and are waiting longer to buy a home. They simply can’t afford to survive by themselves in today’s economic climate.

“The student loan problem is rippling across the broader economy,” says Ben Brown, founder of the Association of Young Americans. “As people both young and old continue to graduate with more debt, that ripple effect will become wider and more significant. This highlights the importance of solving both the extreme cost of higher education as well as the $1.5 trillion student debt crisis.”

LendEDU conducted a survey and found that 75% of Millennials feel daily stress about their student loans. It’s going to set a precedent for future generations who may decide that college is not for them. We’re already seeing fewer people are applying to college, but the cost is still going up.

Making Better Decisions

If you don’t want to take on extreme debt at an early age, there are options. Future generations are going to have to make a better decision when it comes to where they go to school. Don’t fall for the schools that promise job placement right after you graduate. Most of those claims are controversial and are even found to be fraudulent.

Also, rather than going to an Ivy League school, opt for a getting your undergraduate degree closer to home. Go to a community college for the first few years. Save up for the rest. Choose a school that’s a better financial fit for you, not the big school with the huge cost. In the end, you’ll find it’s not worth paying off a loan for the next two decades after graduation.

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