Student Loan Consolidation

Unless you’ve been living under a rock, you know student loan debt is a major crisis in this country. 44 million Americans hold as much as $1.53 trillion worth of debt. For many of those who are struggling, this debt is preventing them from having a normal life. This is why student loan forgiveness is a popular idea. Especially if you lean to the left.

People are struggling with their debt. There’s no hiding that fact. Yet, debate continues to rage on about the right way to handle the problem. The Obama administration was the first to sign a comprehensive student loan forgiveness bill. Under this new law, public service workers and those who were defrauded can get their loans wiped off the books.

Of course, the details vary. But is student loan forgiveness a progressive idea? Should the government broadly give everyone a clean slate? The answer isn’t clear. The Trump administration disagrees with Obama. In fact, they’re in the process of being sued for not following forgiveness protocols.

Education Secretary Betsy DeVos thinks student loan forgiveness should be offered based upon a person’s income. At first glance, this might seem like a selfish plan. But David Leonhardt of the New York Times actually agrees. The progressives want a free college education, but Leonhardt thinks that’s a regressive idea.

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Does Everyone Need Student Loan Forgiveness?

The big question is, who holds the most debt? It’s not poor college students, despite what many want you to believe. The largest portion of student loan debt is held by the highest-earning 25% of households in the U.S. A quarter of all debt is owed by the top 10% wealthiest families. The more expensive loans are taken out by those pursuing a graduate degree.

What does this all mean? The data shows that most of the debt is being taken out by people pursuing a high-end degree. Most of these people turn out to be lawyers, doctors, have MBAs, or get a job working as a Google engineer. Are these careers the most deserving for student loan forgiveness?

This is the point DeVos and the Trump administration is trying to make. Those with the highest amounts of debt have top-end degrees with high-paying salaries. This doesn’t discount the fact that millions of young people graduate college with crushing debt. The whole education system from the top down is a complete disaster.

Here are two potential solutions that would work as a compromise:

1) Forgive the Cheated

One of the reasons why student loan debt rose to such a catastrophe during the Great Recession had to do with shady for-profit schools. Jobs were scarce and people were desperate for a way out of the recession. Many schools, like ITT Tech and Corinthian, lied about their job placement rates.

They lied to convince the desperate to shell out for their ultra-expensive classes. Of course, there was a recession going on, so all it took to get a good job was take out a student loan. Once they graduated, they realized quickly job placement was a sham. Now, they have a ton of student loan debt and no job to pay it back.

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So, the one way the government can help is by holding this schools accountable. They should also stop fighting student loan forgiveness for the cheated. It’s the only fair way to get the ball rolling and protect the lower classes who can’t afford to go into default.

2) Forgive a Flat Rate

Here’s the good news: the government has a lot to benefit from by helping with student loan forgiveness. Having a large amount of debt slows the economy. It prevents young people from buying a home, paying their bills, starting a family. Many put off marriage and other major life decisions.

Rather than expecting the taxpayers to shell out for free college, maybe offering a flat rate will help. For example, say the government offers $10,000-$20,000 off their loans. For many, this would be a lifesaver. It would allow those in the lower class to go to college essentially free. Those going for a graduate degree get some help.

Student loan forgiveness can be a complicated process, but it doesn’t have to be. Either way, the government needs to step in an offer help to those who need it.

The way Americans think about retirement has shifted. Student loan debt is a major reason why.

We’re less invested and concerned than we used to be. It was a priority to make sure we take care of ourselves and our future. Today’s generations don’t seem to care as much. Student loan debt has overtaken their priorities. This makes it less likely they’ll have extra money to save.

According to a new survey by Edward Jones, less than half of all Americans contribute to a 401(k). When they asked people, who have a 401(k) if they knew how much the monthly fees were, half of them had no idea there were any fees.

Ameritrade asked in a related survey if they knew how much they were paying for Netflix and other streaming services, and 96% said they did. 37% wrongly assumed they didn’t have to pay fees on their 401(k). Surveys also found that only 37% are contributing to their retirement accounts and 18% through a health savings account.

These numbers are astonishing. It would appear as if Americans view retirement as a goal they should tap into later in life, but it’s not something they need to be concerned about right now. It reveals a real lack of financial concern. The problem is, they’re too much underwater with their student loan debt to care.

If you have a large amount of student loan debt, you’re not alone! Millions of people are struggling to pay their bills. The good news is, there are options! Call Financial Helpers today to see how we can help you. You can reach us at:

Call Now 844-332-2079

Student Loan Debt Forcing People to Throw in the Towel

If we take a good look at the last 15 years or so, the market has been virtually dead money. There’s a reason why a lot of baby boomers now plan to work until 60-65. They might’ve had a plan to retire at 45, but the market didn’t permit them. Now they’re behind on their savings.

Rumors abound that social security might be dead in the future. Regardless of how much we put into it, and the evolution of the market, it’s scaring people from investing. Health care costs are shooting through the roof and the housing market is volatile. Stocks are changing with the weather. All of this makes retirement investment a crap shoot.

Throw in massive amounts of student loan debt, and you have a crisis on your hands. As Gen-Xers head ever closer to retirement age, they’re not as concerned about retirement. It would seem they have a million other concerns on the forefront of their mind. Saving money is an impossible venture. This is only going to devastate them in the future.

Retirement Saving is a Must

The thing about retirement saving is: you just have to do it. You can’t afford to avoid this topic. Even if student loan debt is a massive burden, you still have to save money. Most people enjoying their golden years right now started saving when they were young. To assume you’ll just make up for lost time later is a major fallacy. You won’t.

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There are plenty of people now who just say they’ll work well into their 60s and 70s. The problem is, the job market isn’t too friendly to the elderly. A new generation and new technological advances will change over the next few decades.

According to experts, the best plan of action is to diversify their savings as to not put all of their eggs into one basket. That risks losing it when the market sours. There are recession-proof stocks, commodities, and other investments.

Either way, working well past retirement age is never ideal. We can only hope this new optimism in our economic recovery allows each generation to have renewed faith in saving for the future. That includes government finding a real solution to the student loan debt crisis.

Imagine graduating from high school with a dream in your heart to serve your community (and make a good living while doing it). Most of us have been there. If you want to be a nurse, you choose a school and obtain a student loan to get you though. The problem is, many don’t think about the student debt problem once they graduate. They think they’ll find a job immediately and it will be smooth sailing. Nothing could be further from the truth.

Many public service workers never imagined that their loan could ever cost them their job. For thousands of public service professionals, this is a real crisis.

Student Debt Laws Cause Problems

In 19 U.S. states, there are laws on the books to prevent service workers from renewing their license if they owe. This is an attempt by those states to encourage students to pay their loans by threatening an action that would all but end their careers.

Other states, like South Dakota, will outright suspend your driver’s license if you owe student debt.

These strong-arm tactics make it impossible for service workers to do their job. This ultimately makes it even tougher for them to pay back their loans on time. All you have to do is fall behind a little bit and BOOM. With no warning, many public service workers simply go to renew and find out they can’t.

It’s unknown exactly how many nurses lost their job or were impacted by student debt, as the states don’t keep track of the numbers. But, the New York Times was able to find at least 8,700 incidences of this very thing happening to public service workers.

If you’re a public service worker and you struggle with student debt, you have options at your disposal. Student loan forgiveness is one option, but there are others. If you’re looking for help, contact Financial Helpers today. We’d love to help you with your student debt problem. You can reach us at:

Call Now 844-332-2079

It’s Not Just a Law

There’s the famous case of Shannon Otto from Nashville, Tennessee. Otto grew up wanting to be a nurse her whole life. To fulfill her dream, she had to do what millions of other students did: get a loan to cover her schooling.

After years of studying and working hard, Otto finally made her dream come true, only for it to be snatched away from her.

Otto’s home state of Tennessee is one of the states who indiscriminately yanks licenses for money owed. So, when she started suffering from epileptic seizures that kept her from working, she got behind on her bills. Defaulting on her student loans, Otto had her nursing license revoked.

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The worst part is, she didn’t realize what had happened until after she got her seizures under control and was able to return to work. When she reapplied for her license, she found out that the Tennessee Board of Nursing went ahead and suspended her from practicing. She had to pay $1,500, a sum she didn’t have laying around after being out of work for so long.

Levels of Student Debt Rising

The amount of student debt owed to creditors is reaching epidemic levels. It’s not just the cost of getting an education, but also the stagnant economy that haunted the U.S. for a decade. Students with bachelor’s degrees had to work in fast food and live at home after graduating because they couldn’t swing it on their own.

As a result, the amount of student debt owed has reached the $1.53 trillion mark and continues to climb. Sadly, banks don’t care. They want their money and often do everything they can, from garnishing wages to seizing refunds, to get it back. And get it back they will.

Student loans are literally crippling the futures of our nation’s top professionals.

These days, there are way too many people who graduate college who have never sat down and learned how to balance a checkbook. Most schools use home economics as an elective, which is easily passed up by many. When they have to start paying off their student loan debt, they run into problems. They weren’t expecting to be hit so suddenly.

The problem with this is, once those students become adults, they find their finances are way too complicated. It’s nothing but a big ball of stress, which leads to procrastination, then late fees. Many people with student loan debt often go into default because they didn’t prepare. Bills pile up with no expectation or organization.

Many of these same people often spending hundreds or even thousands of dollars per year on overdraft fees. They battle their paychecks week-to-week because they can’t get a grasp on what they’re doing financially. It becomes a vicious cycle that’s easily fixable by taking the time to learn how to budget.

By taking a few simple steps, you can reduce the stress and get your budget in order. It can save you A LOT of money in the long run, making student loan debt easier to handle.

Here are several tips for making the process easier:

1) Get Realistic about Your Budget

Only you know the state of your finances, so you should sit down and make realistic goals about changes you need to get things in order. It’s not going to be an easy process at first, but once you get there, you won’t regret it!

Write out a plan of action. Gather all your financial paperwork. Have folders for each bill with receipts. This will make life so much easier for tax time. Plan out your expenses. Once you have a plan of action, the rest will fall into place. Make sure student loan debt is your number one priority. You won’t be financially free until you pay that off.

If you struggle with your student loan debt, give Financial Helpers a call. We can help you find better rates that fit your budget. We’d love to hear from you! You can reach us at:

Call Now 844-332-2079

2) Too Many Accounts?

If you’re like a lot of Americans, you have more than one account opened. Perhaps you have several investments, more than one bank account, or even retirement accounts from jobs you no longer work at. Of course, these accounts were opened for a good reason at the time, but what about now? How many accounts do you have open that you don’t need anymore?

A good step in simplifying your financial lifestyle is consolidating accounts and closing the ones you don’t need anymore. Each one you leave open is just more paperwork to keep track of and fees you’re paying flying out the window. There are aspects to this you should be watchful of.

For example, if you bank with the same place who holds your mortgage, you should have a free checking account with them. If you were recently married and both of you have separate accounts, consider the benefits of merging into one bank account to save on fees and making budgeting easier.

3) Don’t Get Complacent with Your Insurance

One big mistake people make is choosing an insurance company and sticking with them. If they consistently offer the lowest rates and the highest level of customer service, it’s completely understandable. But a lot of people don’t even bother to look around for cheaper rates after a year or more.

The truth is, a lot of people are paying a premium price for crappy insurance. As time goes on, it’s simpler to renew coverage with the same company rather than researching for better deals. Your expectations will change, and so should your insurance. If you rent, then it’s a smart idea to get renters insurance.

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Rather than buying renters insurance with a different company, you can save money by bundling with your car insurance. After you have a decent record of paying your bills on time, you remain accident-free and even improve your credit score, the rate you have to pay may fall. But don’t leave it to your current insurer to lower your payments though.

If you want to save money and get the best rates, take the time to reevaluate your needs and shop around for the best coverage. It’s not an easy process, as you’ll have to get quotes from a variety of different insurance companies, but it can save you hundreds of dollars per month. This is essential for surviving while holding onto student loan debt.

4) Take a Good Look at Your Credit Cards

Just like most people have multiple accounts open, they also have more than one credit card. Maybe you fell victim to the credit card booth when you were in college (the promise of free credit too hard to pass up). But, you didn’t do that much research on what you were getting into. This can destroy your credit in the long run.

In fact, most of us know someone who got bit in college and is STILL paying back those debts. That’s why you need to pay special attention to your credit cards. Study each one, their reward programs, and determine their value in your life. If you have student loan debt, this is crucial. Piling debt onto debt will never get you ahead of your finances.

Getting a Best Buy credit card for the ‘extra points’ isn’t worth the extra interest. It really offers no value to you. A lot of cards have fancy names, but are either duds or are a drain to the consumer if they don’t know how to use the card correctly. Before you know it, you’ve racked up thousands in debt.

Why You Need to Conquer Student Loan Debt

That’s why it’s important to know exactly what you need and cut out the rest. Yeah, maybe you like the idea of having 3 or more credit cards, but what’s the real advantage?

The idea is to simplify your life. When it comes down to figuring out your budget, you may realize you’re wasting $100/month on subscriptions you barely use. Why pay for Hulu when you only use it once or twice? Write everything you spend down, create a budget, consolidate accounts, and check your insurance rates regularly.

Americans waste too much money on needless things. To overcome this student loan debt burden, you’ll have to simplify your budget. Save money. Be prepared for a rainy day that might come. And pay off that debt. You won’t regret it!

There’s been a lot of political chatter lately about the value of an extra $1,000 and what it means to the average American family. For a lot of people, especially those with student loans, any amount of money is lifesaving. This is especially true during tough economic times, but even when the economy is soaring. We need to do a better job at saving money.

According to a report from The Washington Post, 46% of Americans don’t even have access to $400 if they needed it for an emergency. That’s one scary statistic! A lot of us are living so close to the wire. Barely able to cover our bills, all it would take is one minor setback to push us over the edge.

If you have a lot of student loans and are desperate for help, you can contact Financial Helpers today. We’d love to hear from you and offer solutions to your problem. You can reach us at:

Call Now 844-332-2079

Life is Scary if You Have Student Loans

Life is especially scary if you have student loans. Many people with student loan debt are delaying major life decisions. This is because they cannot afford to pay their monthly loan bill and essentials. Millennials get made fun of for living at home, but many have no choice. Student loans are crippling many young people.

No matter what your financial situation is, it’s important to find ways to save money. Whether you need a rainy-day fund, or extra money for student loans, saving money is key. Here are 5 things you can do right now to start saving money:

1) Stop Eating Out So Much

I get it. This isn’t a fun strategy at all, but it can save you a lot of money! Visa conducted a survey in 2013 that revealed that Americans eat out for lunch at least twice per week, which really adds up! This is undoubtedly a tough step to take. Most people think of eating out as a necessity, as we need to eat!

But, if student loans are hindering you financially, find better ways to take your lunch break. Not only will you be saving yourself the extra calories, but you can save yourself, on average, $80 per month. Of course, that number depends on how much you eat out. Sometimes you may not want to cook after a long day. Forcing yourself to do so will be rewarding in the end.

2) Get Rid of the Cable Box

Cable is expensive and because of that, there’s a continuing trend of people cutting the cord. More and more cable companies look for ways to squeeze extra dollars from their customers. Thankfully, the consumers themselves are becoming increasingly savvy with the choices they make. If you have a lot of student loans, this is an option you have.

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Rather than spending an extra $90+ for cable, streaming technology is changing the game. With Hulu, Amazon, Netflix, and other streaming avenues, you can pay for only what you know you’ll use. Honestly, how many of your 300+ channels do you watch? Going this route can save you between $50-$100 per month to help with student loans.

3) Look at Your Insurance

Most of us pay a lot of money for insurance each month. It can be quite expensive. At certain times, we’re required to pay the full price. For example, if you lease a new car, then you’ll be expected to carry full coverage. If you have student loans, high insurance costs are a major burden.

But what happens after you’ve made your last payment and/or the car is no longer new? Would it be worth it to consider changing your insurance options? Switching to liability insurance can drop your overall payments by 40%, which can save you as much as $50/month. It’s always worth keeping in touch with your insurance agent for this reason alone.

4) Follow a New Year’s Resolution

Most of us have a vice that we could give up (or dramatically reduce) that would save us a ton of money in the long run. Are you a big drinker? The average American guzzles down more than $1,200 worth of beer each year. If you’re a smoker, getting rid of that bad habit can save you almost $200/month alone. Americans drink $820 per year in soda.

If you really think about it, there are luxuries we literally waste our money on that we simply don’t need. You don’t have to completely cut these things from your life, but find ways to cut back for the benefit of your savings account. If it helps you pay back your student loans quicker, you’ll be happy you did!

5) Become a Frugal Shopper

It wasn’t too long ago when the couponing craze hit the nation. While a lot of stores became hip to their methods, there’s a lot to be said about taking the time to plan out your shopping trips thoroughly. Write out a list. Look up coupons (the internet makes this easy!). Choose stores that have the best deals.

There are apps, like Honey, that you can download that will save you a lot of time. These apps will automatically search for coupons when buying things online. Every little bit can add up to big savings.

Every dollar you can save is helpful in the long run. We never know when something bad will happen. If we’re not prepared, even the smallest of bad circumstances can set us back. If you’re living so close to the wire, week after week, what happens if you have to miss a week? Your student loans aren’t going anywhere until you pay them off.

The best advice is to sit down with your budget and look for things to cut. If you can find a way to save a few hundred each month and stick it into your savings account, you’ll be prepared for anything that might happen. Once you pay off your student loans, you’ll have the financial freedom you desperately desire.

Back in 2007, Congress passed the College Cost Reduction and Access Act. This bill is designed to encourage students to go to college and work in a public service field. By doing so, they could qualify for student loan forgiveness. All they do is find work within the government or nonprofit institutions after they graduate.

The problem is, the rules of this program were misunderstood. It wasn’t well-publicized. Because of that, those who believe they qualified for student loan forgiveness are getting the runaround. We covered many stories here at Financial Helpers of students who paid into their program for 10 years.

The Public Student Loan Forgiveness part of the bill allowed federal loans to be forgiven after 120 qualifying payments. It takes about 10 years to make 120 payments. If you have a lot of student loan debt, the benefits to you under this program are innumerable. That’s usually doctors and dentists who’ve been going to school for nearly a decade.

To learn more about student loan forgiveness, call Financial Helpers today. We’d love to hear from you and answer any questions you might have. You can reach us at:

Call Now 844-332-2079

News and Benefits of Student Loan Forgiveness

The tuition for a college education is continuing to skyrocket. The 2018 survey of medical students revealed that nearly half of them (45.7%) expect to enter the student loan forgiveness program. In 2010, that number hovered around 11%. While this is a great thing for public service workers all over the country, negative news has hampered expectations.

President Obama’s intention to help students struggling with debt melted away once President Trump was elected. His first budget in 2016 proposed getting rid of student loan forgiveness programs. Luckily, he negotiated the budget which kept the programs intact. Still, Education Secretary Betsy DeVos seems to side with for-profit colleges and not students.

In recent news, it was reported that only one percent of students who applied for student loan forgiveness had actually received it. This caused a major uproar among Democratic-held states. All this negative news are forcing students to remain pessimistic about receiving help during this crisis. Many are drowning in debt. Finding help within this administration seems futile. Still, the hope is there. All you can do is hope things change.

Don’t Give Up!

While the numbers for student loan forgiveness don’t look good, there are various reasons for that. The first is that the borrowers did not read the rules or follow them correctly. According to the same report, 40% of all processed applications did not meet qualifications. Therefore, this is why it’s essential to plan for this contingency before taking out a loan.

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A lot of other cases involved in competency on part of the student. Many applications have errors. Others filed for student loan forgiveness but didn’t even have qualifying loans. This all has to do with the lack of understanding about what the bill says. So, if you follow the directions, you will qualify for forgiveness.

Before you go to college and apply for a loan, know every option you have. So, prepare for college 100%. Don’t just go in thinking you’ll figure it out as you go or else you get blindsided. 44 million students hold $1.53 trillion worth of student loan debt. A lot of it has blindsided students after they graduated with immediate payments.

By being prepared, you won’t have to be scared. Regardless of the economy or whether student loan forgiveness has been canceled, you’ll have a plan. Never give up hope. And, whatever you do, don’t let your lenders give you the runaround. Many students have been defrauded by their lenders. They tell them something that isn’t true to get them to not qualify. It’s a shady practice, but students have fewer protections. So, be vigilant.

Student loans are among the most burdensome types of debt a person can have. It’s easy to make a few wrong steps and end up paying down this debt for the rest of your adult life. For many, it might not seem worth their degree. Thankfully, student loan forgiveness programs do exist and new tax policies might make it easier to find.

While the Trump administration is trying to change the current student loan forgiveness laws, students are fighting back. States are suing the administration and judges are ruling to uphold these laws. The quickest forms of forgiveness involve doing public service work or being able to prove your college defrauded you in some manner.

So far, over 160,000 students have claimed to be defrauded by for-profit schools. They’ve applied for student loan forgiveness, which until recently, most have been denied. While the federal government isn’t enthusiastic about wiping away debt, important tax measures have been passed.

To learn more about student loan forgiveness, and to see if you qualify, give Financial Helpers a call today! You can reach us at:

Call Now 844-332-2079

Change in Student Loan Forgiveness Discharge Tax Rules

One of the changes the Trump administration did make was to the way taxes handle student loan forgiveness. If you obtained full forgiveness, it was previously considered income you had to pay taxes on. Imagine having $50,000 forgiven instantly and having to cover the tax bill for that! It hindered many students for years to come.

If not fighting against their loans, they were fighting the IRS. It appears to be a never-ending battle for students who don’t want to be burdened the rest of their lives. There are also other changes that took place as well. If a loved one with student loans dies, those loans will be forgiven automatically and are no longer taxable.

The same goes with becoming permanently disabled. In these ways, the government is helping students who qualify for student loan forgiveness. Their forgiveness due to unforeseen events will no longer be seen as taxable income. Despite that, the law is not retroactive. That means you can only obtain student loan forgiveness after January 1st of 2018.

If you became disabled before that date, student loan forgiveness will still be seen as a taxable income. The bill does expire on December 31st of 2025. That means people are protected for the next seven years. That is unless Congress decides to expand these protections and continue to protect students.

Why These Changes Are Important

There’s a great battle playing out right now about student loan forgiveness. As much as students may not appreciate President Trump’s position, it’s a fair one. Depending on who you ask. Is it really fair for the federal government to use taxpayer money to pay off student loans? A lot of people don’t think it is.

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As much of a crisis as student loans are in this country, it’s still a decision someone made. If you decide to take out a loan to go to college, you should still be expected to pay that back. Student loan forgiveness should rightfully be granted only in a handful of severe cases. Of course, the argument on the other side is that $1.53 trillion worth of debt is a severe case of need.

But we’re not talking about the millions of students who weren’t defrauded, died, and aren’t disabled. We’re talking about those students who cannot pay back their loans under any circumstances. The fact that getting their loans discharged for legitimate reasons came with a heavy tax burden was devastating.

The tax burden for student loan forgiveness was so high, it kept people from rightfully discharging their loans. Thankfully, that time is over. Those who are vulnerable and need help the most can receive it. Hopefully, the government will continue to implement fixes that will help more students in the long run.

When it comes to student loan debt, millions of people are desperate for help. This type of debt is continuing to climb. It’s past the $1.53 trillion mark and rising. This number is at a crisis level. One of the biggest reasons why student loan debt keeps rising is because of fraudulent companies making false claims.

Here at Financial Helpers, we’ve covered Navient’s case currently being waged in court. They purposely misled borrowers to prevent them from obtaining student loan forgiveness. Now they’re being sued by several states. On the heels of that case now comes SoFi and their misdeeds.

SoFi is a financial services company. If you ever decide to refinance your student loans, they are one of the larger companies out there. But rather than being honest, SoFi has misrepresented themselves and made untrue claims. It’s all about taking advantage of the student loan debt crisis and students begging for help.

To learn more about student loan forgiveness and your options, call Financial Helpers today. We’d love to hear from you and discuss how you can overcome your debt. You can reach us at:

Call Now 844-332-2079

SoFi and Student Loan Debt Refinancing

SoFi’s case doesn’t seem to be criminal yet. They recently were cut by the Federal Trade Commission and agreed to stop being dishonest with consumers. According to the FTC, SoFi “made prominent false statements about loan refinancing savings in television, print, and Internet advertisements.”

A lot of students refinance their debt by rolling it into another loan. This allows them to pay a lower interest rate, especially after obtaining a better credit score. It’s one of the many options people with student loan debt have to overcome this major burden. So, SoFi decided to create false advertisements to lure in desperate students.

As reported by the FTC, SoFi made claims about exactly how much money they could save students if they refinance their loans with them. Not only were the advertisements false, but the numbers were also extremely exaggerated for effect. This wasn’t a simple math mistake either. It was a willful and deliberate attempt at suckering consumers.

False Advertising

SoFi’s claim was that people who used their services were, on average, saving $20,000. In reality, that wasn’t the case. They didn’t advertise student loan borrowers who ended up having to pay more money monthly, making their loans more expensive. As a form of settlement, SoFi has agreed to stop being deceptive in their ads.

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If they violate these terms again, there could be fines and penalties levied against them. “Student loan debt is a huge problem facing students and graduates across the country,” said FTC Chairman Joe Simons. “Lenders who offer refinancing options must be upfront with students about savings. They cannot make deceptive claims and bury the truth in fine print.”

SoFi tells a different story. They say that they’ve never misled borrowers, despite the fact that they agreed to stop doing it.

“We have always been committed to giving our current and prospective members clear and complete information with which to make smart financial choices, and are pleased to have this matter resolved,” said SoFi’s spokesperson in an email.

The one thing students need to know about their debt is they need to remain vigilant. When there’s a major crisis like this, there are always companies looking to take advantage. Don’t act out of desperation. Instead, educate yourself and fight back. Learn all your options. That’s the only way you’ll be able to overcome this crisis.

In the United States, the current divorce rate hovers near 50%. That’s right, nearly half of all marriages in this country end in divorce. While most people add ‘for richer or poorer’ to their vows, it shows money plays a huge role in successful relationships. Even the most recent studies point this out. A lot of it has to do with student loan debt.

If you were to be asked what the leading cause of divorce is, you might think adultery. In reality, it’s money problems. According to SunTrust Bank, poor finances adds a lot of stress to any relationship and puts a strain even on the strongest marriages. Student loan debt is a major part of that equation.

Studies are finding that a lot of millennials are currently putting off major life decisions. They’re waiting to have children, start a family, and even get married until they deal with their debt. That’s why it’s no surprise that 13% of divorcees say that student loan debt is the main reason why they divorced.

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Student Loan Debt is a Relationship Killer

Over 44 million Americans hold $1.53 trillion worth of student loan debt. The average amount of debt each student holds hovers around $37,000. That’s a lot of debt to carry into a marriage! It can take anywhere between 10 and 25 years to pay off. Imagine making high debt payments that long. Of course, it’s going to cause problems in any relationship.

The problem is only getting worse. This amount of student loan debt is up 62% from the last decade alone and continues to climb. The number of borrows who hold more than $50,000 in debt has tripled over that same decade. Make no mistake, the cost of college tuition is climbing and it’s destroying lives.

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According to Jacqueline Newman, the managing partner of Berkman Bottger Newman & Rodd, the dynamic is unfair. She wonders why anyone would commit to someone with that much student loan debt hanging over them.

“Student loans can really hold you back,” she said. “For couples just starting out, that burden is having an impact on their lifestyle and ability to buy a home or have children,” she added. When you marry, you take that debt with you into the relationship. That means it’s also your spouse’s responsibility.

Newman also believes people with student loan debt should sign a prenup to prevent it from becoming a spouse’s problem. She says it’s important for couples to stay together. If one spouse helps the other pay down their debt, then the relationship ends, it’s only fair they can get that money back.

Student Loan Crisis

It’s a difficult time for millennials, the group who holds the most student loan debt. They must make a lot of decisions that other generations didn’t have to make. Going to college is no longer a guaranteed career. It can put you in a huge bind. People with that amount of debt can’t buy a house or get a loan if one was needed.

The student loan debt problem is one that millions of students hope the government will help with. It can severely damage the economy for decades to come if they don’t fix it now. It’s important for each student to do their research and make the best decision for their future.