5 Student Loan Debt Statistics You Should Know

Written by adminAugust 27, 2018
Student Loan Consolidation

As of last year, Americans owed 2.5 times more student debt than they did a decade ago. That totals out to more than $1.3 trillion. It’s basic economic numbers. More young adults are going to college at a time when it’s more expensive than ever. Hence, the student loan debt piles up.

The problem is, it has become a major epidemic. Most young people go to college with the expectation of finding a career as soon as they graduate. But, having to tackle $50,000 worth of debt right out of the gate isn’t helpful.

The Pew Research Center has a lot of staggering facts about this American crisis. Perhaps sharing these will allow you to understand what’s going on and how to prevent it from taking hold in your life. Let’s look at 5 scary facts about student loan debt.

1) 40% of Young Adults Have Student Loan Debt

Between the ages of 18 and 29, about 4 in 10 former students are struggling with this problem. The rest either had a means of paying back their loans or didn’t go to college at all. It’s a fact that student loan debt is much less common with older generations. Only 4% of people over 45 reported having student loans.

It’s true that older adults have had more time to pay off their debts, so they have less. But, there’s more to the story than that. Millennials are really the first generation to take out a loan to pay for school at this degree. Nearly half as many students got a loan in the early 1990s. Most likely college was more affordable or they had a better plan for paying it off.

2) The Amount Owed Varies by Degree

As of 2016, the average amount of student loan debt held by each student was around $17,000. It’s quite obvious that different degrees require higher amounts of loans to be taken out. A quarter of all students owe $7,000 while another quarter have $43,000 in debt. Each level of degree obtained came with higher amounts of debt.

For example, students who had an Associate degree had $10,000 or less. Bachelor’s degree holders had around $25,000 in debt on average. Postgrad degree holders had over $45,000 in debt. 7% of all borrowers owe over $100,000. They’re most likely the future doctors and lawyers of the world.

3) College Graduates are More Likely to Struggle Financially

Here’s an interesting statistic. If you have a college degree and student loan debt, you’re more likely to struggle with your finances and hold down more than one job. That’s because paying back those loans is not an easy task. Loan payments can be nearly as expensive as renting a cheap apartment.

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

Due to the last decade’s Great Recession, more students were leaving college without a plan and without a job. They were more likely to live at home while holding down two or more jobs. In contrast, young adults who didn’t go to college have a better handle on their finances and don’t need to work double jobs to support themselves.

4) College Graduates More Likely to Live in a Higher Income Family

For most people, getting a college degree is a major investment that should pay off later in life. The statistics bear that out. While it is true graduates struggle more right after college, once the degrees are paid off, they’re doing pretty good. Getting a bachelor’s degree or higher, while coming with higher amounts of debt, lead to higher income families.

5) Students with Loan Debt Less Upbeat

According to the Pew Research Center, students who used loans as a way to pay for college were less likely to consider their degree worth it. It’s easy to understand those who found higher value in their degree had their education paid for by someone else. If you have to spend the next decade paying off your education, you’re more likely to think it wasn’t worth it.

Only half of students with outstanding debt say it was worth the investment, while 69% who don’t have debt say it was definitely worth it.

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4 Things Every Parent Should Know about Student Loans

Written by adminAugust 24, 2018
Student Loan Consolidation

As August comes to close, most college students have already made it to the dorms in preparation for the new year. Perhaps you’ve already secured all the funding you needed. This most likely includes some type of student loan. Paying for college is a giant headache. What you don’t know about student loans can set your child back after they graduate.

There are numerous stories of people who lost out on work because they couldn’t pay their loans. Licenses were stripped and years of hard work went down the drain. It may be an easy decision to help your kid get into the college of his or her dreams, but there are numerous challenges they will face.

Therefore, let’s take a look at several aspects of student loans you may not know.

1) Co-Signers Are on the Hook for Student Loans

It’s an easy decision for parents to do whatever it takes to help their child get into a good school. Many even feel the need to co-sign the loan. Parents should know the massive risk that comes with that. If your child cannot find work after graduating, you are making the payments. You can be sure that the lenders will be coming after you for repayment.

Another tragic story involved the Mason family. Steve and Darnelle Mason’s daughter Lisa dreamed of going to nursing school, so they cosigned a $100,000 private loan. At the age of 27, she died of sudden onset liver failure. Tragically, the lenders went after Steve and Darnelle to pay back what became $200,000 worth of student loan debt, late fees, and interest.

2) Look for Free Money First

Depending on how much money you make, there are tons of grants and scholarships out there. Some aren’t so easy to find, but they do exist. You can find a grant for just about anything these days. Any amount of money you can get to help offset the cost of college is worth the time spend researching and applying.

Also: http://financialhelpers.com/student-loan-debt-is-hurting-the-economy/

You can find grants and scholarships based on religious affiliation, ethnicity, student achievement, financial status, and so much more. The best way to find them is to get those fingers going and search the internet.

3) Set Out a Plan Ahead of Time for Paying Back Student Loans

Here’s one most people don’t think to do. You have no idea what the economic climate will be 4-7 years down the road. The best way to conquer the burden of debt is by being smart and prepared. There are several government programs and institutions that offer student loan forgiveness. Financial Helpers is one such company who is willing to work with you.

The best way to prepare for that day is to work on improving your child’s credit as they go through school. Get a credit card, teach them about fiscal responsibility, and save money. As their credit score improves, they can later refinance their loans.

4) Start Saving ASAP

The best advice is to start saving money for college as soon as they’re born. For those of you whose children are already entering college, it’s a bit too late for this step. But for everyone else looking to be prepared, there are state prepared college accounts you can pay into and use the power of compound interest.

This step not only takes away the student loan equation, but also the additional money paid into interest. Instead, you can use interest for your benefit and not the bank’s. There are other tax benefits as well. Do your research and be prepared!

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Student Loan Forgiveness Easier for Vets Thanks to Trump Administration

Written by adminAugust 23, 2018
Student Loan Consolidation

There’s no doubt that President Trump wants the support of veterans. He never fails to bring them up during rallies. It was so important to him, he told anyone who listened that vets needed better care. That included student loan forgiveness.

In doing so, Trump vowed to fix the VA to give them the best medical care and treatment available.

When it comes to helping students suffering under the massive weight of their loans, he felt less inclined to help. In fact, President Trump and Betsy DeVos attempted to roll back programs set in motion by the Obama administration.

Luckily, under the new budget, the current administration budged and kept the student loan forgiveness programs intact. For now. Who knows where these programs will go in the next fiscal year. As student loan debt continues to climb to record numbers, help is needed more than ever.

Student Loan Forgiveness is Essential for Vets

This new effort by the Trump administration hopes to make it easier for veterans to receive student loan forgiveness. For most students, this isn’t a simple process and it comes with hoops and qualifications. The difference is, many vets are unable to work normal jobs to pay back the loans.

In 2016, nearly 4 million vets had disabilities connected to their time in service. 1.3 million of them had quite serious disabilities, most of which leaves them unable to work at all. Even without a physical disability, there are other mental and psychological issues from their time in war. PTSD and depression are common among the veteran population.

According to Education Secretary Betsy DeVos: “Our nation’s veterans have sacrificed much for our country. It is important that, in return, we do all we can to give them the support and care they deserve.”

Check out: http://financialhelpers.com/trump-and-devos-still-want-to-make-massive-cuts-to-student-aid-programs/

Student loan debt is a problem for most Americans, but it’s even dire for veterans who are unable to work. Making these programs easier for them will help cut down their financial burdens after leaving the military.

Student Loan Forgiveness Simplified

It was actually the Obama administration who created the Total and Permanent Disability Discharge program originally, but it wasn’t really known to veterans. The lack of publicity made it difficult for vets to obtain student loan forgiveness.

The goal of the Trump administration is to expand the original program and make it easier for vets to get their hands on.

“Simplifying the loan forgiveness process and proactively identifying veterans with federal student loans who may be eligible for a discharge is a small but critical way we can show our gratitude for veterans’ service,” said DeVos.

The idea is to have the Department of Veterans Affairs to directly reach out to each veteran independently to alert them about the program and offer assistance in completing the application for student debt forgiveness.

There are a few requirements to be accepted by the program, including having a disabling disability that prohibits your ability to repay.

Once approved, the Department of Education will tell your lenders that you are free and clear. The best part is, if you’ve already made payments towards your student loans, they will be refunded back to you.

This is great news for vets everywhere. Their service means a lot to this country, many of whom will suffer a lifetime of pain and disability. The more we can take care of those who serve us, the better we’ll be for it.

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Student Loan Interest Rates are Rising

Written by adminAugust 22, 2018
Student Loan Consolidation

If you’re someone who is paying off a student loan, added interest is a terrible thing. They make the things we buy with credit more expensive. Of course, the banks love it. And when the rates increase, it’s hardly noticeable. At first.

You may not realize when the rates increase. It happens slowly, but before you realize it, the rates have doubled. The same thing happened the James Park, a 42-year-old scientist.

Paying on his $38,000 student loan, Park rarely noticed anything different. His loan increased monthly in fairly small increments. After three years had passed, he saw that the overall interest doubled. He started out paying 2.4% and recently found it was 4.3%.

Tackling the Student Loan Problem

All over the country, people are suffering under the heavy burden of their student loans. While the current economic climate is improving, it allows for interest rates to soar. When times are bad, the government can lower the rates to help people get by. They even offer student loan forgiveness to those who qualify.

The last thing anyone wants to do is pay more money over the life of their student loans. If you’re struggling, there are several options at your disposal. The first is having a firm understanding of what your interest rate does and why you have it. Only then can you go through the process of fixing it.

Understanding Your Interest Rate

You might think that the federal government is typically in charge of the student loan rate, but that’s not always the case. If you’ve received a private student loan, it most likely comes from a rate that is tied to something called Libor. Libor refers to the London Interbank Offered Rate. As the rates go up or down, that’s typically what most students receive that year.

See also: http://financialhelpers.com/student-loan-debt-is-hurting-the-economy/

For this reason, students receiving a loan this year will have a higher rate than if they got one last year, and so on. There are other variables as well, such as your credit score, history, and whether you have a co-signer.

The problem is, most college students get a student loan with zero credit to their name. Rates are often high and take as long as a decade to pay back. This only adds fuel to the epidemic already raging when interest rates climb higher.

How to Fix the Student Loan Problem

One of the first things you should do if dealing with student debt is calling Financial Helpers. Our team of experts handles this type of situation every single day. The government offers several student loan forgiveness programs for people who qualify. Most borrowers have little knowledge of their options, so calling the number below is important to find out.

Call Now 844-332-2079

Because your rate is often tied into your credit score, that gives you some options as well. When Park first got his student loan, he had little income and no credit. Once he graduated and found employment, made on-time payments, his score improved. Park was able to refinance his loan and get a lower, fixed rate.

A fixed rate means you’ll pay that single rate, no matter how the interest changes. Refinancing your loan can help you get a much better rate. If your credit score improved, that means you’re more trustworthy to a creditor. That equals to lower overall payments.

Student loan forgiveness, refinancing, and getting a fixed rate all possible. You don’t need to suffer any longer. Call Financial Helpers today to see your options.

Call Now 844-332-2079

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Student Loan Forgiveness is Tricky for Some Service Workers

Written by adminAugust 21, 2018
Student Loan Consolidation

Service workers are very important to our society. They teach our kids, keep our streets safe, and take care of us when we’re sick. Public service workers receive student loan forgiveness under qualifying circumstances. But, if you don’t know what you’re doing, it can hurt you in the long run.

But, one teacher in Arizona found this out the hard way.

The Public Service Loan Forgiveness program allows public service workers to obtain student loan forgiveness after 120 qualifying payments have been met.

Jennifer Gardner, a math teacher in Phoenix, worked for 10 years after obtaining her bachelor’s and master’s degree. She was making her loan payments and looking forward to life after student loan debt. Only two payments away from completion, she found out she didn’t qualify.

Student Loan Forgiveness Hoops

She taught at a non-profit public school that served lower-income families, which is part of the qualifications. There’s a lot of work that goes into making what they consider ‘qualified payments’. You have to send in W-2s to prove what you’re making.

It also requires you to send an employer certification form to the loan company. Despite complying and believing she met every requirement, Gardner was rejected from service.

“I started getting denial letters. So, it said ‘no your employer doesn’t qualify anymore,'” said Gardener. “What is it that doesn’t qualify? I’m a public servant. I’m a public teacher. I teach math. Like how do you get more public service than that?”

It’s All in the Details

Gardner received eight year’s worth of “You’re Qualified” letters from her loan servicer. Therefore, to get a denial just two payments before completion was extremely challenging for Gardner.

According to the loaner, her paychecks were issued from a company called The Leona Group. They are a for-profit organization hired to manage charter schools in various states. Because her main employer isn’t a non-profit school district, she’s seen as working for the group.

See Also: http://financialhelpers.com/another-state-to-sue-navient-over-student-loan-deception/

Her denial letter stated: “After further review and after consulting with the Department of Education, we determined that this approval was issued in error. As a result, we are reversing our approval and revoking credit for any payments.”

There are numerous states that allow the schools to hire companies, like The Leona Group. They serve their schools and hire teachers. There’s no telling how many teachers might ultimately be denied student loan forgiveness.

The school district stands firmly behind Gardner and says she could receive full credit. Your overall body of work, not who hired you. Despite this detail, the district still serves low-income families. Yet, to lose all student loan forgiveness privileges after 8 years of approval letters and on-time payment has been a hard pill to swallow.

The best advice is to keep up on all the documents to fulfill the qualifications. Don’t leave any stone unturned. If you have any questions or want to know more about student loan forgiveness, give Financial Helpers a call. We’d love to hear from you.

Call Now 844-332-2079

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Student Loan Debt is Hurting the Economy

Written by adminAugust 20, 2018
Student Loan Consolidation

As August is wrapping to a close, many fresh-faced college students are descending into their dorms to obtain the holy grail known as a college degree. Many believe they MUST get a degree, but there’s an even bigger debate raging on: is it worth it? Student loan debt is crippling so many people.

Currently in the United States, there are millions of people who can’t afford to move on with their life after college. They’re so entrenched and burdened with student loan debt that becomes impossible for them to move on with their life.

Student Loan Debt in the Trillions

If you look at the top three debts most Americans hold, student loan debt would be number two, weighing in at over $1.4 trillion. The first would be mortgage debt at $9 trillion. This is the only issue to hit college students once they graduate. They then must spend the next decade of their lives seeking out student loan forgiveness options.

There’s a report by Bloom Economic Research reveals the numerous challenges faced by people who have a ridiculous amount of student loan debt. Families are left with options before and after school to attempt to pay for higher costs.

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

Many families tried to tap into their home equity to try and pay for their children’s college, but after the economy went down and home values tanked, this only left them with a few options. It was these options that caused the inflation of higher college costs. Now, student loan debt is at its highest level it’s ever been in this country’s history.

Tuition Rising Even as Student Loan Debt Rises

Even as student debt becomes an epidemic, and more students seek out student loan forgiveness programs after they graduate, prices keep going through the roof. Between 2007 and 2017, the overall cost of college has risen 176%.

It breaks down like this:

-CPI rose by 21%.
-Textbooks up 88%.
-School housing up by 51%.
-Student debt has tripled since 2017.

Student Loan Payments Hamper Economic Growth

It’s not just student loans that are growing. The cost of literally everything else is going up as well. The average rent is up 2.8% alone from last year. The average cost of rent per month in the United States is $1,400, according to RentCafe.

If you add on the average student loan payment of $351, yet people are spending as much as $1,800 even before they buy groceries and turn on the lights. This is your lucky enough to jump into a career as soon as you graduate. Many Americans aren’t that lucky.

Student loan forgiveness is really the only hope a lot of Americans have. The government continues to create programs to help struggling students, and there are better options for paying off debt sooner. Rather than plugging away at the debt for a decade and putting off important life events, there are options you might not be aware of.

Calling Financial Helpers today can help create a program that works for you to pay off student debt sooner, and even offer student loan forgiveness to considerably reduce your overall debt and payments. To learn more, call the number below:

Call Now 844-332-2079

Student Loan Debt Problems Add Up

Nearly half of all people between the ages of 18 and 34 have student loan debt. This debt averages out at around $33,000 per person, but can be as high as $150,000. This is the age when most people should be enjoying their careers, buying a house, and starting a family.

But, if you have a ridiculous amount of debt, it will impact your ability to do incur more debt to do those things. It can cause your credit score to lower, and keep banks from offering a mortgage and/or vehicle loan.

It’s sort of like a vicious cycle. More debt means less people buying things. Less people buying things hurts the economy, so jobs are lost. When economic growth is stagnant, wages stand still. When inflation occurs, the price of everything gets more expensive, but wages are still stuck and debt keeps piling up.

The Impact of Student Loan Debt

Right now, baby boomers are forced to care for their children who can’t afford to move out on their own. The birth rate has fallen nearly 30% because marriage and starting a family has been pushed off until things are better.

According to Jerome Powell, the chairman of the Federal Reserve, this vicious cycle is only getting worse.

“You do stand to see longer-term negative effects on people who can’t pay off their student loans. It hurts their credit rating, it impacts the entire half of their economic life. As this goes on and as student loans continue to grow and become larger and larger, then it absolutely could hold back growth.”

Something has to change. The scary thing is, the more relief the government finds for students, the more colleges decide to up their prices. Student loan forgiveness might just be the only option they have left.

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Loan Strategies I Used to Pay Off My Car

Written by adminAugust 15, 2018
Student Loan Consolidation

Your car or truck is your pride and joy. You love driving it and you consider it the pearl of the road. Maybe you’ve even named it and treat it well, like a member of the family. You get regular oil changes, take it in for a tune-up, and keep it clean. If you got a loan for your vehicle, you might be locked into a long-term relationship.

This is only part of your responsibility as a car owner. I do the same for my truck to keep it running as long as it can. But something I didn’t like doing was paying for my truck every month. As my budget tightens and I have other bills I need to pay for, I decided to look for ways I can pay off my loan sooner.

Another reason why this is important is to avoid paying more than the vehicle is worth. If you’re paying off a loan, then you’re most likely paying thousands of dollars of extra interest as well. By paying it early, you can save yourself the extra cash and own your vehicle outright.

Also: http://financialhelpers.com/americans-are-now-paying-a-lot-more-in-credit-card-fees/

Here are the 5 strategies I used to pay off my truck loan sooner.

1) Instead of Making One Payment Every Month, I Made Two

This is sort of a brilliant trick. Most loaners will allow you to make as many payments as you want. Instead of paying only once per month, pay half in the middle of the month. By doing this, you’ll make 26 half-payments instead of 12 regular payments, which means you’ll end up paying 13 full payments overall. That’s squeezing in an entire extra month of payments.

To look at it another way, rather than paying off the loan during the 60 months you planned, you can be finished with it in 54 months just by making two half-payments per month.

2) I Rounded Up When Making Payments

When you pay your monthly bill (or bi-monthly if you use the step above), a large portion of it goes towards interest. Anything above that threshold is payment towards your vehicle. If you decide to round up to the nearest $50 increment, you can cut a 60-month loan down to 47 months and save over $500 in interest.

For example, if your monthly bill is $208, but you decide to pay $250, that extra $42 goes directly towards your vehicle, not the interest, meaning you can pay off the loan faster and save on the interest you would’ve had to pay if you just paid the minimum. It would add up to an extra $512 paid towards the loan in a year.

3) I Made Several Larger Payments

This is an obvious point, but it certainly helps to make an additional larger payment or two if you can afford it. You might want to spend that money on something else, but the more you can put into it during the year, the faster you’ll pay off the loan and the less you’ll thrown down in interest.

4) I Never Missed a Payment

This is a big one. Since getting a truck loan, my credit score has gone up significantly. One of the major reasons for that is I have 100% on-time payments. If you do miss a payment, it can reflect negatively on your credit score.

While some lenders do allow for a missed payment a couple times a year (hey, stuff happens), missing that payment will just add more interest and take you longer to pay it off. Do your diligence. If you have to cut back on other bills, do it. Once you’re clear and free of the loan, you’ll have a lot more money in your pocket.

5) I Was Able to Refinance

I mentioned in the point above that making on-time payments significantly improved my credit score. When you get a loan, the interest rate is based on that score, as it offers a picture to the lender about your ability to pay it back. If your score goes up after a decent amount of time of regular payments, you’re more trustworthy.

You might be able to get lower monthly payments, less interest, and a shorter term by refinancing. If you can’t get all three, then it might not be worth it. Even if you can get lower payments, still paying the amount you were before will only help you pay it off that much quicker.

For me, these steps were part of a greater strategy. I had a poor credit score with little history. By showing some fiscal responsibility, I was able to improve my score and pay off my vehicle in a lot shorter of a time. It’s small steps like this that can get you closer to true financial freedom.

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How You Can Prevent Student Loans from Destroying Your Credit

Written by adminJuly 12, 2018
Student Loan Consolidation

We’ve covered the ongoing student debt crisis extensively here at Financial Helpers, and we’ve made it our mission to help graduating students know how they can solve their debt problem as quickly and efficiently as possible.

Part of that is having the knowledge to understand how your student debt works and how to tackle it in the future so it doesn’t come back to haunt you. Life can be difficult with this debt, as one small mistake can destroy your credit for years to come.

The best thing to do is know how to handle your debt going in and have a working understand of the credit system. There are three outcomes that can result from your handling of student debt.

1) It can lower your score. (15% of students)
2) Your score can remain the same. (63% of students)
3) You can improve your score. (22% of students)

It almost seems miraculous that you could walk away from student debt with a better credit score than when you went in, but it’s definitely possible if you know what you’re doing.

When you have a higher credit score, you can refinance your loans. To learn how that works, you can give us a quick call today to see if you qualify and to inquire about existing government programs that can reduce your overall debt. It’s worth a quick call if it means saving thousands of dollars over the life of your loan. You can reach us at:

Call Now 1-844-332-2079

It all comes down to personal behavior towards money. Those who increased their credit score were more proactive about taking care of the debt. They kept their credit card balances down, was never late on a payment, and acted to lower their overall payments.

Those who hurt their credit score ended up borrowing more money and added as much as 78% to their overall balance. Missed payments STILL add interest to your loan, so if you’re not regularly paying down the balance, you could be increasing it.

There are 5 specific criteria that are used to determine your score. Make sure you line up with all 5 and you’ll do well.

1) Your payment history. When you apply to borrow money, you give your word that you’ll pay it back. If you keep your word and make on-time payments, that will reflect well on your overall record. It’s a sign of trust and totals about 35% of your score.

2) The amount you owe. One consideration that will be made is how much debt you currently have. If you have a lot of debt, are maxed out on your credit cards, and keep trying to borrow, that will reflect negatively on you. This is about 30% of your score.

3) Your total credit history. Making a couple on-time payments won’t reflect much on your score, but if you show your reliability over time, it can help nudge your score a few points higher. This is about 15% of your score.

4) Are you new to the game? About 10% of your score is made up simply by how often you apply for credit. If you have a lot of attempts, it can reflect as bad behavior versus someone who isn’t constantly applying.

5) Do you have a variety of debt? If you’re able to successfully manage debt across different spectrums, then you’ll increase your score. For example, if you have a mortgage, credit cards, and student loans and you’re paying on them, you will be more trustworthy. This makes up the final 10% of your score calculation.

Again, it’s all about behavior. If you have an active loan, it’s the best way to build your credit and show you can be trusted with other types of debt. Sadly, studies show as much as 43% of students with student debt will default in the next 5 years.

Ethan Dornhelm, Vice President of FICO, had this to say about improving your credit score after college:

“If (students) can find a way to pay that back in an on-time fashion consistently over a period of months and years, they will be in a position when they reach those life cycle events like wanting to buy a house, a car, or a home. Their FICO score will be in good shape as long as they’re managing their revolving debts and keeping them relatively low, not spending more than what they have, and paying their bills as agreed.”

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Why Are Millennials Still Struggling to Buy a Home?

Written by adminJuly 11, 2018
Student Loan Consolidation

Here we are, a decade after the worst housing disaster in American history hit the economy. The economy is booming, there are a record number of jobs available, and unemployment claims are lower than they’ve been in 70 years.

Despite this, millennials are still struggling to make due. Riddled with student loan debt and making too little to take care of their bills, more kids are living at home longer than ever before.

According to a study from Zillow, nearly one-forth (or 23%) of millennials are still living with their parents. You might think this is a holdover from the Great Recession, but this number is actually higher than at any other point in the last decade.

Aaron Terrazas, an economist at Zillow, thinks the problem has more to do with the high cost of rent than anything else.

“As rents outpaced incomes over the past decade, young people turned to their families in large numbers to ease the housing cost crunch. But even as the labor market has improved, the family safety net has yet to unwind. Living with parents may allow young adults to pursue work or a passion that may not be especially lucrative, or save enough money for first and last month’s rent or a down payment on a home of their own.”

He makes a good point. The cost of rent has skyrocketed past the increase in wages, making it unaffordable to begin with. Add in the fact that millennials have the highest level of student debt than any other generation (62% of millennials have student debt), that makes it virtually impossible to start life on the right foot.

Danielle Hale, an economist for Realtor.com, agrees.

“Existing debt and lower down payments leave younger shoppers more exposed than others to the impact of rising mortgage rates and record-high home prices,” she said.

By comparison, only 9% of Gen Xers have student debt.

If you have large amounts of student debt, the odds of finding a home and moving on with your life aren’t in your favor. If you’re in this situation and unsure about how to take care of your student debt, give Financial Helpers a call! We’d love to hear from you to discuss your options.

Call Now 1-844-332-2079

There are government programs and strategies designed to help get you out of student debt faster and cheaper than just paying the bill. The government knows this is a major crisis, but no one knows how long the Trump Administration will keep certain programs in place.

He’s already attempted to target the help implemented by President Obama in a bid to cut government spending, but agreed to keep them for another year to get the most recent budget passed through.

According to the survey, 35% of millennials hope to make their first purchase within the next year, but 98% of those who are looking find themselves running into one obstacle after another, forcing them to push it off longer than they thought.

The biggest problem is the rising cost. If you have a lot of student debt you’re trying to pay back, and not fully employed, the struggle is going to be having enough for a down payment and finding the right home at a price you can afford.

“For millennials, the dream of homeownership is alive and well, but with prices going up and inventory continuing to shrink, this new generation of buyers are facing more obstacles than any other demographic,” says Trulia economist Cheryl Young. “With tight budgets and fewer choices on the market, most millennials are forced to make trade-offs and are more willing than other generations to give up home and neighborhood features in order to find their ideal home.”

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5 Reasons Why You Should Never Default on Your Student Loans

Written by adminJuly 9, 2018
Student Loan Consolidation

Student debt is a major crisis in this country.

As we’ve previously covered, student debt has risen to a new record of $1.5 trillion. As that number continues to rise, it becomes increasingly difficult to figure out how to pay it back!

This crisis has been around, but it accelerated towards the end of the Great Recession. A lot of students were graduating college, only to find the job landscape barren. There were plenty of people with bachelor’s degrees working at fast food and living back home with their parents.

It’s been estimated by the Brookings Institute that nearly 40% of all student loans borrowers will most likely default on their loans. That’s a scary number!

The problem with default on your loans is it can wreck your life at a time when you’re trying to learn how to stand on your two feet. It sets you back significantly in ways you may not realize at the time.

Jeremy Wine, the supervisor of student loan counseling at Take Charge America, says, “People from all walks of life are defaulting on their student loans, affecting them for years to come. Paying student debt must take top priority.”

Here’s a list of 5 things that can happen if you default on your student loans.

1) They can demand payment in full.

Once you graduate, you’ll have options for paying back your loan. It’s typically set to be a monthly payment, but what happens if you miss one? Your account will be considered delinquent. Interest is typically added. It takes about nine months of non-payment to be considered in default.

At that time, your creditor can then decide they want the payment in full. No payments will do…you had your chance! It will be their discretion on if they’re willing to work with you further. Your loan will remain in default until the whole thing is paid off.

The best way to avoid this is to stay in constant communication with your creditor. Let them know if you need to skip a payment, but it’s best to make the loan your biggest priority, as it will hurt you down the line if you don’t.

If you feel lost and need to know what your options are, call Financial Helpers today. Our team of student loan experts are standing by to help you through the process, show you what you can do, and even help you apply for existing government programs before they get closed for good. You can reach us at:

Call Now 1-844-332-2079

2) Major collection costs added.

If there’s one thing banks are good at, it’s collecting extra fees. If your loan defaults, they’re going to go out of their way to find you and it won’t be pretty. Fees ranging as high as 20-40% can be added to your loan. Making the loan bigger is the last thing you need!

3) Wreck your credit score.

One of the worst things that will happen to you if you go into default is the impact on your credit score. As soon as you are 9 months delinquent, your credit score will reflect that you’re in default, and the score will drop significantly. Payment history is a huge factor in determining your score, so it will remain until the loan is paid off.

4) They’ll come after your paycheck/refund.

A lot of people think they can just graduate college and not pay their loans. It’ll disappear on their credit after 7 years anyway! But what they don’t realize is, the bank is going to come for your money and they’re tied to the government.

If you don’t make regular payments and go into default, say goodbye to your tax refunds. The government will take most of it. If you’re married and you file jointly, they’ll take your spouse’s refund too. They’ll even garnish your paycheck.

The good news is, this is mostly their way to get your attention. The wage garnishment will continue until you call them and set up a real repayment plan.

5) Default will prevent you from being trusted.

Your credit isn’t the only thing that will be harmed by not paying your student loans. Your credit history is pulled for a lot of things you want to do in life. Need to get a new car? Rent an apartment? Get that big job? You might get a big, fat NO if they see you’re in default.

Other professional employers looking to hire you, like doctors, teachers, lawyers, and other service workers can have their license taken away if they’re in default, so trying to find a job in any of those sectors would be extremely tough.

“It’s best to deal with it immediately. I know it’s really challenging because student loan debt is so high and it’s unmanageable for some borrowers, especially when they are placed in a standard repayment plan. But ignoring it and not doing anything about it is one of the worst things to do,” said Wine

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