Student Loan Consolidation

Here’s the Problem with Having a Low Credit Score

Written by adminJuly 2, 2019

Credit & Debt , Student Loan Consolidation

Your credit score can impact a lot more than you realize it does. We’re talking about its ability to keep you from making major life decisions, taking care of yourself during an emergency, or even the ability to save money. Low credit scores can also be blamed for causing issues in relationships and putting a person in turnoff territory.

Low credit scores can cause higher interest rates, expensive insurance, and so much more. Sometimes, a bad score isn’t the person’s fault. Perhaps they had a medical emergency and are now trying to pay back a lot of debt. A divorce and big spending by a spouse can lead to it as well. Either way, low credit scores make life difficult.

The new middle class is essentially a person who is making a decent amount, but are unable to save. A lot of them don’t have health insurance, which costs them big time in the end. There’s new information coming by Elevate, a company that looks at data from non prime Americans. To be considered non prime, you must have a credit score below 700.

Those with a low credit score are finding out they have a harder time financially than those with a good credit score. This might seem obvious, but it happens in ways you might not expect. Their incomes are less steady. They’re paying a lot more for things that someone with good credit is paying less for.

Credit Scores and Dating

42% of people who were surveyed said the person’s credit score played some role in their interest in another person. This is an interesting statistic found by Bankrate and Princeton Survey Research Associates International. A good credit score says someone is responsible with their finances and money issues cause problems in relationships.

Women are rightfully more judgmental about credit scores than men. The survey looked at 1,000 adults and found about half of the women said they wouldn’t date someone with a bad credit score. Men care less about it, with only 35% saying the same. Older millennials are the group that seems to care the most about the subject.

There are very good reasons for this. Low credit scores can make it nearly impossible to buy a house, get an auto loan, get any type of loan if one is needed, and so much more. Even if they’re able to find that one company out there willing to give them, let’s say, a mortgage, they’d pay nearly $50,000 more than people with good credit.

This is ultimately what makes life more difficult for people with a lower credit score. They’re shelling out a lot more money and it’s catching up to them. They make higher monthly payments and can’t seem to get ahead in their finances. This is why it’s essential to focus on improving your credit score and saving money any way you can.

Written by adminJuly 1, 2019

Student Loan Consolidation

Choosing to pay less now will cost you more in the long run.

Just graduated? Done with the partying and ready to enter the workforce? Based on a recent study from the Institute for College Access and Success, graduates that have student debt owe about $30,000 on average.

But as a direct result of interest, they are likely to end up paying thousands more over the course of the loan. It all comes down to limiting the amount you pay in interest by choosing the right repayment plan for yourself.

With helpful tools like the Department of Education’s Repayment Estimator, recent graduates can better understand the potential costs of holding on to that student debt for longer than they have to.

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For example, if you have $30,000 in unsubsidized federal student loans, at the current 2019-2020 average undergraduate interest rate of 4.53% this is how much you will end up owing.

Standard Repayment Plan

Monthly Payment: $311
Repayment Term: 120 months
Total Amount Repaid: $37,311

The Standard Plan splits the loans into 120 equal payments over 10 years. Federal borrowers automatically start repayment upon graduation unless they choose a different option. This adds roughly more than $7,000 to the loans’s balance, but that’s still less than what they would accumulate under other plans.

The general rule is that borrowers should stick with the standard repayment plan if payments are not more than 10% to 15% of their monthly income. Sure, the monthly payment is higher than other plans, but you save more in interest charges.

Graduated Repayment Plan

Monthly Payment: $175 to $525
Repayment Term: 120 months
Total Amount Repaid: $39,161

The Graduated Plan starts with low payments that increase every 2 years to complete repayment in 10 years. Despite the similar repayment term as the standard plan, graduated repayment costs $1,850 more as a result of accrued interest.

This might be more manageable for borrowers who expect their earnings to increase in the future, but those that start off well in their career should try to work with the standard plan because of the lower interest cost.

Extended Repayment Plan

Monthly Payment: $167
Repayment Term: 300 months
Total Amount Repaid: $50,027

The Extended Plan is not going to be the best option for a lot of people, but it is available. Stretching the repayment period to 25 years, the payments can be adjusted to be either fixed or graduated. Fixed payments would add more than $20,000 to an initial balance of $30,000. Graduated payments will definitely inflate your balance even more.

Income-Driven Repayment Plan

Monthly Payment: $261 to $454
Repayment Term: 110 months
Total Amount Repaid: $37,356

There are four income-driven repayment plans made available by the federal government. These are based on your income level and family size. The example above uses the Revised Pay As You Earn plan, taking into account a family size of zero and an income of $50,000.

IDRs usually cost about the same as standard repayments plans, but they are usually a safety net for borrowers who cannot afford their loans and are afraid of defaulting. Sometimes payments can be as small as $0 and any remaining balances are forgiven after 20 to 25 years of payments.

A lot of things can happen over the course of repayment, and IDRs are always available should you choose to switch plans when you hit the tough times. But keep in mind that while an IDR can reduce monthly payments, you may pay more overall because the repayment period is longer than the standard plan.

Looking to Save More?

The cheapest repayment plan still adds roughly $7,000 to your total loan amount. If you would like to save even more there are a couple of options available to you.

For one, you can start making payments during the six month grace period after graduating. You can also pay off interest before it’s included to your balance, or allow your loan servicer to set up automatic payments from your bank account which also lowers interest rates.

Another method would be to set up bi-monthly payments, or you can prepay your student loans without incurring any penalties.

If you’re looking for any financial advice on student loans or any other topic, feel free to reach out to the Financial Helpers. We are always ready to help.

Call Now 844-332-2079

Written by adminJune 26, 2019

Student Loan Consolidation

One of the worst things about that paying your student loan debt is that the government will try to get its money any way it can. They don’t care what you’re going through or dealing with. As long as they’re getting their money, they’re happy. But if you go into default and start struggling to pay back your loans, they will come after you.

The process is such a burden on so many Americans that every single Democratic candidate is making student loan debt one of their top priority campaign issues. One of the ways that come after you is by stealing your tax refund right out from underneath you. The Department of Education will refer your account to the Department of Treasury for collection. They can even steal your spouse’s refund.

So, if you owe the Department of Education any money, they won’t hesitate to take your and even your spouse’s tax refund to get what they’re owed. That can cost you thousands of dollars, especially if you’re expecting a tax refund this year. The best thing to do, especially if you’re well into default, is to expect this to happen and not to receive your refund. But, if you need your refund, there are a few ways around it.

The first step in knowing whether your taxes will be offset is whether the department has issued your defaulted student loan with a collection agency. This collection agency one sure that your refund is withheld by the IRS to go directly into student loan debt. Using this method, the IRS must send you a letter with the proposed offset so that you can see for yourself where your money is going.

How to Prevent the Offset from Happening

You may not have any choice in the matter, as the government will get their money anyway they can. But there are a few ways that you can help prevent them from stealing your tax refund. One of those ways is getting back on the books and out of delinquency. There are several ways to do this, but you must return to paying your monthly payments.

The first is by consolidating into a direct loan program. This mean that all of your loans are bundled up with a new lender, essentially pulling alone out of default and forcing it into good standing. You’ll even be able to choose the right type of repayment program that is right for you so that you’re not paying more than you can afford each month.

There’s also the long way of rehabbing your standing with your lender. You have to come together and agree on a new affordable and reasonable repayment plan and get back into making on-time payments. It might take about nine months to get back in the green, but at least doing something and they won’t steal your tax refund from you.

It’s important to understand that your student loans are your responsibility. It’s not a responsibility that you can or should try to avoid. Not paying your student loans will always hurt you in the end. Whatever you have to do to get current, do it. Re-consolidate your loans, refinance your loan, pick up the phone and talk to the creditor and work out a better deal.

These are simple solutions for taking care of a complex problem. Sitting around waiting for the government to make all the decisions for you will not help you. We may never get a new law that wipes away all of our student debt regardless of what presidential candidates say. Take a look at the options you have and go from there.

Written by adminJune 20, 2019

Student Loan Consolidation

Student loans lead the way as Americans continue to fret about their finances.

A survey by Bank of America talked to 1,000 Americans throughout the U.S. and discovered that for 51% of participants student debt is very stressful and is a major concern for at least the early part of their career.

Participants were also worried about not having sufficient savings, the prospect of a looming recession, as well as their capability to pay off their debts.

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Acccording to Aron Levine, Head of Consumer Banking at Bank of America, “Student debt is probably leading the way as the absolute No. 1 major concern. Whether it’s the actual student who took on the debt, parents, grandparents who have co-signed for the debt, that’s a huge one.”

The survey results show that aside from their mortgages, 73% of participants had some form of debt: 43% credit card debt, 36% auto loan debt, 20% student debt, and 15% in personal loans. Almost half of respondents with student loan debt owe more than $20k in overall debt.

It’s no secret that over the past few years, student loan debt has risen to the bloated level of $1.49 trillion. A much lesser known fact is that increasing numbers of borrowers are unable to meet repayment deadlines. In the first quarter of this year, delinquency rates rose from 9.08% to 9.54%.

In the South, student loan burdens are especially crushing. In a study looking at American cities where residents were most indebted relative to their salaries, thirteen of the bottom 20 cities were in the South.

Some of the graduates in those cities are seeing 70% or more of their annual income owed in student debt. On the other end of the spectrum, 10 of the top 20 cities with the best debt-to-earnings ratio were in the state of California.

More Falling Into the Trap

Levine mentions that not only graduates are feeling the burden of student loans. Parents and grandparents are also feeling the hurt in their pockets.

Last year, 69% of college students on average took out loans of $29,800, of those 14% were parents taking out loans on behalf of their children. Those Parent-Plus loans amounted to around $35,600 on average.

It is this same group the 40-50 age group that has the highest terms of debt that transitions into delinquency. This group is finding it harder and harder to pay back their children’s student loans.

Hope On the Horizon

The student debt deficit is in crisis now, but Democratic presidential candidate and Massachusetts Senator Elizabeth Warren brings some hope to the beleaguered. As part of her election campaign, she has promised to eliminate student loan debt of up to $50,000 for 42 million Americans.

Warren said in a press release, “The student loan debt crisis is real and it’s crushing millions of people. It’s time to decide: Are we going to be a country that only helps the rich and powerful get richer and more powerful, or are we going to be a country that invests in it’s future?”

That definitely sounds hopeful for everybody with student loan debt out there. For any other financial advice you may need, feel free to reach out to the Financial Helpers.

Call Now 844-332-2079

Written by adminJune 17, 2019

Politics , Student Loan Consolidation

You may be wondering where does former Vice President Joe Biden stand on student loan debt? Most polls show that he’s a clear front-runner – but he has not said much about the student loan debt crisis. Here’s what we know:

Free College?

Biden indicated that he supported the concept of free college, saying, “We need to commit to 16 years of free public education for all our children… We all know that 12 years of public education is not enough. As a nation, let’s make the same commitment to a college education today that we made to a high school education 100 years ago.” However, he did not offer a plan or any specifics to implement it.

Biden’s History on the Topic

We have to look to Biden’s’ past to get a sense of where he has stood historically on the issue.

In 1998, Joe Biden supported a change that created an “undue hardship” standard for federal student loans, making it significantly more difficult for borrowers to discharge their federal student loans in bankruptcy. Biden continued to oppose efforts to loosen bankruptcy restrictions on student loans through 2001.
MOST RECENTLY: In 2005, Biden supported a change in the “bankruptcy code” by applying the “undue hardship” standard. Before this, student loan debt was not treated much differently than other forms of consumer debt in bankruptcy. After this change, private student loans started rapidly expanding across college campuses

As Vice President, Biden was part of an administration that created new programs and protections for student loan borrowers including Borrower Defense to Repayment and Pay As You Earn, as well as greater oversight of the for-profit college industry.

Until he releases more detailed policy proposals to tackle student loan debt, all we have to go on are his prior positions as a lawmaker. We’ll just have to wait and see what else he comes up with.

Written by adminJune 16, 2019

Student Loan Consolidation

Student loan debt is a massive crisis hitting the United States. Currently, 44 million Americans owe over $1.53 trillion and climbing. These numbers are expected to rise later this year when the new numbers are released. That much debt is forcing people to put off major life decisions, simply because they cannot afford their debt payments and other types of spending.

For example, many people in their 20s and 30s are waiting to get married and have kids. They’re not buying homes or vehicles. It’s easy to make fun of the millennial who still lives at home, but they have a good economic reason. They simply can’t afford to pay their monthly student loan debt bill and rent and all the other expenses that come with living on your own.

Putting off these ‘rites of passage’ are coming at a major cost to the economy as well. We have a growing generation of people who leave college and cannot find a decent job. As college enrollment drops, many are starting to wonder if going to college is worth it at all. It is a great long-term investment, but in the short-term, you’re probably going to feel the heat.

Sadly, many Americans feel the sting too strongly. They leave college and have six months to find a job and get on their feet. They call this the ‘grace period’ that gives students a little bit of time. But, whether you’re ready or not, after that six months, that first bill will come in. You might be able to get a deferment, but deferments only make your principal total grow as interest continues to be added.

Leaving the Country

CNBC recently reported about some Americans being in such a tight spot that they decide to leave the U.S. to escape the wrath of their student loan debt. One guy in particular moved to India. Living in Colorado was expensive and the jobs weren’t available. Imagine spending many years and racking up tens of thousands of dollars in debt for a degree that doesn’t do anything for you. That’s the desperation this man felt. He left for India to escape it all.

While there’s no official data on how many former students have left the United States due to student loan debt, there’s many people out there. In particular there are Reddit channels and groups all over social media that tell the story of people running as far from the U.S. as possible to escape their debt.

A lot of that has to do with the backlash of not being able to pay your debt. As stated earlier, they will come after you whether you’re ready or not. If you can’t pay, they will garnish your wages, steal your tax refund, and even harass you. Many students were often lied to and became victims of their debtors who purposefully gave them wrong information to keep them from seeking any type of student loan help or assistance.

One person told her story of how she left for Japan. She was working multiple jobs to pay off your debt, but it was weighing her down in every way. As long as she had a lot of debt, she was unable to pay for health insurance, which is another part of this problem. “I wish I could come back to America and not be scared,” she said.

A Lot of Debt

Out of all the other types of household debt, student loans seem to be the hardest to pay off. The 90-day delinquency rate is much higher than all other forms of debt. It’s even predicted that 40% of all student loans will be defaulted on in the next 5 or so years. That’s a lot of people not paying their bills! Because of that, the amount of student loan debt is expected to skyrocket.

While the White House currently has no plans to help out students, many Democratic presidential candidates have made this crisis a top priority in their campaigns. Candidates like Bernie Sanders and Elizabeth Warren have promised to tackle the issue. Most of the candidates appear to be in favor of free college education and wiping out the $1.53 trillion already owed.

Written by adminJune 8, 2019

Student Loan Consolidation

Every year, many college-going students apply for FAFSA, the Free Application for Federal Student Aid, to help them pay for tuition. If you’re someone who qualifies and would like to receive this student aid, then your deadline each year is June 30^th. You have until the end of this month to get yours in if you want to be accepted for financial aid.

Many students often complain about how long it takes to fill out the FAFSA application, but the application actually opens up on October 1^st on the previous year. That means you could’ve had your application in for 2019 in October of 2018. You’d think students were prudent and did a great job on getting their application in early, but sadly, that’s not what happens.

Students often wait too long to submit their FAFSA. They hold onto it until the deadline or even later. They put it off until the last minute and it can mess with their eligibility. If you’re a high school senior this year (2019) and plan on going to college in 2020, you should apply for FAFSA this October during your high school senior year.

Benefits of the FAFSA

There are several available federal grants available to low-income students who could use the help paying for college. One is the Pell Grant. It can offer thousands of dollars in aid towards those who need it the most. Still, in order to qualify, the student must always remember the deadlines and fill in a timely manner. Not doing so can risk thousands in funding.

Beyond federal student aid, every state has their own grants and scholarships. Each state handles their programs differently and can have a different deadline than the federal one. That means you must juggle between both state and federal deadlines to apply for FAFSA benefits. Some states expect your FAFSA to be turned in by November, which means you only have a few months to get it in.

Still, even if you miss the deadline, there’s still hope for you. The goal should always be to stay proactive and on top of your deadlines. There’s no reason whatsoever to wait and potentially lose out.

“Unless you missed the June 30th deadline for FAFSA, opportunities for limited aid (Pell Grants and Federal Loans) should still be there as long as the student remains enrolled at least half-time and meet all other requirements,” Marty Somero, director of financial aid at the University of Northern Colorado, wrote in an email. “A student should certainly check with their school on any exceptions to missed deadlines, especially if there were true extenuating circumstances such as a death of a parent.”

Other Circumstances

There may be legitimate reasons why a FAFSA isn’t filled out in time and you miss the deadline. In those cases, you will be allowed to file past the deadline. The problem in a lot of cases is ensuring you’re ready to go at the start of classes. Most institutions won’t let you begin until your complete tuition is covered in some capacity, either with grants or student loans.

“It takes a little time for the college to take that FAFSA and turn that into money for the student on the first day of class. You don’t want to delay. If you didn’t file your FAFSA before the start of class or not too soon before the start of class, you don’t want that to impact your ability to register for classes or actually attend,” Shank says.

“Earlier is always better,” he says. “The best time to start thinking about it is when the FAFSA opens the prior fall. Many individuals are first-generation college students, so it gives them more time to understand the types of questions that will be on the FAFSA. It gives you time to get your FSA ID created, and then if you do run into any troubles, there are a number of places you can reach out to that can help you, and there’s still time before your state filing deadline.” The FSA ID is a username and password that must be created to fill out and sign the FAFSA online.

There are other benefits to filing early.

“Something that I’ve seen with the families I work with is just the peace of mind that comes with meeting the deadlines,” Blontz wrote in an email. “Do you need to complete financial aid forms the week of Oct. 1? No, that’s not necessary. Is it nice to have all of your requirements in before Thanksgiving, even if you are not considering early action or early decision? Absolutely.”

Be sure to check with your college’s financial office to see when your state deadlines are for turning in your FAFSA. The best course of action is to get it done quickly so you don’t have to worry about it later.

Written by adminJune 8, 2019

Student Loan Consolidation

Not everyone enjoys the college lifestyle. After graduating from high school, many people go for their freshman year of college, but don’t return for their sophomore year. In fact, the National Center for Education Statistics says that only 81% of students return for their sophomore year. That’s a staggering drop! Community colleges have it even worse. Only 62% of students return the next year.

College can present many obstacles that force people to make tough decisions. It’s harder than anyone thinks to go to college full-time while at the same time working, making money, and keeping up with bills. During this time, student loan debt is accumulating wildly. Attempting to get a degree is a massive struggle that cause many to simply drop out and give up.

Even so, regardless of if you drop out or continue until the end, you’re responsible for the debt you incurred while at college. It means those courses were a waste of money that do nothing to improve your life and now you’re in debt trying to pay it off. Dropping out of college is never a good idea. There’s another reason why this is so.

College Degrees and Financial Freedom

While less people are enrolling into college these days, the benefits of getting a degree are still massive. People with a degree make a lot more money in their lifetime than those who don’t. If you drop out before getting your degree, you’re still on a path towards making less money. That means you’re stuck trying to pay the debt you incurred while not realizing your full potential financially.

The Urban Institute found that 42% of people who carry student debt have an associate degree or lower. While they have much less student debt than those who completed their courses, they are at a higher change of defaulting on their loans. That’s because they’re making significantly less money than those who have a 4-year degree or higher.

Defaulting on your student loans is not a path you should take. It will seriously cripple you financially by damaging your credit score and making it nearly impossible to do other things like buying a home or a car. If it gets bad enough, the lenders will garnish your wages and steal your tax refund until it’s paid off.

Taking Care of the Problem

If you think you’ve bitten off more than you can chew and are ready to drop-out, there are ways to handle it. There’s a process called exit counseling. Most students who have federal student loans are required to do this if they want to drop out. Exit counseling allows for the student to learn about all of their repayment options so when they do quit, they are prepared.

You do have a six-month grace period after you leave school. That will help you get on your feet without having to worry about student debt. But, whether you’re ready for it or not, that six-month grace period will end and you’ll be responsible for your loan. You could delay it even more with deferment, but your interest will still accumulate and it will increase your debt further.

Interest also accumulates during the grace period. That’s why you should start making interest payments immediately. Waiting until the grace period is over will also grow the debt you owe, making it more difficult to handle. It’s going to require you to be completely responsible and on your game.

Written by adminMay 31, 2019

Student Loan Consolidation

If you owe any type of student loan debt, there may come a time when you need a little help. That loan will stay with you until it’s 100% paid off, which often takes anywhere between 5 and 20 years. What are you supposed to do during a financial emergency? Maybe you lose your job or can’t find the extra money to pay your monthly bill.

In a lot of cases, in that situation, a borrower can get a deferment. It allows them to kick the can down the road a bit. It gives you the option of pausing your loan for a bit until you’re back on your feet. It sounds like a great option, but there are several things to consider before taking this route. It’s certainly not the choice for everyone and it comes with consequences.

Because it’s not a simple solution to your problem, it pays to know what type of loan you hold. Some loans will allow you to also put a pause on the interest you owe. Those loans are subsidized Stafford Loans, Direct, FFEL Consolidation Loans, and others. Yet, there are other types that do require the interest to keep flowing. These types are:

· Direct PLUS Loans

· FFEL PLUS Loans

· Direct Unsubsidized Loans

· Unsubsidized Direct Consolidation Loans

· Unsubsidized Federal Stafford Loans

· Unsubsidized FFEL Consolidation Loans

Paying Back Interest

Taking a month off isn’t a big deal, but if you anticipate a long break, you’ll have to determine what will happen with your interest. The government may continue to let the clock run. That means you will either have to make the monthly interest payment or it will continue to add up the full principal of the loan. You get a break, but you’ll still end up paying more down the line.

If you’re going back to school and need a deferment, be sure you take the time to sit down with financial aid counselor. They can help you get your public and private loans approved for deferment while continuing your education. Being proactive and contacting your servicer is also a great idea. Keep in touch with them over every change in your life that impacts your loans.

Pros and Cons of Deferment

If you’re in an emergency situation, deferring your student loans may seem like a great idea. It will free up money to pay on the more important things, like food, rent, and electricity. While it might be the best idea at the time, be sure to check out these pros and cons before making that decision. There are plenty of drawbacks and might complicate your situation further.

Depending on your interest rate, a $20,000 PLUS loan, which takes 10-years to pay off, can incur an additional $500 in interest towards the principal. That’s a lot of money. Still, it might be worth it at the time, but you should still consider whether you want to extend your loan out another several months.

A deferment can also impact your qualifications towards participation in student loan forgiveness programs. For example, the Public Service Loan Forgiveness program requires 120 eligible payments to get full forgiveness. If you defer, those payments are being met and you will lose valuable time, even if you’re still paying something and working for a non-profit.

You’ll have to take a long look at your situation and see if deferment is right for you. It can be the very wrong move, but if you simply can’t afford it, then you have no other choice. Deferment can be a complete lifesaver, but it rarely comes without drawbacks. If you can still make your interest payments, that will help your situation dramatically.

Written by adminMay 30, 2019

Student Loan Consolidation

If you’re a student loan borrower in the State of California, you’re getting closer to have a bill of rights. This bill is called AB376, or “Student Borrower Bill of Rights” and was passed by the California assembly on Tuesday. This is really the first set of rules being passed through a state’s legislature protecting students who hold loan debt.

It was passed 59-15 and has to get through the Senate and a final floor vote before it’s officially law. According to the Policy Director of the Student Borrower Protection Center, Mike Pierce, the bill must be passed by September 13^th in order to reach Governor Newson’s desk to be signed into law.

While the bill is set to give students who borrow money for college some protection, it’s also a shot at President Trump. The vote “demonstrates California’s ongoing commitment to protecting student loan borrowers in the face of resistance from the Trump Administration… [which] has dismantled protections for student loan borrowers,” Seth Frotman, the former top student loan official at the federal Consumer Financial Protection Bureau.

“Student loan borrowers defaulting every 28 seconds, I urge the California State Senate to act quickly and advance this critical legislation,” continued Frotman. More states are looking to follow suit as Trump continues to dismantle any protections students have against fraud and this growing student loan debt crisis.

Rules of Bills

There are several ways this new bill hopes to help students. It will:

-Ban loan servicing practices it deems are ‘abusive’.

-Prevent loan servicers from taking advantage of borrowers by confusing them on purpose.

-Keep the repayment system fair.

-Improve record-keeping standards.

-Better staff training.

-Forces servicers to be honest about better and more affordably repayment options.

-Creates an advocate for the students where complaints can be lodged against lenders.

“Ultimately, (this bill) hopes to create the first comprehensive, industrywide ‘rules of the road’ for the student loan industry, offering student loan borrowers the same kinds of strong, enforceable protections available to consumers with mortgages and credit cards,” the SBPC explained.

“Unlike consumers with mortgages and credit cards, student loan borrowers currently have few protections when interacting with their loan servicers,” Consumer Reports, which also co-sponsored the bill, said in a press release. “Student loan servicers are generally prohibited from engaging in unfair or deceptive practices, like any other business in California, but they are not currently subject to industry-specific standards.”

In California alone, over 3.7 million people have student loan debt. They owe close to $125 billion. In the U.S. as a whole, 44 million students owe $1.53 trillion. This is a number that continues to grow and doesn’t look to be slowing down anytime soon. Look for more states to pass these types of rules to help students where the federal government fails to get involved.

Free College?

Biden’s History on the Topic

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