Does Forgiving Student Debt Make Sense?

Written by adminMay 13, 2019
Credit & Debt

We often talk a lot about student debt and share solutions we think might work. We constantly throw out the numbers. 44 million Americans owe around $1.53 trillion in student loans. Many 2020 candidates are already standing on the platform demanding debt reform for students who are drowning.

The one thing we always ask ourselves in the standard of fairness: does forgiving student debt make sense? Is it the right move? Of course, if you have student debt, you’re more inclined to receive the help. Many others, including President Trump, don’t think that taxpayers should be on the hook if you decide to go to college.

We can look at both sides of the political aisle and see which ideas makes the most sense of all Americans. It’s the data that makes the final determination. According to research from the National Bureau of Economic Research, it does make sense to forgive student debt. They looked at a number of different criteria.

Forgiving Student Debt

There is a lot of great data out there from the past several years. We’ve seen a number of these big schools go down, as well as lawsuits from students to get their loans wiped away. Many of these students feel they were defrauded during the Great Recession and should have their loans forgiven. Many of them won their cases.

One big instance was National Collegiate. This company held over 800,000 private loans that totaled over $12 billion. The National Bureau of Economic research also looked at credit reports. In conclusion, they found the same, that there are “benefits of intervening in the student loan market to reduce the consequences of debt overhang problems by forgiving student debts.”

There are four key benefits that ultimately improved the quality of life for the borrower. The first was the person was able to increase their overall consumption. This means they had more money in their pocket to buy stuff. That’s great for the economy when you consider the 44 million people in debt and how much that is currently hindering economic growth.

Forgiving their student debt also lowered their overall debt by 26% and didn’t default on other loans as a result. They even found they were freer to find greater job opportunities. They didn’t feel forced to take the first job that came alone in order to keep up on their student debt. They had the time to find the right career path for them.

Psychological Benefits to Debt Forgiveness

“The thing that was interesting about this study is that the people that got the forgiveness weren’t paying anyway, so it actually did not change their monthly loan payments at all,” Ben Miller, the senior director for post-secondary education at the Center for American Progress, told Yahoo Finance. So “it suggests there might be some sort of psychological benefit to this relief that goes beyond the household balance sheet. That to me is really interesting because it suggests that there may be external benefits to debt relief that you don’t otherwise see.”

In a lot of ways, debt is a part of life. The vast majority of us cannot afford to walk onto a car lot and throw down cash to buy whatever car we want outright. No, we take out an auto loan. Same goes with buying a house. We either choose to rent or take out a mortgage which can take 30 years to pay off.

“We find that consistently across all debt categories, and both with and without county-month fixed effects, the treated borrowers are significantly more likely to reduce the number of accounts,” the researchers wrote. “Overall, these findings suggest that treated individuals are significantly more likely to reduce their leverage after the debt is discharged.”

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Is It Possible to Go to College Without Student Loans? Try These 5 Options First

Written by adminMay 3, 2019
Credit & Debt , Credit & Debt Settlement

It seems so easy for someone who wants to go to college to take out student loans. All they have to do is sign the dotted line and the money they want is right there. But if you ask anyone currently paying off their student loan debt, you’d hear a lot of stories of struggle. 44 million Americans currently owe $1.53 trillion towards their loans.

Student loan debt is forcing young Americans to put off major life goals. They simply can’t afford to do them with this weight on their shoulders. Many can’t even afford the minimum monthly payments. And again, when you see how much tuition is, it’s easy to resort to loans. The solution is to save loans as the last possible resort or it can hamper your life later.

In many cases, parents have tried to save for their kid’s education. Yet, even they weren’t prepared for the major cost, especially if they have multiple teens in their home ready for that next stage of life. Fidelity conducted a survey that found parents were overwhelming underprepared for their child’s college education costs. That leads them to resort to student loans.

Before you take out a mortgage just to pay for your education, you should look at these other options. By doing them all, it’s possible to pay for school on your own. Even if you still have to take out some student loans, at least the burden will be lessened.

1) Scholarships Are Available

Listen, there are scholarships for everyone out there. Regardless of your child’s major, interests, skin color, race, culture, there’s someone out there who has put up a scholarship. The problem is, it takes a lot of diligence to go out of your way to research all the different types. Then you have to sit down and apply for each one you’re eligible for.

Don’t just apply for the big scholarships either. Every little bit will help bring down your student debt balance by the time you’re finished with your degree. Sallie Mae reports that scholarships can cover as much as 28% of tuition on average. That’s a major chunk taken out of your student loans if you can take the time to apply.

2) You Don’t Need to Go to an Expensive School

At the end of the day, a degree is a degree. You may thing there’s some prestigious mentality to going to a big four-year school, but really, there’s not. There’s no shame in getting your Associate’s degree at a community college, which would save you a ton of money in the long run. In a lot of cases, lower-income people can escape community college debt free.

Many states like Kentucky, Ohio, Tennessee, West Virginia, and Virginia have free tuition to smaller colleges for students. More states are starting to institute programs like this to give young adults a good head start. By going to a smaller school and then getting their Bachelor’s at the school of their choice, will pay only a fraction of the student loans. Saving money is about making better decisions.

3) There’s Federal Aid Available

Last year, high school graduates left behind $2.3 billion in unclaimed federal financial aid. They chose instead to take out student loans. Many students qualify for financial aid through the government. It combines grants, loan offers, and scholarships in a program called FAFSA. It’s free to fill out an application.

Many students don’t run towards the FAFSA because they feel it’s time consuming to fill out. The problem is, by doing it, they can save $3,583 per year. That can go a long way towards paying for books, putting a dent in tuition, and other housing costs. Again, every little bit helps to bring down your total debt.

4) Get a Job

Yes, we get it. The last thing you want to do when studying for classes is to have to worry about a job. But many people have to do it in order to survive. It will be hard work, but you’d be thankful in the end if you do. Between scholarships, aid, any savings you had before, getting a job can take care of the rest. It certainly beats paying student loans for the next 10-20 years.

There are plenty of side-hustles and jobs you can do in your spare time. Driving for Uber is one. Do whatever you can to pay off as much of your room, board, and tuition while you’re in school. You will thank yourself later on! You can even do a work-study program through the university or college. They are needed jobs that need to get done around the campus.

5) Have Your Job Pay for College

Another great thing about working while in college are the various job programs out there. Companies like Starbucks, Walmart, Publix, and Wells Fargo all help workers pay for their tuition. If you work 20 hours a week at Starbucks, then you qualify for their Starbucks College Achievement Plan.

You have to work at Publix for about six months before their plan kicks in. If you average around 10 hours a week at least, they can help pay up to $12,800 of your tuition. Wells Fargo will straight-up reimburse tuition for their workers up to $5,000 each year. Their children can even apply for certain scholarships worth up to $3,000.

Many other companies offer some tuition assistance and will help pay off your student loans. Even after you graduate, many large companies offer a program that works like your 401(k) that will pay off student debt. It’s worth the check to see if your work offers any kind of assistance.

At the end of the day, any little bit you can knock off your tuition will be worth it in the end. No one will care where you got your degree from. There’s no shame in spending less and going to a community college. Taking the time to apply for aid and assistance is worth it considering the thousands in extra interest you’d have to pay on that later. And working a job won’t be too difficult. Many thousands of college students make it work.

If you still end up needing more money, at least taking out student loans won’t be too much of a burden and your total is reduced by thousands of dollars.

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How to Spot and Avoid Student Loan Scams

Written by adminOctober 23, 2018
Student Loan Consolidation

There’s an epidemic happening in America today. Millions of people across the country collectively owe more than $1.5 trillion worth of student debt. It’s not just a simple car loan being paid off. No, companies are destroying the lives of people who can’t pay back their student loans and are desperate for help.

These graduates earned their degree, but have lost their license to work. The lenders have all sorts of tools in their back pocket to get the money owed to them. Not only can they revoke your service license, but they can also garnish wages, take your tax refund, and so much more. There’s nothing anyone can do, except hold on and wait for the government to help.

In some small ways, they have. The Obama administration instituted student loan forgiveness programs, but it’s not broad enough. There are other ways to pay back student loans and lower monthly payments. The problem is, whom can you trust? As with any industry, there are many scammers out there looking to take advantage of desperate students.

Financial Helpers is an example of a company who simply wants to help students by providing information and seeing if you qualify for various programs. To learn more about Financial Helpers and how we can help you with your student loans, call us at:

Call Now 844-332-2079

Student Loans and Common Scams

Scams are becoming common in the world of student loans. It’s so prevalent that the Consumer Financier Protection Bureau has recently put out several warnings. They want to protect borrowers from scam artists promising to help them get rid of their student loans. They have no real goal of helping anyone but themselves.

Still, there are legitimate companies out there who will help you. The trick is to know the difference between a scam and a real company looking to help students. This article will help you determine what is right and what to avoid. Here are a few of them for you to decide for yourself:

Is It Too Good to Be True?

One way to tell the difference between legitimate companies and scam artists are the ways they deal with customers. A high-pressure sales tactic isn’t necessarily a sign of concern. These companies will most likely charge a fee, but there are red flags. If they immediately guarantee they’ll get your loan forgiven, then they’re probably scamming you.

http://financialhelpers.com/3-ways-to-save-money-if-youre-a-millennial-with-student-loan-debt/

Another line is saying you’re ‘pre-qualified’ to lower your loan. The reality is, no company can know if you’re pre-qualified for loan forgiveness. They’ll have to personally take a look at your loan and weigh it against the current laws and regulations. Whatever step you choose will require a credit check (for refinancing) and look at your financial information.

They Try to Force You onto a Plan

The right company will do its best to help you where you’re at and within your budget. It’s ultimately your decision what plan works for you. The scamming company will tell you to sign on today because offers will expire soon or push you into a deal that doesn’t make sense.

Examples of this are companies that say you’ll go to jail if you don’t pay your loans. There are plenty of bad consequences for defaulting on your student loan. The government may even take you to court, but they won’t just throw you into jail. The scam artist will put on the pressure to make you think your livelihood is in jeopardy unless you take care of it today.

Law Firm Scams

This scam is mostly based on advertisements that promise to settle your debts. They pretend to be lawyers working for a law firm. Some of them might be real lawyers, but the way they deal with people is criminal. They make many promises to the borrower they often don’t keep.

To get you in the door, they promise to settle your debt for less than you owe. It sounds like a great deal! They’ll even tell you to make full payment to the firm. Except, they don’t do anything. They sit on it until your loan goes into default. At that point, it’s too late.

Debt Elimination

The only way you can have your debt canceled is through legitimate and qualifying reasons. You owe money to the federal government, and that money you must return. You can refinance and consolidate, but not have it completely wiped out. A scammer might try to get someone by saying, “The President signed an executive order to forgive all student debt!” It’s not true.

No one but the government can forgive what you owe. Situations like death, disability, service work, and identity theft are handled through the proper channels. If you pay for a company’s help, they may represent you, but they cannot eliminate your debt

The best advice is to do your research before choosing a company. Don’t get caught up in the promises designed to feed on your desperation. The federal government does try to help, but there are many hoops to jump through to qualify. Find the legitimate companies who excel at assisting borrowers in getting out from under their burden of debt.

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Student Loan Debt Just Hit $1.53 Trillion and Trump is Fighting Against Students

Written by adminOctober 19, 2018
Student Loan Consolidation

As of the second quarter of 2018, the student loan debt has risen again. This time it has reached $1.53 trillion with no slow down in sight. It’s on pace to break the $1.6 trillion mark by next year. And rather than standing behind students and offering a means of protection, President Trump is against student loan forgiveness.

That’s right, the president has no plans for forgiving any student loan debt. “We would like people to repay their debts,” Director of the Office of Management and Budget Mick Mulvaney said. “We think that’s a fair thing to do.”

Yet, it’s no surprise to Mulvaney that student loan debt has risen to high. The federal government is the largest originator of these student loans. Why would the government give students a free pass when they will make money from these loans? That is, if you pay them back. They’ll make thousands on interest alone, per student.

When you consider there are 44 million Americans with student loan debt, that’s a lot of extra cheese. Of course, the government doesn’t want to spend a dime helping students. Nor do they want to just forgive the debt and miss out on a huge payday. According to Mulvaney, the government would rather educate young people when it comes to taking out loans.

“It’s like, look if you’re going to borrow this money make sure you’re using it to get an education that can get you a job that helps you pay it back,” said Mulvaney.

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

Call Now 844-332-2079

Student Loan Debt is Destroying Lives

Federal Reserve Chairman Jerome Powell has a different view of student loan debt. He knows that this type of debt is derailing lives for millions of Americans. It’s this derailing that can impact the economy in more ways than one. In fact, NeighborWorks America has released a survey that indicates 59% of millennials know someone who put off buying a home.

Why did they put off buying a home? Because of their student loan debt. This extends into every other part of life. Millennials are delaying all sorts of life decisions because their debt is too high. Credit scores are dropping, hindering every aspect of a young person’s economic life. It can take anywhere between 10 and 25 years to pay back a student loan.

http://financialhelpers.com/the-student-loan-debt-crisis-is-going-to-be-worse-for-the-next-generation/

While Powell believes Congress should stand up and face the problem head-on, Mulvaney disagrees. Why should the government force taxpayers to pay for student loans people willingly apply for?

“Face it: If you’re borrowing money right now to go to school, you’re borrowing from the taxpayers,” he said. “And if you ask for loan forgiveness, what that really means is you want other taxpayers to give you money to go to school and that’s not part of our program.”

The Battle Between Democrats and Republicans

The current government doesn’t seem to want to help students overcome their debt. But, does Mulvaney have a point? Should taxpayers foot the bill and pay for other people’s student loan debt? The battle will continue to rage on between Democrats and Republicans. Many Democratic lawmakers, like Bernie Sanders, hopes to make college education free.

Some states, like New York, are already experimenting with free college options. Still, the federal budget $21 trillion in the hole. Should the government add another $1.53 trillion worth of debt to the deficit? It’s an expense that would assuredly raise taxes and take a massive bite out of economic growth.

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The Student Loan Debt Crisis is Going to Be Worse for the Next Generation

Written by adminOctober 18, 2018
Student Loan Consolidation

Right now, the stock market and US economy is booming. Almost every day Pres. Donald Trump talks about his accomplishments when it comes to jobs. While this might be true in most instances, it’s not true for college students. Student loan debt is getting worse for millennials and it’s interfering with their lives.

Imagine graduating from college already $50,000 in debt. Immediately after you graduate, you have to start paying it back. It’s not going to go anywhere. Every month, you’re expected to pay back the equivalent of a rent payment. In some cases, the debt so high, that students have to pay the equivalent of a mortgage.

How are you expected to start your life or raise a family so much debt weighing you down? Federal student loans are the only segment of debt in the United States with continuous cumulative growth. This growth has continued exponentially since the Great Recession. Yet, the crisis we’re experiencing today isn’t the worst of it.

All indicators point towards student loan debt to grow even higher. There’s been 157% growth over the last decade. In comparison, auto loan debt has only grown 52% while mortgage and credit card debt has fallen. Student loan debt is the second largest amount of debt owned by Americans, and it keeps getting worse.

To learn more about student loan debt and to see if you qualify for loan forgiveness, give Financial Helpers a call today at:

Call Now 844-332-2079

Student Loan Debt Keeps Growing

As the population of the United States continues to grow, more people are going to college than ever before. With the economy of the last decade, as well as the rise in the costs of a college education, have made getting a degree that much more unaffordable. This is forcing students to get a student loan at unprecedented rate.

Is not just the cost of college either? Interest rates on student loans are at their highest level. The cost of getting a college education is so expensive, that is much as 85% of students are working a job instead of studying. It’s expected that by 2020, over 43% of student loans will go into default.

http://financialhelpers.com/obamas-student-loan-forgiveness-rule-ordered-to-go-into-effect/

“Students aren’t only facing increasing costs of college tuition; they’re facing increasing costs of borrowing to afford that degree,” said John Hupalo, founder and chief executive officer of Invite Education, an education financial planner. “That double whammy doesn’t bode well for students paying off loans.”

It wasn’t really until the Great Recession when students started becoming delinquent on their student loan. For-profit colleges started making promises that they didn’t keep. The schools said they had a high job placement rate at a time when people were desperate for high-paying jobs. It all turned out to be a predatory marketing ploy.

By the time the students graduated, they had no job and a degree that didn’t help that much. Add in between $25,000 and $50,000 worth of student loan debt, you’ll start to see how much more difficult this made life for students. Ultimately the students were left with debt that they couldn’t pay back.

For-Profit Schools Under the Gun

By 2011, for-profit schools represented nearly half of student loan borrowers across the country. The students who went to the schools accounted for 70% of all student loan defaults. The default rate skyrocketed to 11% the next year alone. Less than a decade later, the rate hasn’t changed despite a better economy.

“There’s a systemic problem in the student loan market that doesn’t exist in the other asset classes,” said Hupalo. “Students need to get a job that allows them to pay off their debt. The delinquency rate will rise as long as students aren’t graduating with degrees that pay back that cost.”

The problem is only going to escalate for future generations. The cost of borrowing for school has risen in the past two years. That rate is not going to change anytime soon. Interest rates have jumped 5% this year alone. As more students are slated to go into default in the future, it’s only going to make the US economy that much worse.

Student loan debt is unpayable, students will end up in default. That means they won’t be able to get a mortgage, a car loan, or even get married. Research is already revealing that millennials are putting off major life decision solely because of student loan debt. As college gets more expensive and interest rates continue to climb, this problem will only get worse.

The Fed chairman, Jerome Powell, agrees.

“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,” Powell testified before the Senate Banking Committee in March. “As this goes on, and as student loans continue to grow and become larger and larger, then it absolutely could hold back growth.”

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5 Strategies for Lessening Your Student Loan Burden

Written by adminOctober 12, 2018
Student Loan Consolidation

As student loan debt shoots past $1.5 trillion, it’s a growing burden for millions of Americans. It’s not just a struggle for those people, but for the economy as a whole. Getting by is extremely difficult when you also have to budget anywhere between $400 and $1,000 each month for loans.

This student loan problem is forcing people to seek out alternative ways to paying off their debt. Many are even just accepting their fate and going into default. That’s never a good option, as it always comes back to haunt you later by tanking your credit score. What you need is a strategy that works for you.

Maizie Simpson, a data editor with Credit Karma, believes having a plan to pay down your student loan debt is the best way to go. There are numerous reasons for that.

“The first has to do with interest: The longer you draw out your repayment period, the more interest you’ll end up paying,” Simpson said. “The second reason is that the longer you have student loan debt, the longer you might put off big life decisions or making investments in your future, such as starting a family or contributing to a 401(k).”

Here are 7 strategies for lessening your student loan burden:

1) Know How Much Student Loan Debt You Owe

There are a lot of people who try their hardest to not think about their debt. It’s not a priority to them. The total might be a lot to wrap your mind around, but you’d rather just ignore it and avoid the stress. It’s an understandable reaction, but not worth the trouble. Your debt is not going to disappear. Knowing what you owe is the first step to getting rid of it.

2) Figure Out Your Next Step

The best way to overcome any stressor in life is to not get overwhelmed. Take it one step at a time. If you’re in danger of missing a payment, consider what you’re going to do next. Should you file a forbearance? Find an income-driven repayment plan if you’re not making as much money? There are options out there.

http://financialhelpers.com/student-debt-forcing-millennials-to-load-up-on-other-debt/

“First, switch federal student loans to an income-driven repayment plan to lower monthly payments. Then, apply for deferment or forbearance to pause payments if you hit a major financial setback, such as losing a job,” said Simpson.

To learn more about your options, give Financial Helpers a call. We’ve helped thousands of people figure out a plan that works for them. We’ll even check to see if you qualify for student loan forgiveness. You can reach us at:

Call Now 844-332-2079

3) Focus on Your Student Loan First

Everyone wants to live the American Dream. To get there, most of us need to take out other loans, like a car loan or a mortgage. Piling debt on top of debt is never a good idea, as you’ll be so far in the red. The best course of action is to wait before making those major life decisions. Focus 100% on paying your student loan off before anything else.

4) Cut Your Spending Budget

Going along with point #3, you have to cut your spending. Tally up every bill you have and decide what you can do away with. For example, rather than a $100 cable bill, pay for cheap Netflix to get you by. It will be a temporary situation until your loan is paid off.

5) Make Extra Payments

Create a budget and if you have to, put most of your money directly into your loan. Paying it off faster will also cut the amount of interest you’ll pay overall. It can save you thousands in the long run. Once you’re out from under the burden, life becomes much more manageable.

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Student Debt Forcing Millennials to Load Up on Other Debt

Written by adminOctober 11, 2018
Student Loan Consolidation

If you’ve been paying attention to the headlines lately, you know student debt has become an epidemic. It’s forcing many people to delay life decisions. Millennials are particularly vulnerable, as they are the age group who endured the worst of it. During the last decade, the Great Recession has raged on.

While carrying the heavy burden of student loans, it’s forcing millennials to carry personal loans as well. In today’s economic climate, jobs have been sparse. For-profit schools are under major scrutiny for predatory lending schemes. And for the first time ever, student loan debt has hit $1.5 trillion.

All of these major issues combined have caused a perfect storm of frustrating circumstances. If you find yourself in a position where money is short and you have a need, taking out a loan seems like the only option. The problem is, it’s putting people further in a situation they can’t dig themselves out of.

If you’re suffering under the burden of student loan debt, give Financial Helpers a call. We’d love to hear from you. We’ve helped thousands of people find out if they’re qualified for student loan forgiveness and get them enrolled in a plan that works for their budget. You can reach us at:

Call Now 844-332-2079

Student Debt Borrower Data

According to LendingPoint, a personal loan provider, millennials are taking on their fair share of extra debt. This debt is just as volatile as student loans with fixed interest rates, high late fees, and more. Millennials are taking out these high-risk loans to pay for emergencies, weddings, and other things they simply can’t afford.

Just a couple of years ago, into 2015, only 12% of borrowers were millennials with student debt. Since then, the number has more than doubled to just over 25%. By the second quarter of 2018, the number of personal loans taken out at a rate of 17.5% higher than the year both. That totals to around $125.4 billion.

http://financialhelpers.com/take-advantage-of-the-student-loan-forgiveness-boost-before-it-runs-out/

“Millennials are driving the borrowing,” said Mark Lorimer, chief marketing officer of LendingPoint. “They are rapidly coming into their earnings and credit wheelhouse. It takes time to become creditworthy and we’re seeing a higher proportion of millennials getting there.” Despite the rate of debt going up, it’s not something millennials take for granted.

“Millennials don’t like credit card debt as much as boomers did,” said Lorimer. “They’ve seen their parents run into difficulty with compounding debt.”

How to Borrow Responsibly

If you have a lot of student debt, you might think you have no other choice but to get a loan. What you need to remember is there’s a huge difference between cleaning your budget and over your head in massive debt. Student debt alone can hang over your head for a decade or longer. Here’s some advice:

-Only borrow what you can afford. Don’t have the expectation that one day you’ll make more money, so it’s okay to take out a large loan. If things don’t go as planned, you’ll get behind on payments and go into default.

-Don’t borrow more than 36% of your gross monthly income for housing and debt. This is called the ‘back-end ratio.’

-Considering what you’re borrowing for. If you have a lot of student debt, it’s not worth the extra debt and costs to get a loan to pay for a huge wedding. You might think it is, but don’t realize the pain that will come later. It’s better to save, budget, and plan for the wedding instead.

-Address your spending habits. This always seems like the last step someone takes. They don’t look at their spending until things are already going down the tubes. If you really want something, don’t pile on more debt. Cut spending and save money.

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Student Loan Forgiveness Programs Continue to Fall Short

Written by adminOctober 8, 2018
Student Loan Consolidation

It’s certainly not an easy time to be a student, nor has it been over the past decade. Since 2008, student loan debt has skyrocketed past $1.5 trillion. In an effort to help students, the government has created several student loan forgiveness programs, but so far, their attempts have fallen short. It’s almost as if the government doesn’t want to help at all.

After releasing a new report, the Department of Education has found that 99% of borrowers aren’t receiving any help at all from the programs. The student loan forgiveness program was most likely designed for this purpose: to have the illusion of government help, but without actually getting their hands dirty.

32,601 applications for student loan forgiveness, but only 96 of them actually received it. Those are appalling numbers. Yet, when this program was created back in 2007, the debt still was in the billions. Throughout the economic crisis, less jobs mean people were graduating from college without a job, making life more difficult.

No Cheap Solutions for Student Loan Forgiveness

As many students cheer on the idea of the government forgiving their loans, the government doesn’t want to press the issue. For one thing, you need bipartisan support to pass such a bill. The vast majority of lawmakers want to help, but it has to be a sensible bill that is light on the price tag.

The United States is already over 21 trillion in debt and taking care of college costs is impractical. There is tension between those with student loans and legislators, considering 44 million Americans hold student debt. But that doesn’t mean it’s up to lawmakers to offer student loan forgiveness options or to make college free.

http://financialhelpers.com/new-lawsuit-accuses-navient-of-obstructing-student-loan-forgiveness-cases/

For one, a lot of Americans aren’t interested in picking up the tab because others decide to go to college. In their mind, if you take out a student loan, you should know what you’re getting into. You should have to pay back that loan. It’s no different than taking out a mortgage. You can’t get a mortgage, then expect the government to pay for your house.

There’s no easy answer for student loan forgiveness, and it doesn’t appear the answer will be coming soon. Even so, the programs created now have a lot of red tape and a set of qualifications must be met. It’s almost as if the government created a program designed to help only a small number of people.

To find out if you qualify for student loan forgiveness, call Financial Helpers today! You can reach us at:

Call Now 844-332-2079

The Red Tape Surrounding Student Loan Forgiveness

The biggest challenge for students is all the red tape surrounding the student loan forgiveness program. First, you must qualify. Qualifying is no easy task. You must have the right type of repayment program, the right paperwork, the right job, the right loan, and file this paperwork every single month.

If any of these conditions aren’t met, you’ll get a denial. Yet, this only scratches the surface of what you need to qualify. Many people have spent a whole decade, believing they qualify, only to find out that they missed the ‘small print’. Don’t expect to find sympathetic ears with your lender. They’re glad to take every dime owed to them.

In fact, Navient, one of the largest lenders in the country, is currently being sued. They were caught giving students the wrong advice in order to trap them. If they don’t meet the qualifications, then their loans won’t qualify for student loan forgiveness programs. With these types of challenges, it’s no wonder why so many people are struggling.

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The Real Toll of Student Debt on Americans

Written by adminOctober 5, 2018
Student Loan Consolidation

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

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

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

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

Increased Cost of an Education to Blame

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

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

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

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

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

Call Now 844-332-2079

Should Student Debt Be Forgiven Across the Board?

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

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

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

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

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4 Reasons Why Student Loan Forgiveness Applications Are Rejected

Written by adminSeptember 26, 2018
Student Loan Consolidation

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

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

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

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

Here are 4 reasons why:

1) Their Loans Were Ineligible

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

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

2) An Insufficient Record of Qualifying Payments

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

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

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

3) They’re on the Wrong Repayment Plan

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

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

4) Errors in the Paperwork

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

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

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