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.

Read More

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.

Read More

Take Advantage of the Student Loan Forgiveness Boost Before It Runs Out

Written by adminOctober 9, 2018
Student Loan Consolidation

Earlier this year, the Student Loan Forgiveness Program got a shot in the arm after President Trump signed the $3.1 trillion compromise spending bill. The bill includes an additional $350 million to help struggling college grads pay off some of their student debt.

This additional benefit is a one-time offer to those who might have thought they missed the chance to get help under the expiring program. Student loan debt can severely cripple one’s credit, making it impossible for them to buy a house or car until after the debt is paid.

Democratic Senator Elizabeth Warren loved the move, saying, “I’m very glad that, for the first time, we got some money to help students unfairly trapped under a mountain of debt.”

Still, this one-time reprieve is small potatoes compared to the estimated $1.5 trillion that’s still owed. Politicians like Senator Warren understand the need for a full-time fix to help students out from under this extreme burden.

In 2007, the Student Loan Forgiveness Program was born, designed to allow students the option to opt out of their remaining balance if they make 120 on-time payments. They must also work for a qualifying employer.

Trump Wanted to Cut the Student Loan Forgiveness Program

For students who decide to enter graduate school, student loans can easily pile up to the tune of $100,000 or more. That’s a massive debt for anyone to have after they graduate, so the program hoped to encourage students to make their payments while helping to get them out from under it.

The $350 million deal exists on a first come, first serve basis. If you’ve been told you don’t qualify or you missed the deadline the first time around, you should act right now to take advantage of this renewal before it’s gone. Call Financial Helpers today to see if you qualify! You can reach us at:

Call Now 844-332-2079

Before signing the bill that expanded student loan forgiveness, the Trump administration was on track to cancel it altogether. In fact, the government was emboldened to go after students who owned federal loans and cut income-driven plans. They hoped to change the whole structure of loans.

To do this, the administration wanted repayment to increase from 10% of their income to 12.5%. This effort is to hopefully allow students to pay back their loans quicker. Trump’s proposed budget also looked to remove any student loan forgiveness applications for service workers. To many, this would signal a drop in the number of people looking for service work.

“You may have fewer people pursuing degrees in areas that will lead to public service occupations. There won’t have as many prosecutors and public defenders. You won’t have as many people pursuing law enforcement or becoming EMTs, firemen, and members of the military,” said Mark Kantrowitz, an expert in student loans.

Other Grants and Resources to Lose Out

According to Trump’s previous budget, 30 other programs were slated for removal. The 21st Century Community Learning Center grant, the Federal Supplemental Educational Opportunity Grant, and several others were on the list. Money across the board was looking to be cut to save money.

http://financialhelpers.com/the-real-toll-of-student-debt-on-americans/

The Trump administration is not wanting to help students overcome this massive problem of student loan debt. Instead, his interests have been in appeasing the banks and major for-profit schools. Many of these schools are capitalizing on predatory marketing techniques to scam desperate students.

So, it’s a great thing that President Trump decided to compromise with Democrats. Extending student loan forgiveness protections for students. Sadly, these protections may not last. We’re only a few months away from the 2019 budget. If Trump removes protections, then students are out of luck. Call Financial Helpers today to see if you qualify.

Read More

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.

Read More

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.

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

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.

Read More

New Lawsuit Accuses Navient of Obstructing Student Loan Forgiveness Cases

Written by adminOctober 4, 2018
Student Loan Consolidation

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

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

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

Navient’s Plan to Disrupt Student Loan Forgiveness

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

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

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

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

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

Call Now 844-332-2079

Looking for Guidance

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

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

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

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

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

What This Means for You

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

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

You’re Not Alone

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

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

Call Now 844-332-2079

Read More

Legal Battle Over Obama-Era Student Loan Forgiveness Law

Written by adminOctober 1, 2018
Student Loan Consolidation

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

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

The Fight for Student Loan Forgiveness

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

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

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

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

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

Call Now 844-332-2079 

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

Bankrupting Schools Sow Chaos in the Case

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

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

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

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

Read More

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.

Read More

The Cons of Strategic Student Loan Default

Written by adminSeptember 25, 2018
Student Loan Consolidation

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

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

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

What Happens When Your Student Loan Goes into Default

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

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

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

Strategic Default Won’t Work on Federal Loans

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

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

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

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

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

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

Call Now 844-332-2079 

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

Read More

4 Facts You Should Know About Student Loan Forgiveness

Written by adminSeptember 17, 2018
Student Loan Consolidation

Sure, everyone who takes out student loans would love to be awarded complete student loan forgiveness. Just one wave of the magic wand by someone sitting in a federal office, and POOF! The loan is gone. But sadly, most people misunderstand what it takes to get there. Not everyone can apply and the rules are strict.

So, the first thing about getting a student loan is you need to be prepared to spend at least the next decade of your life paying it back. Depending on the amount you owe, monthly payments are about as expensive as a cheap apartment rental. For this reason, a large percentage of people default on their student loans.

In fact, but 2023, it’s estimated that 40% of borrowers will default on their loans. As the amount of debt surpasses $1.5 trillion and climbing, student loan forgiveness is the only hope a lot of Americans have. If that sounds like you, here are four facts you could consider:

1) Student Loan Forgiveness Takes A LOT of Time

Barring a fraudulent case, you’re not going to apply for forgiveness and get it granted within a few months’ time. There are even a lot of stipulations and conditions to receive it. Currently, there are three programs that offer it: PAYE, REPAYE, and Public Service Loan Forgiveness.

With the Public Service Loan Forgiveness plan, it’s a 10-year process. Therefore, you have to be a federal, state, or local service worker who makes regular (around 120) payments over a ten-year period to qualify.

PAYE (or Pay As You Earn) is a 20-year program for student loan forgiveness. This is more income-driven. There’s a revised (REPAYE) program that can take up to 25 years. These programs help former students pay less each month based upon their income. At the end of the day, they might not be worth the trouble.

2) Good Chance Your Balance Will Increase

Getting on a student loan forgiveness program might be helpful for a lot of students. They can pay lower monthly payments, but there’s a reason why it can take as long as 25 years. Accruing interest is the major killer here. The interest doesn’t stop accumulating and will likely grow your balance.

http://financialhelpers.com/how-volunteer-work-can-help-pay-back-student-loans/

Every year, you have to re-certify your income. If you get a new job, a raise, or if your income changes under any circumstances, it can boot you out of the repayment program. You can even eventually take longer to repay than you would’ve done if you hadn’t joined the program. There are a lot of different scenarios to consider.

3) Student Loan Forgiveness Dollars Become Tax Debt

At the end of the day, you will have to pay off your debt. Any student loan forgiveness you receive only changes from loan debt to tax debt. That’s because the IRS still counts the amount forgiven as income you’ll have to pay taxes on. If you’re disabled or under the Public Service Loan Forgiveness program, this doesn’t apply to you.

4) The Future is Wide Open

Here at Financial Helpers, we’ve been regularly offering updates to the student loan forgiveness program. Each administration seems to have a different idea on the best way to offer help to students. The Obama administration created a lot of these programs at the height of the debt crisis, but the Trump administration seems to be more interested in protecting banks.

We recently reported that Betsy DeVos, the education secretary, was in favor of a tiered forgiveness program based on income. A federal judge ruled against her just last week. With this being said, there are a variety of different ways to pay off student loans quicker. There’s refinancing, repayment, and consolidation.

To learn more about your options and what plan works the best for you, call Financial Helpers today. We’ve love to hear from you. Our team of student loan debt experts is ready to assist in creating a plan around your budget and needs. You can call us at:

Call Now 844-332-2079

Read More