How I Saved $30,000 By Refinancing My Student Loans

Written by adminJuly 3, 2018
Student Loan Consolidation

Michael S. Shares His Story with Financial Helpers:

Like so many other bright-eyed American teenagers, I graduated high school full of hopes and dreams for the future.

I was told the same story repeatedly. “Mike, if you want to be something, then you need to get a degree.” So, that’s what I did. I packed my bags, kissed my mom on the cheek, and headed off to architecture school.

I had a passion for art and felt I was doing myself a favor by channeling my modest skill into a lifelong career. I knew I wasn’t going to be the next Picasso, so architecture might be the next best thing. It pays well and housing market was booming!

Well, things change. I graduated from Lawrence Tech in the height of the housing crisis. No one was building, which meant no one was hiring fresh-faced architects right out of college who didn’t have a speck of work experience.

They tell you how easy it will be to get a job after your graduate, but they only do that to get you in the door. I must admit, I was growing increasingly frustrated and even downright angry.

I worked SO hard for my degree, putting in long hours and promising myself that life would be great once I graduated, but those promises didn’t line up with reality.

I tried to do it on my own, but had to ask my parents if I could move back in. I got a job at a local sub shop because they were the only place looking for help. It was incredibly disheartening.

Here I am, like so many other graduates, with a bachelor’s degree in architecture, working in a sub shop for minimum wage, and that’s not the worst part.

At that time, I had over $100,000 worth of student debt, which meant that most of my paycheck went towards that. There’s no way I could afford to live on my own and pay this debt, so home is where I stayed.

Eventually, things did get a little better. I had some work experience under my belt, was promoted to manager, which bumped my pay. I then moved on to a decent factory job. It wasn’t architecture, but I felt I was moving closer to reaching my goals.

Still, the debt was killer. It hung over me like a black cloud and kept me from being able to make important life decisions. Should I buy that new car? Can I afford to move out of my parent’s place? If I met a girl, would she understand my situation?

One day, I was browsing the net and came across Financial Helpers. I read an article about refinancing your student loans to get a lower overall payment.

I was floored! This is something the lenders won’t tell you about because they want you to pay the loan in full. The problem is, lenders don’t tend to trust kids with no job and no work experience, so they’ll pump up the rates to the maximum level.

When you graduate and are doing fairly well, that can change the equation. You suddenly become more trustworthy and can negotiate a better deal. That better deal means you’ll end up paying LESS interest and lower payments over the lifetime of your loan.

Not only did I reduce my monthly payment by $80/month, I was able to save $30,000 and pay off my loans much quicker. This is exactly what I needed to get on with my life, move out of my parent’s home, and let them retire in peace.

$30,000 is a lot of money. It’s nearly a full year’s salary. I can’t tell you how thankful I am to Financial Helpers and their ability to help me solve my student debt crisis.

I’m now married and I own a home, but I can’t help but feel bad for the current and future generations of kids who are going to be put through the same ordeal I went through, except for them, it will continue to get worse.

College is becoming increasingly expensive and student loan debt is skyrocketing. No one should have to graduate college with that huge burden on their shoulders.

My advice to students out there: Keep your head up and do your best. There is help out there. Sites like Financial Helpers are there to provide you with options you didn’t know you had and can be lifesavers to everyday people like me.

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Having Student Loans Can Make Buying a Home Impossible

Written by adminMay 10, 2018
Saving

Owning a home is part of the big American dream. It’s why we care about going to college and getting the best education money can buy. When it’s time to settle down and start a family, part of the process involves securing a mortgage.

Right now, millennials fall within this age group. They’re graduating college, but find that life outside the campus isn’t as easy as they first thought, forcing them to live at home.

The first issue is the current housing economy. Millennials are starting their families, yet they find that housing isn’t so easy to find anymore. When they do find something, the prices are through the roof. That’s because the high demand coupled with low inventory sends cost nearly to unattainable levels on its own.

The cost of rent is much higher. 23% of millennials say they felt forced to buy a home because rent was way too high. Rent has gone up in 85 of the top 100 cities, according to a survey from the Department of Housing and Urban Development.

This isn’t the only thing stopping millennials from buying a home. The other issue is their debt.

Currently, 62% of millennials have student loan debt, which exacerbates the cost of home ownership. 45 million Americans owe $1.5 trillion in student debt, as it was recently reported. It’s a new record that doesn’t seem to be going away anytime soon.

Almost 1/5 of those with student debt owe $100,000 or more. That’s a lot of money and it works against them when it’s time to buy a home.

A large amount of student will not only take a large portion of your income (if you’re paying back regularly), but also put a huge dent in your credit. If you’re credit isn’t in tip-top shape and you already have a large amount of debt, banks will be less likely to give you a loan.

Even if they do feel confident enough to do so, you can bet the interest rate will be enormous.

That’s why 80% of millennials blame their lack of home ownership on their student debt. Regardless of their need to escape high rent costs and/or they’ve started a family and need a bigger place, their student loans made their dream impossible.

Debt-to-Income Ratio

According to the National Association of Realtors, nearly 1/5 of those who can’t get mortgage approval are denied because of student loans. That’s because their debt-to-income ratio is way too high. Banks look it as unsecured debt, which is applied negatively towards the borrower.

If a large chunk of your income is going towards student loans, that means you probably don’t have much of an opportunity save money. If you can’t save, then you can’t afford a down payment.

85% of those with student loans say they delayed buying a home because they didn’t have the money for a down payment. Most former students pay between $350-$500 each month for their loans. That makes it extremely challenging to be able to throw down $40,000 for a down payment.

For this very reason, a lot of millennials turn toward their parents as a co-signer or for the loan.

The best thing for anyone to do after graduating college is to focus on their career and paying off debts. If your debt is getting the best of you and preventing you from having milestone moments, then you should get help in taking care of your loans.

The federal government has created several programs designed to help people pay off their debts faster.

For more information about these programs and to see if you qualify, call us today at: (855) 221-9282. Getting your student debt under control should always been your first goal, or else it will keep you from living the life you deserve.

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Trump and DeVos Still Want to Make Massive Cuts to Student Aid Programs

Written by adminApril 20, 2018
Student Loan Consolidation

Ever since President Trump was elected and sworn in, he’s made it his mission to hack and slash federal spending. We’ve seen attempts to make critical cuts to important programs, like public television and Meals on Wheels.

Sadly, the proposed cuts don’t end there, and it’s bad news for millions of students trapped under a mountain of debt. The programs he really wants to cut into are the student aid programs passed through during the Obama administration.

Last year, Trump set out to cut as much as $4 billion from those programs, but in a compromise move by the president, those cuts have been put on hold. For now.

The 2019 budget has the same proposals they wanted pass in 2018.

The 2019 proposal includes:
-Cutting loan forgiveness programs for public servants.
-Move the current five income-driven repayment programs into one where the monthly payments are higher, but takes much less time to pay back.
-Graduate students would take longer to repay their loans under this plan.
-Stops paying the interest on loans taken out by low-income students.
-No more debt forgiveness for social workers and teachers after 10 years of repayment.

“At a time when millions of students are struggling under the crushing burden of student debt, it speaks volumes that President Trump and Secretary DeVos are proposing $200 billion in cuts to financial aid,” said Democratic Senator Patty Murray this week. “This is a complete 180 from the agreement Republicans and Democrats made last week.”

2018 Budget Keeps Funding in Place

As President Trump begrudgingly signed the spending bill into law to keep the government from shutting down, it protected a lot of the existing programs he wants to cut. Rather than cutting the work-study program, the White House proposed using $300 million of the extra bill money to go towards it.

They’ve also decided not to cut programs like Gear UP that is designed to help poor students starting in middle school get prepared for college. Instead, it combines Gear UP with TRIO into a $500 million grant given to the states to dole out to kids in need.

Also, Pell Grants are safe for the time being. Part of the 2018 proposals looked to take $1.6 billion from the program, but the current budget leaves it alone. Instead, the budget aims to prevent more money from being pumped into Pell Grants by keeping the numbers right where they are. That means no adjustment will take place to account for later inflation of tuition.

That’s not a good deal, according to Jessica Thompson. She’s the Policy and Research Director at the Institute for College Access and Success. She says the Pell Grant right now barely does a good enough job at keeping needy students afloat.

“They aren’t making any of the critical investments in Pell grants, which is a huge missed opportunity. The current max grant is covering the lowest share of college costs in over four decades,” she said.

While President Trump wants to make cuts to Pell Grants, he also desires to expand the program to cover different trades and short-term certificates/degrees. He hopes this will spur on employment growth in skilled labor markets, such as manufacturers and construction workers.

The overall goal of Trump and Education Secretary Betsy DeVos is to bring back the Higher Education Act, which includes a lot of these cuts to student aid. At least for the next year, students have an opportunity to take advantage of the current laws to get assistance in paying their debts down.

To learn more about reducing your debt and how we can help, please call (844) 899 7540 today. We’d love to hear from you before the laws change for good.

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Student Loans Are About to Change Under Trump’s New Plan

Written by adminFebruary 15, 2018
Student Loan Consolidation

Ever since President Trump took office back in 2016, his mission has been to cut the budget down as low as it can go. With that, we’ve seen a lot of (often beloved) programs face reductions or end up on the chopping block itself. We all remember the worry PBS had over losing federal funding, as well as crucial services like Meals on Wheels.

Now, it appears as if student loan programs are next.

According to President Trump’s proposal, he hopes to drastically reduce loan repayment plans for students who qualify based on their income, increase the government’s pressure on students not paying their loads, and cut the Public Service Loan Forgiveness Program altogether.

This is troublesome for the 5.7 million students who hoped to graduate with help from the government to pay off some of the loan debt that threatens to crush them without the programs. As college becomes increasingly expensive, students are looking for more options to help them enter the work force not burdened by tens of thousands of dollars’ worth of debt.

The new plan won’t just cut programs, but will also drastically reduce the number of repayment plans. Before, you could choose between 4 plans that considers your income, but the bill hopes to cut down the options to just one, capping the payments at 12.5 percent.

It’s Not All Bad News

There are aspects of the bill that are appealing, including the idea to expand Pell Grants to cover other training programs that tend to be short-term. These are the types of jobs that will always be in need, so the Trump Administration felt it was important to extend grant access to those students as well.

The plan will also offer loan forgiveness for undergraduate students in 15 years, verses the current plan that waits 20. Those five years can be a lifesaver for anyone still struggling almost two decades later. The higher-end degrees will have to wait 30 years for loan forgiveness to kick in for them.

While the plan wouldn’t kick into gear until July 1st, 2019, as of right now, it’s just a plan and will most likely undergo a transformation as it makes its way to lawmakers. Who knows what the final bill would look like, but it’s certainly worth paying attention to, especially if you were looking forward to receiving the help.

 

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Borrowers Rush to Take Advantage of Millions in Student Loan Settlements

Written by adminApril 21, 2017
Student Loan Consolidation

*This is an Advertorial*

If you have student loans you have probably heard of what most experts are calling the “Student Loan Bailout“. Much like the mortgage bailout several years ago, millions of borrowers are having payments reduced and some even receiving refunds or forgiveness.

According to the Washington Post, the Obama administration announced a plan to forgive and additional $7.7 billion in federal student loans held by an estimated 387,000 Americans. This comes months after Sallie Mae, also known as Navient agreed to pay a combined $139 million and the U.S. Department of Education announced more than $480 million in forgiveness for other borrowers.

Borrowers are rushing to enroll in these programs before they change or possibly repealed under the new administration. Due to high demand the Student Relief Center has established a helpline at 1 (844) 899 7540 and provides a free eligibility check Mon- Fri.

Why is Student Loan Forgiveness Happening?

The amount of money owed by individuals continues to grow due to high compounding interest rates. This is making it even harder for many to overcome student loan debt. As a result, many Americans are finding themselves under a huge burden and cannot pay for some essentials including rent, their mortgage, car payments and even monthly food bills. The effects of overbearing student loans are also affecting the national economy and adding to the growing financial crisis in America.

The Obama Administration hopes Student Loan Forgiveness options will put more money in our pockets and stimulate the economy. Like the policy or not it may help millions of Americans get back on track. The problem is that these programs could change when he leaves office in January.

A Common Struggle

Jeremy, a Web Designer, explains his personal struggle with student loans. He received his associates degree for Web Design from Bryant and Stratton College in 2004. Borrowing $45,000 in federal and private loans, Cooper says he hasn’t been able to get a job in Web design because, “Everything that I had learned from my degree became obsolete even before I graduated because the technology moves so fast.” Since graduation, Cooper has fallen behind on his loan payments, and his debt has nearly doubled to $88,000. Despite working full-time day and part-time night jobs and scaling back his expenses to the bare minimum, Cooper says he does not see a way out of default.

How do you Get Help if you Have Student Loans?

If you find yourself burdened by the repayment of student loans, you are not alone. You are just one of the 40 million Americans who owed financial institutions more than $1.31 trillion at the end of 2014.

Despite this, there are several new programs aimed at reducing payments, forgiving, discharging or even cancelling student loans owed by millions of struggling Americans. Not everyone qualifies for these programs, but there are several options available for any type of situation. To know whether you are eligible for student loan forgiveness, consolidation or lower monthly repayments, call the Student Relief Helpline at  1-844-899-7540.

What is Student Loan Forgiveness?

“Loan forgiveness is the cancellation of all or some portion of your federal student loan balance. Yes, that’s right—cancellation of your loan balance. If your loan is forgiven, you are no longer required to repay that loan.”

Student Loan Borrowers may contact the Financial Helpers to get information on available programs in your area.

Financial Helpers
Phone: 1 (844) 899 7540
Monday – Friday | 9am to 6pm

THIS IS AN ADVERTISEMENT AND NOT AN ACTUAL NEWS ARTICLE, BLOG, OR CONSUMER PROTECTION UPDATE

This website / blog is not affiliated with the Department of Education, Navient, Sallie Mae or any other student loan servicer.

The information and notices contained on this website are intended as general research and information and are expressly not intended, and should not be regarded, as financial or legal advice. We attempt to ensure that the material contained on the web-site is accurate and complete at the date first published, however you should recognize that information contained on this web-site may become out of date over time.
By calling you will be connected to partners in our network. Each partner will provide a proposal for services & may charge a fee for their service. Consumers may perform these services for themselves, many or all of which may be without charge. Our partners do not guarantee that your student loan payments or amount owed will be reduced. Obtaining lower payments or loan forgiveness is based on several factors including approval from the Department of Education.
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The Benefits of a Direct Consolidation Loan and Your Eligibility

Written by adminJanuary 4, 2017
Student Loan Consolidation

Do you lose track of monthly bills and payment schedules? A Direct Consolidation Loan makes it easy to manage your finances and borrowers may even save money. Get organized and stay on top of monthly payments with the additional payment options offered through a Direct Consolidation Loan. Learn about what qualifying individuals receive from a Direct Consolidation Loan.

How You Benefit from a Direct Consolidation Loan

Work with the U.S. Department of education to organize and manage your finances. A Direct Consolidation Loan offers:

  • The ability to transform one or more Federal education loans into a single loan with more advantages. You will have only one lender for your new Direct Consolidation Loan that can account for multiple Federal education loans.
  • Flexible repayment plans to choose from and the ability to switch plans at any time. There are plans that adjust the monthly payment on a borrower’s income. These plans are created to meet your changing needs.
  • Free consolidation. There is no fee or minimum amount required to qualify.
  • The potential to pay less on monthly payments. A borrower’s monthly payment may be lowered as the minimum monthly payment on direct consolidation loans can be lower than combined payments on a borrower’s Federal education loans. You can make necessary payments on a Direct Consolidation Loan and pay less.
  • Continuation of subsidy benefits from subsidized loans. A Direct Consolidation Loan is composed of 2 possible areas: Subsidized and Unsubsidized. Subsidy benefits continue for most subsidized loans that are rolled into the subsidized area of this loan.

FFEL Loans, PLUS Loans, Perkins Loans and some health profession loans may be consolidated into a Direct Consolidation Loan with some exceptions or additional terms. A single payment that can potentially be less than current multiple loan payments and be aligned with your budget is available with a Direct Consolidation Loan for those that qualify.

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How to Determine Eligibility

Certain requirements must be met to afford potential borrowers the ability to exchange their multiple loans with multiple lenders to one payment with the U.S. Department of Education. For those that seek to apply for a Direct Consolidation Loan, they must have meet the following criteria:

  • Have a minimum of one Direct Loan or FFEL (Federal Family Education Loan) Loan in grace or repayment status. Repayment status also covers loans in a forbearance or deferment period.
  • Make satisfactory repayment arrangements with current loan holders on the majority of defaulted federal education loans or agree to repay them with an Income Contingent Repayment Plan or Income Based Repayment Plan under their new Direct Consolidation Loan.

Some situations are not accepted for Direct Loan Consolidation. Any loans in in-school status are not eligible. Those that are married cannot consolidate individual Federal education loans into one Direct Consolidation Loan listing them as joint borrowers.

What are the Payment Plan Options

The Direct Consolidation Loan has 5 repayment plans available. Each plan has its own set terms, but borrowers can choose to change plans as needed. Borrowers can select the:

  • Standard Repayment Plan
  • Graduated Repayment Plan
  • Extended Repayment Plan
  • Income Contingent Repayment Plan (ICR) and
  • Income-Based Repayment Plan (IBR).

Borrowers have a range of options that can suit their individual needs and budgets. Manage your student debt with A Direct Consolidation Loan.

SEE IF YOU QUALIFY NOW »

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