What are the Major Differences Between Private and Federal Student Loans?

The most recent statistics on higher education debt show that more than 44 million Americans carry $1.4 trillion in student loans. You read that correctly. This figure implies that Americans owe more in student loans than credit card debt. While a majority of borrowers have federal student loans, there are some who have private higher education debt. Federal loans are funded and issued by the federal government. Private loans are issued by banks or other private sources. However, there are many other differences between the two types of loans. Private loans can have variable interest rates. Interest rates for private student loans can increase. As your interest rates increase, so do your monthly payments. Depending on your credit history, you may be offered lower initial rates by a private lender for accepting this risk. Income-driven plans are not available for private loans. We have blogged extensively about income-driven repayment plans…
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Credit Counseling Services

In 2008, over three million people contacted credit counselors. About a third of those people were able to manage their own finances after the counseling. The rest of them were unsuccessful and fell into several different categories – too deep into debt for credit counseling to help, had problems that credit counseling could not fix or enrolled in more intensive debt management programs. Of those in the latter category, around half of all enrolled stopped attending their program.

Credit Problems Still Affecting Many Americans

Call a Kansas City Bankruptcy Lawyer It has been five years since the collapse of Lehman Brothers and the resultant economic downturn. To this day, many Americans are still reeling from the effects of the fiscal meltdown, as noted in a recent article in Time. Whether due to heavy debt loads, depleted savings accounts or loss of home equity, it is clear that the economy is still rebounding from the effects of the crash. If you are struggling to recover from the financial downturn, consider contacting a Kansas City bankruptcy lawyer. Proper legal counsel can help you to discover debt solutions that you may not have known were available. 50 Percent Feel Financially Insecure The total losses of the downturn accounted to some $16 trillion, according to the article. Depreciation in the value of homes, stock prices, retirement accounts and other investments took a tremendous toll on the overall financial…
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Older Americans Turn to Bankruptcy in Kansas City

Bankruptcy can relieve debtors from liability for some unsecured debts and prevent creditors from taking collection actions. According to a July 2009 Bloomberg report, there were 675,351 consumer bankruptcy filings in the first half of 2009, a 36.5 percent increase over 2008 numbers. Older Americans have experienced the sharpest increase in bankruptcy filings, jumping from 8.2 percent of debtors in 1991 to 22.3 percent in 2007, according to a study by the Consumer Bankruptcy Project, as reported by The Associated Press. The study found that Americans 55 and older accounted for approximately 8 percent of bankruptcies filed in 2001. But by 2007 Americans 55 and older represented 22 percent of bankruptcy filings. The increase was also found by the Public Policy Institute of the AARP (American Association of Retired Persons). Harvard Law Professor Elizabeth Warren, author of the study, also found that the median age for bankruptcy filers had increased…
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