Tag Archives: StudentLoanDebt

How to Stay on Top of Your Federal Student Loans

Federal student loans are held by millions of people in the United States. However, the default rates on these loans continue to increase. In fact, the Brookings Institution argues that nearly 40 percent of federal loan borrowers could default by 2023. What many borrowers may not realize is that federal student loans have multiple repayment programs and tools that can prevent default. There are also loan forgiveness options for federal student loans. When attorneys Neil Sader and Michael Wambolt penned an article for Primerus Paradigm on federal loans, they emphasized that “what you owe is less important than what you know.” You must know which types of federal loans you carry to take advantage of these programs. Using the National Student Loan Data System The Department of Education’s Federal Student Aid Office (FSA) maintains the National Student Loan Data System (NSLDS). You can access your federal student loan data by…
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Five Common Student Loan Debt Myths You Should Watch Out For

If you have student loan debt and have been researching options to mitigate or get rid of it, don’t let these common student loan debt myths fool you: Debunking Common Student Loan Debt Myths Myth 1: Student Loan Consolidation Will Lower My Interest Rate Consolidating your loans will not likely result in a lower interest rate. A Federal Direct Consolidation Loan will apply a fixed, or stable interest rate to your loan, so you will have the same interest rate for the entirety of your loan. Your new interest rate will be a weighted average of the interest rates on your previous loans. Myth 2: I Can Simply Stop Paying My Student Loans When They Become Too Burdensome No. Unfortunately, this statement is not true. The consequences of stopping your loan payments depend on the type of loan you have. If your loan becomes classified as default or sent to…
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Does Income-Based Repayment for Student Debt Work?

To default on your student loans, you need to miss around a year of payments. Here in the United States, approximately 1 million student loan borrowers hit that mark every year. However, there are signs that this trend is changing, and income-based repayment plans might be one of the reasons why. How Are Income-Based Repayment Programs Affecting Student Debt? The New York Federal Reserve is reporting that 9 percent of student loans are overdue by 30 days or more. Back in 2013, that number was 11 percent. That means fewer student loan borrowers are defaulting on their loans, and experts are pointing to several causes. Improvements in the economy is one of the reasons these experts believe these rates are going down. Plentiful jobs are resulting in more stable incomes, and while that’s keeping people from defaulting, job availability is not the only reason default rates are dropping. Income-based repayment…
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