Tag Archives: StudentLoans

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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Should It Be Easier for Student Loans to Be Dischargeable?

In the 1970s, the number of college graduates defaulting on their federal student loans spiked. In response, Congress granted special status to federal student loans. New laws prevented student loans from being discharged in bankruptcy court unless the loans imposed “undue hardship” on the borrower. As judgements only appear to be increasingly stringent on what circumstances qualify as presenting an “undue hardship” for borrowers, some experts and judges are wondering if the law needs to change. Could Student Loan Discharges Become More Common? In today’s United States, the average college graduate leaves school with approximately $36,888 of debt. This number is more than double the average student debt figures from 1993. As the need to take on college debt increases, more and more borrowers are finding it harder to make ends meet. According to a report from the University of Pennsylvania Law School, nearly forty percent of Chapter 7 and…
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How Can You Lower Student Loan Payments?

The Consumer Financial Protection Bureau (CFPB) has accused student loan servicers of failing to enroll borrowers into income-based repayment programs. As a result, borrowers are paying more than they have to and defaults have increased. You may have multiple options to lower student loan payments. Income-driven repayment programs tie monthly payments to a percentage of your discretionary income. Your options for participating in these programs vary depending on the types of loans you have and when they were dispersed. The first step to seeking lower payments is to use the Department of Education’s National Student Loan Data System (also known as the NSLDS). After logging in, you should see the types of loans you carry and information on your loan servicers. More details may be available on the top portion of your Master Promissory Note (MPN) for your loans. What Are the Eligibility Requirements for the IBR Program? There are…
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