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…
Read More »
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…
Read More »
Fifth Third Bank –a group of banks with branches located in the eastern half of the United States– created a mobile app designed to help its customers pay off their student loans. So far, the app has helped customers dispose of $1 million dollars’ worth of student debt. The app works by rounding customer debit purchases up to the nearest dollar, then applies that extra money to the customer’s education loans. The bad news, of course, is it’s only for Fifth Third customers. If you’re not one of the fortunate, here are five similar apps designed to help conquer your student debt. 1. ChangeED Much like the Fifth Third Bank app, ChangED helps borrowers pay off debt by rounding purchases up to the nearest dollar. “Round-up” apps help borrowers utilize “spare change” to save money–or lower debts. ChangeED works specifically to help speed student loan payoffs. If you choose this…
Read More »
*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
© 2010–2024 The Sader Law Firm
Book an
Email
Directions
