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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What Are the Benefits of Federal Student Loans?

Whether you are approaching the end of your high school career or are seeking higher education later in life, you will have to answer the question: Where will I find the money to ensure a successful career? The vast majority of people seeking a college education will look to loans as their means of getting their degrees. There are a variety of institutions that are willing to fund an individual’s college aspirations, but what types of loans are best for you? What are the benefits of federal student loans? Here is a short list. You do not need a credit history to obtain federal student loans. Whereas most private loans require some sort of credit history, federal student loans are available to any enrolled undergraduate that can demonstrate financial need. Federal student loans do not require a co-signer. If you are young and do not have much credit history, you…
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