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Post by healthy11 on Oct 14, 2014 9:10:41 GMT -5
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Post by healthy11 on Nov 13, 2014 20:59:56 GMT -5
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Post by healthy11 on Dec 18, 2014 20:21:38 GMT -5
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Post by healthy11 on Mar 10, 2015 18:14:54 GMT -5
Earlier today, President Obama signed a "student aid bill of rights" concerning repayment of federal student loans: news.yahoo.com/obama-aims-clamp-down-federal-student-loan-servicers-100017153--politics.html"Among other things, third parties like Navient — formerly Sallie Mae — that contract with the government to collect on loans, will be required to better inform borrowers about repayment options and notify them when they are delinquent, the White House said. Obama also called for a single website where students can see all their federal loans in one place — a major problem for students with multiple loans or debt that's been sold from lender to lender. He also called for a website where borrowers can file complaints. Obama also floated the possibility of proposing legal changes to how student loans are affected by bankruptcy. Currently, student loans cannot typically be discharged even in bankruptcy. His memo also requires servicers to apply early payments to loans with the highest interest rates, helping students pay off debt faster...."
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Post by healthy11 on Mar 19, 2015 16:11:38 GMT -5
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Post by healthy11 on Jul 9, 2015 17:00:11 GMT -5
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Post by healthy11 on Aug 5, 2015 22:29:53 GMT -5
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Post by healthy11 on Oct 5, 2015 19:31:39 GMT -5
Here's another related article that talks about how some parents are still paying off their student loans, and are therefore less able to help their soon-to-be-college-age children, so then the kids have to take out larger loans. It gives a lot of interesting financial statistics about salaries for college grads, comparing undergraduate and grad degrees, etc. : www.finance.yahoo.com/news/student-debt-squeezing-parents-children-070134663.html
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Post by eoffg on Oct 6, 2015 5:09:19 GMT -5
While that article talks about parents still paying off their student loans? This could extend into grand-parents still paying off their student loans?
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Post by healthy11 on Oct 6, 2015 7:54:17 GMT -5
Eoffg, I would like to think that most people are able to pay off their student loans before becoming grandparents, but I'll admit that the possibility of what you mention is there. It's certainly not unheard of for teens to have babies. Unfortunately, if they do, then chances are that if they've taken out student loans, they probably are not going to be in positions to hold jobs that enable them to raise their kids and maintain their own households, as well as pay off their student loans early, not to mention be able to save for their children's college educations. Unfortunately, if their children also have kids in their teens, the cycle can easily continue. If a grandparent is in their 30's or 40's, it's easy to believe that they could still have student loans to pay off. (Here's a family in the U.K, where the grandfather is only 29!! www.dailymail.co.uk/news/article-2020801/Britains-youngest-grandparents-Shem-Davies-granddad-29-Kelly-John-granny-30.html )
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Post by mamak on Oct 6, 2015 12:50:35 GMT -5
Eoffg, In some states here the teen moms are flooded with free everything including tuition and the more kids the more money they get. A lot of parents & immigrants here will not marry the father just to play the system and get all the free money and services.
I believe it is a choice to take on the debt that those that have now own. We chose schools we could afford and are paying as we go. Needless to say they don't attend Ivy League schools. Kids need to be realistic and parents need to just say no. Prices went up as money started flowing like water. Outcomes in my opinion are driven by what the person is not where the person studied.
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Post by mom22 on Oct 6, 2015 15:28:14 GMT -5
Not only teen parents. My husband was in the military for 10 years after high school. He didn't finish getting his degree until he was 34 and his student loan is a 30 year loan. He could have grandchildren and still have student loans.
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Post by healthy11 on Oct 6, 2015 16:22:25 GMT -5
Mom22, let me first welcome you to the Millermom forum. I'll admit I thought there were special programs for ex-military members, such that they wouldn't end up with the same kinds of long-term student loans. Hopefully your husband's degree has enabled him to obtain a better job/long-term career, and in the end, he'll still feel it was worth it.
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Post by healthy11 on Oct 28, 2015 21:40:56 GMT -5
10/27/15: finance.yahoo.com/news/REPAYE-student-loan-repayment-plan-205415637.html mentions important new changes that can help those struggling paying off student loans: The Education Department officially unveiled its long-anticipated expansion of the income-based repayment program, Pay As You Earn (PAYE)....The new version is called REPAYE (the “RE” stands for “revised”) and will allow 5 million more federal student loan borrowers to enroll. The new plan accomplishes this by letting borrowers sign up regardless of when they borrowed their loans or their debt-to-income ratio. The existing PAYE model is only available to people who borrowed after 2007 and whose debt greatly outweighs their income. Those enrolled in the REPAYE plan can have their payments capped at 10% of their income. Extending the program to an additional 5 million borrowers will cost the federal government an estimated $15.4 billion over the next 10 years. “Allowing all borrowers to enroll regardless of when they borrowed or how much they owe will help more struggling borrowers better manage their payments, including those who dropped out of school with low balances and are among the most likely to default,” Lauren Asher, president of The Institute for College Access & Success (TICAS), said in a statement. A downside of that plan is that American taxpayers will be "on the hook" for people who end up never repaying because their loans are "forgiven": www.forbes.com/sites/prestoncooper2/2016/05/03/obamas-student-loan-push-has-one-big-problem/#3ed764502b3cHERE'S AN ARTICLE THAT COMPARES HOW MUCH AND HOW LONG IT MIGHT TAKE TO PAY OFF STUDENT LOANS UNDER VARIOUS REPAYMENT PROGRAMS: college.usatoday.com/2016/03/24/student-loan-borrowers/
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Post by healthy11 on Dec 29, 2015 17:04:41 GMT -5
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Post by healthy11 on Feb 15, 2016 20:52:25 GMT -5
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Post by healthy11 on Feb 21, 2016 18:26:23 GMT -5
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Post by healthy11 on Mar 2, 2016 15:59:07 GMT -5
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Post by healthy11 on Apr 30, 2016 15:17:22 GMT -5
Lest anyone doubt how much faster college costs have increased compared to other costs, look at the statistics given below: "...A recent study shows that college tuitions nationwide have spiked 538 percent from 1985 to 2013, “compared with a 286 percent jump in medical costs and a 121 percent gain in the consumer price index.” In an attempt to keep pace with these historic price increases, students and their parents have amassed historic student-loan debt, which today is close to $1.3 trillion, which is more than total national credit card debt. No surprise, another study finds that 27.3 percent of student borrowers are now in default on their loans..." www.forbes.com/sites/tomlindsay/2016/04/30/higher-ed-group-to-taxpayers-youre-selfish-and-should-give-us-still-more-of-your-paychecks/#4becb4645b15
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Post by healthy11 on May 4, 2016 10:20:23 GMT -5
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Post by healthy11 on Dec 27, 2018 14:23:13 GMT -5
How Student Loan Debt is Different From Other Types of Debt U.S.News & World Report Courtney Nagle,U.S.News & World Report Wed, Dec 26, 2018:
Ignoring student loan debt does not make it go away. Student loans, like all consumer debt, are taken out with the expectation that the borrower will pay them back.
All consumer debt can be broken down into two main types, either secured or unsecured. Secured debt is backed or "secured" either by another person liable for the debt or by the item being purchased, like a car or a house. Unsecured debt like credit cards, personal loans and medical debt are not backed by collateral or any other guarantor, just a promise to pay from the consumer.
While student loans fall under the unsecured category, they are not treated the same way when it comes to nonpayment. Failure to pay any debt will result in some type of collection effort by the creditor. The type of debt will determine the type of collection effort.
Because there is usually collateral attached to a secured loan, the remedy for failing to pay is generally repossession or foreclosure. If another guarantor was used for the secured loan, that person will be pursued next for payment.
Since there is no collateral or other guarantor attached to an unsecured student loan, these remedies do not exist. This means failure to pay an unsecured debt, like a student loan, will require legal action that can ultimately result in a lawsuit and the possibility of having a judgment rendered against the consumer, including garnishment of wages.
[Read: Q&A: Understanding Student Loan Discharge Eligibility.]
There are a few key differences between student loans and other consumer debt for borrowers to consider.
Consumers struggling with student loan debt may not find relief through bankruptcy. For consumers struggling with most other types of debt, filing for bankruptcy is an option. In comparison, while not impossible, the requirements for discharging student loan debt through bankruptcy are quite stringent. These include proving undue hardship that is likely to continue and demonstrating that a good faith effort to repay the loan has been made.
This test applies to both federal and private student loans, because both are protected by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
Federal student loans are backed by the federal government. It is important to understand how student loans are guaranteed, which is different from other kinds of consumer debt.
Federal student loans are backed by the federal government and processed and disbursed by the U.S. Department of Education. Private student loans are backed by private institutions, but as noted above, are protected by the same bankruptcy act.
Federal student loans do not have a statute of limitations. It also important to know that in the case of federal student loans, there is no statute of limitations to fall back on. Other types of consumer debt, such as credit cards, generally have a three to 10 year range for their statute of limitations, but these vary based on state laws, according to the U.S. Federal Trade Commission.
[Read: Understand the Statute of Limitations on Student Loans.]
While private loans do have a statute of limitation that is set by state governments, running out the clock does not mean that the debt goes away. The statute of limitations is simply the time limit set for when a creditor can sue for failure to pay the debt.
Federal student loans do offer protections. Although student loans do not have the same statute of limitation protections as other consumer debt, the federal government has taken steps to provide other forms of protection from overbearing debt.
Federal loans offer various repayment plans that can be altered as circumstances change. The standard repayment term for a federal student loan is 10 years, but these loans also offer graduated, extended and income-driven repayment terms. Federal loans also offer some forgiveness programs.
[Read: What to Know About Federal Student Loan Repayment Options.]
Private loans are generally for 10 years and, in contrast, income-driven repayment terms and loan forgiveness are generally not available.
Since private loans offer few options for repayment, they are the last avenue that borrowers should pursue when seeking to finance education. Private loans may be necessary in the end, but scholarship and grant opportunities should be explored first, followed by federal student loan options.
The Student Loan Ranger suggests never trying to avoid repayment of student loans. It's important to communicate with loan servicers and keep them informed of your financial situation if you are having trouble paying, because student loans can come back to haunt you even 30 or 40 years down the road if they go unpaid.
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Post by healthy11 on Jun 9, 2019 14:32:47 GMT -5
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