Parents the New Target of Student Loans

March 31, 2016 Posted by kingcade

Private student lenders and banks are beginning to target their student loan offerings at one demographic who might be able to afford the rising tuition rates: parents. Lenders like Sallie Mae are coming up with “parent loans” that give borrowers funds to pay for their college-bound children’s education.

These parent loans are becoming available at a time when student loan debt is rising at a steady rate. Total student loan debt is estimated to be around $1.3 trillion- and grows by about $2,726 every second!  Increasingly, that debt is being passed on to students’ dads and moms.  Parents cosign approximately 90% of private undergraduate student loan debt, according to data from MeasureOne.

With these new loans, creditworthy parents will get lower interest rates. In addition, they will not have to pay origination fees, which is an additional cost attached to the processing of a loan. However, these new financing options may still not be enough to combat the rising cost of college tuition.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

Comments are closed.