Posts Tagged: ‘student loan debt’

50% of Millennials Would Give Up this Fundamental Right to have Their Student Loan Debt Forgiven

October 12, 2017 Posted by kingcade

Student loan debt now stands at $1.33 trillion, according to the U.S. Department of Education and millennials pay on average $351 a month.  According to a recent survey, half of the nearly 500 respondents between the ages of 18 and 34 with student loan debt, said they would give up their ability to vote in the next two presidential elections if they could have their student loan debt forgiven.

Although, college graduates are more likely to vote than those with less education, half would prioritize their immediate financial well-being over their political beliefs.  Here are some tips for millennials struggling with student loan debt:

  • Know what you owe.
  • Millennials who have graduated and have jobs often qualify for better rates than when they had little to no income at the start of school.
  • Get help at work. A number of companies, including Fidelity and PwC, are offering employees help with paying down their student loan debt.
  • Seek forgiveness. Certain professions, such as public service jobs, offer student loan forgiveness. Others include public defenders, law enforcement officers, doctors, nurses and some teachers.  For example, teachers who work in low-income school districts and teach certain subjects may qualify for complete cancellation of their student loans.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Lennar Offers Millennials Unique Mortgage Opportunity that Helps Pay off Student Loan Debt

September 29, 2017 Posted by kingcade

It’s no surprise that the amount of student loan debt many Millennials have, has been holding them back from purchasing a home.  A National Association of Realtors (NAR) study showed that only 20% of Millennial respondents own a home, while the majority of them carry an average student loan balance of $41,200, which exceeds their average annual income of $38,800.

Among the Millennials surveyed who do not own a home, 83% said that their student loan debt affected their ability to purchase a home.

Eagle Home Mortgage, a mortgage lender and a subsidiary of Lennar, announced this week that it will offer a new mortgage program that will help home buyers pay off their student loan debt. Eagle Home Mortgage’s Student Loan Debt Mortgage Program offers borrowers as much as $13,000 that can be used to pay off student loan debt.

Here are some of the program’s terms and conditions:

  • Borrowers who use Eagle Home Mortgage’s Student Loan Debt Mortgage Program can direct up to 3% of the purchase price to pay their student loans, but only if they purchase a new home from Lennar.
  • Borrowers must meet credit and income requirements when using the Student Loan Debt Mortgage Program, and can qualify for loans with down payments as low as 3%.
  • The program is not intended for parents who took out loans to finance their child’s education.
  • The program’s maximum loan amount is $424,100, but Lennar said that in addition to the 3% contribution to student loan balances, buyers may also be eligible for other incentives – such as credits toward closing costs.

According to Lennar, the homebuilder will contribute up to 3% of the purchase price of a new home to be used to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs.  The Student Loan Debt Mortgage Program is being offered on a trial basis with new Lennar homes nationwide.

Click here to learn more about the program.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.housingwire.com/articles/41396-lennar-targets-millennials-with-mortgage-that-pays-off-student-loan-debt

U.S. Cracks Down on Collection of Private Student Loan Debt

September 19, 2017 Posted by kingcade

The U.S. consumer financial watchdog has ordered National College Student Loan Trusts and its debt collector, Transworld Systems Inc., to pay at least $21.6 million for attempting to collect on out-of-date loans and possible non-existent loans.

The Consumer Financial Protection Bureau (CFPB) alleges that the companies sued borrowers without being able to prove the debt was even owed or pursued collections where the debt was too old, relying on false and misleading legal documents.  There were at least 486 lawsuits filed where the statute of limitations had expired on the debt.

As a result, consumers made payments of at least $3.5 million on debt they did not owe, according to the CFPB. Transworld agreed to settle by paying a $2.5 million, which is part of the total of amount of at least $21.6 million.

Offered by banks and other companies, private student loans do not provide the same borrower protections and repayment options as federal student loans.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Why Paying off Your Student Loan Debt Early Could be a Mistake

September 14, 2017 Posted by kingcade

The average college student who graduated in 2016 had approximately $37,172 in student loan debt.  While experts offer differing opinions on exactly which types of debts are considered good and bad, everyone agrees that debt on something that will end up making you money in the long run is essentially “good debt.”

A 2013 study based on Labor Department statistics showed that Americans holding a four-year college degree made 98% more per hour on average than those without a degree. Student loans are typically a low interest debt, as opposed to credit card debt which is typically the most expensive kind of debt.

The interest rate for undergraduate federal student loans disbursed in 2017 was 4.45%; the rate for federal graduate student loans was 6%. Compare that to the average credit card APR of 15.59%.

The Department of Education allows student borrowers to choose from up to eight different repayment plan options, several of which are designed for those with low income levels. If one repayment plan does not work, you can switch to another.

Private student loan debt is different and comes with a higher interest rate.  Private student loan lenders offer what is called “financial hardship forbearance,” which means you can suspend your payments due to financial hardship but the interest continues to accrue and is added to the balance.

Paying your student loan debt consistently overtime can lead to debt forgiveness.  Certain federal student loan repayment plans can result in automatic debt forgiveness. If you choose the Income-Based Repayment Plan, the Income-Contingent Repayment Plan, or either of the Pay As You Earn Repayment Plans, any balance you owe on your federal loans after 25 years will be automatically forgiven.  Student loan debt interest is also tax deductible, something you will see in your refund after filing your personal taxes.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Regulators able to get $192 million in Student Loan Debt Settlement from Aequitas

September 5, 2017 Posted by kingcade

Aequitas Capital executives believed they had purchased a gold mine when they began buying student loans from Corinthian Colleges- instead, the debt proved to be the company’s downfall.  Following the for-profit college’s decent into bankruptcy and liquidation; Aequitas also collapsed amid accusations the company’s top execs were running a Ponzi scheme.

However, Aequitas continued to collect payments on the debt- until now. The U.S. Consumer Financial Protection Bureau and several state attorneys general and the Aequitas receiver reached a deal in which about 41,000 former Corinthian students whose debt is held by Aequitas could get more than half- possibly all, of their debt eliminated.

In July 2015, Aequitas became a key ally and vital source of liquidity for Corinthian by buying massive amounts of student debt. By helping finance Corinthian’s in-house private loans, Aequitas enabled Corinthian to access billions in student loan money from the U.S. government.

The bureau recently filed a lawsuit against Aequitas as part of the settlement. It claims Aequitas employees privately expressed anxiety about the huge percentage of Corinthian students who were failing to make their loan payments. “With defaults this high, how can we defend our practices,” the unidentified employee wrote in a 2011 note.

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.