Student Loans Archives - Page 20 of 31 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

More than 1.1 Million Borrowers Defaulted on Their Federal Student Loans Last Year

Posted on March 22, 2017by Admin

An average of 3,000 borrowers default on their federal student loans every day. The number increased 17 percent from 2015 to 2016, according to a consumer Federation of America analysis of U.S. Department of Education data.

Despite a growing economy, 42.4 million Americans owed $1.3 trillion in federal student loans last year. By the end of the year more than 4.2 million borrowers were in default. This is up from 3.6 million the previous year, meaning that 1.1 million borrowers went into or re-entered default last year.

How to Avoid Defaulting on Student Loans

If your debt is unmanageable, you have options:

If you have federal student loans, you can qualify for income-based repayment plans. The percentage of federal student loan borrowers enrolled in repayment plans has quadrupled over the past four years. Keep in mind you must re-apply every year for income-based repayment.
If you have private loans you have limited options. Some lenders offer forbearance if borrowers can’t make their payments. The benefits are not as vigorous as they are with federal loans and typically last no more than 12 months.

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

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Trump Administration Erases Restriction on Big Student Loan Fees

Posted on March 21, 2017by Admin

The Trump administration recently repealed the Obama guidelines and instructed guarantee agencies to once again go after defaulters with big fees. Agencies had previously been charging fees of up to 18.5 percent when people defaulted on their student loans. However, in July 2015 the Obama administration issued a memo forbidding such practices as long as the borrower entered into the government’s loan rehabilitation program within 60 days of defaulting and started paying again.

The announcement came after a report was released that found a double-digit increase in defaults. It also came after Sen. Elizabeth Warren asked Education Secretary Betsy DeVos to keep the guidelines in place.

The loans that are affected by the changes are loans through the Federal Family Education Loan Program (FFEL) that were taken out before 2010. There are approximately seven million borrowers with $162 billion of outstanding debt in the FFEL program.

Related Resources:

https://consumerist.com/2017/03/17/trump-administration-eases-restriction-on-student-loan-debt-collectors/

http://www.newser.com/story/239949/trump-change-means-student-loan-defaulters-face-big-fees.html

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Bipartisan Bill Could Help You Pay Off Your Student Loans

Posted on March 16, 2017by Admin

A new bill in Congress aims to encourage companies to offer help to their workers in paying off their student loan debt. Earlier this month, a bipartisan group of 31 lawmakers sponsored legislation that would make employer contributions to their staff’s student loan payments tax deductible. It would be similar to contributions companies make to their workers’ 401(k)s.

“Some companies are already offering this benefit because they see the advantage it gives them when recruiting and retaining younger employees, but we want to encourage more to participate so we can help both struggling graduates and our economy,” said Representative Rodney Davis, a Republican from Illinois who introduced the bill along with Representative Scott Peters, a Democrat from California.

Consulting firm PwC was one of the first companies to initiate a student loan benefit program last year. The company offers new employees $1,200 a year toward their loans for up to six years. Since then, several other companies have launched similar plans.

“Adding tax relief to the equation could elevate student loan assistance alongside 401(k) contribution as one of the most valuable financial benefits a company can offer its workers that directly impact their quality of life today,” said Scott Thompson, the CEO of Tuition IO, a company that helps employers put student loan benefit plans in place.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Delinquencies on Timeshare Rentals Reveal Another Sign of Consumer Debt Weakness

Posted on March 10, 2017by Admin

Americans are getting more behind on their timeshare rental payments, according to Fitch Ratings. Approximately 3.75 percent of timeshare borrowers were behind on their bills in the fourth quarter, up from 3.37 percent in the same period a year earlier, and the highest level since the end of 2011, according to the report.

According to Fitch, the defaults are evidence that loan companies are becoming less strict when financing to customers. These companies are also writing off more loans. The default rate rose to 0.70 percent in the fourth quarter from 0.61 percent in the same period a year earlier.

Other pockets of weakness include online consumer loans and subprime auto loans, which we have touched on in previous blogs. These rising delinquencies come as Americans have increased their debt at the fastest pace in three years.

U.S. household debt increased by $226 billion in the last three months of 2016, bringing total consumer debt to $12.58 trillion. The numbers, which include mortgages, student loans, auto loans and credit card debt, are dangerously close to the $12.68 trillion high-water mark in 2008.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, 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.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

How changes to bankruptcy laws could affect your student loan debt

Posted on March 8, 2017by Admin

Student loan debt continues to be a serious burden for many Americans, despite various repayment options available to borrowers. Even with income-base repayment plans for federal student loans, borrowers who graduated in 2016 have an average of $37,172 in loans to repay over the course of their lifetime.

Recently, democratic lawmakers proposed changes to legislation that would provide student loan borrowers the ability to discharge their loans in bankruptcy. Under the current law, borrowers can only have their student loans discharged if they prove they have experienced an undue hardship, which is near impossible.

The proposed amendment would allow borrowers to include their student loan debt in a bankruptcy filing if the lender servicing the loan failed to offer a debt relief option. The federal government offers Pay As You Earn (PAYE), which gives borrowers the opportunity to cap student loan payments based on a percentage of their monthly income. After 20 years, the remaining balance of that borrower’s student loan debt is forgiven under the program.

If private student loan lenders did not offer a similar program to borrowers, student loan debt could be canceled or significantly reduced through bankruptcy, according to the proposed legislation. Going a step further, some lawmakers have introduced changes that would allow student loan borrowers to include all education debt in their bankruptcy filing, even if a debt relief program similar to PAYE was offered directly by the lender.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

5 Ways Millennials can Master the Get-out-of Debt Struggle

Posted on February 23, 2017by Admin

The millennial generation encompasses those in their final years of college and those who are in their 30’s, possibly in the midst of purchasing their first home, perhaps starting a family. If you are a millennial that falls along this spectrum, odds are you may be paying off some debt. Two-thirds of millennials have at least one source of long-term debt; oftentimes student loan debt, which now averages $40,000.

Paying down debt and understanding your finances can help build a financially successful future for you and your family. If you are struggling with debt, here are some ways to gain control and work towards financial relief.

Acknowledge your debt. The first step to getting out of debt is to take an honest look at what you owe and where your money is going each month. List all of your debts, including student loans, car loans, credit cards, personal loans, medical bills and mortgage loans. Are you able to make all of your payments on time every month?
Understand how much you can afford to pay on your debt each month. Create a budget. Calculate how much you earn and how much you spend per month.
Get organized. Set aside a rainy afternoon to sit down and organize your bills. If it helps, have the recurring ones set up on auto-pay. This will help you avoid paying late, which can lower your credit score. Make sure all of your bills reach the same email address, not an old student email or a former work address.
Save, save, save. Even if you are paying down debt, do not forget to save for retirement. Remember, retirement savings are protected if down the road you find yourself having to file for bankruptcy. In addition, saving six to nine months’ worth of living expenses can prevent you from going into debt in the future, should you have a sudden medical emergency, car repair or find yourself out of work for a time.
Do not hesitate to ask for help. If you have debt that you cannot afford to repay, consider getting help from an experienced bankruptcy attorney. Many offer free consultations and can help you determine the right path for you and your family’s financial future.

Related Resources:

http://www.wbrc.com/story/34364281/7-ways-millennials-can-master-the-get-out-of-debt-struggle

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Struggling with Student Loan Debt after 50? You’re not alone

Posted on February 22, 2017by Admin

Student loan debt is no longer limited to the young. In fact, Americans age 60 and older are the fastest-growing population of student loan debtors. Those seniors who are living month-to-month on fixed incomes are the most likely to default. When this happens to borrowers 65 and older, the government can seize a portion of their social security benefits, even if this pushes them into poverty.

Approximately 20,000 Americans 50 years of age and older had their Social Security checks cut below the poverty line in 2015 because of student loan debt.

Many have accumulated the debt helping their children or grandchildren, either by borrowing directly or co-signing on loans. As these borrowers age, it becomes more difficult to afford their loan payments while also paying for food, housing, prescriptions, and dental and medical expenses.

Many seniors who are carrying federal student loan debt are eligible for income-based repayment plans, where borrowers can pay as little as zero dollars per month or may even qualify to have their loans forgiven after a specified period of time.

But loan servicing companies have not made it easy for borrowers to enroll in the programs or even let them know it was an option. This deprives seniors of information about payment plans that would allow them to meet their loan obligations without having to skimp on food or necessary medical care.

The federal government needs to make this group a priority, which means ending the practice of garnishing the Social Security benefits of poor or disabled student loan debtors.

Related Resources:

https://www.nytimes.com/2017/02/13/opinion/haunted-by-student-debt-past-age-50.html?_r=0

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Lawyers May Have Discovered a Way to Wipe away Student Loan Debt

Posted on February 17, 2017by Admin

Student loans are some of the most difficult to get rid of – even in bankruptcy. But some attorneys are challenging the laws and creating hope for millions of struggling borrowers. Bankruptcy attorneys in Florida and New Hampshire are filing cases in the hopes of establishing “paths” to help bankrupt borrowers and their attorneys better manage, even eliminate student loan debt in bankruptcy.

Congress exempted federal student loans from discharge in bankruptcy, except in extreme circumstances. Lawmakers extended that exemption in 2005 to private student loans as well. In order for borrowers to have their student debt discharged in bankruptcy, they must prove that the debt is causing them to suffer “undue hardship.”

Although Congress never defined the phrase “undue hardship,” a series of court rulings have created an undue hardship standard that is notoriously difficult to meet. So instead of trying to meet the standard, attorneys are turning to other legal strategies that challenge private lenders’ ability to collect on the loan and in the case of federal debt help borrowers better manage the loans while in bankruptcy.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Phone Scam Targeting Student Loan Borrowers

Posted on February 9, 2017by Admin

A phone scam promising to forgive borrowers’ student loans is making the rounds, again. The scammer asks for an upfront fee to negotiate with the loan lender on your behalf, then takes the money and runs.

The best thing you can do if you are contacted, is to hang up the phone. Student loans can be forgiven, but only under certain circumstances. Here are some tips from the Consumer Financial Protection Bureau (CFPB) to help spot a student loan debt relief scam:

1.) Upfront fees. No upfront fees should ever be charged by a student loan debt relief company. In addition, you should not be required to sign a contract with the company. The CFPB notes that free assistance is available through your student loan servicer and advises that oftentimes taking upfront payment before debt relief services have been provided is illegal.

2.) Promises. Fraudulent student loan debt relief companies will promise borrowers loan forgiveness or even complete cancellation. The false promise of negotiating with your lender under federal student loan programs is a flat out lie.

3.) Signing documents. Student loan debt relief companies should not require that you sign a “third party authorization” or a “power of attorney.”

4.) Requests for your Federal Student Aid PIN: Borrowers should be extremely cautious of any student loan debt relief company that asks for this information. The CFPB states that, “honest companies will work with you to come up with a plan and will never use your PIN to access your student loan information.”

http://www.consumerfinancialserviceslawmonitor.com/2014/12/cfpb-issues-warning-to-consumers-and-springs-into-action-against-student-debt-relief-scams/

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Tips for Avoiding Student Loan Repayment Traps

Posted on January 24, 2017by Admin

Know your loans. Check copies of your FREE credit report from the three major credit bureaus via annualcreditreport.com if you think you may have lost track of a loan, as lenders will almost always report the existence of the loan to the bureaus. For federal loans, check the National Student Loan Data System. Always know how much you owe, and to whom.

Know your options when it comes to income-driven repayment plans. If you have federal loans, you may be eligible for a payment plan that allows you to submit information based on your income and family size and then reduce monthly payments to amounts that are affordable for you. Here is a list of Income-Driven Repayment Plans available through the Education Dept. and answers to frequently asked questions.

Stay Informed. Signing up for an income-driven repayment plan is not enough. You have to re-qualify each year with updated financial information. Do not trust your lender to do this for you. The consumer bureau recently accused Navient, the largest student loan servicer in the U.S., of not properly informing borrowers of this fact or of crucial deadlines. As a result, many borrowers saw their payments jump, leading to numerous late payments and additional interest and fees.

Avoid Forbearance. If you are having trouble making your monthly payments, your servicer may offer you something called a forbearance, which essentially allows you to reduce or even eliminate payments for a period of time. The downside: The loan’s interest keeps piling up. Recently, Navient was charged with steering borrowers into forbearance when they may have had better options, such as income-driven repayment plans.

Related Resources:

https://www.nytimes.com/2017/01/20/your-money/6-tips-for-avoiding-the-worst-student-loan-repayment-traps.html?src=me&_r=0