By now we all know that for many consumers taking out private student loans is the only option when it comes to financing their higher education. We also know that many of those same borrowers will ultimately end up defaulting on their debt. A new report from the Consumer Financial Protection Bureau suggests that it’s not borrowers’ lack of willingness to repay that lands them further in debt, but a lack of resources provided by lenders that drives consumers to default. [More]
The last thing families want to deal with after the death of a loved one is a phone call reminding them of their departed’s debt. But that’s the case for a number of parents who have inherited the obligation to repay the student loans they co-signed for their deceased child. [More]
Imagine this scenario: You’ve been out of college for several years, have a good job and you have no problems making your student loan payments in full and on time. Then tragedy hits; your parent dies or declares bankruptcy. If this loved one was a co-signer on your student loan, this change can trigger an often-overlooked clause that allows the lender to claim you are in default on your loan, potentially wreaking longterm havoc on your credit and finances. [More]
College graduates with private student loans know the importance of staying current on their payments. But a new report by the Consumer Financial Protection Bureau finds that even consumers who pay their loans on time are finding themselves placed in default when the co-signer of their loan dies or declares bankruptcy. [More]
Recent college graduates face a number of barriers after getting their diplomas – finding a job, moving out on their own and paying back thousands of dollars in student loans. But now consumers struggling to pay back private student loans might find a bit of relief in new refinancing options from banks. [More]
Billions in high-interest loans being handed out to people who probably shouldn’t qualify for them, who may not understand the full terms of the loans, and who will likely have trouble paying the money back. Sounds a lot like the stories we were writing five years ago as mountains of subprime, adjustable rate mortgages were coming due, but now it’s about the massive number of student loans written in recent years. [More]
We see enough horror stories about private student loans that we know there must be quite a few of them out there. If you’d like to contribute to the public good by sharing your experience, the Consumer Financial Protection Bureau would like to hear what you have to say. And if you actually had a good experience the CFPB would like to hear about that, too. [More]
It’s a tough economic climate to be graduating from school — and maybe an even tougher one for those of you trying to get financial aid. We’ve put together a list of some financial aid and student lending resources to help make things easier.