One of the biggest debts that the average American has is their student loans from college. Recently there’s been a lot of talk about “refinancing” a student loan and today  we’ll take a look at a number of different factors that you should know about before making a decision on whether to do this or not. Enjoy.

The first question is simply this; should someone refinance their private student loan into a loan with a lower rate? Most private student loans feature variable interest rates that have been based on a specific borrower’s credit history. When that person first takes out their private student loan, he or she probably has a limited credit profile and will be treated as a higher credit risk by most lenders.… Read the rest

We all know that carrying any kind of debt isn’t exactly a “good” thing but is there actually a “worst” kind of debt to carry? Is credit card debt worse than student loan debt or mortgage debt? The fact is, even financial experts don’t agree on which debts are “good” and which ones are “bad” so, as a consumer, it can be rather confusing. To help with that confusion we put together a blog today that looks into what the worst kind of debt is and gives some advice from getting out from under it as well. Enjoy.

Debt: Student loans.… Read the rest

Welcome back for part 2. The subject today is student loan debt and how to dig your way out of it. In part 1  we talked about some of the consequences of not paying your loans on time. They were going to be looking at your options to continue paying, avoid those nasty collection agency people and keep your credit score from taking a big hit.  So if you’re ready, let’s get started. Enjoy.

If you have federal loans, including Perkins, Stafford and Grad Plus loans, you’re in luck because you’ve got a number of options that you can use.… Read the rest

Due to federal laws, bankruptcy has never been an option for people who are suffering from massive student loan debt. Although technically it was possible to claim bankruptcy and have your student loans forgiven, it meant proving to a judge that it would cause  extreme hardship and a ‘certainty of hopelessness’. In other words, very few people would qualify. The standard is the same whether you have a federal student loan or a private student loan but current legislation in Congress is seeking to change that standard, at least for private student loans.  The change would make them eligible to be discharged under rules that will be similar to those that apply to credit cards and other types of consumer debt.… Read the rest