Are you seeking student loan help? Well, you're not alone.
In the U.S. alone, student loan debt totals more than a trillion dollars. Incredibly, the government owns about 85 percent of that debt, as a result of loans that are disbursed via government student loan programs according to Jason Spencer Dallas. The amount of outstanding student debt held by the U.S. government increases by more than $100 billion each year.
Unfortunately, a large percentage of college graduates are seeking student loan help and student loan relief programs. The reason? Well, it's due in large part to the ailing economy and the hyper-competitive job market, which makes it extremely difficult for many graduates to get a job that will enable them to survive and pay back their student loans.
Granted, studies still reveal that having a college degree places you in a better position in the job market, as the percentage of unemployed graduates is about half the rate that you'll see among adults who only have a high school diploma.
But once you factor student loans into the mix, the advantage becomes much less pronounced. Home ownership rates among college grads with student loans are much lower. The credit scores of those with student loans are actually decreasing with age, whereas those without the burden of student loans are seeing a dramatic increase in average credit score over time.
An analysis of the actual amount of money repaid each year has risen slightly in recent years, but a disturbing trend has been detected too. There is a rapidly rising differential between the amount of money that is actually repaid relative to the amount that is estimated to be repaid in a given year. In 2012 alone, the actual amount repaid fell short of the estimated prediction by about 30 percent.
With all these facts, it's probably no surprise that student loans have the highest delinquency rate among all common of consumer credit, a category which also includes auto loans, credit card debts and mortgages. And student loan delinquency isn't just growing among 20- and 30-somethings; it has risen significantly --- by more than 25 percent in 2012 alone --- in all age groups. The average is about 35% delinquency --- that means that 1 in 3 college graduates with student loan debt has been unable to make a payment in the past 90 days.
So it's no wonder there has been a rapid rise in the number of student loan relief programs and student loan forgiveness initiatives.
As many debtors have already discovered, federal student loans are like taxes in that they'll follow you to the grave. Bankruptcies won't do you any good; those student loan debts will follow you until you pay them.
But there is one exception that's available to those who work in a 'public service' profession. The U.S. government now offers a Public Service Loan Forgiveness Program, also called the PSLF Program. This student loan forgiveness program enables those who work full-time in a public service field to apply for forgiveness of their debt from student loans that were taken out under the William D. Ford Federal Direct Loan Program. (Notably, Perkins Loans and other loans, such as the Federal Family Education Loan or 'FEEL' Program are not eligible for student loan forgiveness.) Individuals are eligible to apply for student loan forgiveness after they've made at least 120 payments.
Public service employees who are eligible for student loan forgiveness under the PSLF Program include teachers, nurses, social workers and other similar professions where the individual gives back to society, but often, earnings simply aren't sufficient to allow for a comfortable financial situation with the burden of student loans.
In rare cases, some or all of an individual's federal student loan debt may be discharged if an individual is unable to find a job related to their program of study and can prove extreme hardship, but this is typically a very rare event.
There are also a wide array of different student loan debt relief programs available to individuals who are struggling to pay their student loans.
Student loan consolidation is one common solution that's offered to graduates who have run into trouble and struggle to afford multiple student loan repayments. In this case, the graduate may opt to take out a loan that pays off multiple student loans, thereby decreasing the amount of interest that they're paying each month. This allows the graduate to make a single, lower monthly payment with only one interest payment instead of multiple interest payments.
Student loan consolidation aside, there are other student loan debt programs that work to negotiate with borrowers to reduce penalties and interest rates, when possible.
There are also a wide range of student loan relief programs, offered by private organizations and private employers. These relief programs typically work by supplementing a portion of each monthly payment, and this, in turn, reduces the individual's monthly payment burden. Many employers are offering loan assistance as a perk to recent college graduates.
These student loan relief programs can also be used in conjunction with student loan forgiveness programs too.
Student debt is a very serious problem, but there are some programs available to graduates who are struggling to make ends meet.
by Jason Spencer Dallas
A considerable percentage of students like Jason Spencer in United States tend to obtain student loans in order to cover up the financial expenses associated with their studies. However, President Trump has made plans to change the way how students pay back the student loans. As per these changes, low income students will have to pay more in order to borrow money and graduate students will have to spend a longer time period in order to repay the debts. Moreover, the public servants of the country would lose out on the loan forgiveness unless they work with a company like Student Loan Relief in Dallas Texas.
A budget proposal mentioning all these changes has been released by the White House. In general, this proposal makes college education less affordable for the students in United States. As a result, low income students like Jason Spencer was, will have to experience a lot of hardships in the future. In fact, $9.2 billion funds from the money allocated to the Department’s budget has been cut down.
The subsidized student loan program has been slashed
According to the budget, a subsidized loan program, which was available for the low income students, has been slashed. According to this plan, the government had to pay the interest while students are studying at college and up to a period of six months after they leave. In addition, the borrowers of this loan were provided with the flexibility to choose a repayment plan according to their level of income.
Changes introduced to the repayment programs
Students who borrow money to cover up their college expenses paid back the amount in many different ways. However, Trump has introduced some significant changes to all those repayment programs. Out of these repayment programs, the most generous one helped the borrowers to pay back the amount as a 10% of the discretionary income for a period of 20 years. If there was a remainder after a period of 20 years, it was forgiven. This would be changed by the new changes introduced by the Trump administration. The students will be asked to make a monthly payment of 12.5% of their income and it has been limited for a period of 15 years. For the graduate students, a repayment period of 30 years would be provided.
Public service loan forgiveness has been removed
According to the budget, public service student loan forgiveness has also been removed. This has created tension among public defenders, social workers, teachers and borrower advocates who live within the country.
Work study funding has also been slashed
Last but not least, the Trump administration has slashed work study funding as well. The new budget consists of a proposal along with bipartisan support, which would assist the students to use Pell grant. Pell grant refers to the money that is provided by government for the students with a low income in order to cover up college expenses. This is provided throughout the year. However, it is not enough to satisfy the crisis that has been created from the new budget.
In today’s economy, it has become increasingly difficult to repay the student loan. This has made many Americans angry and frustrated due to the weight associated with the hefty loans and interest accruement. It thus comes as no surprise that there are several student loan relief programs available to many people. Offering student loan forgiveness, payment reduction, payment postponement to interest rate reduction; Americans can now breathe easy and begin to enjoy their lives again.
While it is hard to find a job after college, it is even harder to get one that will support your repayments. The government has passed enough laws to help borrowers pay their debt but this information is not reaching the public. This is why going to serving companies that help with student loans is becoming a favored option to many. These companies such as Jason Spencer student loan relief have done extensive research and can guide you on how to benefit from these programs. Borrowers get their applications filled out and create a strategy that will work effectively and reduce the burden.
When it comes to getting assistance with student loans, you will need someone who is well versed and experienced in the repayment process. There are so many repayment plans available. Without qualified help, it would be hard to get a plan that will meet and fulfill your needs. Under these programs, you can either have a payment made directly to the lender by your employer or receive funds to help pay your loan. Plans such as standard plan enable you to pay fixed amounts until the loan is paid in full or the graduated plan where payments start low and increase every two years. By contacting Jason Spencer student loan reliefwww.quora.com/profile/Jason-Spencer-5, you will get information on different plans available and advice on the most suitable for you.
Another great opportunity to eliminate a student loan is through www.studentloanforgiveness.comstudent loan forgiveness programs. These programs are backed by the federal government and require one to work full time in public service or apply for student loans under the Perkins and Stafford loans programs. After making approximately 120 monthly payments, your loan is erased completely. Below are a few examples of these programs.
The teacher student loan forgiveness was a program created to encourage people to pursue a teaching career. If you are a teacher or an administrator in a public school where you have served in low income or high risk schools, you can have up to $17500 forgiven after 5 years. However, constant payments must be made during the five years and you must be under the direct loan program to qualify.
If you are a licensed social worker who has served for 4 years in areas such as mental health, health, child welfare, aging and so much more; you might be eligible for the social worker student loan forgiveness. For this program, borrowers need to have worked in critical human service areas and made their payments on time as well.
The nurse student loan forgiveness program is another area under PLSF. It was created to encourage graduates to seek employment in states with critical nursing shortages. And just like teachers, medics, policemen and firefighters, you will need to make payments under plans such as PAYE, IBR and the 10 year standard repayment plan. Moreover, your loan should also be a direct loan.
If you fail to make payments as scheduled, you risk going into student loan default. This brings in a lot of negative consequences such as difficulty when applying for home owner’s insurance, signing up for utilities, applying for a cell phone plan and can give you a bad credit rating. Depending on program, default normally occurs when you fail to make payments for 270 days and forces the federal government, financial institution or school to take action. One of the most popular ways is by student loan garnishment. Employers who have employed graduates who have defaulted deduct 15% of the borrower’s income until the outstanding amount is paid in full or the IRS takes the income tax refund until the defaulted loan is paid. However, to object to garnishment, the borrower should provide a written statement within 65 days of the notice and provide further evidence.
The good news is that there are some rehabilitation programs that can help you get out of default and stop the garnishment and the seizure of tax refunds.
If in any case, you fail to get employment or work under 30 hours per week, you can qualify for unemployed student loans. You can apply for a deferment to temporarily suspend paying your student loan while unemployed. Once you get employment, you should notify your lender and stop the deferment.
Jason Spencer student loan relief can help consolidate multiple federal loans into one in order to make one payment. This provides a real and tangible solution that minimizes the growth of compound interest and gives you room to breathe. Instead of having to deal with multiple payments, you only make one to see a significant change in your student loan debt.
With the right student loan relief program, you will need to make regular payments and keep clear communication with your lender. Only then can you have peace of mind!