If you think student loan debt is a problem for the younger generation, think again. According to the Consumer Financial Protection Bureau (CFPB), about 2.8 million people age 60 and older have outstanding student loans – four times the number in 2005. Most of the current student-loan debts of people 60-plus were incurred paying for college for a child or grandchild, and in the past decade, for the 60 to 64 age group, student-loan debt has increased eight-fold – to $38 billion!
“Americans in their 60s are now the fastest-growing age group facing student loan debt,” says Andrew Anable, a financial planner at Safeguard Investment Advisory ...
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Trading Social Security Benefits for Student Loan Forgiveness? – An “E” For Effort
There's a debt crisis in America right now, and it centers on the cost of education. Roughly 45 million people owe a total of more than $1.4 trillion in student loan debt, working out to an average of about $30,000 per borrower. Starting from such a huge hole, it's hard for today's millennials to chart a reasonable course forward for their finances, and the impact throughout the U.S. economy has been apparent for years.
One lawmaker is seeking to address that crisis, introducing a revolutionary new program that would allow young people to trade Social Security benefits for student loan forgiveness. Unfortunately, the program comes at a ...
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Income Based Repayment of Student Loans Still Better Than Doing Nothing At All
There's a dangerous trend I've seen repeatedly with individuals in income-based repayment (IBR) plans for their student loans, and it's clear to me there's a critical piece of information missing from our general understanding of how these programs work.
Income-based repayment (IBR) plans are offered on federal subsidized and un-subsidized student loans in an attempt to make high student loan debt more manageable to pay off. They extend the repayment term from the standard 10 years to either 20 or 25 years, and cap monthly payments at 10% or 15% of discretionary income depending on the program. However, two other features of these plans ...
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How is Student Loan Debt Affecting Your Life?
Over the last twenty years, there has been a significant increase in student loan debt. In 1996, the average student loan debt stood at $ 12,850. Today, it’s $35,000. According to a recent survey, loan debt negatively affects the lives of graduates by causing emotional, personal and financial stress. Furthermore, it prevents them from pursuing their dreams. The survey included over a thousand college graduates and was carried out between July 2nd and July 19, 2016. Student loan debt causes stress and prevents you from doing well in life. Based on the survey, following is how student loan debt affects the lives of borrowers.
Prevents ...
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Debt Collection Laws – What Collectors Can and Cannot Do
Getting phone calls from collectors are no doubt annoying, but can be illegal if collectors do not follow the rules of the Fair Debt Collections Practice Act (FDCPA). Many financial institutions and collection agencies now use automated robo calls to contact the debtor and they may call frequently each day. If you answer, the system acknowledges receipt of the phone call and switches to a live representative.
Even if they are conscious of the rules, mistakes can happen. One case involved a woman who lost her job and fell behind on her monthly gym bill. After three months, she managed to pay them the money that was due and was able to zero ...
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Can Debt Consolidation Help Reduce Debt Burden?
Most people have multiple debts of one kind or another. The loan can be in the form of a auto, student or mortgage loans, credit card debt, payday loan and others. These loans are taken out by responsible people to pay for essential expenses that a parson can't afford to pay on one's own. However, having multiple loans greatly increases the debt burden and if not managed properly or if an unexpected financial crisis materialized, the debtor can fall into a situation where they owe more money than than can afford to pay each month.
Apart from interest rates, loans entail different fees and charges that when added up can turn into a ...
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Has This Happened to You?
A typical Scenario of Financial Hardship
Todd is living a financially comfortable lifestyle, with a household gross income $85,000 per year. Todd is married and has two children. Both are attending middle school and they have made plans for a cruise vacation, which is coming next month. The travel agent has been fully paid in advance for the cruise.
In the interim, Todd's mother-in-law became ill and is hospitalized. The prognoses is that she will need to live in a nursing home, because she will need 24 hour care; however, they decide to bring her to home, as that would be the better option. After all, he has an extra bedroom.
Arrangements ...
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NYS Takes Bold Step To Regulate Collection Lawsuits
On September 16, 2014, the New York State Unified Court System announced new rules to stop debt collection agencies from using underhanded tactics to win judgments against poor or elderly credit card holders.
In the recent past, debt collection agencies frequently score court judgments for the wrong amount of money or even from the wrong person by using incomplete proof or by pressing cases where the statute of limitations has expired. The collection agencies also frequently fail to provide proper notice that a lawsuit was filed – a tactic known as "sewer service."
"While creditors have every right to collect what is legally owed to them, ...
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SIX QUESTIONS TO DETERMINE IF FINANCIAL TROUBLE COULD BE BREWING
Whether you consider yourself to be financially responsible, or you always seem to come up short on cash, there are a few key indicators that may indicate you are living beyond your means—and being aware of them can save you loads of money woes in times of a cash emergency.
1. Do you have an emergency fund?
Need some motivation to start saving? Sit down and add up how much money you make each month. Then, multiply that amount by six. That is the amount that most financial advisers recommend as an emergency fund.
Most individuals underestimate life’s uncertainties and discount the need to have cash available for unexpected events like ...
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Seniors Struggling With Debt Likely To File For Bankruptcy
Older Americans are being squeezed in many ways. Healthcare and other basic expenses are rising. Fewer have pensions to supplement their Social Security income in retirement. Low interest rates mean what savings they do have isn’t growing quickly — unless they are willing to invest in higher-risk financial products.
And then there’s the other side of the equation: Credit and Debt. Many seniors have not properly planned for retirement financially. Many have used credit cards freely in the earlier stages of retirement to maintain their pre-retirement lifestyle without a plan on how to repay it.
Older Americans are increasingly struggling ...
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What Makes Me Different From the Others?