Student Loan Defaults are Increasing

As per U.S. Department of Education the default rates in federally guaranteed student loans, is going to increase by 6.9% (2007 Fiscal year). 2 years ago it was 4.6% and since 1998 new default rate is the highest.

The private student-loan market is also showing the same trend. Their default rate has almost touched double of the last year. A staff from Boston-based National Consumer Law Center also voiced the same that default rates are increasing.

The lenders are being flooded with the please of help as the students are being under huge debts and increasing unemployment rate is worsening the situation.

There is a temporary relief being provided by the federal government. If the borrowers finding it difficult to repay the loans, they can request the lender to hold on the payment until they are being stabilized. In this way the students can have a temporary relief but their interest will grow with the time. They can also opt for forbearance. But as the default rate is rising, the lenders are also being much stricter before granting the forbearance. According to the market sources normally the lenders allow the forbearance to hide their mistakes of giving loans to the people who can’t afford the loan.

But now many lenders are refusing the borrowers please for forbearance by saying that they have granted much forbearance and are not able to afford more. We can also find some websites with the assistance program to repay the loan. This is the only way left for them. This way they can find some relief.
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Best Debt Consolidation Options

Debt consolidation
Today every Americans are under the huge burden of debts. Everyone is under the burden of unbearable burden of debt, irrespective of huge businessman or a common man. Everyone likes to come out of this debt and take a breath of debt free life.

You can find many options available in the market that tells you to help you to be debt free. But everyone is confused which can be helpful for them. Here I am trying to focus on some best option to get out of all your mountain of debts.

1. Bankruptcy :

The most popular option to alleviate debt completely is to take the help of bankruptcy laws. But this option does’t work always. In some cases like child support, student loan or debt to government, bankruptcy will not help. It can help you in case of credit card debt, car debt, loan or mortgage. You can book an attorney and file your bankruptcy to get the relief from debt. This option has some worst sides too.

2. Home Refinancing :

The persons who has house with some equity, can opt for the best debt consolidation option to get out of the debt which is Home Refinancing. They can refinance the mortgage and can use the equity to pay off the pending debts. You can use this method to pay off your all types of debts but before taking decision everyone should check its all pros and cons.

3. Debt Consolidation Services:

Debt consolidation service is also one of the best options you can try. Some provide it for free. You can get rid of most of the debts by settling the debts. If you have huge amount of debt then you can have to shell out lot money for this service.

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The Basics of Student Loan

Here is a video regarding the student loan and its basics. All the students are eager to have student loans but very few have a clear conception about the student loan and they are always being deceived by the lenders. This video can help you a lot by clearing your doubts on the student loan and also its practices in the United States.

From the video you can also get an outline of the different student loan options available in the market too, which can be helpful for all the students and their parents. Please don't forget to share your views on the video.
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