For those of you affected by student loan debt, you may have heard about President Obama’s efforts to broaden eligibility for affordable payback plans. Although this effort may sound like a step in the right direction, the problem will just continue to grow.
As this article in Bloomberg BusinessWeek points out, lenders of student loans are not permitted to assess credit risk for borrowers of these types of loans. What does this mean? If two students with identical financial profiles were to apply for loans, both students would receive the same amount of funding to attend college. Seems fair, right?
If one student were to go to Stanford for an MBA and the other was planning on attending an on-line university to obtain the same degree, their jobs prospects are not equal. This means that their ability to pay back the loans is not equal. Yet, they would receive the same loan on the same terms. This article explains in depth some of the fundamental problems with this current practice.
With the student loan debt surpassing $1 trillion dollars, millions of Americans are struggling to pay back their loans. There are programs, such as the example in the above article, for re-financing federal loans. These programs may apply to you depending upon your circumstances.
For those that have private student loans, you have fewer options regarding refinancing. A qualified debt settlement attorney can assist you in settling your private student loans. Look for a qualified attorney who is experienced in private student loan debt settlement. Searching for these qualities in a debt settlement attorney will likely ensure that you receive the best possible outcome.
Author: Kevin Fallon McCarthy