Student Debt

Student Debt and Your New Home Mortgage

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Post-graduate life can present all kinds of challenges. You’re getting settled into a new career.  Maybe you’re considering taking another big step and become a first-time homeowner.  New reports released this week are going to give hopeful homeowners with student debt some pause.

New Mortgage Requirements

Last month new Federal rules took effect which impose new requirements and restrictions on home buyers.  The purpose of these new regulations are intended to protect borrowers against predatory lenders. Its good to be protected but the threshold to qualify for a loan is now much higher.

Student DebtMortgage lenders also have new legal protections. Theirs are enforced provided they no longer approve loans for prospective buyers with total monthly obligations exceeding 43% of their monthly gross income.

According to the Institute for College Access and Success, 7 of 10 graduates from the class of 2012 have student debt. Among this group, the average debt is about $29,400.

Depending upon your interest rate, a debt load of $29,400 scheduled for a 10 year repayment will be in excess of $300 per month! That payment is going to impair your ability to qualify for a mortgage.

Student Debt May Slow Home Sales Growth

According to the National Association of Realtors, existing home sales in America during 2013 were the highest since 2006. Median prices maintained strong growth with a 11.5% increase, year over year.  The downside of this same report cites a decrease in applications for new loans, though.

Cited in a recent feature in the Washington Post, is David H. Stevens, chief executive of the Mortgage Bankers Association. “This is a huge issue for us,” said Stevens. “Student debt trumps all other consumer debt. It’s going to have an extraordinary dampening effect on young peoples’ ability to borrow for a home, and that’s going to impact the housing market and the economy at large.”

Speaking before the Federal Reserve Bank of St. Louis, the Consumer Financial Protection Bureau’s Rohit Chopra said that rising student debt “may prove to be one of the more painful aftershocks of the Great Recession,” with ramification for the housing market.

“With more and more Americans putting big chunks of their income toward student loan payments, that means they’re less able to stash away extra cash for their first down payment,” Chopra, the agency’s student loan ombudsman, said in an interview.

The good news is that Student Loan Relief Service can help anyone minimize the impact of student debt.

Student Loan Consolidation

Student Loan Consolidation – Taking the First Step

Upon graduation, right after celebrating and mailing out resumes to prospective employers, you may want to consider student loan consolidation. For recent graduates, squaring away your loans will give some needed peace of mind. Having some predictability in your expense budget  lets you focus on growing your career.

If you graduated some time ago and have been feeling overwhelmed by multiple loan repayments, you too can take advantage of student loan consolidation. Juggling payments of varying amounts, possibly making payments to multiple lenders are just a few of the hassles and inconveniences we can all live without.

Student Loan Consolidation – Which Loans?

Student Loan ConsolidationThe United States Department of Education’s Office of Federal Student Aid lists these types of loans as eligible for consolidation:

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • Direct PLUS Loans
  • Federal Perkins Loans
  • Federal Nursing Loans
  • Health Education Assistance Loans
  • PLUS loans from the Federal Family Education Loan (FFEL) Program
    • Subsidized Federal Stafford Loans
    • Unsubsidized Federal Stafford Loans
    • FFEL PLUS Loans
    • FFEL Consolidation Loans
  • Supplemental Loans for Students (SLS)

Private education loans are not eligible for consolidation. Loans made to parents on behalf of a dependent student are also not eligible for consolidation.

Consolidation Requirements

It’s important to remember that your loans must be in good standing with your current lender before they can be considered for consolidation. That means the loans must either still be in their grace period or their repayment must be current.

If you have a loan that is in arrears, arrangements must be made with the current lender to remedy the situation.

Prior student loan consolidations can usually only be re-consolidated if you have additional loans to add.  As with any financial process regulated by federal law, there are exceptions and special circumstance rules.

Call Student Loan Relief Service today and get started with the professional consultation you need to navigate the process.

debt-stress

Student Loan Relief Advocates For You

Struggling To Make Your Student Loan Payments?
Are you having concerns that you won’t be able to (provide) for yourself or your family? Are you having trouble paying the minimum payments due on your outstanding student-loans each month? Maybe your credit cards are maxed out and you’re struggling to pay the rent or mortgage? Does it feel like your drowning in financial stress with no way out?

Unfortunately, if you are considering bankruptcy, outstanding student loan debts are rarely included in bankruptcy judgement. It is very difficult to meet the minimum qualifications for financial hardships in court, so much so, that less than 1% of all outstanding student loan debt is wiped out by bankruptcy courts.

Student Loan Relief Consultants – Skilled Planning & Preparation
So if you can’t meet the minimum payments on your student-loans, what is the answer? Fortunately, Student Loan Relief  as the answer. We offer tailored solutions to help you get back on track with your personal finances, spend more time with your friends and family and stop worrying about the threat of wage-garnishments and default. At Student Loan Relief, we care about you and understand how important it is to be free from the shackles of large student loan debt.

Our experienced Student Loan Representatives can help you lower your monthly out-of-pocket expense and help you plan a more stable financial future. Best of all, we do all of the work and analysis for you! How would it feel to know that you are no longer weighed down by your massive student loan debt?

Call for your FREE Student Loan Consultation with our representatives today at . There is nothing to lose and everything to gain. We offer a 100% money back guarantee if we are not able to provide a plan to resolve your student loan debt concerns. Start your new financial future today, with Student Loan Relief.

Student Loan Relief

Our Student Loan System Is Broken, and These New Statistics Prove It

When you think about America’s student loan crisis, it helps to break the issue into two halves. First, you have the the sheer amount of debt students are piling on. This part of the problem is familiar. It tends to get exaggerated a bit, but in the end, there are millions of former students out there struggling under the weight of loans that, 15 or 20 years ago, they would not have needed to borrow in order to make it through college.

The second half of the crisis earns less attention, but is in some ways equally important. It’s our broken system for helping students manage their debt. With all of the repayment plans available to borrowers, some of which cap monthly payments based on income, it should theoretically be  near impossible to default on a federal student loan. And yet it happens constantly. Among former students who started paying back their loans in 2009, 13 percent had defaulted within 3 years. A disturbing number of students are falling through the cracks.

This week, the Consumer Financial Protection Bureau released a new report that illustrates just how severe that systemic failure really is (all tables below are courtesy of the CFPB). The big, headline grabbing number from it is that almost one third of all federal borrowers have either defaulted on their debt, or are in deferment or forbearance, meaning they’re likely in such bad financial shape that they’ve been given a temporary break on paying back their loans.

Repayment Status Among Federal Student Loan Borrowers*

CFPB_Total_Loan_Recipients.jpg

Those deferment and forbearance numbers are worrisome, but there’s a faint silver lining to them. These borrowers might not be paying back their debts, but they have figured out how not to drown in them.

There’s no silver lining, though, to the 12.8 percent overall default rate. Those are the people whom the system has failed completely. There’s no strategic reason for a borrower to default on their student loans, since it’s virtually impossible to discharge them in bankruptcy. It’s just a sign that something has gone wrong.

And what’s going wrong seems pretty clear: The students at risk of defaulting aren’t taking advantage of the programs meant to help them.

Student Loan Relief can help you understand the new programs and get you out of default. Contact us today at 1-888-921-4487 for a free consultation.