Private Student Loan Consolidation or Refinancing
Many of us have private loans at variable interest rates, sometimes with no cap on how high the rate can climb. If you have expensive private student loans and good credit, refinancing may be available and worthwhile. For example, with a strong credit score, you might be able to refinance at a lower or fixed interest rate instead. Unfortunately, if your credit score is low, or you are experiencing financial distress, you’ll probably have a difficult time qualifying for the best refinancing terms. And BEWARE of consolidating federal loans into…
Rohit Chopra and CFPB Piss Off Private Student Lenders
Ombudsman Rohit Chopra of the Consumer Financial Protection Bureau (CFPB) can sleep soundly at night knowing he is doing something right. The Wall Street Journal quotes Richard Hunt, president of the Consumer Bankers Association, as stating “There’s more tension between banks and those in the CFPB’s student-lending division than in all other areas of the CFPB combined.” Why is the private student loan industry so pissed off? The CFPB and Mr. Chopra have persistently pushed private lenders to modify or refinance…
Senate Republicans Vote Against Senator Warren and Students Again!
Update: As expected, Senate Republicans united to block Senator Warren's bill, the Bank on Students Emergency Loan Refinancing Act, in a 56-38 vote Wednesday that fell short of the 60 votes needed to proceed to debate on the measure. The bill would have allowed people with student loans to refinance their student debt at today's lower rates. The Obama administration said it could have helped nearly 25 million borrowers save approximately $2,000 each. To learn more about the proposed bill, read on. Elizabeth Warren is my hero…
Sallie Mae to Pay $97 Million Fine for Overcharging Troops
As some of you may know, in addition to being Heather's Communications Director (and husband), I am also a retired U.S. Marine Corps officer, so this story hits a little close to home. Sallie Mae and Navient, previously a loan servicing unit of Sallie Mae, have agreed to pay $97 million to settle allegations by federal regulators that military service members were charged excessive interest and fees on student loans, according to an article by Tara Siegel Bernard in Tuesday's New York Times. The U.S. Justice Department…
5 Tips for Managing Student Debt
Heather loves National Public Radio and offering free advice to student loan borrowers and their families. She got to enjoy both last week as she sat down with Public Radio International's nationally-syndicated talkshow host Tavis Smiley to discuss how to avoid student loan debt or what to do once you’re in student loan debt. Listen to the interview here. Heather's Five Tips for Managing Student Loan Debt: 1. Everyone should fill out the Free Application for Federal Student Aid (FAFSA). 2. Students should choose…
