How can you buy your first house when your student loan debt is twice as much as the house will cost?
One of the biggest economic problem facing the US economy, and plaguing almost 45 million Americans, is student loan debt, standing at more than $1.4 Trillion dollars. Yes, ‘trillion,’ with a “t.” That is the second highest expense you will face in your entire lifetime, right behind the cost of a home. And because of the price of college today, many teens and twenty-somethings are graduating with $100,000 or more in student loan debt, with grad students facing $200,000 or more.
But with current interest rates lagging at far below 5%, that debt should be easy to retire at a very low rate, right?
Wrong. Student loans receive preferential treatment, exempting many of them from many consumer protection interest caps. As a result, the loans have interest at 8%, 9% or 10% or more per year. At those rates, people are unable to pay the interest, let alone make any dent in the principal.
For this reason, there are several government programs to reduce student loan debt. But most student loans are no longer being administered by Sallie Mae or the government, and have been purchased by huge private lenders, like Navient.
Holders of student loans sometimes find the interest rate on their loans increased for no apparent reason, even though a lower rate is required under law.
They may be falsely advised that they must retain high interest loans, and may not convert the debt to lower, private financing, all in violation of state or federal law.
Do you or someone in your family have student loans? Are you wondering if your loan is being handled lawfully, or if you are being overcharged, or denied rights under state and federal law to decrease your interest rates, or reduce your payment?
If you think something unlawful is being done in the handling of your student loan, call us now. We are currently suing Navient for alleged consumer fraud in charging interest rates on student loans above the rate cap set by Ohio law for non-bank lenders. We are able to review a variety of other illegal practices that may be happening with your loan. The consultation is free. IF YOU ARE A LAWYER, call us for similar questions your clients may ask you from time to time in this area. We are available for co-counsel on these, and most other class action matters.
One of the biggest economic problem facing the US economy, and plaguing almost 45 million Americans, is student loan debt, standing at more than $1.4 Trillion dollars. Yes, ‘trillion,’ with a “t.” That is the second highest expense you will face in your entire lifetime, right behind the cost of a home. And because of the price of college today, many teens and twenty-somethings are graduating with $100,000 or more in student loan debt, with grad students facing $200,000 or more.
But with current interest rates lagging at far below 5%, that debt should be easy to retire at a very low rate, right?
Wrong. Student loans receive preferential treatment, exempting many of them from many consumer protection interest caps. As a result, the loans have interest at 8%, 9% or 10% or more per year. At those rates, people are unable to pay the interest, let alone make any dent in the principal.
For this reason, there are several government programs to reduce student loan debt. But most student loans are no longer being administered by Sallie Mae or the government, and have been purchased by huge private lenders, like Navient.
Holders of student loans sometimes find the interest rate on their loans increased for no apparent reason, even though a lower rate is required under law.
They may be falsely advised that they must retain high interest loans, and may not convert the debt to lower, private financing, all in violation of state or federal law.
Do you or someone in your family have student loans? Are you wondering if your loan is being handled lawfully, or if you are being overcharged, or denied rights under state and federal law to decrease your interest rates, or reduce your payment?
If you think something unlawful is being done in the handling of your student loan, call us now. We are currently suing Navient for alleged consumer fraud in charging interest rates on student loans above the rate cap set by Ohio law for non-bank lenders. We are able to review a variety of other illegal practices that may be happening with your loan. The consultation is free. IF YOU ARE A LAWYER, call us for similar questions your clients may ask you from time to time in this area. We are available for co-counsel on these, and most other class action matters.
