Q: Hello, In 1983 I took out a student loan (private loan backed by the government) for my college education. After attending for 2 years, I went into the workforce and never returned to complete the other 2 years.
Long story short my loan went into deferment and finally defaulted. I was giving the option to have my income tax refund held and applied towards my loan. This went on from 1985 to 2000.
I am now disabled and living on a fixed income. The US Department of Education now takes money from my disability check. Is there anything I can do to be rid of this or am I trapped until death?
By Angie Picardo
I was among the lucky few students in the U.S. that graduate college without any loans.
After two years at a local community college, I was able to apply for and win a full-tuition scholarship to UC Berkeley.
Although I didn’t feel the burden of student debt first-hand, I have scores of friends and family members both struggling with and conquering their student debt.
Based on my experience and observations, I want to share with you five tips that every college-bound or current student (and their parents) should know about reducing the amount you owe before being cast into the “real world.” [continue reading…]
Q: “I need to borrow more than $100,000 for a four‑year degree; where can I get a student loan?”
A reader of AskTheMoneyCoach.com recently wanted some financial advice regarding her son, who will be attending a university in the fall. He’s going to need to get a loan for at least $110,000 for his degree.
She said, “We make too much money for him to get any assistance, but not really enough to help him with a loan this size. I was also told by the school that a Stafford Loan will only lend him $5,500 in the first year. Please help!” [continue reading…]
Q: I did not have a high school diploma or a GED when I enrolled in college. Am I responsible for my student loans?
A: Before a college provides you with a student loan, that institution is supposed to make sure that you have an “ability to benefit” from its educational curriculum.
One way for a college to ensure that you have an “ability to benefit” is to give you a certain exam or to make sure that you have a high school diploma or GED. Without these things, you may qualify for a student loan discharged based on what’s called “false certification.” [continue reading…]
If you’ve applied for multiple student loans and have several balances, your payments may be mistakenly credited to the wrong account at any given time.
Keep in mind that interest accrues on each balance and is posted to different accounts at different times of the month, depending on the billing cycle. [continue reading…]