5 Student Loan Myths
Are you overwhelmed by your high student loan payments? Do you constantly worry about being able to afford your monthly payments?
Are you angry and frustrated about the fact that your student loan payments are too high and yet your salary is way too low?
Well, you are not alone. You are part of the millions of Americans who are drowning in high student loan debt.
In the U.S. the outstanding student loan debt surpasses $1 trillion dollars, and sadly most of the recently graduated borrowers are having a really hard time finding a decent job to cover their expenses, and the burden of student loan debt can be daunting. It does not really help that there are so many myths surrounding the student loan debt programs and repayment options available.
So, before you fall for any of these next myths, make sure you educate yourself. USSLC wants to be your #1 Educational Resource when it comes to understanding your options with your student loans.
Myth #1: You’re stuck with your original loans.
Ironically, many borrowers who qualify for refinancing don’t even realize this is an option. They “set and forget” their student loans, and never look back.
But we are pretty sure that your life has changed some since the time you wrote your first repayment check. Ideally, you now have a higher income stream and a stronger credit score and, if you do, you may be eligible to refinance your loans at a lower interest rate. Not sure if you qualify? You can always ask us. Call us to discuss your options at 877-433-7501. One of our Student Loan Debt Counselors is waiting to hear from you and help you answer any of your questions regarding your student loans.
Myth #2: You Always Have To Pay Back Your Student Loan Debt
“You must always pay back your student loan debt”, is something you hear everyone telling you these days…”It is an IOU on your future earnings, and most likely the government will garnish your wages in order to get paid back what you owe.” Alright, in some sense this is correct, you are in fact borrowing against yourself, and you do need to pay this money back.
HOWEVER, a lot of people omit a key fact that most student loan borrowers don’t know or do not take advantage of: The Student Loan Forgiveness Programs. These are great programs that are designed to wipe out your student loan debt, FOR FREE!. It has been estimated that about 50% of borrowers can qualify for some type of student loan forgiveness program. You just have to check if you qualify. The most common student loan forgiveness programs are tailored for students who pursue the following careers:
So if you are considering entering these fields, or you are in that fields already, contact us right now to learn if and in what kind of program you could qualify for. Even partial student loan forgiveness is FREE MONEY you should take advantage of. To learn if you qualify you could also go here: Do I Qualify?
Myth #3: The Government Isn’t Flexible With Student Loan Payments
So, your 6 months of deferment are up on your student loan, and you get your first bill. You look at it and think, “How am I ever going to repay this?” But you don’t realize there are other options available. When lenders first send out their billing statements, borrowers are always put on the Standard Repayment Plan. This is a simple 10-year repayment plan that has flat monthly payments. It may seem convenient, but sometimes it is not the best for you, don’t worry, you’re not trapped. USSLC wants you to contact one of our expert representatives at 877-433-7501. Our expert Student Loan Counselors will discuss all the many different ways you can repay your loan, and also lower your monthly payments so it fits your budget. So do not simply settle for the Standard Repayment Plan, if you can’t afford it. Contact us today! or you can check if you qualify right now!
Myth #3: Education Debt is always a good investment
Certainly, taking out loans to pay for college is an investment in your future and a key to a better-paying job. So it’s good debt. But too much of a good thing can be bad for you.
Students who graduate with high debt often must abandon certain career aspirations. At USSLC, our representatives have spoken to hundreds of borrowers who are behind on their student loans, and they tell us they have delayed major life events, such as buying a car or a home, getting married, having children, or saving for their children’s college education or for retirement. According to a
recent survey by Monster Learning, about a third of recent college graduates have to move back in with their parents to save on living expenses.
A good rule of thumb is that students’ total debt at graduation should be less than their expected starting salary — ideally, a lot less. Although sadly in the past two years, the average 4 year graduate accumulates $26,000 to $29,000 in loans, and their yearly salaries are not much higher than that, or even worse, their salaries are even lower than what they have accumulated in debt. At USSLC we offer repayment plans based on your income, which could reduce your high monthly student loan payments. Call us right now at 877-433-7501 to learn how low your new monthly payment would be!
Myth #4 If you declare bankruptcy, your student loans go away.
This is something a lot of fraudulent consolidation companies are advising struggling students to do. But they are providing inaccurate information. Neither federal nor private student loans can be discharged in a bankruptcy. Although, just like there’s an exception for every rule, there’s also an exception for filing bankruptcy and getting your loans dismissed, but this is a very hard almost impossible thing to accomplish. The borrower would need to file an “undue hardship” petition, which involves a very harsh and very high standard that was set in a New York state case over 20 years ago. Basically the borrower needs to provide that they are unable to maintain a minimal standard of living while repayment the loans, that the circumstances that prevent repayment will persist for most of the life of the loans and that the borrower has made a good-faith effort to repay the loans. In the words of one bankruptcy judge, a successful undue hardship petition requires a “certainty of hopelessness.”
According to the Educational Credit Management Corp., a guarantee agency that manages the student loans of federal borrowers with an active bankruptcy filing, about 72,000 federal student loan borrowers filed for bankruptcy in 2008, but only 29 succeeded in obtaining a full or partial discharge of their loans. That’s 0.04 percent. You’re more likely to die of cancer or in a car crash than to have your loans discharged in bankruptcy.