Of Student Loans And Lawsuits

Image source: Pixabay.com

While not highly common, lawsuits are still a possibility when it comes to federal and private student loan collection. In fact, they are the main recourse for collection that private lenders have. Here’s quick information on lawsuits around student loan debt.

Never ignore a lawsuit – pick up certified mail as well as accept notices about court actions. Perhaps the most crucial techniques if you have been sued is to raise your defenses, explore what could happen if you lose the case and the final judgment is against you, and check for special rights if you are part of the military.

There are several common defenses used. These include having made the payment, but it did not get credited to the account or that there isn’t any debt owed and the lender is current on payments. The creditor, too, could be accused of miscalculating the amount due.

Several flaws or shortcomings can kill student loan collection lawsuits, too. The creditor cannot prove that it owns the debt or its business records aren’t admissible in court. The debt could also be beyond the statute of limitations for collection wherein private loan collectors may lose their rights to sue after certain years without payment, depending on the state ruling.

Image source: Pixabay.com

It’s important to be aware of the news on current and potential regulations. Lawyers in the United States, for instance, are increasingly seeking to challenge the traditional wisdom that any kind of student loan is not dischargeable in bankruptcy. The Department of Education is also reviewing the high standard that student loan borrowers should be able to meet to have their debts discharged in bankruptcy.

Performance SLC matches thousands of student loan borrowers with federal programs offered by the Department of Education to consolidate and lower their current Federal student loans. For more information, click here.

The Benefits Of Paying Student Loans Early

Student loans are not meant to last forever. Many people tend to forget its existence especially when they start paying off car loans and mortgages. However, there are many benefits of paying student loans early. Here are reasons not to delay paying off student loans.

Paying student loans early lowers one’s debt to income ratio. A good reason to start paying student loans soon is that it will reduce one’s debt to income ratio. There will be more money available for an individual when they need to apply for housing and car loans. It gives the opportunity to build wealth earlier.

Image source: kcbi.org

Paying off student loans can improve one’s credit score. Young adults who just graduated will soon face a lot of other financial responsibilities aside from their student loans. They will need to have a good credit score to buy properties or to start businesses. Having a good credit score can secure one’s financial endeavors in the future.

Paying early can reduce the chances of the loan getting bigger. A student loan, just like any other loan, earns interest. Putting aside student loan payment can mean bigger payments in the future. This means an individual can jeopardize their financial freedom because they have to pay more for holding it off for longer.

Image source: magnifymoney.com

Education is an investment for the future, and student loans should not be the end of it. Pay early and have peace of mind.

Learn more about how you can pay off your student loans easily by visiting Performance SLC’s official website.

Student Loan Horror Stories Everyone Should Hear About

Image source: Pixabay.com 

Student debt is a growing trend in the country, where there are at least 1.1 million who are saddled with student loans that have topped six figures. Here are some horror stories of student loans.

An anonymous forum poster with a student loan at Tulane University recalled that she consolidated her loans in 1995 when the interest rate was 8 percent. She said the office led her to believe that she had to consolidate and Sallie Mae was the only option provided to her. For over 14 years, she had repaid them more than $61,000, and when she thought she should already be done she was told that she still owed $25,000. When she talked to a Sallie Mae employee and said she was confused about why most of her payments on most months went to interest than principal, she was told: “We certainly don’t go out of our way to put that in big bright red letters across the front page.”

Similarly, the $85,000 private student loans that a certain Hilary took out had ballooned to $350,000 because of an 8 percent variable interest rate. She was denied the license to practice in her profession due to those loans, and instead she was making $8.50 an hour as an ACE Hardware cashier and receiving food stamps.

Image source: Pixabay.com 

In 2011, Steve Macintyre was $100,000 in debt and out of a job. He used to work in the entertainment industry but became unemployed for a few years. He needed to desperately update his skillset if he was hoping to find a job in the intensely competitive field of games and animation. He was told he needed to take a graphic design course; he hesitantly agreed and was eventually dismayed at the quality of the classes. He then became stuck with more than $100,000 in debt while receiving “nothing substantive in return.”

Performance SLC offers professional expertise and help clients solve student loans and obtain financial freedom. Learn more on this

How to Calculate Interest on Student Loan

How well did students understand the terms of the agreement when they signed their student loans? Interest rates, for instance, are among the most complex aspects of student loans, and it takes research to have a good understanding of how interest rates are set, how interest accrues, and how payments are set to go to the principal balance and interest charges.

Image Source: Pixabay.com 

The interest rate pertains to how much one has to pay in order to borrow the funds. It’s the additional cost one pays on top of the principal – in short, it’s the cost of doing business with the lender. Interest is a percentage of the principal, and it’s charged daily, so the longer it takes to pay off the balance, the most interest piles up.

A borrower’s required loan payment is the same every month, but when payment is made, interest is paid before any money goes into reducing the principal. The interest rate, with student loans typically compounded every day, is divided by the number of days in the year. The borrower is charged each day based on their outstanding balance.

With a $10,000 balance and at 4.45 percent interest rate, the daily interest rate is computed by dividing 4.45 percent by 365 in order to get 0.012 percent. That’s $1.20 based on the $10,000, and $1.20 is added to the loan balance, bringing it to $10,001.20. When interest is compounded the next day, one will pay interest on that total amount, which looks like $455.02 in interest by year’s end.

If one is able to do so, it’s recommended to make interest payments while in school to save money in the long run.

Image Source: Pixabay.com

Performance SLC assists those who need help with their federal student loans by providing consulting and document processing services. Learn more by visiting this website.

Why Companies Should Commit To Helping New Employees Pay Off Student Loans

Any employer would want their employees to have a great employment experience, especially those coming into a professional working setting for the first time. Providing a benefits package that addresses their needs speaks directly to their satisfaction with you and the company.

Image source: wnmufm.org

A lot of millennials accept employment based on how well the job can help them in their quest to achieve freedom from student loan debt. A study done by The American Student Assistance, a nonprofit dedicated to eliminating financial barriers to attending college, showed that employees aged 22 to 33 stress about their student debt so often that it affects their health.

So much stress, in fact, that 86 percent of the 502 survey respondents said that they are willing to commit five years of their career to a job that will help them pay their debt back. Quality employees create more value for companies. Developing younger workers into valuable contributors that directly impact the health and success of your business is a must. In fact, 72 percent of employees say a benefits package offering is extremely or very important to their job satisfaction.

More importantly, financial assistance programs make your workers want to stay in your company. Remember that regular turnover hits your bottom line and offering benefits packages that are aligned with employee expectations (increasingly manifested in student loan payment assistance) play a huge role in employer loyalty.

Image source: blog.ed.gov

Seeking the help of Performance SLC alleviates the frustration out of the student loan payment process. More on the company’s services here.

Identifying student loan scams and how to warn others about them

One of the saddest things in the world is that there exist people who take advantage of others. Scammers, con artists, swindlers, whatever people want to call them, they are a stain on the planet. Even students and parents applying for student loans are not immune to these scammers. Here are a few ways of identifying student loan scams so people can warn others. 

Image source: vozactual.com

Pay schemes 

When people are asked to pay upfront, or they’re informed of monthly fees to get help, it’s most likely a scam. Anything people can do on their own, companies shouldn’t charge for it. In connection to this, people have to know that it is illegal for companies that offer to help pay student loans to collect fees via telephone before settling, or at least lowering a customer’s loans. 

Loan forgiveness 

Let’s get one thing straight – there is no such thing as “immediate loan forgiveness.” There are a number of reputable loan forgiveness programs out there, but all of them eliminate federal student loans after some time. Loan forgiveness programs can take from as “short” as 10 years to as long as 25. There are repayment estimators to help loan holders calculate their monthly payment and estimate how long they’ll be paying. 

Image source: mbmsriptidereader.com

Performance SLC helps its clients through the student loan payment process. Visit this website for more information.