Susan Tompor Detroit Free Press Published 7:09 AM EDT Jul 10, 2019 Get a robocall lately from Jonathon or someone else saying that your student loans have been flagged for a student loan forgiveness program? "If you owe more than $10,000 and are not currently enrolled in school, you could qualify for a reduced monthly payment and a large portion of your balance to be forgiven," one caller said. "To redeem your spot in the program, it's important that you call me quickly." Nicole Cross, 43, heard a similar pitch last year that promised student loan debt relief. But instead of saving any money, she lost $750 in fees and saw no relief when it came to owing more than $70,000 in student loans. Cross, who lives in St. Clair Shores, said she has one bit of advice for people who are stressed out about their student loan debt and end up talking with someone offering student loan forgiveness. "The minute they say $250," she said, "hang up the … [Read more...] about Student loan forgiveness scam promises to cancel debt
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The Latest Victims of the Student Debt Crisis — Parents
There’s no doubt that college is expensive. Tuition and fees for a four-year private college averaged $35,830 in 2018-19; at four-year in-state public colleges, it was $10,230, according to the College Board. And that doesn’t count room and board or other expenses. Few families have the cash to cover it, and that’s where borrowed money often comes in. On average, loans cover 24% of the tab when savings, financial aid and scholarships fall short, according to Sallie Mae’s 11th annual “How America Pays for College” report. As a result, student debt has reached record proportions, with $1.6 trillion in loans outstanding. And that burden is not just shared by students. Increasingly, parents are borrowing to make up the difference. While the annual limit on federal student loans is $5,500 to $7,500 depending on your year in school, parents can take out up to the maximum of the cost of attendance (minus federal student aid or loans offered directly to the … [Read more...] about The Latest Victims of the Student Debt Crisis — Parents
Liz Weston: How debt ‘solutions’ could dig you in deeper
Liz Weston Published 12:04 AM EDT Apr 29, 2019 Americans are slipping ever deeper into hock. To cope, many people turn to debt consolidation loans, cash-out mortgage refinancing and retirement plan loans that promise relief but could leave them worse off. Paying off high-rate debt such as credit cards with lower-rate loans may seem like a no-brainer. Unfortunately, many of these loans have hidden costs and drawbacks. And consolidation by itself can’t fix the problems that led to the debt in the first place. In fact, such loans can make matters worse if borrowers feel freed up to spend more. “Consolidating debt seems to create the psychological effect of making you feel like you’ve zeroed it out,” says Moira Somers, financial psychologist and author of “Advice That Sticks.” “Then (borrowers) just start spending up again, until there is no more wiggle room.” Debt levels are hitting new highs Statistics show U.S. households are … [Read more...] about Liz Weston: How debt ‘solutions’ could dig you in deeper
Millennial Money: There’s more than 1 way to slay a debt
The saying that debt is easy to get into and hard to get out of hits home for younger Americans: At the end of 2018, 18- to 29-year-olds carried over $1 trillion in debt, according to the Federal Reserve. That's the highest level since 2007. "Understanding your options and making a plan is imperative," says Billy Hensley, CEO of the National Endowment for Financial Education. "Anyone doing that is going in the right direction." Knowing a few key points can help anyone — new to debt or not — resolve their debt faster and potentially save hundreds or thousands of dollars. CUT YOUR INTEREST RATE A high-interest credit card or loan is costly. But you may be able to pay less interest, and pay off debt faster, with these tools: BALANCE TRANSFER CARDS. Roll the balance of your existing cards onto a new one offering a promotional 0 percent interest rate. With your entire payment going to the debt, not interest, you'll pay it off faster and save money. Two caveats: Pay it off within … [Read more...] about Millennial Money: There’s more than 1 way to slay a debt
Read the transcript of Elizabeth Warren’s big foreign policy speech
Sen. Elizabeth Warren took the stage Thursday afternoon at American University to deliver a wide-ranging speech on her vision for the country’s foreign policy, in yet another potential sign that she may be preparing to run for president in 2020. In her speech, the Massachusetts Democrat called for the United States to rein in “unsustainable” overseas involvements in conflicts “that sap American strength,” criticized the country’s support for Saudi Arabia, called for cuts to the “bloated defense budget,” and reiterated her opposition to President Donald Trump’s reworked North American trade agreement. At the same time, she also called for a reconsideration of the bipartisan embrace of the “gospel that free trade was a rising tide that would lift all boats.” “We can start our defense of democracy by fixing what has gone wrong with our international economic policies,” Warren said. “Policymakers … [Read more...] about Read the transcript of Elizabeth Warren’s big foreign policy speech