Tax Reform Student Loan Interest New Tax Reform Student Loan Interest 2018 Tax Reform Student Loan Interest Tax Reform Student Loan Interest Tax Reform Bill
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In 1981 a minimum wage earner could work full time in the summer and make almost enough to cover their annual college costs leaving a small amount that they could cobble together from grants loans or work during the school year. 4. In 2005 a student earning minimum wage would have to work the entire year and devote all of that money to the cost of their education to afford 1 year of a public college or university. 5. Now think about this there are approximately 40 million people with student loan debt somewhere over the 1.2 trillion dollar mark. According to studentaid.gov seven million of those borrowers are in default that is roughly 18%. Default is defined as being 270 days delinquent on your student loan payments. Once in default the loan balances increase by 25% and are sent to collections.
Because we know that borrowing to attend college is not going away steps to offset the bite of borrowing to attend college should be taken as far in advance as possible to reduce and manage your debt. Here are some steps to you can take to ensure you are borrowing responsibly. 1. Avoid Falling into The Loan Trap - If at all possible avoid borrowing; however if you are like most students attending college you have no other choice but to do so. When it comes time to borrow do not be tempted to borrow the full sum available to you personally on the loan loan of the loan doing so can give you a false sense of financial security. Often when you get the maximum amount of a student loan it is usually more than you can afford to repay. This usually happens when students take out a need-based loan.
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Some of the benefits and advantages of federal student loans is given below. Unlike other forms of consumer debt student loans receive special protections under current laws ranging from collection to bankruptcy. This special status applies not only to the primary borrower (the student) but also to any co-signer on the loan. Student loans are one of the hardest types of debt to shake. Current U.S. bankruptcy law allows a court to discharge these loans in bankruptcy only in the narrowest circumstances. In fact the legal requirements for discharging education loans are so formidable to meet that most bankruptcy attorneys avoid student loan cases altogether. Since so few loan borrowers qualify for bankruptcy discharge under the law the vast majority of loan debt is carried until the borrower repays the loan or dies -- although some non-federal student loans even survive death passing the debt on to the borrowers co-signer.