Last week in student loan news, our founder gave advice on how to get out of debt faster, a study reported a borrowing spike for black students and a new scam was discovered.
Student Loan Hero Chats with Our Founder on How to Get Out Of Debt Faster
Our founder Jack Zoeller connected with Melanie Lockert of Dear Debt and Student Loan Hero on how to pay off your student loans faster. This post covers 5 steps for getting out of student debt as fast as possible while still keeping your payments reasonable. Here is a preview of the 5 steps:
- Know what you owe
- Pay more than the minimum payment
- Lower your interest rates
- Sign up for auto-pay
- Research loan forgiveness options
“Student loan debt can be a drag, but these five steps can help you toward eliminating your debt sooner rather than later. ‘Paying down your student debt faster than scheduled will free up cash that may be needed later to meet life’s other priorities,’ said Zoeller.”
NerdWallet Analysis: Black Student Loan Debt Increasing More Rapidly
In a new analysis by our partners at NerdWallet, student loan borrowing for black students has increased dramatically. “By the 2011-2012 school year, an astonishing 90% of black undergraduates had student loans, according to data from the National Center for Education Statistics.”
Other students have also seen an increase in borrowing, but not nearly as much as black students. The study develops several reasons for the increase in borrowing. The racial wealth gap and the burden of “bad debt” from for-profit colleges are two reasons that borrowing has skyrocketed. The study also explores options for avoiding loans and managing the debt you have.
Scam for Mortgages and Student Loans
The Federal Trade Commission (FTC) filed charges against Good Ebusiness for debt relief schemes on mortgages and student loans. The company operated under several names and used telemarketing to have people pay thousands in fees only to never see relief.
The company offered people the opportunity to lower their monthly payments, wipe out the debt, and remove wage garnishes on their student loans. For mortgage offerings, the company asked people to pay for mortgage relief services, which is illegal.
“According to the FTC, the company told people to stop making mortgage payments, but pay the company instead. But once someone paid, they never got the promised modifications — or the refund the company had guaranteed. Many people fell further behind on mortgage payments, racked up penalties and late fees, and risked foreclosure.”