CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

With Feds Setting the Rates, Student Borrowers Can’t Refinance

Interest rates are at the lowest that they have been in a long time. A lot of people who purchased a home before the housing crisis signed a fixed rate mortgage at rates as high as 8.0 to 9.0 percent in the 1990s. Now, a lot of those people who are able to are taking advantage of rates as low as around 3.5 percent for a 15 or 13-year mortgage by refinancing their home. Depending on the amount of the unpaid mortgage balance, this can save them multiple thousands of dollars in the long run.

Student loans help benefit the United States market by allowing individuals to obtain higher degrees that they may otherwise be unable to pay for on their own. However, recent grads are struggling more than ever with overwhelming student loan debt that their salaries aren’t coming close to covering. So why can’t they take advantage of these incredibly low interest rates?

The first important point to note in this discussion is that we are talking about federal student loans, not private loans. The Stafford loans and graduate loans whether subsidized or unsubsidized — if you have them, you’ve heard the terms — are backed by the federal government and these interest rates are not set in the free market. They are also not backed by collateral like a house or a car.

What is shocking is how many Americans owe student loan debt. According to many estimates, there is approximately $1 trillion in outstanding student loan debt in the country, and approximately $864 billion of that amount is federal loan debt that is being paid back at rates above 6 percent. Most of the 37 million Americans that owe student loan debt are over the age of 30. Approximately 15 percent are even above the age of 50. More bad news? Over 13 percent of the students who had to begin paying their loans in 2009 have defaulted already in the three years that followed.

Even worse, the interest rates that the government has set these loans at means that they are making three times the amount of money that it costs them to borrow it in the first place. Some wonder what is being done or what should be done to help those that are falling under this burden.

Source:TIME, “Why Can’t People with Student Loans Refinance at Better Rates?” Dan Kadlec, Feb. 20, 2013

If you have questions about what debts you can get rid of in bankruptcy, our website provides answers to that question and access to those who can help with serious debt relief.

Archive

Tampa Bankruptcy Law Blog

I’m Unemployed. Can I Still File for Bankruptcy?

Unemployed Bankruptcy Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because of...
Read More

How Will Filing for Bankruptcy Affect My Credit?

Will Bankruptcy Affect My Credit? Not paying your bills affects your credit negatively. And yet problems with credit are one...
Read More

Behind or In Default on Your Student Loan? Here’s What You Should Know

Student Loan Default If you’ve fallen behind on student loan payments or your student loans are in default, you aren’t...
Read More

Will Bankrutcy Affect My Job? Learn How Filing Affects You in the Workplace

Will Bankruptcy Affect My Job? Filing for bankruptcy raises many considerations. One of the most important is whether or not...
Read More

Can Bankruptcy Help Me If I’m Behind on Child Support?

Bankruptcy and Child Support Bankruptcy can help you with a lot of things. It can help you stop calls from...
Read More

Can You File for Bankruptcy When You’re Unemployed?

Bankruptcy and Unemployment Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because...
Read More

Bankruptcy and Eviction History

Eviction With the rate of evictions on the rise in recent months and the expectations that eviction numbers will grow,...
Read More

What to Expect Once You’ve Decided to File Bankruptcy from Home

File Bankruptcy from Home There are a few things that happen when you file bankruptcy from home. An automatic stay...
Read More

Will Filing for Bankruptcy Affect My Job Search? What You Need to Know about Unemployment and Bankruptcy

Unemployment and Bankruptcy Searching for a job when you are faced with a dire financial situation is difficult. If you’ve...
Read More

Will I Need to Go to Court If I File for Bankruptcy?

File for Bankruptcy from Home One of the most intimidating aspects of filing for bankruptcy is meeting in person with...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo comodo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions