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

Video Testimonials

Tampa Bankruptcy Law Blog

How Does Getting Married Affect Bankruptcy?

If you are considering bankruptcy, you may be wondering how getting married affects your ability to file. The answer is...
Read More

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
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

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