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

5 Common Budgeting Mistakes Newlyweds Make and How to Avoid Them

Budgeting mistakes are common, especially when you’re young. Not all newlyweds are young adults, but many first-time marriages do involve...
Read More

When Should Married Couples File for Bankruptcy Together?

There's no easy answer to the question of timing when it comes to bankruptcy. In some cases, it may make...
Read More

Can Your Spouses Debt Force You Into Bankruptcy?

If you're married and your spouse has a lot of debt, you may be wondering if that debt can force...
Read More

Do You Need a Bankruptcy Attorney If You’re Divorcing with Financial Problems?

Divorce and bankruptcies are more common than many people realize. Financial problems make a stressful transition even more difficult. If...
Read More

Can You File Bankruptcy without Your Spouse?

Filing for bankruptcy is a decision that should not be taken lightly. It can affect your financial life and the...
Read More

How Seniors Can Avoid Bankruptcy

Seniors are at a high risk of bankruptcy, but there are ways to avoid it. What do you need to...
Read More

What Happens If I Own Too Many Assets to File for Chapter 7?

Does hiding assets in bankruptcy protect them from your creditors? If you own too many assets to qualify for Chapter...
Read More

How to Find the Best Lawyer for Filing for Bankruptcy after Retirement

Many retirees decide to file for bankruptcy as a way to get a fresh start. But finding the right lawyer...
Read More

Does Declaring Bankruptcy Affect My Retirement Savings?

When you're struggling with debt, the thought of bankruptcy might cross your mind. But what would that mean for your...
Read More

Is a Reverse Mortgage Right for Me?

Reverse mortgages in Florida are loans that allow homeowners 62 and older to borrow against the equity in their homes....
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 avvo1 avvo2 avvo3 LEA BBB Logo

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