News 

Yet Another Way Student Debt Keeps People from Buying Homes

“Then there were his liabilities: credit-card debt, car payments, and student-loan debt” writes Adam Harris for theatlantic.com. But he found something troubling when lenders were calculating his student-loan debt payments: They were saying he owed a lot more than he actually had to pay.The mortgage lenders Habash was going to did not look at that lower monthly payment, and instead calculated monthly payments based on the size of his loan.If a borrower makes regular payments of the agreed-upon amount for 20 to 25 years, based on their specific income-driven repayment…

Read More
News 

A farewell to ARMs? Americans still shun adjustable-rate mortgages 10 years after the crisis

“As the financial crisis gathered steam, Americans fled adjustable-rate mortgages” writes Andrea Riquier for marketwatch.com. ARMs are currently pegged to a benchmark called LIBOR, which tracks the rates banks charge to lend to each other.Also read: Mortgage rates fall to 3-month low as flight to safety rolls on For long bonds to shake free and surge higher, Khater said, would likely require a “substantial increase in inflation. Source: marketwatch.com Share This:

Read More
News 

Struggling student borrowers face a new challenge in debt relief

“Student debt companies, which say they will reduce or eliminate your loans for a fee, have flourished for years by making false promises to struggling borrowers” writes Brad Wolverton for marketwatch.com. Those contracts have come through partnerships with 43 student debt companies.The FTC targeted several of those companies last year as part of a national crackdown on the student “debt relief” industry.Louis, says she stopped paying Equitable after realizing the student debt company she signed up with had not provided the promised services.Many have emailed NerdWallet, which posted a Student Loan…

Read More
News 

A student loan company offers new borrowers a free year of MoviePass

“The announcement is the latest example of refinancing companies angling to lure relatively high-income, credit-worthy student loan borrowers” writes Jillian Berman for marketwatch.com. SoFi, perhaps the best-known name in the student loan refinance market, already offers borrowers career counseling and other networking services, as well as happy hours and parties.The movie theater subscription company announced a partnership this week with Laurel Road, a lender that offers student loan borrowers the opportunity to refinance their debt at a lower interest rate.With several firms participating in the student loan refinance business and…

Read More
News 

How to fix the bankruptcy system for student loan borrowers

“Student loan borrowers looking to get a fresh start in bankruptcy have little hope” writes Jillian Berman for marketwatch.com. It’s difficult to wipe away a student loan in bankruptcy.Get rid of obstacles that make it costly for borrowers to pursue a student loan discharge in bankruptcy One of the reasons it’s so rare for borrowers to have their student loans wiped away in bankruptcy: So few actually try.Proving an undue hardship often requires costly litigation that borrowers filing for bankruptcy aren’t likely to be able to afford.For the past several…

Read More
News 

Getting Rich on Government-Backed Mortgages

“In 2007 he started making government-backed loans, working for various firms before signing on last year with American Financial Network” writes Prashant Gopal for bloomberg.com. To protect taxpayers, FHA borrowers are supposed to make small down payments, equal to 3.5 percent of the home’s purchase price.Jonathan Gwin, American Financial Network’s chief operating officer, says delinquencies are low for these kinds of loans.Then, as now, independent mortgage companies, the so-called nonbanks, dominated the business of making loans to people with blemished credit and low incomes. Source: bloomberg.com Share This:

Read More
News 

New grads: start your new life with the right student loan repayment plan

“Heading into the workforce saddled with student loan debt can make any new graduate panic” writes Elizabeth Renter for marketwatch.com. A new NerdWallet analysis puts the Class of 2018 in retirement at age 72 after years of careful budgeting, debt repayment and savings.There are four income-driven repayment plans available for federal student loan borrowers. Source: marketwatch.com Share This:

Read More
News 

When it comes to student debt, it’s really a matter of wealth

“The net worth for young black households with student debt?” reports washingtonpost.com. While there is almost certainly truth to these critiques, and some value in the solutions, there’s one overlooked flaw of income-driven loan repayment.This may explain why only 2.6 percent of college-educated white households report being late on any debt payment, while 11 percent of college-educated black households report being behind on a debt.Obviously, income-driven loan repayment considers only a borrower’s income when calculating a reasonable payment. Source: washingtonpost.com Share This:

Read More
News Regulators 

Inflation pause lends helping hand to borrowers

“The surprising pause in a prolonged bout of rising inflation could be just that: a pause” writes Jeffry Bartash for marketwatch.com. A recent — and perhaps temporary — halt to rising inflation.The Fed is widely expected to raise it again in June and then wait to see if inflation resumes its march higher.Then another pair of inflation trackers on wholesale and consumer prices in April came in below expectations.The so-called fed funds rate now stands at 1.5% to 1.75% following an increase earlier this year. Source: marketwatch.com Share This:

Read More
News 

Interest rate frozen again: what this means for you

“Another interest rate rise of 0.25 per cent was widely expected to take interest rates to 0.75 per cent this month” writes Prudence Ivey for independent.co.uk. If interest rates go up will I still be able to afford my repayments?. UK interest rates rose in November last year for the first time in a decade, from a historic low of 0.25 per cent to 0.5 per cent.Pendleton reinforces this message by pointing out that first-time buyers should not be panicking about being priced out of a mortgage because rate rises will be…

Read More