Private Student Loans

A private student loan is a financing option for higher education in the United States that can either supplement or replace federally guaranteed loans such as Stafford loans, Perkins loans and PLUS loans. These may offer forbearance and deferral options. Fees vary greatly, and legal cases have reported fees reaching 50% of amount of the loan. Although traditionally unsecured, these loans are increasingly secured, so that the borrower must offer collateral or a third-party guarantee of payment.Interest rates are set by the financial institution that underwrites the loan, typically based on the perceived risk that the borrower may be delinquent or in default of payments of the loan.
Posts about Private Student Loans
  • Finance Tips for High School Graduates

    …. Avoid Fees Never pay ATM or checking fees. Learn how to balance your checkbook and never incur overdraft charges from your bank. There are banks that will not charge ATM charges no matter where you bank or bank where there are lots of branches near your college. It’ll be even better if your parents bank at the same bank so funds are easily transferred…

    Mary Pool/ Bond and Botes- 36 readers -
  • Student Loan Debt Crisis; Fix Undue Hardship

    … is by a preponderance of the evidence, or a totality of the circumstances, depending where you live and I think it needs fixing. I think that private student loans should be permitted in a standard bankruptcy discharge, which takes us back before the Bankruptcy Code changes in 2005. I know that federal student loans provide many repayment alternatives, including a total and permanent disability discharge, so for these loans to be discharged in bankruptcy, there should remain a standard. However, debtors should not …

    Christine Kingston/ Los Angeles Bankruptcy Law Monitor- 40 readers -
  • School Closure Could Provide Student Borrowers with Debt Relief

    … students struggling to pay their monthly debts, the Obama administration has directed federal agencies to explore options to help student borrowers manage their debts, including the possibility of restoring bankruptcy protections to individuals who have taken out private student loans. While this change to bankruptcy policy would be a welcome change…

    Ronald D. Weiss, PC- 36 readers -
  • Student Loan Delinquency vs Default – The Difference

    … As it happens there is a significant difference in being delinquent in repaying a student loan and being in default in the repayment of a student loan. There is a further difference between delinquency and default for federally issued or guaranteed student loans and private student loans originating from commercial lenders, as well…

    Carla M. Handy/ Bond and Botes- 36 readers -
  • Who Needs Student Loan Forgiveness?

    … In a recent Wall Street Journal (“WSJ”) (@WSJBankruptcyBeat) series on the Great Student Loan Debt Debate, several of their examiners discussed what to do about student loans in bankruptcy. Let’s start with the goal of bankruptcy, which is to help the HONEST BUT UNFORTUNATE DEBTOR, see the WSJ article here. This is a person who has more debt than…

    Christine Kingston/ Los Angeles Bankruptcy Law Monitor- 39 readers -
  • Obama Student Loan Forgiveness Starts Here

    … payment in California); These loans may be easily discharged in bankruptcy for a variety of reasons: (a) Disallow their claims to payment in Chapter 13; (b) Sue lender for loans that are not “Qualified Education Loans;” If you’re being sued by a private student loan lender, consult with a reputable Student Loan Lawyer immediately to protect your…

    Christine Kingston/ Los Angeles Bankruptcy Law Monitor- 50 readers -
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