Federal Student Loan Collections and Wage Garnishments Temporarily Put On Hold

Politico is reporting, “DEVOS HALTS COLLECTION OF DEFAULTED FEDERAL STUDENT LOANS: The Education Department is putting a stop to collecting on defaulted federal student loans amid the coronavirus and ordering private collection firms to stop pursuing borrowers “until further notice,” according to the official and a memo sent to the companies. The department plans to … Read more

Black Students More Likely to Default on Student Loans

By Andrew F. Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw Total household debt balances increased by $92 billion in the third quarter of 2019, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. The balance increase reflected nearly across the board … Read more

My Ph.D. in Engineering Left Me With Student Loan Debt I Can’t Afford

Question: Dear Steve, I’ve accrued ~$450,000 of student loan debt in the pursuit of getting a PhD in engineering. My payments are around $4500 per month minimum from both private and federal loans. I can’t keep up with the payments, I’m slowly sinking into not being able to pay anything even though I have a … Read more

The Department of Education Is Cooking the Books: Federal Reserve Bank Says $166 Billion in Student Debt is Delinquent

Most Americans have confidence in what the Federal Reserve Bank says about the national economy. I know I do. But when the Federal Reserve Bank of New York reported that $166 billion in student debt is delinquent, it vastly understated the enormity of the student-loan crisis. In its most recent quarterly household debt report, the … Read more

Can I File Bankruptcy and Not Impact My Private Student Loan Cosigners? – Matthew

Question: Dear Steve, Currently, I am neck-deep in private student loan debt due to some poor choices made when I was in higher education. Unfortunately, the sum of my monthly payments covers about three-quarters of my monthly paycheck, and of course, I have other bills to pay. Naturally, my parents were used as cosigners on … Read more

Should I Default on My Student Loans From The Savannah College of Art and Design? – Hollie

Question: Dear Steve, I applied to The Savannah College of Art and Design in 2007. When I found out I got accepted, the first thing I did was start to figure out how I was going to be able to pay for it. It is a private university, and very pricey. I was young and … Read more

My Husband Cosigned on My Student Loan and Now Wants to Be Left Out

Question: Dear Steve, I am buried in student loan debt and probably have the biggest total of anyone you have talked to for a number of reasons I can get into later if you want to know. But basically, I am around 200k in debt, some private, some federal. One of the private loans is … Read more

I’ve Decided to Stop Making My Private Student Loan Payments

Question: Dear Steve, I owe a total of $47,000 in private student loans. I have decided to stop paying the loan, since the $300 a month payment for the next 30 years has me completely broke. My grandmother is a co signer on the loan but she is very old and living in a home … Read more

Can the Private Student Loan Lenders Default My Son for Making Partial Payments?

Question: Dear Steve, I am writing for my son who has just found out that his private student loan was put into default. My son graduated from college in 2013. Since then he has received a Master’s Degree and is working full time in another state making $30,000 per year. He has $130,000 debt for … Read more

I Can Afford to Pay My Private Student Loan But the Lender Won’t Let Me

Question: Dear Steve, My family and I are in California. When I went to college, my parents co-signed for my private student loans. I graduated, got a job, and made payments towards my student loans in a timely manner. My parents made the decision to file for Chapter 13 bankruptcy in 2012. Unfortunately, their lawyers … Read more

Once I Remove My Cosigners, Should I Default on My Private Student Loans?

Question: Dear Steve, I made the mistake of taking out private student loans to finance my college education and am neatly 100k in the hole. Three years removed from graduation, I’m at a job making 37k/year (before taxes), still live at my parents’ house with no realistic target date of ever moving out, and I … Read more