Here’s why it’s not a good idea to deliberately default on your loans to get a loan settlement. Megan McArdle points out a passage by FinAid’s publisher Mark Kantrowitz on what a loan settlement looks like:
Settlements do occur on student loans, but deliberately defaulting on your loans to try to obtain a settlement is not an effective strategy for saving money. Interest continues to accrue on a student loan after default. After a few years of nonpayment the accumulated interest is substantial. Only part of that interest will be reduced if you happen to obtain a settlement. In the meantime 25% of any voluntary or involuntary payments will be deducted for collection charges. Ultimately this means that you will be paying much more on the loan than if you hadn't defaulted and it will take you much longer to pay off the balance. The government has very strong powers to compel repayment. They can take up to 15% of your paycheck, offset your income tax refunds and even seize lottery winnings to repay the defaulted loan, all without getting a court order. Settlements are rare, mostly because very few defaulted borrowers can afford to make a lump sum payment of the amount owed, and usually involve either no less than a 10% discount on the total amount due (including interest) or the full principal plus half the interest. See http://www.finaid.org/loans/se... for more details.
The last few years were tough on all of us, and we’ve all dealt with our own hardships differently. Now that most schools have returned to being in person full-time, some students might be struggling with transitioning away from the comforts of remote, virtual learning.
Student loan debt is a harsh reality for nearly 50 million college graduates in America. There was a time when a college degree all but promised a living wage and a middle-class lifestyle, but with the cost of education and cost of living constantly on the rise, it is becoming increasingly difficult for college graduates to achieve financial independence as they struggle to make regular student loan payments that essentially equate to a month’s rent in some cases.
Getting back into the swing of school life can be challenging after a long summer of beach days, pool days, late nights with friends, or even just your summer job. With summer coming to its inevitable end, we thought it would be the right time to share some tips on how to make your transition back to study mode as seamless as possible.
We’re under no illusions that this post is the first to address the question of what makes a “good” junior associate (given that a quick Google search will reveal numerous identical-sounding pieces). What makes this post different is the simplicity of our suggestions that can help you from Day One.
Greetings to all the aspiring entrepreneurs out there. Very recently we spoke about some common habits of the most successful entrepreneurs, and as promised, this time we’re going to tackle some of the biggest challenges new entrepreneurs face, along with effective strategies to overcome them.