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发帖数: 6339 | 1 After last week's column about student loan debt, @musicalsrus responded on
Twitter: What about private loan companies that "rule with an iron fist"?
Fair point, @musicalsrus. If federal student loans can send you up the creek
without a paddle, private loans can send you up the creek without a paddle
or a lifejacket. Also, your boat is full of holes. And the creek is full of
sharks.
There are some significant differences between federal and private loans:
Private interest rates generally are determined by your credit score, and
they can be variable, meaning they change over time. You may have to pay 8
percent interest one month, then 18 percent interest later on. Private loans
are not subject to federal repayment options like public service
forgiveness, income-based repayment plans, deferment or forbearance.
Interest payments are not tax-deductible, and you may even incur a fee if
you decide to pay more than the minimum monthly payment.
Long story short, private loans usually are more expensive, and they don't
offer the kind of safety net federal loans do.
The best course of action is to avoid them entirely, but in case you're
already in the boat, there are ways to try to make it a little easier:
A few banks offer private student loan consolidation plans. The main benefit
of consolidation is convenience—i.e., you'll have to make just one monthly
payment. But if you have good credit, you may be able to swing a lower
interest rate when you consolidate, saving you money over the term of the
loan. In general, when requesting an adjustment to any kind of credit, be
sure to make that request in person or over the phone. You increase your
chances of success when you talk to a real person, rather than letting a
machine crunch your numbers.
Here's another phone call to make: Your representative in Congress. Last
month, Rep. Danny Davis (D-IL) helped introduce legislation that would make
your private student loan debt disappear if you declare bankruptcy. Sen.
Dick Durbin (D-IL) is sponsoring a similar bill in the senate. Odds of
passage are not super great, according to govtrack.us, but if enough people
write and call their representatives, maybe things will look up.
Do you have any other ideas on how to ease your student debt burden? Act
quickly. The Consumer Financial Protection Bureau wants to hear them by
April 8. Go to http://www.consumerfinance.gov/students or email your idea to s**********************[email protected] and let the feds know.
http://www.redeyechicago.com/news/ct-red-0315-brokester-2013031 |
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