Page 6 - Prepayment Program News Today

The next loan crisis is coming to a college campus near you. youve probably heard the student loan horror stories. its only a small portion of borrowers, but it does happen 60, 70, 80, even $100,000 in student debt. weve talked a lot about the problem of the low-wage recovery on this show, but for students with high loan balances and low wages, there is a solution no one is talking about. the income-based repayment program gives borrowers a break, and that break is about to get bigger. heres how...

>> arthel: so you mentioned the federal loans. of course, were talk being if the federal government extends that low rate at 3.4% for the students for another year action it will cost taxpayers nearly 6 billion. whats the work around there? >> there are some things that could make this easier. the federal government has very cumbersome and confusing language about repayment options. and students, graduates are not taking advantage of things out there that would make this easier on them. >> arthe...

But there are different ways that they can negotiate that and here we have graduates that arent aware of these programs and so theyre not utilizing them. >> arthel: where do you go to find out that information? >> so to all of that is available on-line. it is hard to tease out. the jargon is complex and the government does not make this easy for students. >> arthel: but the government is trying to help. we have to go, but the government is trying to help to make college accessible to so many peo...

Metastasizing due to interest buildup with over $100,000 owed, even if he declares bankruptcy he has little hope of paying it all off and building a secure future. current minimum payments leave him nothing to live on or save. do you have any suggestions to help him dig his way out? carmen? >> metastasizing. thats the thing. it can feel like this crazy cancerous growth. heres the thin. you cannot avoid student loans even in your bankruptcy. bankruptcy wont solve the situation. the good news is, ...