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September 11, 2017 by Todd Murphy

Student Loans A to Z

Student Loans A to ZThis is the first in a series of articles about student loans. Since the financial crisis of 2008-09, there has been much debate about the student loan situation in the United States. In just the last decade, the cost of student loans has increased to nearly one and a half trillion dollars. In other words, this one form of debt alone comprises nearly eight percent of the GDP. Naturally, many are concerned.

How did student debt become such a major issue in America? To understand, a fast history of student loans is in order.

A Fast History of Student Loans

The history begins in 1040 when private lenders provided loans to students attending Harvard University. A prestigious school even then, costs were such that the loans would help the students with the cost of living while in attendance.

Twenty-seven years later, the United States Department of Education was created. The new bureaucracy had a mission of helping schools raise standards and increase enrollments. But, no formal student loan program was implemented.

In fact, the first formal program by the United States did not occur until after World War II. There were soldiers returning home from the war in large numbers. With all of those GIs returning to the workforce, it was a challenge. Much of the United States’ industrial output was consumed in war production, which was no longer as necessary as before. Recognizing the strain to the economy such a large home migration would cause, Congress passed the G.I. Bill to provide funds for military members to go to school.

Many economists have attributed the enormous economic increases in the following decade and a half to the G.I. Bill. The strain to the economy was mitigated and upon graduation, the U.S. economy had a well-educated workforce.

At the same time, the Cold War was on. To better compete globally, the National Defense Education Act was passed in 1958. It provided scholarships, grants, and loans for students who excelled in math, science, and languages. These were the first Federal student loans.

Not long after, the Civil Rights movement and President Lyndon Johnson’s Great Society produced the Higher Education Act to provide funds for needy students. The Federal Family Education Loan Program (FFELP) would become the first guaranteed student loan program in the nation. Banks and private lenders could provide the funds needed and the U.S. government would back them with subsidies and guarantees. By 1972, the Pell Grant was created.

It would be another twenty years before major changes occurred. In 1992, FAFSA was created to provide a simpler means of providing educational funds. The unsubsidized direct student loans have become the standard and ultimately, lead to the current situation.

A Fast History of the Current Student Loan Crisis

A year after establishing FAFSA (Free Application for Federal Student Aid), the Student Loan Reform Act provided students with direct access to funds. Instead of the loans going direct to the educational institution, students could request extra funds to cover living expenses up to a specified limit. In times of economic crisis more people enroll in school. The financial crisis of 2008 and 2009 nearly guaranteed massive increases in federal student loan guarantees.

One final element ensured that student spending and loans would rapidly increase: Online universities. Along with easy access to funds came easy access to classes. Little wonder that many American’s, desperate to better their standard of living, enrolled in the easy programs. Most of these online programs also offer training at hyper-inflated rates, further increasing the cost of education. Some of these online programs are just plain junk and impress no employer (more on that later).

Given the ease of lending combined with the ease of attendance, anything other than higher student debt would be surprising. But, the easier lending becomes, the less people tend to know about the terms and conditions. With many student loan debts coming due, many are now seeking to understand just what they got themselves into.

In this series of articles, Student Loans A-Z, we are going to cover most of the basics. We encourage you to bookmark our blog are return often or sign up for updates to receive each post as they are published.

 

Filed Under: Student Loans Tagged With: nj, Student Loan Lawyer, student loans

May 27, 2016 by Todd Murphy

Why Should I Act Fast In Applying For A Loan Modification?

loan modification act fastDon’t Wait! Why Should I Act Fast In Applying For A Loan Modification?

A fundamental mistake most people make is not to apply for a loan modification as quickly as possible.  You must act fast  in applying for a loan modification to save your home.  It becomes apparent when you understand how a loan modification works. A loan modification takes your missed payments and rolls them into your future payments; then you arrive at a new monthly payment, which is usually lower than the original amount because the loan typically has a lower interest rate and a longer term. The more missed payments, the harder it is to be approved.

You probably know that it takes many months in New Jersey for the foreclosure process to progress from Complaint to Sheriff Sale, but don’t let this time-frame let you think you can wait to apply.  Don’t Wait!

If you want to find out the 2 biggest pitfalls when trying to get a loan modification, read our post: Two Biggest Reasons People Fail To Get A Loan Modification.

So Why Should I Act Fast?

A loan modification is the best option for those looking to save their homes, it gives you the best outcome. But, the longer you wait, the more mortgage payments you miss. As a result, when your application is analyzed, the more payments you have missed makes the new monthly payments higher, and this makes it harder to be approved.

Loan modifications can take a long time to begin with, to increase your chances of getting approved for one, it is smart to get started on the process ASAP if you think you may qualify.

To find out if you qualify for a loan modification, read our post: Will I Qualify For Loan Modification?

And, if you think you qualify and want to know how loan modifications work, read our post: How To Get A Loan Modification. 

Filed Under: Foreclosure, Home Loan Modification Tagged With: home loan modification, lawyer, loan mod, loan modification, New Jersey, nj

May 27, 2016 by Todd Murphy

Why Are Loan Modifications Frustrating?

Home loan modification frustratingIs Your Lender Constantly Giving You The Runaround…Why Are Loan Modifications Frustrating?

There are a million and one reasons why getting a loan modification can be the most frustrating endeavor ever. We hear it constantly, “I keep sending my documents into the bank over and over again and they tell me they lost them, ask for the same document over and over, and then ask for additional documents. Then, I get denied and they won’t tell me why.”

The unfortunate truth of the matter is the loan specialists you work with idon’thave any authority and you hardly ever speak to the same person twice, leading to confusion and misunderstanding.  There are a lot of different processes going on in the background when you send your documents in to the bank, it can be frustrating to understand why your application keeps getting denied, or why the process is taking so long.

Common Complaints About Getting A Loan Modification

  1. Your bank won’t stop pestering you for the same documents repeatedly
  2. You keep faxing the bank the same documents
  3. You reach a different agent every time
  4. The agents all tell you conflicting information
  5. You’re spending hours on hold, to get nowhere
  6. Your lender isn’t responding to you
  7. Your application was denied, even though you qualify
  8. The bank lost your documents
  9. Your bank keeps transferring you between different departments every time you call

End The Struggle – Get Your Loan Modification

There are basic things you must know in order to have a good shot at getting your home loan modification application approved. To discover how to get a loan modification, read our post: How To Get A Loan Modification.

Filed Under: Foreclosure, Home Loan Modification Tagged With: foreclosure, home loan modification, lawyer, loan modification, New Jersey, nj

October 20, 2014 by Todd Murphy

5 Tips to Choosing the Best Foreclosure Lawyer in New Jersey

Searching for the Best Foreclosure Lawyer in NJ?

Here are 5 tips to choosing the best foreclosure lawyer for your situation.

best foreclosure lawyer nj

 

  • A Focus on Foreclosure: Be sure your lawyer is well-versed in loan modifications and bankruptcy law – specifically chapter 13 cases. The loan modification is the primary tool your lawyer should be focusing on. Chapter 13 bankruptcy, sometimes used in conjunction with a loan modification, is one of a handful of tools that are often used to save a home from foreclosure and get a loan modification when others not obtainable. A chapter 13 bankruptcy case is much more complex than a typical no-asset chapter 7 “Fresh Start” case.
  • Experience: Be sure your lawyer has been handling foreclosure cases at least since 2008 when the current foreclosure crisis hit. Handling foreclosure cases regularly and for at least 5 years will ensure your lawyer knows the latest changes in the law and will understand the various strategies that are available to save your home from foreclosure.
  • Bankruptcy Knowledge is Not Enough: Be sure your lawyer is not just a bankruptcy lawyer who will only offer you the option of bankruptcy. Bankruptcy is not the only way to save a home from foreclosure and all options should be explored fully – with loan modification being the first of those possible solutions to explore.
  • Beware of Scams: Beware of lawyers, usually from out-of-state, that want to charge you a large initial retainer of $2,000-$3,000, with a monthly retainer of $500-$700 while they negotiate a loan modification for you.  Many times, this is a scam.
  • Loan Modification Expertise: It is crucial that your lawyer understands the importance of loan modification as the primary tool for saving a home from foreclosure. Loan modification solves the root of the issue, and should be your strategy if you qualify for one. Bankruptcy should only be a backup or secondary tool. Consider these tips carefully when you are looking for the Best Foreclosure Lawyer for your situation.

 

Todd Murphy dedicates his practice to saving peoples’ homes from foreclosure with offices in Bedminster (near Somerville) NJ. 

 

Wondering What You Should Ask A Foreclosure Lawyer Once You Get One On The Phone?

Ask the right questions: avoid scams!

It can be difficult to know what questions to ask your foreclosure lawyer to make sure that he/she is well-qualified for the task of saving your home from foreclosure. We have the top 5 questions you need to ask a foreclosure lawyer to make sure that he/she is right for the job, and to make sure you are not being scammed.

Click the button below to get your 5 questions to ask your foreclosure lawyer before you hire them.

 

Get My Questions

 

 

 

Filed Under: About, Foreclosure Tagged With: Bridgewater NJ, foreclosure, foreclosure lawyer, nj, somerville NJ

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