The federal government established the Student Loan Marketing Association (SLMA) in 1972 to allow more people the ability to go to college. SLMA, also known as Sallie Mae, is the largest student loan provider in the country by far, and manages $126.9 billion in loans for more than nine million borrowers.
Contrary to popular belief, obtaining a loan through Sallie Mae is not borrowing money from the federal government. In reality, Sallie Mae is a for-profit corporation. Its stock trades on the New York Stock Exchange (ticker SLM), and its loans are sold to investors. Investors agree to purchase what would otherwise be “risky” loans, because the federal government guarantees the repayment of student loans. After all, high school seniors are not the world's greatest credit gamble.
Very few financial investments are guaranteed, but it is important to understand that SLMA debt securities are exactly that. Except in extremely rare cases, federal student loans cannot be discharged in bankruptcy. Even if you file bankruptcy, you still will be obligated to repay your student loans.
Understanding Credit Monitoring Services
You don't want to live in your parents' garage or risk not getting a loan when you most need it. Credit monitoring services can help prevent bad credit caused by identity theft, but are they worth the cost?
Credit Monitoring: How it can HelpCredit monitoring services can help minimize problems caused by identity theft and fraudulent use of your credit. Frequent credit monitoring can also be useful for rebuilding credit.
Credit Monitoring after BankruptcyRepairing your credit after filing bankruptcy can seem difficult, but it's possible. Credit monitoring is useful for cleaning up the wreckage, correcting inaccuracies, and preventing additional credit problems.
Your Credit Rights After Bankruptcy: Discharged Debts and Zero BalancesRebuilding your credit should be at the top of your priorities after filing for personal bankruptcy. During this process, keep a close eye on your credit report as items can often be reported incorrectly by the credit reporting agencies. In general, all discharged debts should be reported as zero balances after bankruptcy. Often they are reported incorrectly and can end up hurting your credit more than necessary. To avoid these mistakes, understand your credit rights as a consumer even under the stain of bankruptcy.
What Happens to Cosigners When You File For Bankruptcy?Bankruptcy is a very powerful financial tool that can affect the lives of those surrounding the debtor. Cosigners of debt should pay special attention as they are often not protected by someone else's bankruptcy.
Guide to No Cosigner Student Loans
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