Link roundup: The weekend’s 6 top subprime stories
Inside Subprime: August 28, 2017
By Caroline Thompson
Good morning! Here are six subprime stories you might have missed this weekend.
USAA sues Maryland lender for “riding coattails.”
New Day Financial is accused of copying USAA’s national ads and misleading consumers into thinking the Maryland, VA lender is somehow affiliated with USAA. Read more at Express News.
FedLoan Servicing in hot water nationwide for mishandling debt forgiveness program.
More states are pushing back against student loan servicer FedLoan, which has fumbled a 10-year-old program that was designed to forgive the federal loans of certain qualified public servants after 10 years of on-time monthly payments. But as the first crop of qualified candidates reaches the 10-year mark, many of them have been made to pay more, or found out at the last second they don’t qualify after all.
Read more at:
Want to learn more about student loan forgiveness? Check out our recent blog post breaking down all the ways to qualify.
Millennials not the only generation burdened by growing student debt.
More than 44 million Americans owe $1.4 trillion in student debt. And it’s not just millennials who are saddled with financial burdens they can’t pay back – many baby boomers are now entering retirement age with thousands of dollars in student loans. Read more at ABC.
Consolidating student debt can be a good way to save on interest. Read more on the blog.
Ford lowers lending standards to boost sales.
As sales fall, Ford Motor Company is loosening loan standards, even as subprime auto loan defaults are on the rise.
Read more at:
Retailers pushing high-interest credit cards on back-to-school shoppers.
According to the National Retail Federation, parents will spend an average of $688 on back-to-school supplies this year. In order to offset some of these costs, they may be tempted to sign up for store credit cards, which promise discounts and rewards but have super-high interest rates. Read/watch more at WRAL.com.
Credit card debt is hindering 401k savings.
A new report from Schwab Retirement Plan Services has found that about 50 percent of workers are not saving for retirement. Why? They’re already behind on bills, and relying heavily on credit cards to make ends meet. Read more at Forbes.
Head over to the blog to learn about how to deal with a maxed out credit card, and go over the basics of credit in our recent eBook on all things credit.