Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 8: Student Loan Issues

24 Apr Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 8: Student Loan Issues

Part 8 of my review of Kevin Trudeau’s book, Debt Cures They Don’t Want You to Know examines Chapter 13: Class is Now In Session. The purpose of the review is to examine whether Trudeau, who has had extensive involvement with credit card fraud and the Federal Trade Commission for some of his previous books, makes any sense in this latest self-help promotion or is he making money selling empty promises.

Chapter 13 discusses the issues with student loans and the possible options after graduation and the collector comes a-calling. Trudeau explains the difference between federally guaranteed student loans and private student loans. The basic student loan is the Stafford loan, consisting of either a loan from the federal government (Federal Direct Student Loan Program)(FDSLP) or private lenders’ loans guaranteed by the federal government (Federal Family Education Loan Program)(FFELP). The interest rate on these types of loans are fixed but may be discounted for electronic payments. These loans go into repayment six months after graduation.

Needy students can receive “subsidized” Stafford loans–the government pays the interest on the loans while the student is in school. Non-financially needy students can receive “unsubsidized” Stafford loans–the interest is paid along with the loan payment after graduation.

A third kind of loan is the ” Perkins” loan–based on extreme financial need.

Trudeau explains that private student loans are available on top of the government-guaranteed loans. These loans’ approval are based on credit score.

Repayment of the loans can be problematic. Trudeau details the various options: rehabiliation if the loan has gone into default (not been paid when due); going back to school (loans are typically in deferment when the student is in school); repayment/loan forgiveness programs (volunteering for specific kinds of employment, such as Americorps, Peace Corps, VISTA; teaching, medical studies or working in a medical needy area), and promotes the latest loan repayment/forgiveness program.

College Cost Reduction and Access Act of 2007. Whatever else this reviewer may think of portions of this book, the publishing of this information may make the purchase worthwhile. The Act did not receive much publicity when it was passed (I pay attention to this kind of legislation and only learned of it about six months ago). Even though the Act is effective October 2007, it has not yet been implemented as an official program (new information/procedures are supposed to be in place July 2009).

Student borrowers who feel that they might be eligible for the benefits of the Act should go to http://www.ibrinfo.org/ and sign up for updates. The effective date is July 1, 2009.

Overall, this chapter is informative but not informative enough. Trudeau skims the surface (indeed, the National Consumer Law Center has devoted an entire book on the subject of student loans) and only provides the highlights of each possibility. But, he does no harm, although his readers should search out more information.Other sites that provide detailed information include:

http://thenewservice.wordpress.com/2009/04/14/ccra2007/

Part 1 of my review examines the first three chapters of Kevin Trudeau’s book, Debt Cures They Don’t Want You to Know. (gets an “okay” rating)

  • Part 2 of my review dissects Chapter 4 of the book (gets a warning of “Get legal advice from a lawyer in your own state”).
  • Part 3 of my review deals with Chapter 5 of the book (gets a warning of “Get legal advice before following Trudeau’s advice”)
  • Part 4 of my review examines Chapter6, as Trudeau discusses how to cut your credit card rate. (gets a “doesn’t hurt to try it; don’t expect it”).
  • Part 5 of my review examines Chapter 7: Fighting Back. (gets an okay rating).
  • Part 6 of my review examines Chapters8-11: Credit Score (gets “good information”)
  • Part 7 of my review discusses Chapter 12: Credit Reporting Errors (gets mixed review as he repeats bad information (discussed earlier in Part 3) but generally good information).
  • Part 8 of my review examines Chapter 13: Student Loans (gets generally good review)
  • Part 9 of my review discusses Chapter 14: Home is Where The Start Is (gets nearly failing grade)
  • Part 10 of my review examines Chapter 15: No Bankruptcy (gets failing grade/adds shame)
  • Part 11 of my review examines Chapter 16: Big Business (credit card industry)(gets A grade for giving information)
  • Part 12 of my review discusses the information presented in Chapter 17: Stealing Candy from Babies (gets okay rating for giving information)
  • Part 13 of my review examines Chapter 18: Three Ring Circus (gets failing grade for repeating information already provided)
  • Part 14 of my review examines Chapter 19: Slaying the Dragon (gets A grade for giving the math on how long it takes to pay off a 20% credit card with a balance of $8000 with just minimum payments….FIFTEEN YEARS!!!
  • Part15 of my review examines chapter 20: Stopping Debt Collectors Cold (gets a failing grade for some good information and then followed by really bad advice: scary!)
  • Part 15B of my review goes into more detail about what was scary about Chapter 20.
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I'm a consumer protection lawyer in Oregon, working with people in Klamath; Lake; Jackson; Josephine; Curry; and Deschutes County. I speak regularly on bankruptcy and consumer protection issues nationwide.
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