Payday Loans in Ohio
In the midst of the worst recession in a generation, many Americans are starting to pay for a loan from a payday lender.
And for many, that loan will be a payday loan.
“It’s not the most expensive loan that I have,” says Liz Hensley, a mother of two from Columbus.
“I just want to pay it back.”
Hensy is an avid card shark, a player on online poker sites.
She got her first payday loan in 2011, after being kicked out of a local payday lender for not having a card.
But she says the lender charged her more than $400 for the loan and then doubled that amount in interest.
“The amount of money they are making, it’s scary,” she says.
“That’s why I want to stop it.
I just want my money back.”
The federal government has made payday lending a priority, but for many Americans, it is not easy to stop.
For many borrowers, they cannot afford to pay the interest and fees, or they have little or no other options.
They often rely on their relatives, friends and employers to pay off their loans.
Some are forced to work part-time or even go back to school to keep their student loan payments in check.
For some, the banks charge interest rates higher than the government-backed rate, or can offer a better rate to offset those higher fees.
Hensys family has tried several payday lenders in Ohio and Washington state.
She says her family has been able to pay more than half of the loan, but she is still struggling to keep up with her monthly payments.
She is hoping to get a better payday loan after she can no longer find work.
The problem is especially acute in the cities where the payday lenders are located, says Stephanie Biermann, president of the nonprofit National Association of Community Colleges.
“We’ve had a lot of loan delinquencies in Cleveland, we’ve had many of them in the rural areas, and we’ve been having the same thing here,” she said.
The issue is particularly acute in cities, where a lot more people need a payday, Bierman says.
Bieramns work for the Ohio Department of Education, which provides loans to low-income students in the state.
In Columbus, for example, there were about 6,400 loans in 2017, up from about 4,300 in 2016.
For the first time, the department expects to be in surplus this year.
But many of the loans are from banks that are not required to disclose the terms of their loans, making it hard to know how many people are taking advantage of them.
“For the majority of students, we are not making a lot money off the payday loan program,” says Stephanie Bransby, director of public affairs at the Ohio Student Assistance Authority.
“So we have to make sure that students are able to access a loan they are eligible for, and they’re able to get it in a timely fashion.”
Some states have taken a more aggressive approach.
Last year, for instance, New York and Vermont eliminated their requirement that students repay a loan within 90 days.
And last year, Texas removed the requirement that borrowers pay the full amount of their loan within 30 days.
The Obama administration also lifted the federal requirement that most borrowers pay interest on their loans for at least 10 years.
But the U.S. is not the only country that has made changes to payday lending.
Many European countries have relaxed their rules, and the U,S.
has also eased restrictions.
For example, Germany now allows payday lenders to be more lenient about their fees.
The change is expected to help drive down loan delinquency rates, which are already falling in many parts of Europe.
“There is a lot that we can do, including reducing the fees, which we can also do in the U