Should I Do a Student Loan Refinance

Should I Do a Student Loan Refinance

Don’t Do a Student Loan Refinance During Covid-19

Interest rates have been dropping on private student loans the past several months, leading borrowers to consider a refinance, as one way to reduce their overall loan costs. That may be fine for a private loan borrower, but for someone who has federal student loans…a big mistake.

It’s tempting to consider a student loan refinance, especially with the coronavirus taking its toll. But just the opposite is true for those with federal student loans. For one, you lose the basic federal protections that were in place for quite some time.

The second reason to not do a student loan refinance, is that View full post…

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6 Other College Expenses

6 Other College Expenses

6 other college expenses (and opportunities) to consider when the financial aid letter arrives

(BPT) – The last year of high school is a whirl of activity, and it’s no different when it comes to the final leg of college selection. Once the acceptance notifications arrive, it will soon be time to sit down with a different stack of mail: financial aid letters and other college expenses to consider.

As you undoubtedly know, the cost of college is no small investment. In the 2017-18 academic year, the average tuition and fees for four-year public colleges is $25,620, while for private colleges, the costs are $33,520, and public two-year colleges cost $3,570, according to the College Board.

At the same time, the College Board reports that more than 70 percent of students receive grants to help pay for college. Hopefully, those financial letters contain some good news.

For most families, analyzing the letters is a process of uncovering the college that can offer the best education at the best value for your student. One way to get there is to parse the details of the letter itself so you understand the net cost of your student’s education. Still, it’s critical View full post…

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Student Loan Help – 4 Options

Student Loan Help – 4 Options

4 Options to Consider if You Need Student Loan Help

If you’re struggling to make the payments on your student loans, and you need student loan help, you’re not alone. When the 2017 college class graduated, the average amount of student loans each one carried was in excess of $39,000. College costs are increasing every year forcing students to borrow more. This only adds more to the total outstanding student loan debt which is just under $1.5 trillion dollars.

When you factor in that about 11% of these loans are in a delinquent status, taxpayers will be on the hook for a lot of money.

There are a few options available to you that can help get you back in control of your debt. Consider one or more of the following that can help to make your life a little View full post…

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Can You Spot a Student Loan Scam?

Can You Spot a Student Loan Scam?

5 Warning Signs That Might Indicate a Student Loan Scam

Many individuals have student loans to repay, and unfortunately, some are having trouble making those monthly payments. This is often due to other debt they are carrying like a car loan payment(s), a mortgage payment, and even credit card debt. This issue is ripe for a student loan scam.

In practically all publications that accept advertising, you’ll run across ads that say your problems can be over if you sign up with them. The ad will go on to say that they can help you to repay your student loans faster and at a lower cost – or they will get them completely forgiven.

These types of claims should be a red flag waving in your face and making you extremely cautious. There are some companies that may be legit, but there are also many that are scammers.

The following will help you to identify a student loan scam: View full post…

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Colleges Cheating on Student Loans

Colleges Cheating on Student Loans

Warning: Colleges Caught Cheating on Student Loans? Decide for Yourself

Just when you thought the student loan problem couldn’t get any worse – it did. A recent report issued by the GAO (Government Accountability Office), cited serious infractions by some colleges and universities regarding default rates, effectively cheating on student loans.

Some background and explanation will illustrate it better. In order for a college or university to be eligible for federal financial student aid, they must maintain a “cohort default rate” that is below a certain level. What that default rate means is the college’s share of their students who have student loans that went into default within three years of beginning repayment.

You can be sure that when a lot of money is involved, educated minds are at their highest level of creativity. Some colleges hired outside consultants who were motivated in helping the college and not the student. The consultants improperly placed many unfortunate borrowers in forbearance, even when there were better options for the student to pursue.

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Beware Co-signing a Student Loan

Beware Co-signing a Student Loan

Co-signing a Student Loan Could Ruin Your Retirement 

This is one aspect of parenting that has many opinions and heated discussions. Let’s say that your child or grandchild just finished high school and has been accepted by their favorite college. Unfortunately, some part of their borrowing will require co-signing a student loan with a private lender.

Like many other students who apply for financial aid, the federal government will approve loans directly to the student. This is done without as much as a credit check. But, many times the federal government approval doesn’t cover all of the costs and the student must apply to the private student loan lenders.

These loans do require a credit history check, and the young student usually View full post…

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Borrowing for College Today – What You Need to Know

Borrowing for College Today – What You Need to Know

What You Must Know About Borrowing for College

The College fall semester is right around the corner and if plans haven’t been finalized on how you plan to pay for it, don’t delay. Especially if borrowing for college is necessary. College costs continue to increase and the average cost for just one semester at a public college is around $7,000.00 and around $13,000.00 at a private school. These amounts are after grants and scholarships.

To cover the cost remaining, many families use a combination of current income, savings, and loans. It’s highly recommended to borrow money only as a last resort. Some colleges allow you to pay some part of the balance in installments, so it’s a good idea to ask.

There are still many families that have no other choice but to borrow to cover some part of the cost. A survey done by Sallie Mae indicated that almost 42% borrowed some amount of money the past year.

If borrowing for college is necessary, there View full post…

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Alarming Student Loan Crisis

The Student Loan Crisis is Worse than We Realize

Student loan crisisRecent publicity comparing the increase in student loan debt to credit card and auto loan debt indicates how serious the problem really is. In 2017, outstanding student loan debt passed the $1.31 trillion dollar figure. That and the following facts and statistics will tell anyone that we have a student loan crisis.

The figures are bad enough, but how does all of that debt affect the students who must borrow to get a college education?

Over the past twenty years, approximately fifty percent of students who graduated with a bachelor’s degree, saw a tremendous increase in student loans. As an example, in 1994 the average student loan debt was slightly more than $10,000.00.

In 2017, the average more than tripled to $37,172.00. Does the word View full post…

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Paying Off Student Loans

Paying Off Student Loans Faster By Using These Simple Tips

Paying off student loans fastIt’s been a long four years, but you finally graduated from college. You really put forth a lot of effort and studied hard to earn your bachelor’s degree. Searching for a job has begun, and in addition, you are being faced with paying off student loans that are mountain high.

There may be a faint light at the end of the tunnel to assist you in repaying student loans fast. However, it’s essential that you fully understand the terms of your student loan debt in order that you handle them properly.

Many students blindly apply for loans and don’t even keep track of them. Various creditors send them statements that offer some explanation, and the student doesn’t even look at them.

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Refinancing Student Loans

How Refinancing Student Loans Can Save You a Lot of Money

Refinancing student loansThere’s a very good reason why student loan debt is discussed frequently today. At the present time, there is in excess of $1.35 trillion dollars of student loan debt owed by borrowers in the USA. Is it any wonder that refinancing student loans is so popular?

This tremendous amount of debt is taking its toll on so many individuals. On the Federal student loans alone, a little more than 13% are in default before they even reach two years of repayment. That is a very serious default rate.

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