Month: August 2023

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Carry-ons, rolling luggage, trunks and duffels. There are a plethora of baggage options to choose from before you jet off on your next flight. But can you check boxes on a plane?

There are plenty of reasons you might wish to do so. Perhaps you’re moving across the country, bringing a care package of snacks to a friend or you bought more souvenirs than you expected.

Whatever the reason, the question is valid. Can boxes be checked luggage? Here’s what you need to know.

Can I check a box as luggage?

Can you check a cardboard box on a plane in lieu of a more traditional suitcase? Generally, the answer is yes.

As long as it’s sturdy enough to make it through the rough-and-tumble screening and transportation process, follows airline size restrictions and doesn’t contain any prohibited substances, most airlines don’t have a problem with passengers checking boxes as luggage.

Do all airlines accept boxes as checked luggage?

First, you must determine what the right cardboard box size for an international flight or domestic flight should be.

To do so, check with your airline. Size and weight restrictions vary, though the same rules for more traditional checked baggage apply.

If in doubt, contact your airline and simply ask, “Can I check boxes as luggage?” The airline will likely be more than happy to help you out. Just ensure you’re within its size and weight limits.

Here are some guidelines for several airlines.

  • Southwest: Passengers are always welcome to check two bags for free on Southwest flights. And that includes boxes. Each one should weigh 50 pounds or less and all measurements combined (Length + Width + Height) should total 62 inches or less.

  • American Airlines: How many bags or boxes you can check as luggage depends on the class of service and your destination. But a combined measurement of 62 inches and 50 pounds is the maximum for most flights. For travel to and from Mexico, boxes can be a bit larger: up to 80 linear inches, but there are seasonal limitations for checking boxes for destinations with luggage restrictions, so check before you pack.

  • United: Your MileagePlus status and cabin determine your bag or box allowance. But economy includes a 50-pound max while elite members, first and business class get 70 pounds. All can be max 30 inches x 20 inches x 12 inches. Boxes on flights to Central America, Mexico and the Caribbean can only be a combined 42 inches.

  • Delta: Similar to other airlines, bags and boxes you plan to check should have a combined measurement of no more than 62 inches and weigh 50 pounds or less. Boxes specifically are not permitted on flights to and from Brazil, Mexico and Chile. And they are only permitted to Central or South America if they are in original packaging in a factory-sealed box.

Content restrictions

Can boxes be checked luggage? Sure, but what’s in them still matters.

No matter what you’re checking as baggage, the rules for prohibited items still apply. Here are some common items you can’t check in boxes or luggage according to TSA:

Items that cannot be checked

  • Alcoholic beverages over 140 proof.

  • Bear spray.

  • CO2 cartridges and oxygen cylinders.

  • Explosives.

  • Electronic cigarettes.

  • Compressed gas or other fuels.

  • Fireworks.

  • Lithium ion batteries with more than 100 watt hours.

  • Power banks.

  • Spray paint.

Additionally, airlines sometimes have different rules and packing requirements for those traveling with firearms and ammunition, so ask your airline before you pack to find out how best to check those items.

Tips for packing a box as luggage

While your can generally check a box as luggage, you’ll want to pack smart. After all, a box can be more easily crushed, torn or damaged than a hardsided or even softsided suitcase, so you’ll want to make sure the contents are protected.

First, choose a sturdy, heavy-duty box that fits within your airline’s size restrictions. If all you have seems a bit flimsy, line the sides with additional cardboard to reinforce the box.

Then, carefully pack the contents, keeping weight requirements in mind. Use plenty of padding materials if any items are fragile.

Then, when it’s time to seal up the box, tape it well, including on all the seams and corners. You may want to add more than one layer of packing tape, just to be safe.

You may be tempted to wrap your box in plastic wrap, but check with your airline before you do to ensure your arrival and departure destinations don’t have restrictions regarding plastic film.

Finally, it wouldn’t hurt to put an extra roll of tape in your carry-on just in case you have to open your box back up at the airport for a safety check.

Checking boxes on planes recapped

Can you check a box as luggage? On most airlines and to most destinations, the answer is yes.

Just keep airline size and weight restrictions in mind, make sure to leave out restricted items and pack your box carefully so it arrives at your destination in one piece.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

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Zillow is getting into the mortgage game as it bids to own more of the home buying process. The company has just acquired Mortgage Lenders of America to fuel its new bid, it said in an announcement timed to coincide with its second-quarter earnings report.

The company reported total revenue of $325.2 million for the second quarter, up 22 percent compared to one year ago. Profits came in at 13 cents per share, excluding certain costs, above Wall Street’s estimates of profits of 10 cents a share.

Mortgage Lenders of America is a national brokerage headquartered in Overland Park, Kansas. With the acquisition, Mortgage Lenders’ 300-odd employees will now become a part of the Zillow Group.

Terms of the acquisition were not disclosed.

Zillows move into mortgage lending doesn’t come as a surprise, as the company recently kicked off a new line of business this year that involves buying up homes, doing them up and selling them on. Zillow’s Instant Offers service was first made available in Phoenix, Arizona, and has already been expanded to Las Vegas and Atlanta since then. Now, by acquiring a lender, Zillow can serve its customers during more steps of the home buying process.

“We’re taking our huge advantages, which are our audience and our brand and our resources, and expanding into other business vertically,” Zillow CEO Spencer Rascoff said on the company’s second-quarter earnings call.

Zillow’s audience is certainly big enough, as it reported 186 average monthly users during its most recent quarter, up 4 percent year-over-year. This figure includes all of Zillow’s brands, including Trulia, RealEstate.com and StreetEasy.

“This quarter also marked a major milestone in Zillow Group’s history, as we launched our Homes business and began buying houses directly from homeowners in two cities through Zillow Offers,” Rascoff said in a statement. “At this exciting time in the real estate industry, Zillow Group is committed to developing innovative technology and services, like Zillow Offers and, with today’s announcement, potential for mortgage originations, that help our partners meet evolving consumer expectations, while generating more revenue opportunities.”

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
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Source: realtybiznews.com

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Portrait of Charlie Ferrer in a client’s home by Tim Lenz. From left:
Various work on paper and Thomas Barger’s Gingham Passion Chair, 2020. All images courtesy of Ferrer.

At what point after graduating college do we let go of collapsible dinner tables and high-end knock-offs? For interior designer Charlie Ferrer, the answer is ASAP. The Chelsea-based creative founded his own interior design studio and  gallery in 2012, offering a plethora of furniture, lighting, and art by both notable and emerging designers. The joint practice has been the go-to agency for fellow creatives and private collectors who appreciate his eclectic eye. Here, Ferrer discusses his personal favorite artists, the importance of supporting smaller talent, and the secret to putting together a tasteful interior.  

CULTURED: What do you think makes the New York art scene distinct?

Charlie Ferrer: The density of resources. New York has the highest concentration of galleries, dealers, institutions, working artists, curators, advisors, conservators, and, not least, collectors. This proximity of people and talent, money and ideas, breeds a highly productive atmosphere. 

​​​​​From left: Andrew Hughes, Gemini Table Lamp, 2018; Camilla Reyman, Guilty Pleasure #18, 2015; Wolfgang Tillmans, Peach alive, 2016; Joe Zorrilla, Cartographies (Sheet), 2013. All photography of Ferrer’s home by William Jess Laird.

CULTURED: You’ve been billed as a “millennial designer.” What do you think this generation is doing right and wrong in their homes?

Ferrer: There are plenty of young collectors participating in the art and design markets at advanced levels, and that’s great. I wish for more participation at the emerging level. There is a vast world of young people making art. Where are their collector counterparts? I would love to see the coalescence of a larger community of “emerging collectors,” a group that supports their artist contemporaries, choosing art and design purchases as frequently as other discretionary categories like fashion and travel. The spend can be modest—it’s less about money and more about curiosity, education, a shift in focus. I rarely walk into the home of a 30-year-old or even a 38-year-old to find a handful of thoughtfully collected pictures or objects. I find this reality disappointing.

This same wish extends to interiors and collectible design. Millennials tend to consume commodified retail products. Why choose formless sectionals, poorly knocked-off Scandinavian design and Pierre Jeanneret reproductions when there are so many opportunities for an individualized expression of taste? Historical design and specialty goods for the home are more accessible now than ever. 

From left: Jacques Quinet, Dining Table, 1950s; Mark Steinmetz, 
Knoxville, TN (teenage boy looking out window), 1989; Daniel Turner, Untitled 5150 3.5.13, 2013; 
César, Autoportrait quadrillé, 1984/96; Jacques Adnet, Pair of Leather Dining Chairs, 1960.

CULTURED: How does a client’s art collection impact your vision for their interiors? How did you build your space around your own?

Ferrer: I am selling collected environments. When a client comes to me with an existing collection of art and/or design, we make space for it. I prefer that every room I touch contains art and objects, but I do not necessarily design rooms for art or the inverse—select art for specific rooms. I suppose large-scale works are one exception. If a work requires a massive wall, a special path of access into the space, etc, we plan for that early on in our process.

Philosophically, I believe in collecting for the sake of a collection and creating interiors that support and dialogue with that collection. I build spaces through an iterative process of layering in which every object is something of meaning on its own. As a project evolves, an assemblage of cool things grows. The vision for the project as a whole eventually takes form. The sum of its parts feels eclectic and organically collected because it is. The best projects are never really finished, they keep evolving, even if just in small ways. 

When it comes time to install art, I do like to hang densely, often asymmetrically and sometimes unconventionally, so long as the client is on board. 

David Morehouse worked at the Hammer during our years there. Through David, I enjoyed a lot of exposure to artists and collectors and dealers—artists like Mark Bradford, Mark Hagen, Elliott Hundley; collectors Eugenio López, Beth Rudin DeWoody, Bill Bell, Alan Hergott and Curt Shepard; dealers Shaun Regen, Hannah Hoffman, Nino Mier, David Kordansky. The art world in LA 10 plus years ago felt like a small club. That period in my life was vastly eye-opening. It clued me into a world I did not know. Though I had a gallery for a year where we showed furniture and art (featured in CULTURED‘s Spring 2013 issue), I don’t think I actually acquired any art for myself until I left for New York. 

CULTURED: What is the first piece you ever bought?

Ferrer: An abstract painting by Shinpei Kageshima from Take Ninagawa at NADA, Miami Basel in 2011. That was an exciting moment for me—being at a busy fair, finding a work by a young artist that spoke to me, shown by a dealer who had come from so far away, offered at a price I could conceivably afford. 

From left: Deborah Remington, Icar, 1983; Jed Ochmanek, Untitled, 2010; Émile-Jacques Ruhlmann, Desk, 1930s; Patrick Dupré, Sculpture Cinétique, 1977; Thomas Beale, Silence, 2004; Maynard Monroe, Never Underestimate the Power of Babel, 2012; Raphaël Décorateur, Smoked Acrylic Lounge Chair, 1960s.

CULTURED: Which work provokes the most conversation from visitors?

Ferrer: A mixed media piece composed of used socks, silicon, and pigment on canvas called A Rag of Sorts by Jesse James Thompson. It is appealingly tactile and fetishistic. The colors are beautiful and so is the bronze frame I had made for it. I bought the work out of a group show of MFA candidates put on by Edsel Williams at The Fireplace Project in East Hampton.

CULTURED: Which artist are you currently most excited about and why?

Ferrer: Kevin Beasley, in particular his figurative sculptures, for their rich materiality and the palpable emotion they embody for me. Pretty much anything is shown by Gordon Veneklasen at Michael Werner. The quality of their program is impeccable. On the design side, I am impressed by what Alex May is doing with SIZED out of Los Angeles. The shows are broad and ambitious. They inspire me.

César, Autoportrait quadrillé, 1984/96.

 CULTURED: What was the most challenging piece in your personal collection to acquire?

Ferrer: For lovers, maybe, but for art I’m not one to play the hard-to-get game. I just don’t have the bandwidth to get involved at that level personally. I suppose for me the toughest acquisition was my César sculpture because it was a matter of finding the funds when I found the piece. Sometimes, I stretch my limits to get a work I know I want. There is a distinctive gut feeling, a reflex. I imagine others can relate… The timing was right enough for the César. Thankfully, the gallery was patient, and it worked out. I am very fond of that piece. 

CULTURED: Is there one piece that got away, or that you still think about?

Ferrer: One of Christopher Wilmarth’s ethereal glasswork sculptures at Craig Starr Gallery. Craig put on a show in 2020 that I continue to daydream about. 

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Source: culturedmag.com

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Treasury Secretary Timothy Geithner today unveiled the so-called “Financial Stability Plan,” a multi-faceted set of initiatives aimed at cleaning up and reinvigorating the entire financial system.

Geithner expressed that the availability of credit was essential to any meaningful recovery, warning any contraction in the current environment would be much more detrimental to the health of the economy.

“We believe that the policy response has to be comprehensive, and forceful. There is more risk and greater cost in gradualism than in aggressive action,” he said in prepared remarks.

“Action has to be sustained until recovery is firmly established. In the United States in the 30s, Japan in the 90s, and in other cases around the world, previous crises lasted longer and caused greater damage because governments applied the brakes too early. We cannot make that mistake.”

That said, as part of the new program, some of the nation’s largest banks will have access to substantial aid, which will ideally boost consumer lending and get the economy chugging again.

Initially, participating banks with assets in excess of $100 billion will be subject to a “stress test” to determine the risk associated with their balance sheets and overall financial health.

Banks that undergo such a test will be provided with a “capital buffer to help absorb losses and serve as a bridge to receiving increased private capital,” with the Treasury’s investments in these institutions placed in a special “Financial Stability Trust.”

Institutions with consolidated assets below $100 billion will be eligible to obtain capital from the “Capital Assistance Program” (CAP) after a supervisory review.

The program will also establish a “Public-Private Investment Fund,” intended to rid banks of illiquid assets, using government capital and financing to leverage private capital.

“We believe this program should ultimately provide up to one trillion in financing capacity, but we plan to start it on a scale of $500 billion, and expand it based on what works,” he said.

The Term Asset-Backed Securities Loan Facility (TALF), which supports consumer and business lending, will also be expanded to as much as $1 trillion.

And in an effort to boost transparency, the general public will be able to see how the money is being utilized via a new website, FinancialStability.gov.

With regard to housing, the government will continue to work on pushing mortgage rates lower by scooping up securities, while committing another $50 billion to prevent avoidable foreclosures.

Additionally, loan modification guidelines and standards for both government and private programs will be established to create some sense of uniformity.

The troubled Hope for Homeowners program will also be made more flexible to allow for an increased number of loan mods.

More concrete details of the housing initiatives should be announced in the next few weeks.

Source: thetruthaboutmortgage.com

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Talk of another housing bubble is not new. In fact, pundits have been fretting about another bubble for over a year now thanks to rapidly rising home prices, with Las Vegas and Phoenix already considered to be bubble markets.

That’s the problem with good news – eventually the pessimists come out and somehow turn it into bad news.

Every quarter, real estate lister Trulia releases its “Bubble Watch” report, which reveals whether home prices are undervalued, overvalued, or just right.

No National Housing Bubble, Yet…

On the national level, the company believes home prices are still undervalued, although not by much.

During the first quarter, they said national home prices were 5% undervalued, which means we aren’t in a nationwide bubble.

However, one quarter ago national home prices were 6% undervalued, and a year ago they were 10% undervalued.

So you can see how quickly we can go from undervalued to overvalued, and eventually to full-blown bubble status.

But with home price appreciation finally moderating, we might be able to buy a little more time before the sky falls again.

For the record, national home prices reached a bubblicious high in the first quarter of 2006, when they were 39% overvalued, before crashing to a low of 15% undervalued in the fourth quarter of 2011.

Local Housing Bubbles Are Forming, Mainly in California

That’s the national outlook, but what about local housing markets? Well, those are a mixed bag, per usual, though there is growing concern in some regions, namely California.

During the first quarter of 2014, 19 of the largest 100 metros were classified as overvalued. That’s the highest number since the fourth quarter of 2009.

Additionally, home prices were overvalued by more than 10% in four large metros, the highest total since late 2009.

Still, it’s nowhere near as bad as the height of the previous boom when all 100 metros were overvalued, with a staggering 91 by more than 10%.

Let’s talk about the new bubbles, all of which happen to be in my neck of the woods. The worst one is in Orange County, California, aka mortgage central.

Home prices in the OC were 16% overvalued relative to their fundamentals in Q1 and asking prices were up 16.9% year-over-year.

Los Angeles, CA wasn’t far behind, with prices seen as 13% overvalued in the first quarter. Asking prices were up 18.9% year-over-year, so clearly homeowners aren’t shy about asking for a little bit more.

Honolulu (13% overvalued), Austin (11% overvalued), and Riverside-San Bernardino, CA (10% overvalued) rounded out the top five most overvalued metros.

Another three of the top 10 overvalued metros can be found in California, including San Jose (+8%), San Francisco (+7%), and Ventura County, CA (+6%).

The Golden State is decidedly bubbly, with eight of the 11 largest metros in California now deemed overvalued, with Bakersfield, Fresno, and Sacramento the lone exceptions.

Where Homes Are Still Pretty Cheap

If you’re looking for a deal, there are still places where homes are cheap relative to their historic norms.

You’ll want to look first in Detroit, Michigan, where home prices are still 20% undervalued.

Nearby Lake County-Kenosha County, IL-WI is also having a sale, with homes 18% undervalued, similar to homes in Cleveland and Toledo, Ohio.

If you’re not a fan of cold weather, head south to the Palm Bay-Melbourne-Titusville, FL metro where prices are 17% undervalued.

Comparable discounts are available in Memphis, Hartford, Chicago, and certain parts of Connecticut.

The takeaway is that a normal housing market will always have areas that are overvalued and undervalued, which is why the experts say to pay attention to your local market, and less so the national story.

And you certainly need to “go local” when determining if it’s the right time to buy or just keep on renting.

In the meantime, let’s enjoy the recovery.  We can all start worrying when home prices in every major metro are overvalued (or at least half of them), which they clearly are not.

Source: thetruthaboutmortgage.com

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With mass student loan forgiveness blocked by the Supreme Court, you may be curious about what other forgiveness or deferment options are available for students with federal — or private — student loans.

Federal loans do allow you to stop or reduce your payments in some circumstances, such as financial hardship, for up to three years — which is known as deferment. Deferment on private student loans varies by lender, and not all lenders offer it.

One thing you generally don’t want to do — simply stop making payments on your student loan. Whether your loans are federal or private, this puts you at risk of default, which can have a number of negative consequences.

Read on to learn more about student loan deferment, including what it is, how it works, its pros and cons, plus some alternative ways to get student debt relief.

Student loan deferment allows qualified applicants to reduce or stop making payments on their loans for up to three years. If you have a subsidized federal loan, no interest accrues during the deferment period. If you have an unsubsidized federal loan, interest will accrue and will be added to the loan amount (or capitalized) at the end of the deferment period.

Deferments are available on federal loans including Direct Loans, FFEL Program loans, and Perkins Loans.

Private student loans may or may not offer deferment options to borrowers. If you have questions about your private student loan, you’ll want to check in with your lender directly.

If you have a federal student loan and are no longer in school at least half-time, you will need to apply to defer payments on your student loan. This usually involves submitting a request to your student loan servicer. You will also likely need to provide documentation to show that you meet the eligibility requirements for the deferment (more on eligibility requirements below).

If you have an unsubsidized federal student loan and are granted deferment, interest will continue to accrue during the deferral period. You will have the option to either pay the interest as it accrues or allow it to accrue and be capitalized (added to your loan principal balance) at the end of the deferment period.

Deferments are available on federal loans including Direct Loans, FFEL Program loans, and Perkins Loans.

If a private lender offers deferment, they will likely have their own forms and requirements.

Applying for deferment may make sense if you are facing short-term difficulty paying your student loans, since a deferment can provide you with the opportunity you need to stay afloat financially. And, if you have a subsidized loan, deferment won’t make your loan any more expensive in the long run.

If you’re able to stay on top of your loan payments, then deferment likely doesn’t make sense. If you think that you may have long-term difficulty making your monthly loan payments, deferment may not be the best option either.

If you have an unsubsidized federal loan, interest will continue to accrue during deferment. At the end of the deferment period, this interest will be capitalized on the existing loan amount (or the principal loan value). Moving forward, interest will be calculated based on this new total. So essentially, you are accruing interest on top of interest, which can significantly increase the amount of interest owed over the life of the loan.

Pros and Cons of Student Loan Deferment

Student loan deferment can help borrowers who are struggling financially, but it may not be the right choice for everyone. Here are some pros and cons to consider when evaluating deferment options for federal student loans.

Pros Cons
Borrowers are able to temporarily suspend or lower the monthly payments on their student loans. On most federal student loans, interest continues to accrue. This may significantly increase the total cost of borrowing over the life of the loan.
Borrowers may qualify for deferment for periods of up to three years. Because interest may continue to accrue during deferment, other options like income-driven repayment plans, may be more cost- effective in the long term.

Types of Student Loan Deferment

For federal student loans, there are a few different deferment options . Here are the details on some of the most common reasons borrowers apply for deferment.

In-School Deferment

Students who are enrolled at least half-time in an eligible college or career program may qualify for an in-school deferment. If you are enrolled in a qualifying program at an eligible school, this type of deferment is generally automatic. If you find the automatic in-school deferment doesn’t kick in when you are enrolled at least half-time in an eligible school, you can file an in-school deferment request form .

Unemployment Deferment

Those currently receiving unemployment benefits, or who are actively seeking and unable to find full-time work, may be able to qualify for unemployment deferment. Borrowers can receive this deferment for up to three years.

Economic Hardship Deferment

This type of deferment may be an option for those borrowers who are receiving merit-tested benefits like welfare, who work full time but earn less than 150% of the poverty guidelines for your state of residence and family size, or who are serving in the Peace Corps.

Economic hardship deferments may be awarded for a period of up to three years.

Military Deferment

Members of the U.S. military who are serving active duty may qualify for a military service deferment. After a period of active duty service, there is a grace period in which borrowers may also qualify for federal student loan deferment.

Cancer Treatment Deferment

Individuals who are undergoing treatment for cancer may qualify for deferment. There is also a grace period of six months following the end of treatment.

Other Types of Deferment

There are other situations and circumstances in which borrowers might be able to apply for deferment. Some of these include starting a graduate fellowship program, entering a rehabilitation program, or being a parent borrower with a Parent PLUS Loan whose child is enrolled in school at least half-time.

Consequences of Defaulting on Federal Student Loans

If you simply stop making payments as outlined in your loan’s contract, you risk defaulting on your student loan. Default timelines vary for different types of student loans.

Most federal student loans enter default when payments are roughly nine months, or 270 days, past due. Federal Perkins loans can default immediately if you don’t make any scheduled payment by its due date.

•   Immediately owing the entire balance of the loan

•   Losing eligibility for forbearance, deferment, or federal repayment plans

•   Losing eligibility for federal student aid

•   Damage to your credit score, inhibiting your ability to qualify for a car or home loan or credit cards in the future

•   Withholding of federal benefits and tax refunds

•   Garnishing of wages

•   The loan holder taking you to court

•   Inability to sell or purchase assets such as real estate

•   Withholding of your academic transcript until loans are repaid

Consequences of Defaulting on Private Student Loans

The consequences for defaulting on private student loans will vary by lender but could include repercussions similar to federal student loans, and more, including:

•   Seeking repayment from the cosigners of the loan (if there are any cosigners)

•   Calls, letters, and notifications from debt collectors

•   Additional collection charges on the balance of the loan

•   Legal action from the lender, such as suing the borrower or their cosigner

To avoid these negative consequences, one option for borrowers struggling to pay federal student loans is deferment.

Who Is Eligible for Student Loan Deferment?

To be granted a deferment on federal loans, borrowers need to meet certain criteria.

You may be eligible if you’re:

•   Enrolled at least part-time in college, graduate school, or a professional school

•   Unable to find a full-time job or are experiencing economic hardship

•   On active military duty serving in relation to war, military operation, or response to a national emergency

•   In the 13-month period following active duty

•   Enrolled in the Peace Corps

•   Taking part in a graduate fellowship program

•   Experiencing a medical hardship

•   Enrolled in an approved rehabilitation program for the disabled

Borrowers who re-enroll in college or career school part-time may find that their federal student loans automatically go into in-school deferment with a notification from their student loan provider.

Loans may also keep accruing interest during deferment — depending on what kind of federal student loans the borrower holds. Borrowers are still responsible for paying interest if they have a:

•   Direct Unsubsidized (Stafford) Loan

•   Direct PLUS Loan

If you don’t pay the interest during the deferment period, the accrued amount is added to your loan principal, which increases what you owe in the end.

Recommended: Student Loan Deferment in Grad School

What if You Have Private Student Loans?

Private lenders aren’t required to offer deferment options, but some do. For example, some might allow you to temporarily stop making payments if you:

•   Lose your job

•   Experience financial hardship

•   Go back to school

•   Have been accepted into an internship, clerkship, fellowship, or residency program

•   Face high medical expenses

Typically, even while a private student loan is in deferment, the balance will still accrue interest. This means that in the long term, the borrower will pay a larger balance overall, even after the respite of deferment.

In most cases, even with accrual of interest, deferment is preferable to defaulting. Borrowers with private loans could contact the lender to ask what options are available.

The Limits of Student Loan Deferment

Keep in mind that deferment is not a panacea. By definition, it’s temporary. Federal student loan borrowers will ultimately need to go back to making payments once they are no longer deferment-eligible. For example, a borrower’s deferral might end if they leave school, even if their ability to pay has not improved.

Federal loans can only be deferred due to unemployment or financial hardship for up to three years. With private loans, there may not be an option to defer at all, and if it is an option, the limit may be no more than a year.

Other Options for Reducing Federal Student Loan Payments

Besides student loan deferment, you have other choices if you can’t afford the total cost of your monthly payments. Here’s a look at some alternatives to deferment.

Income-Driven Repayments

For a longer-term solution, you may want to consider signing up for an income-driven repayment plan.

If you qualify, you may be able to reduce your monthly payment based on your income. Enrolling in an income-driven repayment plan won’t have a negative impact on your credit score or history. On certain income-driven repayment plans, student loan balances can be forgiven after 20 or 25 years, depending on the payment plan that the borrower is eligible for.

With an income-driven repayment plan, your monthly payment is based on your total discretionary income. That means if you change jobs, or see a significant increase in your paycheck, you’ll be expected to pay a higher monthly bill on your student loan payment.

Forbearance

Student loan forbearance is another way to suspend or lower your student loan payments temporarily during times of financial stress, typically for up to 12 months. Generally, forbearance is not as desirable as deferment, since you will be responsible for accrued interest when the forbearance period is over no matter what type of federal loan you have.

When comparing deferment vs. forbearance, you’ll want to keep in mind that there are two types of forbearance for federal student loan holders: general and mandatory.

General student loan forbearance is sometimes called discretionary forbearance. That means the servicer decides whether or not to grant your request. People can apply for general forbearance if they’re experiencing:

•   Financial problems

•   Medical expenses

•   Employment changes

General forbearance is only available for certain student loan programs, and is only granted for up to 12 months at a time. At that point, you are able to reapply for forbearance if you’re still experiencing difficulty. General forbearance is available for:

•   Direct Loans

•   Federal Family Education Loan (FFEL) Program loans

•   Perkins Loans

Mandatory forbearance means your servicer is required to grant it under certain circumstances. Reasons for mandatory forbearance include:

•   Serving in a medical residency or dental internship

•   The total you owe each month on your student loan is 20% or more of your gross income

•   You’re working in a position for AmeriCorps

•   You’re a teacher that qualifies for teacher student loan forgiveness

•   You’re a National Guard member but don’t qualify for deferment

Similar to general forbearance, mandatory forbearance is granted for up to 12 month periods, and you can reapply after that time.

Another Option to Consider: Refinancing

Depending on your personal financial circumstances, another long-term solution could be student loan refinancing. This involves applying for a new loan with a private lender and using it to pay off your current student loans. Qualifying borrowers may be able to secure a lower interest rate or the option to lengthen their loan’s term and reduce monthly payments. Note that lengthening the repayment period may lower monthly payments but will generally result in paying more interest over the life of the loan.

Refinancing could be a good option for borrowers with strong credit and a solid income, among other factors. Unlike an income-driven repayment plan, your monthly payment wouldn’t change based on your income. If you aren’t able to qualify for student loan refinancing on your own, you may be able to apply for refinancing with a cosigner.

Either way, you’ll want to keep in mind that refinancing federal student loans with a private lender means you no longer have access to any federal borrower protections or payment plans. So, if you are taking advantage of things like income-driven payment plans or deferment, you likely don’t want to refinance. But for other borrowers, student loan refinancing might be a useful solution.

If you have more than one student loan, refinancing could also simplify your repayment process.

The Takeaway

If you take out a federal student loan and at some point need to pause or reduce your payments, you may be able to qualify for deferment, forbearance, or an income-driven repayment plan. Each option has its pros and cons.

If you’re considering a private student loan (or refinancing your federal loans), keep in mind that private loans don’t come with government-sponsored protections like forbearance and deferment don’t apply. However, private lenders may offer hardship and deferment programs of their own.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

Deferment FAQ

How long can you defer student loans for?

Depending on the type of deferment you are enrolled in, federal loans can be deferred for up to three years. Private student loans may not offer an option to defer payments, and if they do, the limit will be set by the individual lender.

Why would you defer student loans?

Deferment can be helpful if you are facing a temporary financial hurdle, because they allow you to pause or reduce your payments for a period of time.

Are there any reasons not to defer student loans?

Most loans will continue to accrue interest during periods of deferment. When the deferment is over, this accrued interest is then capitalized on the loan. This means it’s added to the existing value of the loan. Moving forward, interest is charged based on this new total. This can significantly impact the total amount of interest that a borrower has to pay over the life of a loan.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

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With the cost of living prices basically right at the national average and below, North Carolina’s affordability is just one reason to consider calling it home. The diverse population has a reputation for kindness and a sense of community. No matter where you settle, you’ll get a down-home feeling.

The weather is pretty solid, which is great since North Carolina and outdoor activity go hand-in-hand. From the Outer Banks to the Blue Ridge Mountains, you’ve got plenty of hiking trails to explore and over 300 miles of coastline.

If people and places aren’t enough to entice you, then let’s talk about North Carolina food. It’s all about southern comfort food, fresh seafood and that signature style of BBQ.

So, are you ready to take a deeper dive into whether North Carolina is the right place for you? To see if all the numbers match up, let’s look at average prices in key cost-of-living areas so you can see if this state is something your budget can afford.

North Carolina housing prices

There are a lot of cities in North Carolina that claim they’re the best, but what’s better is that many are reasonably priced when it comes to housing. You’ll find options that just step over the national average, as well as those that are significantly below, which means there’s a place for every budget.

Asheville

Nestled within the Blue Ridge mountains, with plenty of outdoor activities, Asheville is both a beautiful and fun place to live. The food scene is eclectic, and the whole city has a comfortable but quirky vibe. Hiking is as easy as walking around the downtown area, and there’s always Biltmore Estate when you need a little class.

Living in this mountain town, though, comes with a price, and housing is 3 percent above the national average. Rentals are on the rise, as well, and two-bedroom apartments saw a 33 percent increase in price over last year. The average rent right now is $1,866 per month. One-bedroom apartments are growing at a faster pace, up 38 percent over last year, for an average rent of $1,592 per month.

Homes are also in high-demand here, leading to a price increase of 21.8 percent over last year. The median home price in Asheville is $489,500.

Chapel Hill

The most expensive city on the list, Chapel Hill, is so much more than a college town. Although, as home to the University of North Carolina at Chapel Hill, it’s a big piece of the city’s story. There are also plenty of job opportunities and stability here, along with an amazing food scene (check out the flying burrito) and a variety of museums and cultural stops. With housing prices at 18.3 percent above the national average, though, it can get pricey to live in this particular North Carolina town.

Rent prices reflect the higher housing costs here in Chapel Hill. On average, a one-bedroom apartment will cost you $1,883 per month. Two-bedrooms also have a high average price tag of $2,253 per month. These rents come at a significant price increase over last year, as well. One-bedrooms are up 45 percent, and two-beds are up by 52 percent.

Individual home prices may vary greatly, but on average, they’re all going up. Home prices have increased by 13.6 percent over last year, and the median home price in Chapel Hill is $611,500.

Charlotte

Southern charm seamlessly mixes with all the features of a cosmopolitan city in Charlotte. A fun and busy nightlife, delicious restaurants and a strong job market attract families and young professionals alike. Charlotte is also an affordable place to call home with housing prices 11.4 percent below the national average.

Even with lower overall prices, rent in Charlotte can still get pricy. One-bedroom apartments average out to cost $1,515 per month in rent, up 15 percent over last year. Two-bedroom apartments are growing in price more slowly but still can set you back an average of $1,783 per month. This price is up only 10 percent over last year.

Homes in Charlotte offer a cool range of architectural designs, but demand is definitely impacting price. The median home in Charlotte costs $405,000, which is a 19.1 percent increase over last year.

Lexington

A smaller city that’s experiencing great growth, Lexington offers residents more space than other North Carolina spots. It has a more suburban feel minus that densely-packed downtown area. It’s also extremely affordable. Housing prices in Lexington are 40.8 percent below the national average.

Resulting from the local growth, rent prices within Lexington are on the rise. Two-bedroom apartments are up 20 percent. The average monthly rent for a one-bed is $1,345, and two-beds average out just slightly higher at $1,485.

Housing prices in Lexington are holding steady with the average home costing $529,000.

Raleigh

As the capital of the state, the appeal of Raleigh centers on its commitment to education, research and technology. For balance, the city also has a thriving music and art scene, not to mention its growing reputation for excellent food and brew. Still, within an affordable range for college students and professionals alike, average housing prices in Raleigh are 4.8 percent below the national average, although the city is experiencing considerable growth in costs.

All housing in Raleigh is seeing price increases of over 15 percent from last year. One-bedroom apartments are up 18 percent, two-bedroom apartments are up 16 percent and home prices are up 19.4 percent. This means properties are in demand, and some could price out above your budget.

On average, a one-bedroom currently rents for $1,530 per month. Two-bedrooms are at $1,763. The median home price in Raleigh is currently at $430,000.

North Carolina food prices

North Carolina’s reputation for food is without exaggeration. You can get great barbecue, complete with all the sides, decadent peach cobbler, creamy she-crab soup and, of course, biscuits and gravy. Even home cooking is a serious business, and North Carolinians spend between $233 and $267 per month on groceries.

Food prices throughout the state are thankfully pretty reasonable, mostly at or just below the national average, so eating right is never outside the budget.

  • Raleigh is 8 percent below the national average
  • Lexington is 4.9 percent below the national average
  • Asheville is 4 percent below the national average
  • Chapel Hill is 3 percent below the national average
  • Charlotte is 2.8 percent below the national average

The only city to stretch past the national average when it comes to food prices is Salisbury. It just barely gets there at 0.9 percent above the national average.

What this means when it comes to individual items on your grocery list is that food prices won’t vary by a lot. For example, a dozen eggs range within 46 cents of each other in every city, and bananas only have a 24-cent differential.

Going out to eat also means paying similar-sized bills no matter where you are. The differential between most cities on our list is only $5 for a three-course meal for two. It ends up costing you the most in Asheville, at $65.00, but in our cheapest city, Raleigh, the same meal is only slightly less at $60.00.

North Carolina utility prices

As with most prices across North Carolina, utility averages hover close to the national average, and even though some are over, it’s never by an extreme amount.

  • Chapel Hill is 11.8 percent below the national average
  • Charlotte is 7.5 percent below the national average
  • Lexington is 6.9 percent below the national average
  • Raleigh is 1.2 percent above the national average
  • Asheville is 7.9 percent above the national average

It’s possible that certain weather conditions could increase your air conditioning or heating usage when the season is right, driving these averages up. Certain areas in North Carolina can get pretty hot in the summer, and those towns in the mountains, like Asheville, may need a little extra heat as temperatures cool down. On average, total energy bills range from $150 per month to slightly above $200.

North Carolina transportation prices

Transportation prices in North Carolina total up to include all different modes. There are the costs associated with owning a vehicle and taking public transportation, which can potentially save if you live in an area where it’s possible to get around on foot or by bike.

Overall, most transportation prices are, again, close to the national average. The only city to exceed it is Winston-Salem, at 3.9 percent above.

  • Lexington is 32.5 percent below the national average
  • Chapel Hill is 9.4 percent below the national average
  • Raleigh is 6.4 percent below the national average
  • Charlotte is 5.7 percent below the national average
  • Asheville is 1.6 percent below the national average

Not the most walkable state, most North Carolina cities have an average walk score in the 30s. You could live somewhere that’s walkable for a few blocks, but you can’t navigate the whole city that way. Chapel Hill is also pretty bike-friendly, with a score of 55. Overall though, you’re getting around in a car, bus or some other form of public transportation.

Asheville ART

Providing bus service throughout the entire city, Asheville Rides Transit, or ART, operates 18 different routes. Set hours have bus service ending at 10:30 p.m. Monday-Saturday and 6:00 p.m. on Sundays. Extended service for University of North Carolina Asheville stops is available Friday and Saturday nights, but only when classes are in session.

A single-way fare is $1, but you can buy both ticket booklets and passes. A booklet is $9 and provides for 11 rides. A monthly pass is $20 and an annual pass is $220.

Charlotte CATS

Operating both buses and a rail system, the Charlotte Area Transit System (CATS), makes it easy to ride through its color-coded system. Routes in red are express, routes in green are local or neighborhood shuttles and blue routes are rail lines.

The one-way fare for local bus services is $2.20, and a monthly pass is $88. Shuttle service is less expensive at only $0.90 per way. If you’re hopping on an express route, the one-way cost is $3, and a monthly pass is $121.

Raleigh GoRaleigh

A long list of routes takes you anywhere you want to go in Raleigh, hence the name GoRaleigh. Currently, all routes are free and will remain so until June of 2023.

Once fares get reintroduced, it’s still not expensive to take advantage of GoRaleigh routes. A single-ride fare is only $1.25, and a 31-day pass is $40. You can buy an express or regional pass, as well, extending your access to other cities in the area that have their own ‘Go’ public transportation.

North Carolina healthcare prices

Healthcare prices in North Carolina, which include doctor’s visits, urgent care trips, prescription medications, the dentist and even the eye doctor, are all close to the national average in the United States. Probably the highest set of numbers so far, all our cities are actually slightly over.

  • Raleigh is 0.1 percent above the national average
  • Chapel Hill is 8.3 percent above the national average
  • Asheville is 8.7 percent above the national average
  • Charlotte is 11.6 percent above the national average
  • Lexington is 18.2 percent above the national average

This puts visits to the eye doctor at anywhere from $118 up to $158, a doctor’s visit from $115 to $177 and trips to the dentist between $104 and $140. All combined, that’s a lot of out-of-pocket spending you may have to add to your budget.

North Carolina goods and services

Totaling up all the things you like doing regularly, but aren’t absolutely necessary, goods and services are like bonus activities. They’re what you do for you — like going out or getting your work clothes dry cleaned. Life would still go on without doing these things, but you wouldn’t be as happy.

Lumping in the costs of all goods and services together is a great way to understand how much this could add to your budget.

  • Raleigh is 8.8 percent below the national average
  • Chapel Hill is 8.4 percent below the national average
  • Lexington is 5.7 percent below the national average
  • Asheville is 1.1 percent below the national average
  • Charlotte is 6.4 percent above the national average

Charlotte is going to produce the highest price tag, in total, when it comes to grabbing a pizza, going to the movies and more. However, when you look at the average costs of everything, Charlotte might not always be the most expensive city.

In fact, according to these specific goods and services prices, Charlotte never has the most expensive option on the list.

Adding in childcare

Though it’s possibly not a particular good or service you’re ready for yet, this one is a doozy. Once the need for childcare comes into play, your cost of living budget will go way up. But, what you pay each month can vary greatly based on what city in North Carolina you’re living in.

The most expensive city for a full-day, private preschool is Chapel Hill, where the monthly price tag is $1,433.00. Raleigh is also over a thousand dollars a month, but then the price begins to dip. In Asheville, this monthly expense averages out to only $866.67. We told you it was expensive.

Taxes in North Carolina

North Carolina has both an individual income tax and a sales tax. The income tax rate of 4.99 percent applies to all income levels.

The state sales tax is 4.75, and local areas can only add on up to 2.75 percent more. This means the highest combined sales tax rate you’ll pay is 7.5 percent. Think of it this way, for every $1,000 you spend shopping, $124.90 is going straight to taxes if the city you live in charges the max amount, which not every city does.

  • The sales tax rate in Asheville and Lexington is 7 percent
  • The sales tax rate in Charlotte and Raleigh is 7.25 percent
  • The sales tax rate in Chapel Hill is 7.5 percent

It seems that many cities get close to the maximum amount of sales tax, but few go all the way to the top. That’s good for your budget.

How much do I need to earn to live in North Carolina?

One of the best ways to figure out what you need to make to live comfortably anywhere is a calculator. You’ve just got to crunch some numbers to make sure it all works, and starting with rent is key. Using our rent calculator, you can accurately start budgeting.

You can also do some rough estimating using averages and expectations. It’s expected that you’ll put 30 percent of your annual salary toward rent. Given that the average rent in North Carolina is $1,387, you’d need to make a minimum salary of $55,480 per year.

Is this possible? Yes, but not always. The average annual salary in North Carolina is $53,100. It comes close to the minimum salary you need to get an average-priced apartment, but not quite. This may mean adjusting your location to find housing options a little less expensive or cutting your budget elsewhere to put more toward rent. Either way, you’ve got options.

Living in North Carolina

North Carolina is a friendly and delicious place to call home. Southern hospitality is at its peak, and between the barbecue and a variety of other restaurants, your belly will always be full. North Carolina is also a state of opportunity, with a lot to attract young professionals, students and families. It doesn’t hurt that it’s also a beautiful place to live.

If North Carolina is calling your name, start adding those numbers up. Does your budget match up to the cost of living in the Tar Heel State? Sure hope so.

Related links:

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com