When I was applying for college, I did some major research on each of the schools I was considering. From their facilities and surrounding areas to the professors teaching the classes — I left no stone unturned (or so I thought). Turns out I overlooked a very important factor about my school of choice: the … [Read more…]
Discover products are worth a serious look, especially if youâre in the market for private student loans. Here’s our full Discover Student Loans review. With no loan fees, large loan limits, and cash back for good grades, Discover is a strong private lender option for students.
The post Discover Student Loans Review: Earn Cash Back for Good Grades appeared first on Money Under 30.
If you have more student loans than you know what to do with then youâre always thinking about how to get rid of them. It always starts with looking into student loan forgiveness programs. Those programs suck. They either restrict…
The post Should You Refinance Your Student Loans? appeared first on Modern Frugality.
If you have more student loans than you know what to do with then youâre always thinking about how to get rid of them. It always starts with looking into student loan forgiveness programs. Those programs suck. They either restrict…
The post Should You Refinance Your Student Loans? appeared first on Modern Frugality.
The short answer: No.
Currently the administration is only considering canceling federal student loans. And at last report, its forgiveness plan will include a $10,000 cap for federal student loan borrowers, with income limits for single tax filers who make $150,000 or less or $300,000 jointly. Federal borrowers are still waiting for official plans to be announced. And the moratorium that paused federal student loan payments is set to end August 31, 2022.
Private student loans are issued by financial institutions such as banks, credit unions and credit card issuers like Discover. These loans are not eligible for forgiveness because they are not distributed by the Education Department. And borrowers with these loans were not exempt from paying during the federal student loan payment pause.
Also, unlike federal student loans, interest rates on private student loans are variable. This means that as the Federal Reserve raises its benchmark interest rateâthe governmentâs primary tool to fight inflationârates on these loans also go up. In contrast, federal student loan rates are set by the government and fixed over the life of the loan.
For example, federal undergraduate student loans taken out between July 1, 2022 to June 30, 2023 have a fixed interest rate of 4.99%. Rates reset every July. For private student loans, the interest rate can range anywhere between 1% to 13%.
Interest rates on private student loans are based on a borrowerâs creditworthiness. To get the best rate, you would need to have good to excellent credit score. (For FICO that range is 670 to 800.) Or you would have to have a co-signer on the loan to lower your rate.
If you currently have a private student loan, there are ways to lower your interest rate. Talk to your lender and ask if they would be willing to lower your interest rate. Or you can ask that the monthly payment be loweredâespecially if your income has recently decreased.
Another solution to lowering your current payments is to refinance your loan to one with a lower rate. If possible, try to lock in a lower rate as soon, as rates are rising more broadly.
However, don’t rush blindly into a new loan for a lower rate alone, especially if you currently hold a federally issued loan. Refinancing into a loan not issued by the federal government also means you’ll also have to opt out of some of your current protections, including the ongoing suspension of interest charges. It may make more sense to wait to refinance until repayment moratoriums end, even if you’ll pay a higher overall interest rate for the time being.
Paying for college is one of the biggest expenses a parent plans for, and it can seem overwhelming. At times, you might find yourself saving up for your kidâs future education while also trying to save for your own retirement, fund a house down payment, and pay off your own debt. With the average annual […]
The post Parent PLUS Loans vs Private Parent Student Loans for College appeared first on SoFi.
Dear Penny, I am 75, and my husband is 83. I have been paying on my student loans for 16 years and the balance has gone from $200,000 to $235,000. I am on an income-driven repayment plan and work primarily to pay my loans. My IDR payment is $1,056 as of today. I also draw [â¦]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Paying student loans on time can have a positive effect on your credit score and help build a good credit history. On the flip side, when you have a late or missed student loan payment, that can be reflected on your credit report as well. Delinquent payments can lower your credit score and have financial […]
The post Can You Remove Student Loans from Your Credit Report? appeared first on SoFi.
When financial aid like scholarships and grants comes up short, federal student loans can help bridge the gap. Unsubsidized Direct Loans may be offered to undergraduate and graduate students in a financial aid package. Subsidized Direct Loans may be offered to undergrads only, and have benefits in terms of who pays the interest during certain […]
The post What to Know Before Accepting Unsubsidized Student Loans appeared first on SoFi.