Should you pay down your student debt slowly to receive tax breaks for more years? Can you file for bankruptcy if you can’t pay your student loans?
This informative video will help clear up some of your confusion about student loans.
This summer, college students and their parents narrowly avoided a student loan interest rate hike that would have raised interest rates on new subsidized Stafford loans from 3.4 percent to 6.8 percent. The deal set Federal Stafford Loans for undergraduates at 3.85%, Graduate PLUS loans at 5.4%, and Parent PLUS loans at 6.4%.
While college-bound students and their families breathed a collective sigh of relief, the deal came with a catch: student loan interest rates would be tied to the health of the economy. If the economy improves as economists predict, rates would increase in coming years. In fact, rates would likely climb higher than they were this past spring.
For families who have saved for college with a 529 plan, the new deal presents an interesting conundrum. Should you use the funds in your account now to pay for your student’s education or save them for the future, when it might be more expensive to borrow?
With outstanding student debt now topping $1.2 trillion, it’s extremely important for students to understand their repayment options and take advantage of relief programs to avoid defaulting on their student loans and hurting their credit. But according to ThinkProgress, students aren’t taking advantage of these programs. While one in eight student debtholders is in default, just three percent are enrolled in the income-based plans offered by the […]
President Obama’s recent signing of the bill to keep student loan interest rates low is a move in the right direction toward helping students afford college. But as we’ve discussed, it’s not enough. In the video below from Democracy Now, Rolling Stone editor Matt Taibbi discusses how the high price of U.S. college tuition is the real […]
When you have multiple loans from different lenders, it can be difficult to keep track of all of your monthly payments and due dates. Consolidation is an option, but it’s not right for everyone.
A new service called Tuition.io makes it easier to manage your student loan repayment and help you plan how much to spend each month. And since the service is free, you have nothing to lose–which means you can put even more money toward your loans.
That about sums it up.
We often hear about student debt as a problem for recent college graduates in their 20s and 30s. But it’s not just young adults who are struggling to pay back their loans. Their parents are suffering as well.
Americans ages 50-59 owe a combined $112 billion in student loans. That’s triple what they owed in 2005. Why the dramatic increase? Because many parents are taking out additional loans to pay for their children’s education, despite still paying off their own student loan debt.
What’s the most powerful force in the universe, according to Albert Einstein?
It’s not gravity. It’s not even love.
It’s compound interest.
College is a good time to start building up your credit. Some landlords take credit scores into account when deciding whether or not to let you rent an apartment, so it’s beneficial to have a good credit history. And if you’re looking to buy a car sometime in the future, having a high credit score can help you secure a low interest rate on a car loan.
Using credit cards, and paying them off in full each month, is a good way to establish your credit. But some college students make financial mistakes that end up hurting their credit scores.
Ever wondered how today’s college graduates (and their student loan debt loads) compare to those of previous generations? This infographic from Manilla explores how tuition, college fees, and student loan debt have skyrocketed since today’s graduates’ grandparents went to school. Even adjusting for inflation, the cost of college, particularly at private universities, has gotten out of […]