Do you want to save money on college, such as by learning how to go to college in Europe? Yes, you can actually save money by going to college in Europe, and today’s article will show you exactly how. The average cost of programs for college abroad in Europe is around $8,000 per year, which […]
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Do you want to save money on college, such as by learning how to go to college in Europe? Yes, you can actually save money by going to college in Europe, and today’s article will show you exactly how. The average cost of programs for college abroad in Europe is around $8,000 per year, which […]
The post How To Go To College In Europe For $8,000 Or Less A Year appeared first on Making Sense Of Cents.
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 […]
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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 […]
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Hello! Enjoy this post from my friend Martin. I know this situation applies to many out there (the possibility of what you or others may believe to be useless degrees), so hopefully this post can help someone out! “Why did you waste your time on that degree?” The most ignorant question in the world. You deserve […]
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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 […]
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While student loan forgiveness may be up in the air, the administration has taken steps to reform debt relief programs that already exist. The Department of Education revamped the Public Service Loan Forgiveness (PSLF) program, which was started under the Bush administration in 2007. The program is designed to reduce student debt for graduates who go on to work in a range of government, nonprofit and healthcare jobs; see below for a list and more details.
Announced last October, the new rules include a limited requirement-waiver that allows eligible borrowers to have payments that were previously excluded counted toward loan forgiveness. The waiver ends October 31 of this year. To see if you qualify, go to studentaid.gov/pslf/ to use the PSLF Help Tool, which will generate the form you need. And make sure to have your old W-2 forms on hand. To see if your employersâpast and presentâqualify as an eligible or ineligible employer you will have to enter the employerâs tax identification number which is in box b of your W-2. For more information on the tool and how to use it, go to studentaid.gov/articles/become-a-pslf-help-tool-ninja/.
The waiver seems to have worked as it’s supposed to for at least one now-former debtor. Ricardo Maldonado of New York City recently tweeted how roughly $139,000 worth of his federal student loans (connected to a graduate degree) was forgiven thanks to the PSLF waiver. Maldonado applied for forgiveness back in November 2021. After applying he got letters updating him about the process and received official notice of forgiveness on May 31, 2022. Â
Maldonado says that the PSLF form was easy to manage for himself thanks to having one employer for the past 15 years, but more importantly â[It] was useful seeing folks say that [forgiveness] was possible,â he said via a direct message on Twitter.
People with student loans who work in qualifying non-profit or government jobs may have their loans forgiven after ten years of qualifying payments to a qualifying loan program. These payments may be adjusted in consideration of the borrowersâ income level.Â
The first borrowers would have been eligible for forgiveness in October 2017 (remember, the program was launched in 2007). But four months before that, the Consumer Financial Protection Bureau reported problems: âBorrowers report that servicers delay or deny access to loan forgiveness through wrong information about their loans, flawed payment processing, and bungled job certifications.â
One major complication involves how federal student loans originated. Prior to 2010, federally backed student loans were issued by financial institutions and not directly by the federal government. PSLF applies only to direct student loans, or those issued by the federal government. Earlier loans could be consolidated into direct loans, and payments made after that consolidation would apply toward PSLF.
The PSLF program covers a wide range of jobs, including virtually all direct government employment (whether federal, state, local or tribal). Many jobs at nonprofits as well as public health work also qualify. Some exceptions include Labor unions or partisan political organizations. Members of Congress are also specifically excluded. The program also has provisions that work must be full time (at least 30 hours a week), though this can be through multiple jobs with qualified employers.
Positions include:
More detail is available at: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/questions.
Community colleges offering two-year programs can be a wonderful option for students looking to gain a higher education in less time. It can also be a great option for those looking to save a little cash while bettering their current skills, prepping for a four-year university, or going for an associateâs degree. Moreover, it can […]
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If you need financial aid to help pay for college, youâll fill out the Free Application for Federal Student Aid (FAFSA®), which allows you to apply for federal unsubsidized student loans, subsidized student loans, work-study, and grants. When your FAFSA has been processed, youâll receive an aid offer that explains the types and amount of […]
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