Loft Apartments: The Pros and Cons
Dreaming of an open floor plan? Loft living may be for you.
The post Loft Apartments: The Pros and Cons appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Dreaming of an open floor plan? Loft living may be for you.
The post Loft Apartments: The Pros and Cons appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
When a business grows enough to require hiring more talent, small-business owners must decide whether to hire employees or freelancers. There are important legal distinctions between the two, and each option has its pros and cons. Which kind of hire makes more sense for your business? Find out here.
Contractors vs. Employees (Differences) – Who Should You Hire? is a post from Money Crashers.
I have refinanced many of my properties over the years and I have also used lines of credit quite a few times. I am a real estate investor who flips houses and buys quite a few rentals so having cash available is important to my business. You can take cash out of properties you own … Read more
A typical email I receive is something like, "Help! I have student loans—what advice can you give me?" I certainly understand why many graduates feel buried under the weight of debt.
The burden of student loans causes many people to feel like they can't fully live their life.
According to Educationdata.org, student loan debt in the U.S. totals $1.68 trillion. It's held by 44.7 million borrowers, who owe an average of $37,584. Borrowers with federal loans owe slightly less—$36,520—and those with private student loans owe much more—$48,819.
The burden of student loans causes many people to feel like they can't fully live their life. You might delay getting married, starting a family, buying a home, or starting a business due to the financial burden.
Today, we'll review updates to COVID relief for student loan borrowers and I'll offer tips to help you manage your federal and private student loans. Knowing your options can help you find the best repayment strategy and relieve financial stress.
When the pandemic's economic fallout began, it was clear that student loan borrowers would need assistance right away. So, in March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act became law. It suspended payments, stopped collections on defaulted loans, and set the interest rate to 0% for loans owned by the U.S. Education Department through September 30, 2020.
Before the student loan forbearance period expired, it got extended through December 31, 2020. Then the measures got extended again to January 31, 2020, and finally to September 30, 2021.
The federal government must own a student loan to qualify for relief under the CARES Act. They include:
However, FFEL loans owned by a private lender or Perkins loans held by your school don't qualify for forbearance.
I mentioned that Direct Consolidation Loans are eligible for relief. The government offers this option when you have more than one federal student loan in your name. They can be consolidated or combined into one new loan with an interest rate that's a weighted average of your loan rates.
Doing a consolidation would qualify the loan for COVID relief. However, the interest rate could be higher after the suspension expires
Doing a consolidation would qualify the loan for COVID relief. However, the interest rate could be higher after the suspension expires than what you're currently paying. Another downside is that you may lose benefits from your original loans, such as forgiveness for public service work, repayment options, and interest rate discounts or rebates.
Speak with your loan servicer about the pros and cons of consolidating a non-qualifying loan to take advantage of the no-payment and no-interest suspension period.
If you're not sure what type of student loan you have, ask your servicer or use the National Student Loan Data System to find out.
If you have student loans held by private companies or educational institutions, they may offer relief if you request it. For instance, some loan servicers give borrowers in good standing a 60- or 90-day forbearance.
However, interest is likely to accrue on private loans during a suspension. So, if you have both federal and private loans and are struggling to keep up your payments, prioritize your private loans while your qualifying federal loans are in forbearance. That will keep your interest expense as low as possible and protect your credit while you're managing a financial hardship.
Interest is likely to accrue on private loans during a suspension.
If you have multiple private loans, you may qualify to refinance them for a lower interest rate, cutting your monthly payment. And some lenders may also refinance federal and private student loans together. But a private lender will evaluate your current financial information for a new loan or refinance, so you may not get approval if you're in financial hardship.
Every lender's underwriting requirements for refinancing are different, so you need to shop and compare offers from several companies to make sure you get the best deal.
If your student loan qualifies for relief, your loan servicer should have contacted you or stopped your automatic payments back in March 2020. Again, that arrangement will continue through at least September 31, 2021. It's a welcome relief if you're dealing with a financial crisis, but it's optional.
If you can afford it, continuing to make full or partial student loan payments during the forbearance can help you get ahead because the full amount gets applied to your balance (after any accrued interest or fees). That allows you to whittle down your debt faster. However, you don't have to pay to get 0% interest during the relief period.
If you can afford it, continuing to make full or partial student loan payments during the forbearance can help you get ahead because the full amount gets applied to your balance.
One situation when you shouldn't pay a suspended student loan is when you're in a forgiveness program, such as the:
Skipped payments during the relief period count toward loan forgiveness, just like you paid them. Therefore, it's in your best interest not to continue paying student loans that qualify for forgiveness. You're better off using the money for something else, such as shoring up your emergency fund.
Skipped payments during forbearance don't hurt your credit scores. Your payments get reported to the credit agencies as if you made them on time.
The CARES Act could extend student loan relief beyond the current expiration of September 30, 2020. But if not, you should receive notice from your loan servicer at least 21 days before your payment is due.
If you're worried that you won't be able to afford your loans after forbearance, it's an excellent time to investigate a repayment plan that will meet your needs. Check out the federal government's Loan Simulator tool to see what your payment would be under various options, such as enrolling in an income-driven repayment (IDR) plan.
An IDR plan may reduce or eliminate payments based on your income and family size. If you enroll in one during the suspension period, your payments may automatically remain suspended after the relief expires.
If you're already on an IDR plan and your income dropped, be sure to update your information so you get a new payment amount based on your current financial situation. When the forbearance ends, you may be eligible to pay a lower amount that is more affordable. In addition to using the Loan Simulator, you can also contact your loan servicer to discuss the best repayment plan.
If your finances are in good shape and you want to pay off your federal and private student loans faster, here are five options.
You can use a secret weapon for whittling down your balances on student loans (or any installment loan) faster and pay less interest: Make biweekly instead of monthly payments.
Biweekly payments take advantage of the fact that one month out of each quarter has five weeks instead of four. There are 13 weeks in each quarter, not 12, and 52 weeks in a year, not 48. So, it's a sneaky way to get the equivalent of one extra monthly payment made each year.
If you have extra money each month, you could pay more than the minimum payment.
Just make sure that your lender knows to apply the extra toward your principal balance. Otherwise, they may consider it a prepayment for the following month, which doesn't help you eliminate the balance faster.
As tempting as it can be to quickly spend a bonus, gift, or tax refund on a luxury item, remember that using a windfall to pay down debt is the most effective way to get rid of it faster. Use any additional income, such as a raise or bonus, to accomplish important goals, such as shoring up your emergency fund, investing for retirement, or paying down debt.
Check with your human resources department to find out if there are any student loan benefits. If not, propose it as a win-win to help the company retain the best talent and reduce workers' financial stress.
Many lenders offer to automate loan payments by drafting them from your bank account on a given day each month. Some may offer a slightly lower interest rate because they know you're less likely to miss a payment. Paying less interest can help you pay off your student loans a little faster.
APR vs. interest rate: Both numbers are important for comparing mortgages. But which one matters more? That depends on your home buying goals.
The cash envelope budgeting method can be a very effective way to control your spending. The premise is simple. You come up with spending limits for your variable expenses, like groceries, eating out or entertainment. Next, you fill up envelopes with cash to match what youâve budgeted for each category. As you shop throughout the [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.
Don’t get caught flat-footed in your next job interview.
TurboTax now offers live professional help, audit support, and even the ability to input your info by taking a photo of your W-2. But is it right for you? Our TurboTax review will help you decide.
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.
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Who is eligible for Chapter 13 bankruptcy? Chapter 13 bankruptcy is reserved for individuals and couples, as opposed to corporations and partnerships. Youâre most likely eligible assuming you have received credit counseling and possess a…
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