Blog Page2019-10-15T19:25:04+00:00

What You Should Know Before You Refinance Your Student Loan Debt

Refinancing your federal student loans entails getting a new loan at a better interest rate to replace your current student loan. While this may not affect your current monthly payment requirement, it can help you to save a significant sum over time in the amount of interest you will have to pay. This means that while your monthly payment may not seem to lessen, more of it will be [...]

Which Income-Driven Repayment Plan Is Best For You?

There are four types of income-driven repayment plans for federal student loan debt. Each is designed to take you income into account when calculating your monthly payment, capping the payment at 10-20% of your discretionary income. They also forgive any remaining balance after your loan term, which is usually 20 or 25 years. Read More: How Is Discretionary Income Calculated?v The Four Income-Driven Repayment Plans: Income Based Repayment (IBR) [...]

You Can File For Bankruptcy For Student Loans—Here’s How

Typically, erasing your student loan debt is not possible when filing for a traditional bankruptcy. In order to absolve your student loan debt through this process, you’ll have to take an extra step and file an additional suit and provide proof that repayment of your student loan debt will cause you an “undue hardship”. How To File For Student Loan Bankruptcy Nearly all general research into filing for bankruptcy [...]

Change Your Repayment Plan In 4 Easy Steps!

Learn More We’ve previously discussed if you can change your federal student loan repayment plan (and, yes, you can.) and what your options are for repayment. Typically, when someone is looking to change their repayment plan terms it is to get a lower monthly payment. While a lower monthly payment can be more affordable each month, it is important to fully understand what the change will [...]

How Is Discretionary Income Calculated?

Your discretionary income is any income you have left over after paying important bills and expenses—like the taxes in your paycheck, rent/mortgage, food, and utilities. Anything non-essential (stuff you can live without) like your daily Starbucks or occasional entertainment or shopping trip are what make up your discretionary income. Discretionary income is used by many student loan servicers and providers when calculating potential payment options like the income-based repayment [...]

Who Is My Loan Servicer?

One of the biggest problems of student loan debt—aside from the overwhelming amount millions of people are indebted for—is the lack of information provided before applying for a student loan and after graduating. Sure, once you graduate, you’ll get a notice in the mail advising you that the clock on your student deferment has started—you are starting your grace period and its time to prepare to make payments. This [...]

A Student Loan Relief Option That Could Save You Thousands – If You Can Qualify

Is A Student Loan Settlement Possible For You? A student loan settlement is possible for federal student loan borrowers who are in default and can’t repay them—and if accepted, could allow you to settle your debt for less than you actually owe. When is a student loan settlement possible? A student loan settlement may sound nice—settling with your lender to pay less than you owe, but the [...]

How To Get My Student Loans Out Of Default

There are options for when you default on your federal student loans to help you recover; however, your loans will have to be officially in student loan default.  If you aren’t sure if you have reached the defaulted loan status, you can read up here on how to verify it. It is important to take action now to avoid the consequences of ignoring your student loan default. How To [...]

What Happens If You Default On Student Loans?

Missing a student loan payment is the start of a very slippery slope; one with financial repercussions that can last for several years, if not longer. Defaulting on a student loan is what happens when you miss several payments—about 9 months’ worth if they are federal student loans. Once your student loans reach this defaulted status, what happens? Possible penalties of federal student loan default: Once your [...]

How Do I Know If I Have Defaulted On My Student Loans?

Missing your student loan payment can have serious repercussions, many of which can occur at a faster rate and increased severity than if you had missed a credit card payment. Bing in this situation can be very overwhelming—once you are behind on your debt it can seem impossible to catch up let alone recover. According to the Education Department, over 10% of federal student loan borrowers find themselves defaulting [...]

What Happens If You Miss A Student Loan Payment?

The affordability of student loan payments is no stranger for many recent graduates and the risk of missing a student loan payment can be high. Over 3 million Direct Loan borrowers were one month (or more) behind on the payments—having an official delinquent status as of December of 2018. Being delinquent on your student loans can lead to late fees, penalties, and a negative impact on your credit. Consequences [...]

Tips For Launching A Student Loan Repayment Benefit

There are many reasons why a company should consider student loan repayment assistance, we covered them in our last blog, with one of the main reasons driving companies to make the switch is to provide a benefits option that appeals to your target workforce. By 2025, the vast majority of workers will be the generation referred to as Millennials, and their main concern is their unmanageable student loan debt. [...]

Why Student Loan Debt Payment Assistance As A Benefit?

By 2025, Millennials will make up about 75% of the workforce, so methods for attracting and retaining employees will need to shift over the next six years to the needs of this population. What do millennials want? Help paying for college—or better yet, since they’ve likely graduated by the time they’ve made it the interview, help paying their student loans. Student Loan Debt Statistics The current student loan [...]

Public Service Student Loan Debt Forgiveness Program: The Requirements

Although last week’s blog data is shocking, at least 25% of the applicants who were denied the Public Service Loan Forgiveness may have had a better chance if they understood the requirements better. The vague description of the program—borrowers can have their debt forgiven after working in public service for 10 straight years and making on time payments during that time—is only part of the very strict requirement picture. [...]

This Government Loan Forgiveness Program Has Rejected OVER 99% Of Borrowers So Far

The Public Service Student Loan Debt Forgiveness Program was launched in 2007 offering borrowers a way to eliminate, or have their debt forgiven, after working in public service for 10 straight years and making on time payments during that time. However, borrowers only qualified if the loans were issued after the program went live, meaning it wasn’t until two years ago that borrowers could officially take advantage of this student [...]

The Truth Of Student Loan Forgiveness Programs

Student loan forgiveness—when your loan balance is wiped away and your student loans are marked as paid in full. Sounds like a dream doesn’t it? Like it is too good to be true. In a way it is. Student loan forgiveness is federal student loan relief program designed to help borrowers who have entered career fields that are beneficial to our country: teachers, police officers and other law enforcement [...]

Should You Choose A Student Loan Deferment Or Forbearance?

Both a deferment of your student loans and a forbearance can postpone required payments during times when you cannot afford to make them. The biggest difference between the two is how you qualify for the payment delay and the consequences you face in interest. Overall, you should compare the two and see which will benefit you the most—not only right now but also in the long run. If you aren’t sure, [...]

Pros and Cons of Income Based Repayment Plans

Income based repayment (IBR) plans for student loan debt is a repayment plan that is influenced by the borrower’s monthly income. An IBR limits the student loan debt payment to 10-15% of your discretionary income—the income you have remaining after taxes, necessities (e.g. rent/mortgage), and mandatory charges (e.g. child support or IRS payment). Even if your discretionary income is fairly decent, you’ll never be charged more than you would [...]

Beating The Odds: How To Pay Down Your Student Loans And Save For A Home

Qualifying for a home loan with extensive student loans can be difficult, but not entirely impossible. If you are dedicated, you can focus on paying down your student loans or save up for a down payment. If you are extremely dedicated, you may be able to focus on both of these tasks at once. Here are a few tips to help you work on both paying down your student loan debt [...]

Save for a Down Payment or Pay Off Student Loans?

We discussed previously how student loan debt has prevented may young adults from taking part in major activities like buying a home because of how exponentially student loans can affect a borrower’s debt to income ratio. Although qualifying may be difficult, it is not impossible and many are determined to make it work. Often it boils down to paying down their student debt, lessening their DTI, or saving up for [...]

Is The American Dream Really Out Of Reach For Millennials?

What do you want to be when you grow up? Debt-free. The new American dream. Student loan debt is at an all time high, with over $1.6 trillion—yes, trillion—owed in private and federal student loans (as of March 2019). For many young adults, it has prevented them from taking part in traditional events of growing up, like buying a home. For most graduates, student loans were the only [...]

The Employer Participation In Repayment Act 2019

Back in February of this year Senators John Thune (R-SD) and Mark Warner (D-VA) introduced a new bill to help fight the growing student loan debt that would encourage more employers to offer student loan repayment assistance to employees by making contributions made to their employees tax free. The Employer Participation in Repayment Act, which (if passed) would allow employers to contribute a maximum of $5,250 tax-free to their [...]

Conquering The Student Loan Debt Crisis

"The really scary thing is we don't really have a plan to either address the millions of borrowers who've taken on student loan debt or a plan to really stop this.” Words spoken by Seth Frotman, the former student loan ombudsman from the Federal Consumer Financial Protection Bureau ring loud and true to many millennials today. With over 44 million borrowers holding over $1.5 trillion in debt the number [...]

The Hottest Employee Benefit Of 2019

Health insurance, life insurance, paid vacation, and even matching 401k used to be the ideal employee benefits when graduates entered the workforce. Now with student loan debt averaging $37,000 for all new college graduates, a major shift in desirable benefits is seen with the rising student loan debt crisis. Student Loan Debt Statistics The American student loan debt balance totals over $1.5 trillion—a balance that includes recent graduates and [...]