Blog Page2019-04-02T18:03:13+00:00

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 $1.53 trillion—a balance that includes recent graduates and [...]

Defeating Student Loan Interest Through Creative Repayments

In our last blog post (read it here) we discussed how grace periods after graduation can adversely affect your loan and payments. Now, to help our blog readers further understand the loans they have taken out we are going to discuss ways to minimize the student loan debt they owe upon leaving school and entering the workforce. Make Payments We aren’t trying to be condescending; of course, making payments will [...]

Your Student Loan Grace Period Is Making Your Debt Worse

The grace period on a student loan is usually the six months following your graduation that is gifted to you to provide time for you to get a job and/or financially prepare to begin repaying your student loans. Although it sounds like a generous reprieve to not demand immediate repayment, there are significant and lasting side effects of this. Interest Accrues, Even When The Bill Isn’t Due For students [...]

Saving Tips For Living On A Budget In College

When attending college, it is important to live on as tight of a budget as possible and to save as much as possible so you will be better prepared upon graduation. And the tuition for the cost of your classes isn’t the only factor you need to take into consideration. When you add in the cost of your room and board, books and other supplies, clothing, food, and other personal [...]

Debt Management Solutions

The average American is in debt $137,063. That’s astounding considering the average income is only $59,039 per year. Knowing these numbers, it is no wonder why so many people are defaulting and going into bankruptcy just 15 years out of college. Many Americans pay only their minimum balances and use their “extra” money for going out, such as to dinner and movies, and the other little pleasures life has to [...]

Tips For Saving For Retirement In Your Early Twenties

Saving for retirement right after college is usually not a top priority for most college grads. But focusing on building your retirement savings earlier in life rather than starting later on gives you a major advantage in jump-starting your retirement savings fund and can pay off significantly in your later years in life when you won't have the income you have now to help you purchase the things you need. [...]

How Student Loan Debt Is Affecting The Economy

Many student loans being issued by private lenders are being defaulted on at an alarming rate.  This is similar to the housing boom that inadvertently caused the great recession of 2008.  Lenders are issuing loans to students that have virtually no income and limited ways to pay it off, and the ripple effect is now impacting not only the millennials but generation Z as well.  With so many “pop up” [...]

Should You Use The Debt Snowball Or The Debt Avalanche Method When Tackling Student Loan Debt?

If you are currently trying to tackle your student loan debt, you are probably wanting to figure out which method of debt repayment you can use that will allow you to pay your student loans off as quickly as possible. With the increasing costs of higher education, and thus higher amounts of student loans being taken out, it is common for people to feel like they are drowning in student [...]

Three Ways To Help Your Employees Become Debt Free

If you are running a business one of the best ways to show your employees that you truly care about them as individuals and about their personal well-being is to show you care about their financial security and well-being. This goes well beyond paying them a reasonable salary. If you want to show your employees you truly care, you should offer them services that will help them become debt free [...]

Why You Should Pay Off Your Student Loans As Early As Possible

If you recently graduated from college, you probably have student loan debt of some amount. But often, paying off this student loan debt as soon as possible is not a priority for college graduates. However, paying off your student loan debt quickly is important to establishing true financial freedom for your future. Imagine the opportunities and possibilities you would have available if you didn’t have to worry about that large [...]

Tips That Will Help Any Student Save Money While In College

These days college rarely seems to be about saving money, with the large political and social focus on how much money is being spent on attending college and taking out student loans. But at the core, college is all about preparing for your future adult life, so saving money during college should be an important aspect to consider as well. There is definitely plenty of money to be spent when [...]

Is Your Undergraduate Level Degree Worth The Amount Of Student Loan Debt It Carries With It?

For most people choosing to pursue a college degree taking out student loans to pay for their tuition is unavoidable. But is the degree worth the massive amount of student loan debt you will face upon graduation? Last week we looked at the statistics for the most popular graduate level degrees, but what about undergraduate level degrees? On average, many undergraduate degree graduates have a much more favorable outlook of [...]

Is Your Graduate Level Degree Worth The Amount Of Student Loan Debt It Carries With It?

For most people choosing to pursue a college degree, especially a graduate level degree, taking out student loans to pay for the tuition is unavoidable. But is the degree worth the massive amount of student loan debt you will face upon graduation? Although the suggestion is that following a standard repayment plan will allow you to pay your student loan debt off within 10 years, reality is that about 60% [...]

The Top Benefits Employers Receive By Offering Their Employees Student Loan Repayment Benefits

Last week we looked at a few of the top benefits employers receive by offering their employees a student loan repayment benefit including attracting better talent, retaining your best employees, and improving employee morale and productivity. If all the reasons we discussed previously aren’t reason enough to be providing your employees with this benefit, in this post we will look at a few additional benefits employers receive by [...]

The Top Benefits Employers Receive By Offering Their Employees Student Loan Repayment Benefits

There is a new wide spread issue facing the vast majority of employees, especially younger employees who are just entering the job market. While most employers offer standard benefits such as health insurance contributions, dental and vision insurance options, life insurance, vacation time, and 401(k) and other retirement savings options, many employers are realizing they have been failing to address one of their employees’ greatest financial challenges – [...]