federal student – Informare Wissen Und Koennen http://informare-wissen-und-koennen.com/ Fri, 18 Mar 2022 03:38:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://informare-wissen-und-koennen.com/wp-content/uploads/2021/11/cropped-icon-32x32.png federal student – Informare Wissen Und Koennen http://informare-wissen-und-koennen.com/ 32 32 Student loans could get more expensive with higher interest rates https://informare-wissen-und-koennen.com/student-loans-could-get-more-expensive-with-higher-interest-rates/ Thu, 17 Mar 2022 16:08:45 +0000 https://informare-wissen-und-koennen.com/student-loans-could-get-more-expensive-with-higher-interest-rates/

Student loans could become more expensive with higher interest rates.

Here’s what you need to know.

Student loans

The Federal Reserve raised interest rates yesterday by 0.25%. The Fed could also raise interest rates further six times this year. This could have serious consequences for student borrowers. Student loan repayments are expected to resume after May 1, 2022, so you may be wondering what impact this will have on your student loans. Here are the key details.

(Biden to Forgive $6.2 Billion in Student Loans)


Student Loans: How Higher Interest Rates Affect Student Loans

When the Federal Reserve raises interest rates, the cost of borrowing increases. This applies to financial products, including mortgages or credit card debt. The Federal Reserve raises or lowers the federal funds rate, which is the rate that financial institutions charge each other to borrow money overnight. The change in the federal funds rate affects the interest rate you pay or the funds you earn in your savings account. Although your monthly payments may increase, there’s good news if you’re saving money in a bank account. As interest rates rise, you can earn more money from your savings with a higher interest rate. However, what do higher student loan interest rates mean?

(Student loan forgiveness reduced to $25,000 for student borrowers)


Student loans: federal student loans

There is good news and bad news for federal student loans. Let’s start with the good news. For current student loan borrowers, the interest rate on your federal student loans will not change. Why? Most federal student loans have fixed interest rates, which means the interest will not change for the term of your student loans. So the Fed can raise interest rates six times or more, and your interest rate will stay the same. (Biden could suspend student loans forever). That said, some older federal student loans may have a variable interest rate. If you have a variable interest rate, your interest rate will change as the Fed raises interest rates. The bad news is that interest rates will go up for student borrowers who plan to borrow student loans starting later this year. This includes current or potential student borrowers or parents who will be borrowing new student loans. The federal government resets interest rates on new federal student loans each year on July 1.

(Explosive Report Claims This Student Loan Service Deceived Student Loan Borrowers)


Student loans: private student loans

Private student loans are generally more flexible than federal student loans. How? ‘Or’ What? For example, you can choose a fixed interest rate or a variable interest rate when borrowing a private student loan. Like federal student loans, a private student loan with a fixed interest rate will not be affected by an increase in interest rates. In this case, the interest rate on your private student loans will remain the same for the duration of your student loan. On the other hand, if you have a private student loan with variable interest rates, your rate will increase as the Fed raises interest rates.


Student loan refinancing: how to get a lower interest rate

Refinancing student loans is a smart strategy to get a lower interest rate. With student loan refinancing, you can get a lower interest rate, a lower monthly payment, or both. Student loan refinance rates are ridiculously cheap right now, starting as low as 1.74% for a variable rate and 1.99% for a fixed rate.

This student loan refinance calculator shows you how much money you can save when you refinance student loans.

This is especially useful if you want to lock in a low fixed interest rate since the Fed plans to raise interest rates several times this year. Student loan refinance rates will increase, so if you’re considering refinancing, it’s best to do it now rather than later. To qualify for student loan refinance, you’ll need at least a $650 credit, be currently employed or have a signed job offer, and have enough monthly cash flow to pay bills. living expenses and making current debt payments. If you want to get student loan forgiveness or want to keep your federal benefits such as income-contingent repayment, keep your current federal student loans and only refinance private student loans. Alternatively, if you want to save money and get a lower rate or monthly payment, you can refinance private and federal student loans.

Student loan repayments start again after May 1, 2022. Be sure to evaluate all your options, especially with the potential for multiple interest rate increases that could make your student loans more expensive.

Here are some popular ways to save money:


Student Loans: Related Reading

Biden to Forgive $6.2 Billion in Student Loans

Biden could extend student loan payment break indefinitely

6 Major Changes to Student Loan Forgiveness

Student loan refinance rates have gotten ridiculously low

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5 banks that refinance student loans https://informare-wissen-und-koennen.com/5-banks-that-refinance-student-loans/ Wed, 16 Mar 2022 22:38:14 +0000 https://informare-wissen-und-koennen.com/5-banks-that-refinance-student-loans/

Student loan refinancing offers the ability to lower your interest rate, get more flexibility with your monthly payments, and more. Before applying with a lender, however, it’s important to shop around and compare multiple offers.

In your search, you will come across banks, credit unions, and online lenders that offer refinance loans. There are several reasons why a bank might be the best choice for you; for one, you may be able to get a discount if you have other products from the bank, and you can also benefit from the convenience of a local branch for personalized assistance.

What is student loan refinancing?

Student loan refinancing involves paying off one or more existing student loans with a new loan through a private lender. Refinancing may have some advantages, including the possibility of getting a lower interest rate, but refinancing federal student loans will cause you to lose access to benefits offered by the US Department of Education.

As such, it’s crucial that you take the time to understand both the pros and cons of refinancing before making the decision. Refinancing is a good idea if you have private student loans and can qualify for a lower interest rate than what you are currently paying. If you have federal student loans or can’t qualify for a lower interest rate, it’s probably best to wait for now.

5 banks that refinance student loans

If you’re thinking about refinancing your student loans, here are five banks to get you started on your search.

Citizens Bank

Citizens Bank is one of the few student loan refinance companies that will allow you to refinance your debt even if you haven’t graduated. The bank offers loans ranging from $10,000 to $750,000 (the limit is $300,000 for bachelor’s degrees and below).

The repayment options are five, seven, 10, 15 and 20 years. The bank’s interest rates are competitive and you can choose between fixed and variable rates. In addition to an automatic payment discount, Citizens Bank offers an interest rate discount of 0.25% if you or your co-signer have an eligible bank account with the lender at the time of your application.

Citizens Bank does not disclose a minimum credit score, but it does indicate that you need good credit. You will also need to earn an annual income of at least $24,000 and not have defaulted on your student loans in the past. The Citizens Bank co-signer release period is also relatively long at 36 months.

SoFi

SoFi started strictly as a student loan refinancing company, but received approval from federal regulators in early 2022 to become a national bank. The online bank offers loans as low as $5,000 with no cap. The repayment terms are five, seven, 10, 15 or 20 years.

The lender’s interest rates, both fixed and variable, are competitive. If you find a better rate elsewhere, SoFi will match it and give you $100 when you complete the funding process. What really sets SoFi apart from other lenders, however, are its member benefits. You’ll get interest rate discounts on other SoFi loans, 10% off an estate plan, professional resources, an unemployment protection program and more.

You can refinance with SoFi if you have at least an associate’s degree, but the lender does not publicly disclose any minimum credit or income requirements. You are also not eligible if your loans were taken out for bar studies or residency.

NCP Bank

PNC Bank’s student loan refinance program may be worth considering if you don’t have a ton of debt, don’t have a degree, or aren’t likely to get the best rates. of market interest.

PNC Bank’s lowest interest rates aren’t as impressive as those of other major student loan refinance lenders. However, its interest rate ceiling is quite low. You can also get a 0.5% discount on your interest rate if you set up automatic payments. Autopay rebate is not unique, but most lenders only offer 0.25%.

The lender does not provide concrete eligibility criteria, but if you need a co-signer to be approved, you can release them from their obligation after making 48 consecutive payments on time and passing a credit check – a period of much longer wait. than with other lenders.

Road of laurels

Laurel Road is an online banking brand for KeyBank, with student refinance loans ranging from $5,000 up to your full outstanding loan balance. The repayment terms are five, seven, 10, 15 and 20 years.

The lender’s interest rates are competitive and you may qualify for a discount if you have a checking account with Laurel Road and meet direct deposit and savings balance requirements. This is in addition to the 0.25% autopay discount.

You must have an associate’s degree or higher to qualify. And if you have an associate’s degree, you must have completed a degree in a healthcare field.

Student loan financing

Education Loan Finance (ELFI) is the student loan refinancing division of SouthEast Bank. The minimum loan amount is a bit high at $15,000, with the limit varying based on eligibility. Repayment terms include five, seven, 10, 15, and 20 years, although parents are limited to a 10-year repayment period. The lender offers competitive fixed and variable interest rates.

ELFI has some drawbacks. Namely, there is no co-signer release program and a bachelor’s degree is required to refinance. On the plus side, however, ELFI is more transparent than other lenders about its eligibility criteria. To qualify, you must have a minimum income of $35,000, a minimum credit score of 680, and a minimum credit history of 36 months.

Advantages and disadvantages of refinancing a student loan with a bank

If you’re considering going with a bank to refinance your student loan, consider the pros and cons.

Benefits

  • Some discounts for existing customers.
  • Potentially more personalized terms.
  • Network of branches for in-person assistance.

The inconvenients

  • Often higher interest rates.
  • May not offer the unique benefits of online lenders.

How to refinance with a bank

To refinance student loans with a bank, you will follow a similar process as you would with an online lender:

  1. Compare the prices. You’ll start by comparing interest rates from several companies, which should include both banks and other types of lenders. Most student loan refinance companies allow you to get a quote with a simple credit check, making the comparison process easy and risk-free.
  2. Apply online. Once you have chosen a lender, you apply directly through their website. You will need to provide information about yourself, your school, and your student loans. After you submit your application, the lender will perform a credit check and ask you to provide documents, such as pay stubs and a copy of your driver’s license.
  3. Accept the loan. If the lender approves your loan, you will receive a final offer, which may or may not be the same as the original quote. At this point you can decide whether or not to accept the loan. If you don’t, you can repeat the process with other lenders, but if you want to go ahead with this particular lender, read the agreement and sign the documents. The lender will repay your existing loans directly, but you will need to continue making payments until this is confirmed.

Learn more:

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Here’s what could cost you more as the Fed raises interest rates https://informare-wissen-und-koennen.com/heres-what-could-cost-you-more-as-the-fed-raises-interest-rates/ Wed, 16 Mar 2022 15:47:04 +0000 https://informare-wissen-und-koennen.com/heres-what-could-cost-you-more-as-the-fed-raises-interest-rates/

Topline

The Federal Reserve is set to raise interest rates for the first time in more than three years on Wednesday in a bid to tackle the fastest price spike in more than 40 years, but a series of rate hikes will also make a series more expensive debt deals.

Highlights

“Now is the time to aggressively pay off high-cost credit cards,” Bankrate chief financial analyst Greg McBride said in emailed comments, pointing out that almost all credit cards come with a match. variable interest rates that fluctuate in parallel with the fed funds rate determined by the Fed.

A rate hike alone is unlikely to have a huge effect on small items, including auto financing, but McBride notes that uncertainty remains about how many more interest rate hikes will occur this year as the Fed seeks to fight inflation amid soaring oil prices. .

Although federal student loans come at fixed rates that won’t be affected, private loans — which make up about 8% of the market with some $131 billion in outstanding loans — often come with variable rates that increase after Fed hikes.

“Market volatility and wartime uncertainties have dampened rising mortgage rates,” but McBride warns that home equity lines of credit almost always come with variable rates that would have an almost immediate impact, and that fixed rates will likely start to increase for new mortgages. ; the average 30-year mortgage rate rose from 3.4% to 4.9% during the last Fed hike cycle.

A bright spot? “The outlook for savers is improving,” McBride says, noting that high-yield savings accounts and certificates of deposit will boost payouts, even though most banks “are likely to be stingy in passing on rates higher”.

To monitor

Fed officials are expected to announce a 25 basis point interest rate hike at the end of their two-day policy meeting on Wednesday afternoon, but Fed Chairman Jerome Powell was not very clear about what might happen after that. “With inflation likely to remain uncomfortably high all year, the [Fed] will probably only [stop raising rates] whether it thinks further tightening risks pushing the economy into recession,” Goldman Sachs economist David Mericle wrote in a Monday note to clients. Goldman expects the Fed to raise rates by 25 basis points at each of its remaining seven meetings this year, with a possible one-basis point hike if downside economic risks stemming from Russia’s invasion of Ukraine diminish. .

Key Context

Record-low interest rates and billions of dollars in unprecedented government spending have helped keep the economy afloat during the pandemic, but record-high levels of inflation have rattled the market in recent months, and more so recently. . The S&P 500 index has fallen nearly 10% this year amid growing worries about geopolitical tensions and rising interest rates, which tend to hurt corporate earnings and stock prices.

Large number

$15.6 trillion. That’s the amount of US household debt last quarter – the highest amount on record, according to the New York Federal Reserve. Although most of it is contained in fixed-rate mortgage debt, the overall figure rose by the largest amount in 14 years in the last quarter, as rapidly rising house and auto prices pushed mortgage balances up by $258 billion. of $181 billion and auto loans of $181 billion. Credit card balances, on the other hand, rose by $52 billion, while student loan debt actually shrank by $8 billion.

Further reading

Inflation soared 7.9% in February to its highest level in 40 years amid growing uncertainty over record gasoline prices (Forbes)

Fed meeting minutes signal March interest rate hike still on track (Forbes)

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Lenders who refinance non-degree student loans https://informare-wissen-und-koennen.com/lenders-who-refinance-non-degree-student-loans/ Tue, 15 Mar 2022 23:33:18 +0000 https://informare-wissen-und-koennen.com/lenders-who-refinance-non-degree-student-loans/

If you have student loans but no degree, managing your repayment can be more difficult, especially if you’re hoping to refinance. Most lenders require a degree for refinancing, but there are a few exceptions. Here’s where to start if you’re trying to refinance your student loans without a degree.

What is student loan refinancing?

Student loan refinancing is the process of consolidating current student loans into a single new loan with a private lender. This gives you an interest rate determined by your credit rating and history (and those of your co-signer, if you have one).

Although you can refinance federal and private loans, you lose all of your federal protections when you refinance loans you got from the US Department of Education. For example, you are no longer eligible for income-based repayment plans, federal deferment, or civil service loan forgiveness. But you might qualify for a lower interest rate than you’re currently paying, which might make refinancing worthwhile.

Can you refinance student loans without a degree?

Most lenders require borrowers to have a college degree in order to refinance student loans. However, each lender has different eligibility criteria, so the lack of a degree does not automatically exclude you from the possibility of refinancing. Lenders usually require a bachelor’s degree, but they may accept associate’s degrees or no degree as long as you are employed or have a regular source of income.

4 Lenders Who Will Refinance Student Loans For Borrowers Without A Degree

If you’re exploring refinancing options, compare a few different lenders to gauge where you qualify and what interest rates and terms are available to you. The lenders below don’t require a degree to refinance, so they’re good places to start your search.

Citizens Bank

As long as you have made at least 12 consecutive payments on your student loans and have at least $10,000 in eligible loans to refinance, you may qualify for a Citizens Bank refinance loan.

Citizens Bank has relatively low rates and five term options available. However, there are a few downsides to keep in mind: you can’t release a co-signer until you’ve made 36 payments on your new loan, and the minimum loan of $10,000 is quite high.

ANC

Although you may not need a degree to refinance your student loans with PNC, you will need to have at least $10,000 in student loans and 24 months of consecutive payments before you qualify for refinancing. A stable employment and income history is also required.

PNC offers a generous 0.5% discount for setting up autopay. However, borrowers without a degree are subject to high interest rates and a maximum loan of $25,000.

Discover

Discover will refinance as little as $5,000 and up to $150,000, making it one of the most flexible refinance lenders around. There are also no fees, not even late fees, and the cap rates are relatively low.

Keep in mind that Discover only has two repayment options – 10 or 20 years – which can be limiting. Additionally, postgraduate loans and loans taken out while you were enrolled less than half the time cannot be refinanced.

Massachusetts Education Finance Authority (MEFA)

MEFA refinance loans require you to have made at least six consecutive payments on time on the loans you wish to refinance, but this does not require a degree. This means you may qualify for refinancing sooner than with other lenders. Rates are low and you can find out if you prequalify without a credit check.

That said, MEFA doesn’t offer variable interest rates, so it’s not the right choice if you want the lowest interest rates on the market. You will also need to have at least $10,000 in eligible loans to qualify for refinancing with MEFA.

Other ways to repay your student loans

Refinancing is one way to pay off your student loans, but it’s not always the best option for everyone. Consider other repayment options, including:

  • Income Oriented Repayment Plans: Available for federal student loans, income-based repayment plans base your monthly payments on your income and household size. So if you’re not working right now, your payments can be as low as $0 per month. The remaining balance on your loans is canceled after 20 or 25 years, depending on the plan you choose.
  • Debt avalanche method: If you have a lot of student loans, the debt avalanche method can help you organize your debt. With this method, you’ll make regular payments on all of your loans, but put all the extra money into the loan with the highest interest rate. Do this until the loan is paid off, then switch to the loan with the highest interest rate until all of your loans are paid off in full. This strategy will reduce the amount you end up paying in interest on your loans.
  • Federal Loan Consolidation: If you only have federal loans, consider getting a direct consolidation loan. Like refinancing, this combines all of your loans into one manageable payment, but it won’t cause you to lose access to federal benefits. You won’t save any money with this method, but it might be worth it if you don’t want to risk switching to a private lender.

Learn more:

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Mid-Valley Scam Alert: Scammers preying on those with student loans | Local https://informare-wissen-und-koennen.com/mid-valley-scam-alert-scammers-preying-on-those-with-student-loans-local/ Mon, 14 Mar 2022 14:00:00 +0000 https://informare-wissen-und-koennen.com/mid-valley-scam-alert-scammers-preying-on-those-with-student-loans-local/

University is an expensive investment. But you already know that. Take a look at how many Americans are in debt thanks to the high amount of student loans they have accumulated.

Due to the pandemic, the federal government has temporarily suspended the repayment of these loans. For now, this break is in effect until May 1. But it doesn’t matter when that break finally expires – scammers take advantage of anxious and indebted citizens.

For this week’s Mid-Valley Scam Alert, we’re talking about all things student loan repayment scams. In a March edition of the FBI Oregon Tech Tuesday segment, the agency offered some tips for avoiding falling victim to this particular type of fraud.

Scammers and scammers will try to contact you via text, email or phone call/voicemail with the aim of tricking you into disclosing sensitive information. They will likely tell you about quick and easy ways to consolidate or eliminate your student loans.

People also read…

For example, a fraudster might say, “This is (insert name) student loan assistance. Our records show that you were eligible for a loan forgiveness program, but you never completed the required paperwork. If you want to pursue this app, we need to talk to you today. Call us please.”

If there’s one thing I hope we’ve all learned from reading these scam alerts, it’s this: Be suspicious of any message from an unknown sender that asks for personal information and/or financial.

If you’re unsure whether a message is legitimate or not, consider these tips from the Federal Trade Commission:

  • Never pay upfront fees. It is illegal for companies to charge you before helping you. Keep in mind that you never have to pay for help from the Department of Education.
  • Never give out your Federal Student Aid ID number, Social Security number, or other personal information to anyone who contacts you. Scammers can use this information to log into your account, change your details and/or redirect your payments to them.
  • If in doubt, contact your student loan officer directly.
  • Don’t sign up for a quick loan forgiveness. Bad actors might say they can get rid of your loans before they even know the details of your situation. They might also promise a loan forgiveness program, which you won’t qualify for.
  • Scammers often use fake seals and logos to trick people into believing the message is credible. They will promise special access to repayment plans, new federal loan consolidations or loan forgiveness programs.
  • If you have federal student loans, go directly to the Department of Education at www.StudentAid.gov.

Debt can be a heavy burden, and there are many people who will simply follow orders in financial matters. After all, you definitely don’t want to get into legal trouble. But it is necessary to take a step back and examine the situation from all angles before giving your crucial information.

No one wants to fall victim to a scam scheme, so as always, proceed with caution when it comes to monetary matters.

If you are the victim of a student loan scam, report it to the FTC at www.ReportFraud.ftc.gov.

Maddie Pfeifer covers public safety for Mid-Valley Media. She can be reached at 541-812-6091 or Madison.Pfeifer@lee.net. Follow her on Twitter via @maddiepfeifer_

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Navient student loans have moved to Aidvantage. But when are payments due? https://informare-wissen-und-koennen.com/navient-student-loans-have-moved-to-aidvantage-but-when-are-payments-due/ Fri, 11 Mar 2022 23:57:06 +0000 https://informare-wissen-und-koennen.com/navient-student-loans-have-moved-to-aidvantage-but-when-are-payments-due/

BrianAJackson/Getty Images

Federal student loan repayments have remained suspended for nearly two years since the pandemic began. Meanwhile, Naivent, formerly one of the largest student loan servicing companies in the United States, shifted its workload of 5.6 million student loans to Maximus, a global administrator of government programs. Maximus is a federal student loan servicer and services former Navient student loans under the name Aidvantage.

If you have federal student loans, they remain suspended until May 1, 2022 — meaning there are no mandatory payments, accrued interest, or loan collections until then. The Biden administration is also considering another expansion of the federal student loan break.

That said, if you haven’t logged into your federal student loan account recently, you might have questions, especially if your loan officer has changed. Here’s everything you need to know about removing Navient and how to log into your Aidvantage account.

Why did Navient exit the student loan business?

Navient has long been under fire from the Consumer Financial Protection Bureau, which sued the loan manager in 2017, saying the company pushed borrowers into expensive and risky private loans that they would be unable to repay. In January, Navient canceled $1.7 billion in private student loans for nearly 66,000 borrowers after coming under scrutiny for engaging in abusive and deceptive practices, including targeting students whose company knew they could not repay their loans.

In 2020, the U.S. Department of Education announced loan servicing changes in an effort to modernize the federal student loan system. As part of the Next Gen initiative, the Department of Education expanded its partnership with five of the current 10 loan servicers, who would continue to service federal student loans, but under stricter government regulations. Navient, along with FedLoan and Granite State, have elected to end their participation in the federal student loan service at the end of 2021.

Michael Lux, student loan expert, attorney and founder of The Student Loan Sherpa, said “increased federal regulation and government scrutiny of federal loan servicing is almost certainly to blame for Navient’s departure.” .

What does Navient’s departure mean for borrowers?

If your loans were managed by Navient, here’s what you need to know:

1. Aidvantage is your new loan manager

By now you should have been notified of this change by post or email from Navient, Aidvantage and the Department of Education. If you did not receive a notification, you should log into your existing Navient account and double-check your contact information to make sure it is correct. Even if your address was outdated, you should be able to log in to your new account.

2. You can login to your Aidvantage account with your Navient credentials

If you try to log into Navient, you will find a balance of $0 – this balance simply indicates that your loans have been purchased by Aidvantage. To log in to your new account, go to www.aidvantage.com and enter your Navient login information.

The process is almost identical to that of Navient. Once you have entered your username and password, you will be prompted to enter your social security number or account number and date of birth to confirm your identity. From there, you will be taken to the Aidvantage account homepage, which looks like the Navient homepage, down to the left navigation options.

If you don’t remember your login information, select “Forgot User ID” or “Forgot Password” and confirm a personal challenge question to receive a new one by email. If you still cannot enter or you no longer have access to the registered email, contact Aidvantage for assistance at 800-722-1300.

3. Your repayment preferences must be the same

Any payment terms you have set up with Navient (auto-pay, deferral, income-based repayment plans) should have been seamlessly transferred to Aidvantage. Of course, since federal student loan payments have been suspended for more than 20 months, you may need to revisit the payment details, especially as you approach the end of the forbearance. And, if your work situation has changed since you last looked at your loan repayment options, you can apply for income-contingent repayment or other repayment options through Aidvantage now, so you’re good to go. when repayment begins in May 2022.

So, after logging into Aidvantage, you should find that your preferred payment method and automatic payment selection have been transferred, along with payment history and a record of fully repaid loans.

4. Prepare for repayment in 2022

Currently, federal student loan repayment is on pause until May 2022. However, this the refund freeze could be extended.

If you haven’t repaid your loans during the forbearance period, be sure to review your payment options now so you’re ready to go in May. Check your payment method, make sure you know your minimum monthly payment, and explore repayment options if you need further assistance. If you would like to explore other deferral or forbearance options, you can do so through your online account under “Refund Options”. You can also speak directly to Aidvantage at 800-722-1300.

FAQs

Does Navient become Aidvantage?

No. In late 2021, Navient shifted its $5.6 billion student loan workload to Maximus, another federal student loan contractor. Maximus operates its student loan service as Aidvantage.

Will I receive tax documents from Navient or Aidvantage?

If Aidvantage is your new student loan provider, you will be able to download the 1098-E tax form, which shows the amount of interest you paid on your student loan, by going to the left panel and selecting “Tax Statements”.

Your old tax slips should have been imported from Navient to Aidvantage. For example, I was able to view my 2020 and 2021 tax documents through Aidvantage. Logging into Navient only allowed me to access my 2020 tax documents.

Should I prepare for repayment now or wait to see if loan forgiveness is accepted?

If you are trying to follow student loan cancellation policies, here is a brief summary. This week, the Department of Education identified 100,000 borrowers with a combined total of $6.2 billion in student loan debt who are eligible for debt cancellation, due to changes to the program. cancellation of civil service loans last October.

That said, only a small number of student loan holders are currently eligible for loan forgiveness. Although the refund break may be extended, it is a good idea to make a plan to prepare for the refund now, just in case. You can explore income-based repayment plans and other repayment options through your Aidvantage account.

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The 9 fastest ways to pay off student loans, according to experts https://informare-wissen-und-koennen.com/the-9-fastest-ways-to-pay-off-student-loans-according-to-experts/ Thu, 10 Mar 2022 21:55:44 +0000 https://informare-wissen-und-koennen.com/the-9-fastest-ways-to-pay-off-student-loans-according-to-experts/

mapodile/Getty Images

Your student loans can eat up a big chunk of your budget each month, especially when you’re starting out on your own, making it that much harder to save for a home, build up your retirement savings, and pursue other financial goals. . It’s also not uncommon to still be saddled with student loan debt well into your thirties or beyond.

Learn: 10 ways to pay off your student loans in a year
Also: Women and student loan debt by the numbers: Why it matters to experts

You may have had a bit of a break from your loan repayments over the past two years when the federal government suspended student loan payments and interest due to tough financial times. But payments are expected to resume on May 1, 2022, so now is the perfect time to prepare.

If you’re doing well financially, now might be a good time to come up with a plan to pay off your student loans even faster. Taking advantage of special programs, breaks, and strategies could save you thousands of dollars in interest and years off your student loans. To make it happen, consider the following steps – straight from the experts.

Reassess your repayment options

This is a good time to analyze your numbers through StudentAid.gov’s student loan repayment simulator to learn your repayment options and terms based on your loan balance and income. You can use this tool to learn about income-contingent repayment plans, which can lower your monthly payments based on your income and also extend the term of your loan.

You can also learn about options to pay off your loans faster. Choosing the repayment plan with the highest monthly payment you can afford will pay off all loans faster and save you the most money on interest, said Mark Kantrowitz, financial aid expert and author of “How To to appeal for more university financial aid”. .” Just make sure the amount fits your budget without falling into other more expensive types of debt.

See: When is it time to talk to a financial advisor about student loans?

Sign up for automatic payment

When your monthly loan payments are automatically transferred from your bank account to the lender, you make the payments without having the option of spending the money on anything else. Your lender can also lower your interest rate by 0.25% to 0.50% if you sign up for autopay, Kantrowitz said. It can also help psychologically, when you don’t have to think about those payments every month. Contact your lender to register.

Add extra money to your loans at the highest rates

Make a list of all your student loans, their terms and their interest rates. Pay extra for your highest rate loans whenever you can, either by increasing your monthly payments or adding a lump sum each time you get extra money, like a tax refund or a premium.

“Let the lender know that this is an additional payment and not an advance payment of the next installment,” Kantrowitz said.

You can use the student loan repayment simulator to see the impact that increasing your payment or adding a lump sum can have on the repayment date and the total amount paid with interest. Consider taking extra money out of your budget to increase your payments for several months. This might mean foregoing some short-term expenses to get out of your student loans faster, but it will help you find yourself in better financial shape in the long run. After paying off the first loan, use some of the extra money to increase your monthly payments until the next loan on your list.

Make payments while you’re still in school

If you have a subsidized federal student loan, the government pays interest on the loan while you’re in school and for a six-month grace period afterward. If you have an unsubsidized loan, interest will accrue while you study, even though you are not yet required to make any payments. Either way, making payments while you study, even a small amount, can make a difference in the long run.

“Even if students and families only pay loan interest, in-school payments will make payments more manageable after the student leaves school and help reduce the total cost of the loan,” said Connor Peoples, spokesperson for Sallie Mae. Some lenders, like Sallie Mae, offer discounts to students and families who choose to make payments in school.

Related: 2 Key Ways Student Debt Burdens Are Taking Women’s Freedom Away

Refinance at a lower interest rate if advantageous

You might be able to lower your rate and pay off your loans faster with refinancing, but you might be locked into a higher monthly payment that could become difficult to pay if your income changes, and you might not be eligible for part of it. revenues. options for loan repayment or cancellation in the future depending on how you refinance.

“The lowest fixed interest rates on a private refinance will imply a shorter repayment term, as short as five years,” Kantrowitz said. “The monthly loan payment will be higher despite the lower interest rate, due to the shorter repayment term, and your debt will be paid off sooner.” However, if the new rate is higher than most of the interest rates on your current loans, it may be best not to refinance and accelerate the repayment of the loan at the higher rate, he said.

He also said to be careful before refinancing federal loans into a private student loan. “It will only save money if the borrower has excellent credit or if the federal loans are from several years ago when interest rates were higher,” he said. If you refinance federal loans into private loans, you may lose some special benefits of federal loans, such as longer deferrals and forbearances, income-based repayment, payment pause and interest relief, and student loan forgiveness options, he said.

“Be aware of what you’re giving up when you leave the federal system,” said Roger Young, director of thought leadership at T. Rowe Price, who recently conducted a study comparing student loan repayment options.

Check Out: 4 of the Best Student Loan Refinance Companies

Take advantage of the Employer Student Loan Repayment Assistance Program (RRAP)

About 8% of employers offered these programs in 2019, according to a study by the Society for Human Resource Management. “The number is likely higher now because Congress passed legislation to make LRAPs tax-exempt until December 31, 2025,” Kantrowitz said. “Employers can provide up to $5,250 a year in student loan repayment assistance. A typical LRAP provides $100 per month for an employee’s student loans. »

Reassessing Civil Service Loan Forgiveness

If you work for a federal, state, local, or tribal government agency or qualifying nonprofit organization, you may qualify for the Civil Service Loan Forgiveness Program on your federal student loans, which forgives the remaining balance on your loans after making 120 qualifying monthly payments. . It was notoriously difficult to qualify for this program in the past, but on October 6, 2021, the U.S. Department of Education announced a temporary period during which borrowers can receive credit for certain past repayment periods that otherwise would not. not eligible. See its public loan forgiveness page for more information.

Make the Most of Student Loan Tax Breaks

When determining how much you can afford to pay each month for your loans, keep in mind that you could get some money back at tax time. For 2021 and 2022, you can deduct up to $2,500 in interest paid on qualifying student loans. The deduction amount is phased out if your adjusted gross income was $140,000 to $170,000 if you are married and filing jointly in 2021 ($145,000 to $175,000 in 2022) and $70,000 to $85,000 for single filers and head of household. Married taxpayers filing separately cannot take advantage of the deduction, said Mark Luscombe, principal analyst at Wolters Kluwer Tax & Accounting.

The interest deduction can only be claimed if the taxpayer has a legal obligation to pay the interest, which may be the parents or the student, he said. A dependent on another person’s tax return cannot claim the deduction. To be a qualified loan, the loan must be taken out only for qualified higher education expenses, such as tuition, fees, room and board, books, supplies and equipment, a-t -he declares.

Integrate your student loan repayment into your overall financial plans

While paying off your student loans early can help you save money in interest in the long run, be careful not to jeopardize other parts of your finances. Student loan rates tend to be lower than other types of debt, like credit card debt, so you want to avoid getting into a situation where you’re paying so much for your student loans that you end up with higher interest rate debt if your income changes. or you have unexpected expenses. “Before you speed up your student loan repayments, build or increase your emergency fund,” Kantrowitz said.

Also, remember to continue contributing to any 401(k) or other retirement plans you may have at work, especially if you have employer matching and other savings opportunities. fiscally advantageous. Take a step back and think about how you will juggle all of these financial priorities.

“You potentially have several choices of things you can do when you have a little extra cash,” Young said. “The risk-free one is paying off debts of different types. There’s also putting more into retirement or putting it into a health savings account. There are a number of things you can do, but there’s something good about paying off your debt sooner.

More from GOBankingRates

This article originally appeared on GOBankingRates.com: The 9 fastest ways to pay off student loans, according to experts

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What to know about student loans before borrowing https://informare-wissen-und-koennen.com/what-to-know-about-student-loans-before-borrowing/ Thu, 10 Mar 2022 08:36:10 +0000 https://informare-wissen-und-koennen.com/what-to-know-about-student-loans-before-borrowing/
One Billion Photos / Shutterstock.com

Editor’s Note: This story originally appeared on Living on the Cheap.

Are you considering taking out a student loan for your studies or those of your children?

This is not a decision to be taken lightly.

Here is the basic information you need to know.

Federal student loans aren’t always superior

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A long time ago, private student loans were given for ridiculously high amounts and interest rates varied, which meant that over a 10-year repayment period, you could have an interest rate of 4% at certain times and 12% at other times.

Payments could not only exceed $1,000 per month, but also vary by hundreds of dollars due to changes in interest rates.

Now, private student loans are available at fixed interest rates that do not change and are often lower than the parent PLUS loan interest rate. Compare federal parent loan rates with rates from lenders such as SoFi.

There is a big difference between student loans and parent loans

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Parent PLUS loan interest rates are higher than traditional undergraduate student loans, income-contingent repayment plan prices are higher, and the only limit is the cost of attendance.

For example, let’s say a school costs $30,000 per year, including room and board, books, etc. The limit for dependent undergraduate students for the first year is $5,500.

If parents qualify, they can borrow significantly more, up to the full cost of tuition minus any other student financial aid. So a parent could easily end up in debt of $100,000 because of a child’s undergraduate degree.

Credit score and income determine eligibility for private student loans

Man checking his credit score
Andrey_Popov / Shutterstock.com

Whether it’s a private loan for parents or students, credit rating and income matter. Students who obtain a loan in their own name with a limited credit history can obtain loans with a parent or other more established credit co-signer.

A co-signer is someone who agrees to repay the loan if the primary borrower cannot. Thus, they are also responsible for the loan, and the loan payment history also appears on the co-signer’s credit report.

The credit rating can also determine the interest rate. For example, someone with a better credit rating may qualify for an interest rate two or more percentage points lower than another person with a lower credit rating.

There are different types of federal student loans

Student
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For students, most federal student loans are issued as subsidized or unsubsidized loans. Interest on subsidized student loans is paid by the federal government while students are in school with at least half-time status and a few other circumstances. These loans must be used up to their limit before taking out any other type of student loan.

Unsubsidized loans are available for the remaining amount a student is eligible to receive within normal borrowing limits. The gaps are filled by PLUS parent loans or PLUS graduate loans. Private student loans also fill in the gaps.

Remember that you are never obligated to borrow the full amount granted. I can’t stress that enough. Compare financial aid programs and call the financial aid office to apply for more scholarships and also inquire about local and state scholarships. If you are still or recently in high school, ask your high school counselor to help you find scholarships.

Repayment term and terms vary

Black man in office thinking about possibilities
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Repayment periods vary from 5 to 30 years. The five-year repayment is only for private student loans, but it depends on the lenders. Some lenders will have the option of a 15 year repayment term. Longer repayment periods generally mean smaller payments. Although you pay more interest because you are borrowing for a longer period, you can still pay off the loan sooner. Usually there is no penalty for this.

The standard repayment term for repaying federal student loans is 10 years. There is a 20 year plan where payments are based on earnings and up to 25 years for an extended payment plan.

There are consolidated loans with repayment periods of up to 30 years, with payment never increasing as income increases.

One of the benefits of loan consolidation is that it can make you eligible for civil service loan forgiveness, a program in which you can potentially have your remaining balance canceled for working for a civil service employer. public for 10 years. Student loan consolidation allows borrowers to combine multiple federal student loans into one federal student loan. Although consolidation allows you to pay off multiple loans with one simplified payment, it will likely increase the amount of interest you pay over time.

Sound complicated? It can be. A student loan is a decision that involves comparing interest rates, long-term protections for financial emergencies, and avoiding over-indebtedness.

The best way to make the decision easier is to complete the FAFSA so you know all of the federal options assigned to you. Then talk to your financial counselor and a college financial aid counselor or high school counselor about what your options might mean for your family’s future. It’s better to spend a few hours making an informed decision about borrowing now than to spend years worrying about the financial impact of loan repayments later.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

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Entrance counseling required for some federal student loans https://informare-wissen-und-koennen.com/entrance-counseling-required-for-some-federal-student-loans/ Wed, 09 Mar 2022 21:13:39 +0000 https://informare-wissen-und-koennen.com/entrance-counseling-required-for-some-federal-student-loans/

According to the KHEAA, students taking their first federal student loans for the upcoming academic year should follow entrance guidance.

Many students take out loans to help them pay for higher education. Entry advice helps them understand the responsibility that comes with borrowing money and have a plan for repaying loans.

The US Department of Education requires borrowers to complete entrance guidance before they can receive loan funds.

The department offers online counseling at studentaid.gov under the Complete Aid Process tab. Counseling should take between 20 and 30 minutes. Borrowers should check with their college to see if Federal Counseling is accepted, as some schools have alternate counseling program requirements.

KHEAA is a non-profit public agency established in 1966 to improve student access to university. It provides financial aid and financial literacy information at no cost to students and parents. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA. For more information on these services, visit www.kheaa.com.

In addition, KHEAA disburses private Advantage Education loans on behalf of its sister agency, KHESLC. For more information, visit www.advantageeducationloan.com.

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10-year fixed-rate student loans slide after three weeks of uptrend https://informare-wissen-und-koennen.com/10-year-fixed-rate-student-loans-slide-after-three-weeks-of-uptrend/ Wed, 09 Mar 2022 20:37:28 +0000 https://informare-wissen-und-koennen.com/10-year-fixed-rate-student-loans-slide-after-three-weeks-of-uptrend/

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders, all opinions are our own.

Credible Market’s latest private student loan interest rates, updated weekly. (Stock)

Average private student loan rates decreased for 10-year fixed rates and increased for 5-year variable rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to take out student loans during the week of February 28, 2022 :

  • 10-year fixed rate: 6.03%, compared to 6.19% the previous week, -0.16
  • 5-year variable rate: 4.49%, compared to 4.04% the previous week, +0.45

With Credible, you can compare private student loan rates from lenders without affecting your credit score.

10-year fixed student loan rates fell this week after rising for three straight weeks, while 5-year variable rates rose. Both rates are well below their 2022 highs so far; 10-year fixed rate student loans were 6.75% the week of January 17 and 5-year variable rates were 4.77% the week of January 24.

You should always exhaust federal student loan options before turning to private student loans to cover any funding shortfalls. Private lenders such as banks, credit unions, and online lenders offer private student loans. You can use private loans to pay for education and living expenses, which may not be covered by your federal student loans.

Private student loan interest rates and terms may vary depending on your financial situation, credit history and the lender you choose.

Take a look at the rates from Credible Partner Lenders for borrowers who used the Credible Marketplace to select a lender during the week of February 21:

Private student loan rates (diploma and undergraduate)

Student Loan Weekly Rate Trends

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Who sets federal and private interest rates?

Congress sets interest rates for federal student loans each year. These fixed interest rates depend on the type of federal loan you take out, your dependent status, and your school year.

Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.

You can compare rates from multiple student lenders using Credible.

How does student loan interest work?

An interest rate is a percentage of the loan periodically added to your balance – essentially the cost of borrowing money. Interest is a way lenders make money from loans. Your monthly payment often pays interest first, with the rest going to the amount you originally borrowed (the principal).

Getting a low interest rate could help you save money over the life of the loan and pay off your debt faster.

What is a fixed rate or variable rate loan?

Here is the difference between a fixed rate and a variable rate:

  • With a fixed rate, your monthly payment amount will remain the same for the duration of your loan.
  • With a floating rate, your payments can go up or down as interest rates change.

Comparative purchases for private student loan rates is easy when you use Credible.

Calculate your savings

Using a student loan interest calculator will help you estimate your monthly payments and the total amount you will owe over the term of your federal or private student loans.

Once you’ve entered your information, you’ll be able to see what your estimated monthly payment will be, the total you’ll pay in interest over the life of the loan, and the total amount you’ll repay.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.

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