loan debt – Informare Wissen Und Koennen http://informare-wissen-und-koennen.com/ Sat, 19 Mar 2022 02:55:08 +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 loan debt – Informare Wissen Und Koennen http://informare-wissen-und-koennen.com/ 32 32 4 budget cuts people who have paid off their student loans swear by https://informare-wissen-und-koennen.com/4-budget-cuts-people-who-have-paid-off-their-student-loans-swear-by/ Fri, 18 Mar 2022 09:10:38 +0000 https://informare-wissen-und-koennen.com/4-budget-cuts-people-who-have-paid-off-their-student-loans-swear-by/
  • Paying off student loans is daunting, but starting with one spending area can make it easier for you.
  • People who repaid their loans reduced their food expenses, housing costs and other savings.
  • Some married couples lived on one income while using the other’s salary to pay off the debt.
  • This article is part of the “Better, Smarter, Faster” series focusing on effective choices you can make with your money to achieve big life goals.

When making resolutions about paying off student debt, it’s easy to set unrealistic goals and focus only on the big picture. But instead of reviewing every dollar you spend, it can be easier to look at the details: Cut spending in one area of ​​your budget at a time, working gradually towards your debt repayment goal.

We asked seven people who paid off their student loans which changes made the biggest difference.

1. Pay attention to food expenses

“At one point, we were spending $1,000 on food,” says credit expert Jasmine McCall, who worked with her husband Jay to pay off $96,452 in student debt over four years, of her monthly expenses. Once they got that reality check, the McCalls focused on cutting groceries and restaurants before tackling other areas where they could cut back.

The McCalls were also living off Jay’s $85,000 salary while allocating all of Jasmine’s $88,000 salary to their student loan debt. Living on one partner’s salary while using the other partner’s salary to pay off debt is a common strategy couples use to speed up the process of paying off debt.

2. Reduce the rent where possible

Imani Porter in Washington, DC, and Danielle Desir in Connecticut both moved in with their families while paying off their student loans. Not everyone has the privilege of relying on their family to save on rent, but Porter and Desir say it’s helped speed up their debt-paydown journey. Porter paid off $25,000 in debt in one year, while Desir paid off $61,823 in four years.

Software engineer Nickolas Natali moved into a van for a year to drastically reduce his living expenses and pay off $59,000 in one year. However, Natali doesn’t recommend van life for everyone. He told Insider, “I was peeing in a bottle and hiding under curtains held up with magnets so no one could see me, and yeah, that wasn’t sexy at all.”

3. Reassess insurance needs

After being fired from her job, debt repayment coach Ja’Net Adams took a hard look at her family’s finances to see where she could save money. Because Adams had worked in the pharmaceutical industry, free health insurance was usually part of benefits. Once she lost her job, she had to look elsewhere for coverage. “Thank goodness that was when Obamacare was happening,” Adams told Insider.

She also called her home and auto insurance providers to see if she qualified for a lower rate or if there was a cheaper package available. “We had too much


car insurance

and too much home insurance,” says Adams. “We saved $300 to $400 a month just by downsizing.

Once she found a new job, she was able to speed up the process of paying off her debt by maintaining those same insurance budget cuts.

4. Take a look at 401(k) contributions

With a combined income of $125,000 a year, Ashley Patrick and her husband were contributing 11% to their 401(k). A 401(k) plan is an employer-sponsored retirement account that lets you put a portion of your salary, before taxes, into an investment account that earns compound interest.

To prioritize paying off high-interest debt, Patrick and her husband put their 401(k) contributions on hold to focus on paying off $25,000 in student loans in just 10 months.

This does not mean that it is necessarily recommended to stop long-term pension contributions. Since retirement savings are a compound interest investment, saving as early as possible makes a huge difference. If you decide to put your retirement savings on hold to pay off your debts (or perhaps just reduce them temporarily), make sure you don’t forget to take them back in the future.

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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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LA Councilwoman seeks system to help Angelenos navigate student loans https://informare-wissen-und-koennen.com/la-councilwoman-seeks-system-to-help-angelenos-navigate-student-loans/ Sat, 12 Mar 2022 02:16:00 +0000 https://informare-wissen-und-koennen.com/la-councilwoman-seeks-system-to-help-angelenos-navigate-student-loans/

LOS ANGELES (CNS) — With mandatory student loan repayments set to resume in May for millions of Americans, Los Angeles City Councilwoman Monica Rodriguez today introduced two motions aimed at helping young Angelenos gain better financial knowledge and manage their student loan debt.

In his motions, Rodriguez noted that more than half of bachelor’s degree holders took out student loans and graduated with an average federal and private debt of $28,400. In the United States, a collective student debt of $1.75 trillion is owed, distributed among 46 million people.

“This system is often predatory and has a disproportionate impact on students of color who are most likely to use federal loans — burdening them with debt that impacts future financial gains,” Rodriguez said in the cover story. motions.

Rodriguez’s first motion is for the Los Angeles Department of Youth Development to offer courses and training in college aid and financial management, such as financial literacy and certification, savings and investment and other support for wealth creation.

“These trainings and courses could provide a better foundation for personal finance through training in budgeting skills and lessons in student borrowing practices,” the motion reads. “Creating a youth-centric knowledge base will serve as a useful repository of data that can better prepare young people for the benefits of personal finance.”

If passed by city council, the motion would direct the city’s administrative office to work with other city departments on a report proposing administrative operations, oversight and cost estimates to establish training and courses.

The second motion is to provide course graduates with an educational support allowance to help students with student-related debt.

Rodriguez also introduced a resolution on Friday that, if approved by city council, would indicate the city’s official support for expanding the civil service loan forgiveness program to include borrowers who previously did not qualify. .

“Student loan debt cuts the ladder of economic mobility, making opportunities like owning a home or becoming financially independent increasingly difficult to obtain. Providing young Angelenos with financial literacy training, including college help, is key to helping them avoid the pitfalls of student loans,’ Councilwoman Monica Rodriguez said. “The Biden administration has made efforts to expand student loan relief, but there are still gaps that need to be filled so that more young Angelenos can receive help.”

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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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Local filmmaker raises awareness about student loans https://informare-wissen-und-koennen.com/local-filmmaker-raises-awareness-about-student-loans/ Fri, 11 Mar 2022 15:51:00 +0000 https://informare-wissen-und-koennen.com/local-filmmaker-raises-awareness-about-student-loans/

Award-winning musician Reggie Harris found himself singing the blues after agreeing to co-sign a college loan for his nephew.

“I’m struggling with this loan that isn’t mine, and as a musician I have other debts that I have to pay,” Harris said.

Harris says after nearly two decades of payments, he still owes $14,000. He is one of the roughly 44 million people who make up the trillion dollars in US student debt.

Michael Camoin, Harris’s close friend and filmmaker, is working on a docu-series called “Scared to Debt” which raises awareness of student loan financing issues.

“I think the whole college money loan thing is a wild ride,” Camoin said.

One example is student loan manager Navient, which has recently come under fire for its predatory lending practices. Following a multistate settlement, they had to forgive $1.7 billion in student loan debt and are paying an additional $95 million in restitution to borrowers.

While working on the “Scared to Debt” documentary, Camoin met one of the whistleblowers tasked with taking Navient to court.

“Without Jon Oberg, we wouldn’t have heard of these settlements by now,” Camoin said.

“It was the loan that was given to them…this addiction to student loans, the easy money,” Oberg said.

State lawsuit says Navient, formerly known as Sallie Mae, partnered with for-profit colleges to approve high-interest student loans, boosting college enrollment .

“They tricked people saying ‘you’ll get a huge salary with our education’ and you can pay off that loan immediately,” Oberg said.

Camoin also found that credit giants like Navient cut ties with the US government. This allows them to transfer millions from federally guaranteed accounts while continuing to collect billions from their existing private loans.

“The only guarantee is for the banks. … There is no one to protect borrowers,” Camoin said.

“I hope this documentary will empower them and others enough to reform this lending system and make it fair.”

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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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Loans as low as $1,000 https://informare-wissen-und-koennen.com/loans-as-low-as-1000/ Wed, 09 Mar 2022 22:30:50 +0000 https://informare-wissen-und-koennen.com/loans-as-low-as-1000/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Even if you’re married to your favorite credit card, you may find that there are times when it just doesn’t make sense to use it. For one thing, your credit limit may not be enough to cover a very large expense like a home renovation or a wedding. Also, credit cards usually carry high interest rates. These are areas where personal loans have the upper hand.

Personal loans have become a popular option for covering a variety of major expenses, such as home renovations, weddings, unexpected expenses, funerals and more. And in some cases, it may actually be more affordable to use a personal loan than to use a credit card, since personal loans are known for their relatively low interest rates.

There are many personal lenders out there, so it can sometimes be difficult to determine what each loan offers, but there are a few highlights to look out for. Avoiding prepayment charges and origination fees can help you save money on the cost of the loan so that it can work in your favor to seek out a lender who does not bear these charges, such as personal loans from PNC Bank.

Of course, however, you should always do additional research before applying for any financial product and ensure that you are comfortable with the terms of that product before signing on the dotted line.

To help, Select has reviewed PNC Bank’s APR, benefits, fees, loan amounts, and terms. (Learn more about our methodology below.) Read on to find out if PNC Bank is the right lender for you.

PNC Bank Personal Loan Review

PNC Bank Personal Loans

  • Annual Percentage Rate (APR)

    5.99% to 28.74% APR (0.25% APR discount when you sign up for autopay)

  • Purpose of the loan

    Debt consolidation, home improvement, wedding, moving and moving or vacation

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

    10% of payment or $40, whichever is greater

Benefits

  • No setup fees, no prepayment fees
  • Fixed rate APR
  • Flexible repayment terms
  • Loan amounts start at $1,000
  • No collateral needed

The inconvenients

  • Late payment fee invoice
  • Not the fastest funding (may take up to 10 business days)
  • Rates and conditions may vary depending on your postal code

APR

APRs typically range from 5.99% to 28.74% for PNC Bank personal loans, but a more specific rate range (as well as other terms) will depend on your location and, of course, factors such as credit rating and amount of money needed. Prospective borrowers are encouraged to verify the rate range for their location by entering their zip code on the PNC Bank personal loan website.

Like many other personal lenders, PNC Bank offers a small discount on the interest rate for making payments automatically through a PNC Bank checking account (borrowers can receive a 0.25% discount for signing up so that their payments are automatically applied to your balance).

Personal loans from this lender also carry fixed interest rates that will not fluctuate over the life of your loan. Also keep in mind that generally the higher your credit score, the lower your interest rate is likely to be. PNC Bank does not disclose the exact minimum credit score required to qualify for its personal loan products.

Benefits

There is some flexibility regarding your loan repayment schedule; borrowers can choose loan terms of up to 60 months.

And, as we mentioned above, if you already have a checking account at PNC Bank and use it to make your monthly payments automatically, you can qualify for an interest rate reduction of 0 .25%.

Costs

PNC Bank does not charge an application fee or origination fee, and there are no prepayment penalties for making additional payments to pay off your loan early.

However, there are late fees. Borrowers will be charged 10% of the payment or $40, whichever is greater, if a late payment is made.

And as with any other loan or credit product, it’s important to keep in mind that failure to pay in full on time may result in the lender notifying a credit reporting agency, which may affect your credit score.

Amount of the loan

Loan amounts range from $1,000 to $35,000, making this lender an attractive option for those looking to borrow small amounts of money (personal lenders can offer up to $100,000). Keep in mind, however, that not all applicants will qualify for the maximum loan amount. Qualification can usually depend on factors such as your creditworthiness.

And while PNC Bank personal loans can be used for a variety of expenses — including debt consolidation, home renovation, wedding, moving, or even vacation — there are some things you can’t use for. this loan. Prohibited uses include post-secondary education expenses, student loan debt refinancing, or any unlawful purpose.

Mandate’s duration

Candidates have a range of term lengths of up to 60 months.

At the end of the line

PNC Bank personal loans are a solid option for those who want to avoid origination fees and prepayment penalties. Although you don’t need to be an existing customer to apply for the loan, the biggest benefit is for those who set up automatic monthly payments through an existing PNC Bank checking account – you will receive an interest rate by 0.25%.

Since personal loan products may vary by location, your actual interest rate range and other terms may depend on your zip code. So you will have to check this before applying for this loan.

If you’re not comfortable with the terms you receive and are looking for slightly lower interest rates, check out LightStream Personal Loans, which offers APRs as low as 2.99% and an APR deduction of 0 .25% to automatically pay your bill each month.

Our methodology

To determine which personal loans are best, Select analyzed dozens of US personal loans offered by online and brick-and-mortar banks, including major credit unions, that have no origination or enrollment fees, from APRs to fixed rate and flexible loan amounts. and terms tailored to a range of financing needs.

When selecting and ranking the best personal loans, we focused on the following characteristics:

  • No creation or registration fees: None of the lenders on our top list charge borrowers an upfront fee for processing your loan.
  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you fix an interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Flexible minimum and maximum loan amounts/terms: Each lender offers a variety of financing options that you can customize based on your monthly budget and how long you need to pay off your loan.
  • No prepayment penalties: The lenders on our list do not charge borrowers for prepaying loans.
  • Simplified application process: We looked at whether lenders offered same-day approval decisions and a fast online application process.
  • Customer service: Every loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Disbursement of funds: The loans on our list provide funds quickly by electronic transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
  • Automatic payment discounts: We’ve noted lenders who reward you for signing up for autopay by reducing your APR by 0.25% to 0.5%.
  • Creditor Payment Limits and Loan Sizes: The lenders above offer loans of varying sizes, ranging from $500 to $100,000. Each lender advertises their respective payment limits and loan amounts, and completing a pre-approval process can give you an idea of ​​what your interest rate and monthly payment would be for such an amount.

After reviewing the features above, we’ve sorted our recommendations based on overall financing needs, debt consolidation and refinance, small loans, and overnight financing.

Note that advertised rates and fee structures for personal loans are subject to fluctuation in accordance with the Fed rate. However, once you have accepted your loan agreement, a fixed rate APR will guarantee the interest rate and the monthly payment will remain constant for the duration of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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How to pay off student loans in 10 years or less https://informare-wissen-und-koennen.com/how-to-pay-off-student-loans-in-10-years-or-less/ Wed, 09 Mar 2022 19:40:36 +0000 https://informare-wissen-und-koennen.com/how-to-pay-off-student-loans-in-10-years-or-less/

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 who pay us for our services, all opinions are our own.

Several strategies can help you pay off your student loans in as little as a decade. (Shutterstock)

It can feel like it will take you a lifetime to pay off your student loans, especially if you have a six figure student loan balance. But several repayment options can help you pay off your student loans in 10 years or less.

Getting rid of student loan debt early in your working life can help you save on interest and free up money for other financial goals, like saving for retirement, buying a home, or taking a vacation. dream.

If you’re ready to refinance your student loans, visit Credible for compare student loan refinance rates from multiple lenders in minutes.

How to pay off student loans in 10 years

If your goal is to get out of debt as quickly as possible, consider the following options that will help you pay off your student loans in 10 years.

Sign up for the Standard Refund Plan

The Standard Repayment Plan is the default repayment plan for federal student loans – it is designed to help borrowers repay their student loans up to 10 years. You are eligible for this repayment plan if you have the following types of federal loans under the Direct Loans Program or the Federal Family Education Loans (FFEL) program:

  • Subsidized direct loans
  • Direct unsubsidized loans
  • Direct Consolidation Loans
  • Direct Loans PLUS
  • Unsubsidized and Subsidized Federal Stafford Loans
  • FFEL PLUS loans
  • FFEL consolidation loans

Once you graduate and your federal student loan repayment period begins, you can choose a repayment plan. If you do not choose a plan, you will automatically be enrolled in the Standard Refund Plan.

If you have private student loans, there is no standard repayment term. These terms generally range from five to 20 years, depending on the lender.

FEDERAL STUDENT LOAN REPAYMENT PLANS: KNOW YOUR OPTIONS

Is the standard repayment plan right for you?

The answer to this question depends on your personal budget. A major advantage of this plan is that it has fixed monthly payments, which can be easier to budget for. Plus, choosing the 10-year repayment plan over a longer repayment term could help you save money on interest and get out of debt faster.

But the downside of the standard repayment plan is that your student loan repayments can be high, depending on your loan balance.

If the standard repayment plan monthly payment doesn’t fit your budget, you might be better off choosing a more affordable repayment plan. And if you can’t afford your monthly payment at all, consider asking adjournment or by contacting your loan officer to make payment arrangements.

Explore Student Loan Forgiveness

If you have a federal loan, you may be eligible for a student loan forgiveness program. To qualify, you usually have to work for a government or non-profit organization and make a set amount of payments. Two of the most popular student loan forgiveness programs are civil service loan forgiveness and teacher loan forgiveness.

Cancellation of civil service loans

The Public Service Loan Forgiveness (PSLF) is a federal program that provides student loan forgiveness to borrowers who work full-time in the nonprofit or government sector. To qualify, you must have a direct loan or consolidate your federal loans into a direct loan and make payments under an IDR plan.

You must make 120 qualifying student loan payments. As long as you make these payments consecutively, this option can get you out of debt in 10 years. Thereafter, any remaining loan balance will be forgiven to you.

Teacher loan forgiveness

The Teacher Loan Forgiveness Program is a federal program that provides student loan forgiveness of up to $17,500 on subsidized and unsubsidized direct loans and subsidized and unsubsidized federal Stafford loans to full-time teachers. With this limit in place, this program may not get you out of debt entirely, but it can go a long way in helping you get out of debt.

To qualify for this program, you must be a teacher who has worked in a low-income area for five full, consecutive years at an elementary school, high school, or educational services agency. After those five years, you may be eligible for loan forgiveness.

You must also meet the following requirements:

  • You have a bachelor’s degree.
  • You have been fully certified to teach in your state.
  • You have not been waived from licensing or certification requirements.
  • The loans for which you are requesting forgiveness were granted before the end of your five years of qualifying teaching service.

To find out if your workplace is eligible, see the Directory of low-income teachers.

GUIDE TO STUDENT LOAN REPAYMENT PROGRAMS

Make additional payments

Another way to pay off your student loans sooner is to make an extra payment. If you make payments every two weeks, you’ll make one extra payment per year, which could help you save on interest. Even if you can’t afford to make a single extra payment, every dollar counts when tackling student debt.

For example, let’s say you have a $50,000 student loan with a loan term of 10 years, an interest rate of 6.8% and monthly payments of $575. If you pay $40 more per month, you’ll save $1,864 in interest and pay off your loan almost a year sooner. To get an estimate of how much you could save, use a student loan repayment calculator.

Here are three things you can do to free up some extra money to spend on your payments:

  • Make a budget. To determine if you can afford to make additional payments, create a budget. You can create one in Excel or by using pen and paper. Make a list of all your expenses and income. Next, look at your budget to see if there are any places you can cut costs.
  • Get a side scramble. If you like meeting new people and have a car, you can drive for a carpool company on nights and weekends. Do you like to write? Consider applying for a freelance writing gig.
  • Find a roommate. Your housing cost is probably your biggest expense. If you have an extra bedroom in your house or apartment, consider finding a roommate. If your housing cost is $1,200 per month, you can save $600 per month by splitting it in half.

With Credible, you can compare student loan refinance rates from various lenders, all in one place.

Ways to manage costs when you can’t pay off student loans in 10 years

If you simply can’t pay off your student loans in 10 years, consider the following options to make your payments more manageable.

Use an income-driven repayment plan

An income-contingent repayment (IDR) plan bases your monthly student loan payment on your income and family size. The Department of Education offers four IDR plans for eligible federal borrowers. Although the repayment periods for these plans are much longer than the standard 10-year repayment plan, they can be a good option if they make your payments more affordable. Additionally, once your repayment period has elapsed under each plan, any remaining loan balance will be forfeited.

The four IDR plans are:

  • Pay As You Earn Reimbursement Plan (PAYE plan) — The repayment period of the PAYE plan is 20 years. Your monthly payment is usually 10% of your Discretionary Income.
  • Revised Pay As You Earn Reimbursement Plan (REPAYE Plan) — With this repayment plan, your repayment term is 20 years if repaying undergraduate loans and 25 years if repaying graduate loans. As with the PAYE plan, your monthly payment is usually 10% of your Discretionary Income.
  • Income Based Reimbursement Scheme (IBR Scheme) — This repayment plan lasts for 20 years if you had no outstanding balance on a direct loan or FFEL program loan when you took out a direct loan on or after July 1, 2014. The repayment period is 25 years if you had a loan balance at that time. . Your monthly payment is usually 10% of your Discretionary Income if you are a new borrower or 15% if you are not a new borrower.
  • Income Contingent Repayment Plan (ICR Plan) — The ICR Plan lasts 25 years. To qualify, you must have an eligible direct loan. Your monthly payment is the lesser of 20% of your Discretionary Income or what you would pay on a repayment plan with a 12-year fixed payment.

Refinance in the shorter term

When you refinance your student loans, you take out a private loan to pay off your existing federal or private student loan(s), or both. If you have a good credit score and a solid income, you may qualify for an interest rate that is lower than your current rate. So if you’re making more money now than when you took out your student loans, or if your credit score has since improved, refinancing can get you a much better interest rate. If your credit score isn’t great, you may need a co-signer to help you get the best rates.

By refinancing for a shorter term, you’ll pay off your student loans faster (even if it still takes 10+ years) and save a lot of money in interest over the life of your loan.

For example, simply refinancing a 20-year loan to a 15-year loan could save you $12,880 in interest, even if your interest rate doesn’t change. Although your monthly payment is $68 more, you will end up paying less for your student loan overall and be debt free sooner.

But before you refinance federal student loans into a private loan, keep in mind that doing so will cause you to lose federal benefits, like loan forgiveness or forbearance. On the other hand, if you only have private student loans, refinancing may be the best option for you.

Credible allows you compare student loan refinance rates from multiple lenders without affecting your credit.

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Types of personal loans | The bank rate https://informare-wissen-und-koennen.com/types-of-personal-loans-the-bank-rate/ Tue, 08 Mar 2022 22:19:25 +0000 https://informare-wissen-und-koennen.com/types-of-personal-loans-the-bank-rate/

If you want to use a personal loan to overcome a financial difficulty or consolidate your debts, you are not alone. According to research by Bankrate, the average consumer had personal loan debt of around $16,458 in 2020. Before you go ahead with borrowing the funds you need, you need to compare loan types available.

What is a personal loan?

A personal loan is a borrowing product available from a bank, credit union, or online lender. It is commonly used to cover a financial emergency, make home improvements, or consolidate debt. Most personal loans are disbursed in a lump sum and payable in installments over a specified period, usually between one and seven years.

Expect to pay between 4-36% interest, depending on your creditworthiness and the loan product you select.

Types of personal loans

There are an assortment of personal loan options to choose from, and you’ll get a variable or fixed interest rate.

Secured Personal Loans

Secured personal loans require you to put up an asset that acts as collateral. For example, you can take out a loan on your vehicle, which is called a title loan.

While this might be an ideal option if you have a lower credit score and assets to put up as collateral, there is a downside. If you are behind on loan payments, the lender could seize your property and sell it to recover what is owed to them.

Unsecured Personal Loans

These loan products do not require collateral to be approved. Plus, you’ll have quick access to funds without putting your assets at risk.

Unsecured personal loans are best for borrowers with good or excellent credit. However, you will generally pay more interest than a secured personal loan since the lender assumes more risk.

Debt consolidation loans

Debt consolidation loans are commonly used to pay off outstanding balances faster by saving on interest. Borrowers also benefit from streamlining the repayment process.

The idea is to get a loan with a lower interest rate than what you are currently paying on the debts you plan to consolidate. You will use the loan proceeds to eliminate these balances and make payments on a new loan product for a specified period. Ideally, you’ll save hundreds or even thousands of dollars in interest and get out of debt faster.

A debt consolidation loan can be risky if you use it to pay off credit card balances and don’t refrain from swiping cards once you clear the balances. You could end up with more debt than you started with.

Co-signed and joint loans

If you are unable to qualify for a personal loan on your own, the lender may approve you with a co-signer. This person should have a strong credit history and be willing to take responsibility for the remaining balance if you are unable to repay the loan. However, the co-signer will not have access to the loan proceeds.

Some lenders also offer joint loans, which allows both borrowers to access the funds. As with co-signed loans, both parties will be responsible for loan repayments. Your co-borrower will need good or excellent credit to boost your chances of getting loan approval.

Fixed rate loans

Fixed rate loans come with an interest rate that does not vary over the repayment term. Therefore, the borrower makes the same monthly payment for the duration of the loan.

Most personal loans fall into this category. It’s easier to build loan repayments into your spending plan because it won’t change over time.

Variable rate loans

Variable rate loans have a variable interest rate. Over time, your monthly payment could go up or down if the benchmark rate set by the banks changes.

Although it’s difficult to budget for payments on variable rate loans, the rates are sometimes lower than what you’ll get with a fixed rate loan. Thus, you should only consider this type of personal loan if you only need to borrow funds for a short period.

Personal line of credit

A personal line of credit works like a loan and you will have access to a pool of funds that you can borrow whenever you need it. Unlike personal loans, which require you to pay interest on the entire loan amount, you will only pay interest on the amount you withdraw.

This loan product is suitable for borrowers who want a safety net that can be used when needed.

Buy now, pay your loans later

Buy now, pay later Loans allow consumers to make a purchase without having to pay the full purchase price up front. Instead, the balance is divided and payable in equal, weekly or bi-weekly installments.

These loans are usually granted through mobile applications, such as Afterpay, Klarna and Affirm. You could get approved for a purchase now, repay a loan later with less than perfect credit if you demonstrate your ability to repay the loan. Most lenders will review your banking activity and may perform a soft credit check, which will not affect your credit score.

Types of personal loans to avoid

Some personal loans can mean bad news for your finances and should only be used as a last resort. Here are some options to avoid:

  • Credit card with cash advance: Some credit card issuers allow cardholders to take a cash advance from their available credit at an ATM or bank. But this benefit comes at a high cost – you’ll likely have to pay cash advance fees and a higher interest rate on the amount you borrow.
  • cash advance apps: These apps also give you quick access to cash, usually up to $250, until payday. Most charge a monthly fee to use this service, and you’ll have to pay back what you borrow on your next payday or within two weeks.
  • Payday loans: These loans are an expensive form of debt that caters to borrowers with poor credit. Payday loans usually come with high interest rates and are payable on payday. They often create a dangerous cycle of debt if you cannot repay and extend the term of the loan.
  • Pawnbrokers: If your local pawnshop offers loans, you can hand over your property in exchange for cash. You’ll likely pay exorbitant interest and the pawnbroker will keep your property if you don’t repay the loan.

How to choose the best type of personal loan for you

Ultimately, you want a loan product from a reputable lender that offers a competitive interest rate and monthly payments you can afford. It is equally important to consider the most appropriate options based on your creditworthiness, financial situation and intended use.

A personal loan could be a good choice if you need a fixed amount to make a specific purchase. But if you want the flexibility to borrow funds when you need them, a line of credit may be more ideal.

Use the Bankrate personal loan marketplace to explore your options and find a loan that meets your borrowing needs.

Learn more:

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Beware of the dangers of fictitious debt https://informare-wissen-und-koennen.com/beware-of-the-dangers-of-fictitious-debt/ Thu, 03 Mar 2022 20:50:32 +0000 https://informare-wissen-und-koennen.com/beware-of-the-dangers-of-fictitious-debt/

A consumer watchdog has issued a major warning about student loans.

Here’s what you need to know.

Student loans

Beware of the dangers of student loan debt. A new investigation by the Student Borrower Protection Center (SBPC), a non-profit advocacy group, has revealed the rise of “fictitious debt” affecting millions of student borrowers. Traditional coverage of the student debt crisis has focused on $1.7 trillion in student loans owed by 45 million borrowers. However, there is a poorly regulated student loan debt “ghost” market that also poses a significant risk to student borrowers. “With the high fees, harsh contract terms, and abusive collection practices that characterize phantom student debt,” writes the SBPC, student borrowers are suffering financially.

The SBPC has identified more than 100 non-accredited for-profit schools that market point-of-sale financing such as Buy Now, Pay Later” or BNPL, as a type of student loan to pay for education. The SBPC warns student borrowers that these risky types of credit disguised as student loans lack key protections found in private and federal student loans and may have hidden fees and other dangers.

(6 Major Changes to Student Loan Forgiveness)


Beware of the dangers of this type of student loan

Student borrowers should be aware that using forms of credit such as the BNPL to fund their education under “untested, unaccredited, and/or slightly or completely unsupervised programs” could put you at tremendous risk. Specifically, student borrowers could:

  • face significant costs;
  • being required to repay their loan before getting a job;
  • have little or no protection against fraud;
  • experience a decline in their credit score;
  • limit their ability to assert their rights in court; and
  • they are not eligible for student loan forgiveness.

“Today’s report exposes another industry determined to make money from the student debt crisis,” said SBPC Director of Research and Investigations Ben Kaufman. “Policymakers and law enforcement at all levels must step in to protect borrowers from the ungodly but increasingly prevalent marriage of dodgy schools and risky private credit.”

(Student loan refinance rates have gotten ridiculously cheap)


Student loans: what to look for

Student borrowers should be aware that for-profit colleges have continued to experience significant growth. At least some of these education companies offer short-term, degree-based courses (such as boot camps) that are supposed to lead to employment (but may not deliver on their economic promises). However, the SBPC warns that consumers face “extreme danger” with for-profit schools increasingly using “exotic forms of private credit” as a way to fund tuition fees. According to the SBPC:

  • Student borrowers should beware of dubious for-profit schools that advertise the “Buy Now, Pay Later” credit as a student loan. BNPL is an installment loan used in retail purchases in which you purchase the goods in advance but do not have to pay for the goods until a later date. When applied to tuition, the SBPC wants BNPL credit to be a source of “quick and risky loans” for student borrowers to use for courses such as cosmetology, outdoor survival and craft making. wigs. Many of these courses cost hundreds or thousands of dollars to attend.
  • Student borrowers should be especially careful before using BNPL loans in for-profit “bootcamps” for tech careers. Like revenue-sharing agreements, be especially wary of using BNPL loans for technology-focused job training programs. At least some of these programs are not accredited. Even if you pay high tuition fees with a BNPL loan, you can get your desired tech job.

(Biden cancels $415 million in student loans, but Bernie Sanders says cancel all $1.8 trillion student debt)


Student loans: final thoughts

Before borrowing a financial product, make sure you understand its terms and conditions. Make sure the financial product is right for you. A BNPL loan may make financial sense for your particular situation, but it’s important to understand the total costs and the fine print. Likewise, before enrolling in a course or degree program, do your due diligence on the educational institution and the promises, if any, made. With temporary student loan relief set to end in less than 60 days, having a student loan repayment game plan is essential.

Here are smart ways to repay student loans:


Student Loans: Related Reading

Student loan refinance rates have gotten ridiculously low

6 Major Changes to Student Loan Forgiveness

More student loan relief is a terrible idea, says Republican politician

If Biden cancels student loans, it will happen next

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