Tag Archives: HigherEducation

How Can I Handle a Student Loan Default?

There are multiple consequences you could face if you were to default on your student loans. Your wages and income tax refunds could be garnished to satisfy the debts. You could be reported to the three credit bureaus. The full amount of the loan becomes due and you could accumulate fees. If you have federal student loans, then you will lose eligibility for helpful repayment programs. Therefore, it is essential to avoid default at any costs. If you do default on student loans, it is crucial to look at your available options for bringing your loans back into good standing. Avoid default: There are a few options you could consider to get caught up on payments if you are at risk of defaulting. Consider enrolling in an income-driven repayment plan if you have federal loans. This option could also free up income that is needed to pay back private loans….
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Can I Change My Income-Driven Repayment Plan?

Income-driven repayment plans are a lifesaver for borrowers who are struggling with monthly federal student loan payments. These programs limit your monthly payments to a percentage of your discretionary income. Employment is not a perquisite for enrolling in an income-driven plan. If you are unemployed, your monthly payments could be set at $0. There are multiple income-driven plans. Your eligibility for a plan is determined by the types of student loans you carry, whether your loans are in good standing or your income. Therefor, you may be eligible for one income-driven plan but not others. It would depend on your circumstances. Unfortunately, it can be difficult to pick the right one without first discussing your situation with someone who is knowledgeable on the matter. You may be able to change your income-driven repayment plan. For instance, if you had Direct loans and were enrolled in the Income-Based Repayment program (IBR),…
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Five Ways to Pay Off Private Student Loans Faster

Student loans are a source of worry and frustration for many borrowers. However, it can be a mistake to pay off certain types of student loans too quickly. Federal student loans are generally a “good type of debt.” We encourage you to read our recent blog on why this is the case. Private student loans are another story. Unlike federal higher education debt, private student loans often lack helpful income-driven repayment and forgiveness programs. Private student loans may have higher interest rates and it is easier to default. You should pay off private student loans as soon as possible. There are multiple ways to accomplish this goal. Five common ways to quickly pay off private student loan debt include: Using federal income-driven programs to save money: If you also have federal student loans, then you may qualify for income-driven repayment programs that can lower your monthly payments. Money saved by…
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