For-profit colleges are notorious for not being open about “the real costs of attendance” and how the complex machinations of student loans really work out in both the short and long-term. What makes it all completely difficult is how opaque both colleges and private student loan providers are about what you’re potentially getting into. Especially… Read more »
Federal Student Loans
Obama to Congress: Don’t Double Student Loan Interest Rates
Two-term presidential hopeful Barack Obama is campaigning strongly for student loan interest rates to stay at the current 3.4% instead of letting it shoot up to its old rate of 6.8%. At least for one year, according to the White House. This proposal is indeed a welcome one for students all over the country, especially… Read more »
$1 Trillion Student Debt and a Looming Loan Interest Hike
The total outstanding student debt flew past $1 trillion last year; making student debt an even bigger issue than credit card debt. And now students are looking at their interest payments double. A 2007 law lowered Stafford loan interest rates from 6.8% to 3.4% – half the original rates. The provisions of that law will… Read more »
Student Loan Deferment
If you find yourself in a situation where you have trouble repaying your student loan(s), you might qualify for a deferment, forbearance, or other form of payment relief. For instance, you may be able to get a deferment if you can prove economic hardship, are returning to school, are unemployed, or looking for a job…. Read more »
Student Loan Consolidation
If you have Stafford, PLUS, or Perkins loans, you can consolidate them together after you graduate into one single loan from a single lender, which is then used to pay off the balances on the other loans. The primary benefit of consolidation is simplified payments. Rather than five, ten, or more payments every month, you can… Read more »
Student Loan Repayment Options
When it comes time to start repaying your student loan(s), you can select a repayment plan that best suits your financial situation. Currently there are six (6) primary student loan repayment options available. With the majority of student loan programs now consolidated under the federal umbrella, changes in repayment options, eligibility for forgiveness, and other… Read more »
Income-Based Repayment (IBR)
Income-Based Repayment is a plan that can substantially lower the amount you must pay each month on your federal student loans. It does this by capping the monthly payments at 15% based on your Adjusted Gross Income (AGI) and family size.1 IBR uses a kind of sliding formula to determine how much you can afford… Read more »
Grad PLUS Loan
According to FinAid, Graduate and Professional Student PLUS (Grad PLUS) Loan operates in similar fashion to the parent PLUS Loan – as a low-cost supplement to borrow. The same terms and conditions applicable to PLUS Loans for parents also apply to PLUS Loans for graduate and professional students: a fixed interest rate of 7.9%. No… Read more »
Direct PLUS Loans for Parents
Parents of dependent students1 may apply for a unsubsidized Direct PLUS Loan to help pay their child’s education expenses as long as certain eligibility requirements are met. Here, the parents are responsible for repayment on the loan, not the student. A Parent PLUS Loan, often referred to as “financial aid for parents”, allows the parent… Read more »
Direct Stafford Loan
The Direct Stafford Loan is the biggest source of low-interest loans for college-bound students who demonstrate financial need. In fact, nearly all students are eligible to receive Stafford loans regardless of credit. These loans come in two flavors: either subsidized or unsubsidized. “Subsidized” means that the interest is paid by the government while the student… Read more »