A qualified student loan is a financial tool that helps students and their families cover the costs of higher education. In today’s increasingly competitive job market, a college degree is essential for many career paths. However, the rising costs of tuition, room and board, and other educatio...
What is student loan default? Student loan default occurs when a borrower fails to pay their loans according to the terms of their loan agreement. The exact timeline varies depending on whether you have federal or private student loans.
Loan discharge often occurs when the borrowerdeclares bankruptcy, dies, or becomespermanently disabled. A discharge can also happen in cases of borrower defense where an educational institution is guilty of fraud or misleading a student in a meaningful way.24 Drawbacks of Student Loan Forgiveness and...
A 2.5% fixed-rate loan is better then a 2.5% variable-rate loan. The security of knowing the interest rate will never go up is valuable. This is especially true for long-term loans. If you are going to repay your loans quickly, it might make sense to opt for the lowest possible vari...
You can’t simply stop making payments on your student loans and declare yourself in deferment. You must qualify, which involves working with yourloan servicerorlenderand filing an application. Yourloan serviceror lender will process your application, let you know if more information is needed, an...
There are times when the federal government requires your lender to grant forbearance. This is known as mandatory forbearance. You might qualify for this if you are serving in a medical or dental internship or residency program, the total you owe in student loan payments is more than 20% of...
If your grace period is coming to an end but you need more time, call your servicer or lender right away to ask about your options. You may be eligible topostponeyour student loan payments, but this will add to the overall cost of your loan. It's important that you discuss your optio...
If you refinance federal student loans, you'll lose government safety nets, like income-driven repayment, and opportunities for loan forgiveness. Refinancing private student loans doesn't have the same drawbacks. When is the best time to apply for refinancing? It can make sense to refinance as ...
STUDENT LOAN FORGIVENESS DURING CORONAVIRUS: WHAT TO KNOW Keep things positive Financial experts also recommend that ex-college students stay upbeat during an admittedly tough period. “Remember, dropping out of college and still having debt is not the end of the world,” Adefeso noted. “So many...
Deferment often lasts until the student is no longer enrolled in a program. But if the student has a Direct PLUS loan, they may qualify for an additional six months of deferment after being enrolled. Economic hardship or unemployment For individuals currently facing economic hardship or unemployment...