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...
If you're currently paying off a student loan, you may get Form 1098-E in the mail from each of your lenders. Your lenders have to report how much interest you pay annually. Student loan interest can be deductible on federal tax returns, but receiving a
As part of the first coronavirus relief bill, the government stopped federal student loans from entering default and paused collection activities on those that already had.Federal student loan payments are paused— and those protections continue — until as late as summer 2023 while lawsuits work the...
Most of the benefits expired when federal student loan payments resumed in fall 2023: Borrowers who made voluntary payments on these loans could request a refund of those amounts. Guaranty agencies, which hold defaulted FFELP loans, were instructed to implement a 0% interest rate for borrowers....
Interest capitalization is when unpaid accumulated interest, also called accrued interest, is added to the principal loan balance. This increases the cost of the loan over time because interest is then calculated based on the new, higher loan balance. What Causes Student Loan Interest Capitalization...
Two big things will happen when student loans unpause. First, the interest rate on your loans will increase back to its pre-Covid level. Right now, the interest rate is set at 0%. Starting on September 1, 2023, the rate will revert to the original loan rate. ...
Last Updated:December 9, 2023 Affiliate Disclosure and Integrity Pledge Inflation has caused some major changes to the US economy. For student loan borrowers, this is a significant development. We don’t know how long inflation will be an issue or how long high interest rates will last across...
In general, you can deduct interest paid on money you borrow to invest, although there are restrictions on how much you can deduct and which investments actually qualify you for the deduction.
President Biden announced a new IDR plan on June 30, 2023, in response to the same-day Supreme Court decision that halted his previous student loan forgiveness plan. Called the Saving on a Valuable Education plan (SAVE), it offers enhanced financial benefits to student loan borrowers.1Three im...
How Student Loan Interest Is Calculated The way thatintereston student loans is calculated is slightly different from how it’s calculated on most other loans. With student loans, interest accrues daily but is not compounded (added to the balance). Instead, your monthly payment includes the inte...