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Consequences of Defaulting on a Student Loan


Education budgetThe cost of education is something that many people have to get student loans to be able to afford, which can be a lot of debt. What happens when you default on a student loan though? Do you know what you can do? Many people do not understand the implications that going into default on a student loan have, and they can happen to you relatively quickly if you miss a payment on your student loan. It is something that you want to avoid.

It does not take much to go into default on a student loan, and missing payments can get you in default quickly. The federal government, lenders and other financial institutions have different means to collect student loans. This is something that can have more of a negative impact on your life then almost any other type of debt that you can accrue.

What Is Student Loan Default?

When you miss a payment, or you have been late on payments for your student loan, you are at risk of defaulting on your student loan.  When you make a student loan, you sign a document that is called a promissory note. This is the legal document that describes the terms of your loan. It will tell you the allowance that you have for making payments late, and if payments are missed. When you miss a payment, or if your breach this contract, your student loan will go into default.

Going into default on your student loan can be a big problem. It can cause you to owe debt collectors thousands of dollars on your default loan. When your loan goes into default, the financial institutions that gave you the loan and the federal government can take legal action to seek repayment of your loan. Many people do not realize these consequences until that have gone into default on a student loan.

What Happens When You Go Into Default on a Student Loan?

Going into default on a student loan has serious implications. You may find yourself ineligible for additional federal education loans. This can mean that all the hard work that you have done, could be at risk if the school does not let you complete your educational program because you are unable to secure an education loan to cover your balance. There is also the fact that this type of loan default can seriously scar your credit report for many years to come. It can also cause you to have legal troubles when the federal government and lenders take legal action against you.

The impact that defaulting on your school loan has on your credit can effect many different things. It may cause problems when you go to get utilities, need certain insurance policies, or want to rent an apartment. These are some of the problems that you may face many years after you have defaulted on your loan. It is something that will follow you for a long time.

What Can You Do To Avoid Defaulting On Financial Aid?

It is obvious that one of the best ways to avoid problems with student aid, is to not miss a payment. You should always try to make your payments on time. If you are going to be late with a payment, or you are having trouble paying it on time, you should contact the lender that gave you the loan. They can usually help you with your loan, and are willing to help you avoid defaulting on your loan. The lender wants their money, so it is of their best interest to help you avoid delinquency.

Here some additional resources from CheapScholar.org to help with your loan repayment options:

Times Up On 6 Month Grace Period For Student Loans

5 Student Loan Repayment Strategies Worth Considering

Repayment Options For Federal Loans (video)

 

About the Author:

Today’s guest article comes from Andrew Deen. He is a writer who creates informative articles in relation so the field of law. In this article, he explains the process of defaulting on a student loan and aims to encourage further study with a Champlain Masters in Law.

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4 Things to Know and Consider Before Accepting a Student Loan


Education budgetWith tuition costs rising just as quickly as the cost of living, it’s no wonder many college students turn to student loans to help them with their education expenses. But, not all student loans are the same in terms of repayment and interest. So, before you cash in that student loan check, here are just a few factors to consider.

1. There’s Free Money Available

Before you commit to student loans, interest rates, and repayment plans, you should first research what types of grants and scholarships are available. Although these forms of financial aid are a bit more difficult to attain than common student loans, they also don’t require repayment.

There are different kinds of grants available for need-based students, exceptionally talented students, specific areas of study, and industry sponsored grants for students with certain degree types. Likewise, there are state-funded scholarships available that cover tuition for students that keep a certain GPA during high school.

2. Loan Types

If student loans are the financial path you’re heading towards, then it’s important to keep in mind what types of loans are available. Generally, there are two types of student loans: federal and private.

Managed through the U.S. government, federal loans are the best option for students. They give the fairest rates and terms and are also federally regulated and backed by the government.

Independent banks manage private loans, so they aren’t subject to federal rules and regulations. What this means for the borrower is variable interest rates and non-flexible, strict repayment plans and harsh penalties. Therefore, private loans aren’t recommended unless necessary.

3. Interest Rates

Federal loans come in two different interest categories — subsidized and unsubsidized. For subsidized loans, the government pays your interest while you’re enrolled in school. With unsubsidized loans, you pay the interest throughout the length of the loan from the first day of classes to the last day of repayment.

And, with interest rates ranging anywhere from 3.8% to 6.4% for federal loans, the interest that accumulates over the life of the loan could end up being more than the loan itself. If the accumulated interest does take you by surprise when it comes time for repayment, get in touch with Fisher Investments Private Client Group for a little financial help.

4. Repayment Plans

After you have your diploma in hand and your college years are behind you, it’s time to start repaying your student loans. Luckily, federal loans offer flexible repayment plans tailored to your post-graduate income.

Most federal loans are based on a ten-year repayment plan, with the possibility of extending the repayments to thirty years. And, another benefit of federal repayment plans is the fact there are no penalties when switching your repayment options, which is not the case with private loan repayment plans.

Likewise, federal repayment plans offer income-based payments and deferments for borrowers experiencing financial hardship. Keep in mind that whether it’s a federal or private repayment plan, the interest continues to gain for the life of the loan.

So, when it comes to covering the cost of college, it’s a good idea to keep the above student loan facts in mind.

 

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Putting Social Media to Work in Finding Student Loans


Social media offers potential students a lot of information about college, career options and even, financial aid. For students looking for help paying for college, there are plenty of ways to use social media to find student loans.

social-mediaOnline Forums

Online forums can be a great way for students to talk to others about loan opportunities and financial aid options.

Wells Fargo, for example, began a forum to give students and their parents an opportunity to ask questions and gain information about student loan options.

The forum is moderated by Wells Fargo representatives but the conversation doesn’t have to revolve around Wells Fargo’s student loans. Instead, community members discuss any college-related topics, such as selecting a major or finding affordable housing.

Community members can also ask questions about financial aid and they can gain insight not only from Wells Fargo professionals, but also from other students and parents.

SoFi

SoFi, which is short for social finance, is a company that offers student loans in a non-traditional manner. Through SoFi, college alumni actually loan the money to students and use it as an investing opportunity.

Alumni donate the money to a general fund, which reduces each investor’s risk. After graduation, students begin repaying the loan in a similar fashion to traditional loans.

SoFi currently works with 78 different schools. The program reports that over $90 million has been invested with a zero default rate.

SoFi uses social media sites such as Facebook and Twitter to attract perspective investors as well as students in need of financing.

GreenNote

GreenNote is another alternative way to borrow money for education by leveraging the social media power of friends and family.

Students looking to borrow money can fill out an online profile at GreenNote. Anyone in the student’s social network is then invited to loan money to the student.

GreenNote creates a legally binding contract for the loan and handles the details. The interest rate is fixed at 6.8 percent.

One of the benefits is that there is no credit check so students with a poor credit history can obtain funding. There is also no need for a co-signer.

Personal Social Media Efforts

Some students have taken financial into their hands and have found ways to leverage social media to help pay for tuition.

For example, some students have made announcements on Twitter asking people to help pay for their education.

Others have created their own websites or used Crowdfunding sites to attract attention to their financial. Some students ask for donations while others ask for loans.

Financial Aid Institutions and Social Media Problems

Some of the major financial aid institutions have been criticized for the way they’re using social media.

Sallie Mae has been in the spotlight for deleting criticism from students on its Facebook and Twitter pages. They’ve even been accused of blocking anyone who makes negative posts on their social media sites.

A financial institution’s use of social media can certainly have a big impact on how it is viewed by the community.

While many traditional lending institutions haven’t yet embraced social media, other non-traditional sources are using social media’s power to obtain funding for students.

About The Author:

Today’s guest article comes from Amy Morin. She writes about business and psychology topics, such as how small businesses can review reputation problems.

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Tips for Avoiding Student Loan Debt in Today’s Economy


Student Loan DebtHigher education is becoming costlier these days, leading to a significant increase in the total amount of student loan debt in the U.S.

According to the Department of Education, approximately 6.8 million borrowers of federal student loans failed to make their loan payments. Many of these borrowers find themselves struggling to pay their loans because they did not take the right measures to avoid student loan debt.

Here are several things you can do make your student loan payments more manageable:

Choosing the Right Student Loan Plan

When you are getting a student loan, it is advisable that you choose a plan that requires you to pay no more than eight percent of your monthly salary after graduating. You can choose one of the four main plans available, which range from a minimum monthly payment of $50 over a period of 10 years to payments that increase incrementally over time. If you are expecting to earn a low income after you graduate, it may be safer to opt for an income-based repayment plan. Under this type of plan, you have to pay a certain percentage of your expected income every year, and the remainder of your debt will be absolved after 25 years. However, this may not be a good option for you if you have a large student loan, because the forgiven debt is taxable by the federal government.

Try Not to Postpone Payments or Make Minimum Payments

If you are eligible for deferment or forbearance, it may seem like a good idea to postpone your student loan payments. However, you may have to pay more interest if you choose to stop making payments temporarily. Also, you should try to pay more than the minimum amount required every month. Making minimum payments means that you have to take a longer time to pay off your loan. The longer the repayment period, the higher the overall amount you have to pay.

Apply for a Scholarship or Grant

The best way to avoid student loan debt is to borrow as little as possible. You can reduce the amount of student loan you need to borrow by getting a scholarship or grant. The federal government, companies and non-profit organizations offer scholarships to students who excel in academics, sports and leadership, as well as students who are pursuing a particular major and minority students. Grants are available for students who are financially needy.

Get a Job and Live Frugally

If you are able to find a part-time job while you are studying, you may not need a large student loan to complete your education. This can reduce your financial burdens significantly after you graduate. Another way to stay on top of your student loan is to cut down on your living costs while you are in school. Understanding your student loan options and taking the right measures to manage your loan can make a big difference in your ability to avoid student loan debt.

About The Author:

Today’s guest article comes from John McMalcolm. He is a freelance writer who writes on a wide range of subjects, from debt management to small business management 101.

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Top 5 Differences – Federal and Private Student Loans


Today’s guest article is provided by Craig Anderson

It is the time of the year when students begin making student loans decisions. In many ways the decision is a simple one if the school offers a Federal Direct Stafford Loan, Graduate Direct PLUS Loan or Parent Direct PLUS Loan. But Private Student Loans are an additional option for students to consider. But what is a Private Student Loan and how does it differ from the Federal Direct Loans which have been the topic of so much media discussion in past months? Simply put, Private Education Loans are loans to the student which are directly from banks rather than the Department of Education.

Stressed Over MoneyBefore taking a look at the top 5 differences between Federal Direct and Private Student Loans it is helpful to first look at the similarities:

1)      All federal loans and nearly all private loans are certified by the school’s financial aid office. They will determine how much a student can borrow, typically cost of education less other aid.

2)      Most loan programs allow the student to defer payment of principal and interest while in school. The interest will still accrue (except on Subsidized Stafford Loans) and borrowing costs can be reduced significantly if the student makes some sort of in-school payment.

3)      They have to be paid back.

Top 5 Differences between Federal and Private Student Loans

1)  Interest Rates

Federal Loans

As of this writing, Direct Stafford Student Loans have a 6.8% rate. For a Subsidized loan the federal government will not charge you interest while the student is in school. This is a significant benefit for students. The Unsubsidized loan will accrue interest while the student is in school but payments can be deferred until after graduation. Another option is the Graduate or Parent PLUS loan. This rate is currently set at 7.9%. Interest accrues on these loans while the student is in school but payment can be deferred until after graduation.

Private Loans

Private loans are typically based on PRIME or LIBOR plus a percentage over that. The rate is based on the credit of the student and/or the cosigner. Depending on credit, students may qualify for a rate lower than federal loans offer. It could also be much higher. The rate is disclosed after the borrower completes the application and is approved.

Private Loans offer two different rate structures. The first is a variable rate. Variable rates can offer lower initial rates but can rise over time. As interest rates rise, so will the overall cost of the loan. Another alternative is a Fixed Rate private loan. The rate may not be as low as a variable rate loan, but it will never change.

2)  Fees

Federal Loans

In addition to the interest rate that will be charged on the loan, students will pay an origination fee. These are assessed upfront and taken out of loan proceeds. On a Federal Direct Stafford Loan the fee is 1.051%. On a Graduate or Parent PLUS loan the fee is 4.204%. On a typical Stafford Loan of $8230 the fee is around $86. The average PLUS loan of $12,186 will have an origination fee of $512.

Private Loans

The majority of private student loans do not charge origination fees; they have been eliminated along with back end repayment fees. The student will get exactly the amount borrowed from the lender.

3)  Cosigners

Federal Loans

The Federal Direct Stafford and PLUS Loans do not require a cosigner. In essence the federal government is the lender and cosigner. The only exception is if the PLUS loan applicant does not pass the credit criteria. In that case they will need an “Endorser” who effectively acts as a cosigner on the loan. They are agreeing to pay the loan if the borrower does not.

Private Loans

By law, private loan lenders cannot require the applicant to have a cosigner, but most students will want to have one. The typical undergraduate does not have a significant credit history so it is hard for lenders to determine the risk of making the loan. If the student is approved for the loan they will likely be charged the highest rate. Adding a qualified cosigner to the loan with good credit can lower interest rates, sometimes significantly. Many private loan lenders offer rates competitive with the federal loan programs, but only when a good cosigner is on the loan. It is important to recognize though the cosigner is now part of the loan transaction. They are agreeing to make the payments on the loan if the student borrower does not. Many cosigning parents don’t realize this and are surprised when they get that first call from the lender asking for payment.

4)  Repayment Options

Federal Loans

One benefit of the federal loan programs is the wide variety of repayment options they offer. Depending on what the student borrows, the payments can be large, especially right out of college. As a result, Congress has created a variety of repayment options that allow students to better manage their payments and align them with their income. This can be done by extending the repayment period of the loan or allowing the borrower to make payments as a percentage of their income instead of the standard principal and interest payment. While all these plans result in lower monthly payments, they can also result in the borrower paying significantly more than they would if they paid it off on the original terms. While these programs are helpful, borrowers should try to get back to making payments on the original terms as soon as possible. The Department of Education has considerable information on repayment plans including eligibility requirements and calculators.

Private Loans

Private Education Loans typically offer less repayment flexibility than federal loans. While most lenders offer students the option to defer payments until after graduation, they offer less flexibility once repayment begins. Regulatory requirements prohibit lenders from changing loan terms and conditions while the student is in repayment.  Lenders can offer temporary relief from loan payments in 2 month increments. But the lender can only offer this for a total of 12 months over the life of the loan and only if the student’s difficulty is temporary.

5)  Loan Discharge and Forgiveness

Federal Loans

In some cases federal loans can be forgiven or discharged. Under the Income Based Repayment (IBR) and Pay As You Earn (PAYE) programs borrowers’ loans can be forgiven after a number of years of payments. There are also additional options for students in Public Service positions as defined by the Department of Education. Loans may also be forgiven or discharged in the case of permanent and total disability, closure of the school the student is attending and some other circumstances.

Private Loans

Private loans vary on the circumstances under which a loan can be forgiven. Most forgive the loan in the case of the death of the borrower and some in the case of disability. Before accepting a private education loan it is a question borrowers should ask.

Conclusion

The real question then is when should a student borrow a private loan instead of a federal loan? That comes down to what the student (and their parent) wants to do. Federal loans offer many benefits, but with a good cosigner a student may be able to get a better priced loan. In some cases, parents don’t want an education loan in their name, but they are willing to cosign for a private loan.  Or, a student may need to borrow a private student loan because their federal loans are not covering the cost of their education. It is an important decision and one which every student should take some time to consider. Students may be told to borrow federal loans first as they are “always better.” It is not always the case; it depends on each individual student’s circumstances. Students and families considering private loans should take the time to do their research.

About the Author:

Today’s guest article comes from Craig P Anderson, who has been working in the Higher Education Finance Industry for over 20 years. He is a Student Loan Expert and has worked for a variety of student loan providers including Chase and Sallie Mae. He also worked in the Financial Aid Offices of the University of Florida and St. Petersburg College and has served on several industry boards. You can read more from him at CommonSenseStudentLoans.com or follow him on Twitter @CraigPAnderson .

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Creative Ways to Reduce Student Loan Debt


Student Loan DebtThe most difficult part of going to college is figuring out how to pay for it. Tuition, fees, textbooks, supplies, and other college-related expenses add up quickly. Students often rack up tens of thousands of dollars of debt in order to get their degree. The good news is that there are ways to reduce the amount of student loans money you have to borrow and/or get financial assistance paying it back after you graduate.

Grant-For-Service Programs

In areas where there is a high demand for workers in certain areas, the federal government, state governments or even a private institution may give grants to go to college and/or loan forgiveness in exchange for working in a particular area for a predetermined amount of time. For example, aspiring teachers may be able to receive the Federal TEACH Grant in exchange for agreeing to work a certain number of years in a high-need, typically inner city, school.

There are similar programs for doctors, lawyers, veterinarians and other professions as well. Another example, the National Health Services Corps, will repay student loans for doctors who work in low-income clinics for at least two-years. The only downside of these types of programs is that if the student fails to complete his or her service obligation after graduation, the grant becomes a student loan that has to be repaid with interest. If you accept a grant-for-service, then make sure that you intend to fulfill your obligation.

Debt Consolidation

Keeping your finances in good shape while you are in college can be difficult. Many students don’t have enough income to keep up with their expenses, so they use credit cards in addition to their student loan money which only makes their debt even worse, and makes it that much harder for them to pay back their lenders. Compounding student loan debt and consumer debt is a recipe for a financial meltdown.

Speaking with a representative from a websites like creditkarma.com or debtconsolidation.com can be a great way for students to find ways to keep debts under control and possibly reduce their monthly payments. If you can reduce your personal debt and manage your bills, you may be able to reduce the amount of student loan money you have to borrow. Debt counselors also often avoid provide personal financial education as well, which will help you manage your money better in all aspects of your life.

The Military

Four years in the military could qualify for you for a G.I. Bill, which will cover most or all of your college expenses. There are two main types of G.I. Bills, the Montgomery G. I. Bill and the Post-911 G. I. Bill. The Montgomery G.I. Bill pays up to $1,473 per month to full-time students to cover both school and living expenses. The Post-911 G. I. pays tuition and fees directly to the school, but also includes a housing allowance and money for bills.

Another thing that many people don’t know is that you can still receive help with your college expenses even if you don’t join the military until after you graduate. Military service may help you qualify for deferments of your payments or even debt forgiveness. While it isn’t always the best option for everyone, serving a stint in the military can also be a great way to learn some valuable job skills and pay your way through college.

Scholarships

Don’t assume that scholarships only go to students with financial troubles, athletes, minorities or students with really good grades. There is a plethora of scholarships out there for all types of people pursuing a wide variety of educational goals. Many scholarships go unclaimed simply because people don’t put enough effort into researching their possibilities, or they don’t want to go through, admittedly, sometimes lengthy application process. Not applying for scholarships is like throwing money out the window.

Visit CheapScholar’s list of scholarship databases and do some research. Even relatively small scholarships of $500 or $1000 here and there can help reduce the amount of money that you have to borrow for school. Why would you want to turn down free money? Spend some time exploring your options, which means you will have to fill out several applications and write more than a few essays, but you can also get a good deal of money for all your trouble. It may seem tedious at times, but it will pay off in a major way.

Employer Reimbursement and/or Work Study

Most college students work their way through school with some employer, so why not choose one who will reimburse you for your college expenses? Many large corporations like McDonald’s and Wal-Mart offer full or partial tuition reimbursement to eligible employees. Some people may not consider these to be attractive jobs, but if it helps reduce the amount of student loans you have to take out, then it will be well worth it.

Another thing that many students fail to realize is that colleges and universities often give free or deeply discounted tuition to their own employees. If possible, try to get a job on campus. It doesn’t matter if you’re working as a janitor, answering phones, or making copies, the important part is to get a job where you go to school so that you can take advantage of the employee tuition policy. It’s also a good idea to see if the school has a work-study program that will allow you to work on campus as another way to offset your college expenses.

It is true, that initially, filling out the FAFSA and accepting all the loan money you can get seems like the easiest way to pay for college. However, keep in mind that it is a debt trap. Even if you file bankruptcy, you still have to pay back your student loans. Borrow only as much money as you absolutely need to pay for school and explore all your other available options before you start piling up student loans. Every bit of funding you can find while you’re in school will reduce the number of years you have to spend paying back loans.

About the Author:

Today’s guest article comes from Tony Standin. He is a personal finance specialist who enjoys helping students find ways to get through school with minimal debt so that they can start their working lives with a clean financial slate.

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Education Debt – Keep an Eye on Student Loan Laws


lawschoolThere are quite a number of people who wish to obtain a college education, but their limited resources may easily hinder their ability to do so if not for the accessibility of student loans. Subsidized student loans have over time been availed by the government, but a number of non-government institutions have also provided the unsubsidized options. Some of the existing laws have however, been reviewed to make way for new ones, which will enable for the loans to be serviced and dispatched in a more effective manner. In essence, the new law will make it possible for students to go through their education using government rewarded loans, and then later repay them under better terms.

Laws Impacting Borrowers

1. The current law stipulates that people who take federal student loans and responsibly handle the repayments will have the balance forgiven after 25 years, but when the new law takes effect, students who get enrolled in or after 2014 will have their balances done away with in 20 years. In addition, those who will be successfully recruited in the public service sector will be forgiven after a period of 10 years, to ease their burden seeing as the workers in this sector receive significantly lower pay.

2. Students will also have the freedom to make payments that amount to only ten percent of their earnings. Individuals who will settle for this repayment option will put not more than 10% of their wages into settlement of the obtained loans –the current rates stand at 15% and the decrease is therefore pretty significant. Over a million persons will be eligible for this repayment plan.

3. If you intend to take out the student loans as a first-timer you should also be ready to deal with the limits that will be in place with regard to the amount you will be allowed to borrow. In the event that the loan will not be able to take you through to graduation, as a student, you will have to look for scholarships, unsubsidized loans or seek employment. This is a regulation designed to make more students graduate within a specific time.

Are the Student Loan Laws Beneficial?

The student loan policies will take effect in July, which means that anyone who obtains the loan before then will not be affected. The loans will also be provided based on the annual earnings of students’ families. The law that will go into operation will be aimed at decreasing the number of students eligible for such type of financial aid.

The limits on the loan borrowing will be put in place to help manage the debt amassed by college students in the course of their training. As a result, they will deal with lower payments once they start out on the loan settlement and this will significantly help ease the load.

Access to the subsidized loans will be restricted, but students will still be able to get hold of the unsubsidized loans regardless of their socioeconomic status. The policies will be of considerable benefit especially to the families with low income, since more of the students from such families will get to access the assistance they require.

As much as a college education is important, it cannot be meaningful if it plunges the borrower into financial ruin. This is something the government has taken note of and consequently worked to develop new law to make possible for the borrowers to handle the accumulated debts better. Considering the high cost incurred in catering for college education, getting financial aid is certainly a commendable cause, but it is important to be accountable in order to make the most of those resources.

About the Author:

Today’s guest article comes from Andrew Deen. He is a writer who creates informative articles relating to law. In this article he offers student loan advice and aims to encourage further study with a education law degree programs .

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3 Little Known Facts About Student Loans


student-loans-building-blocksYou can never know too much when it comes to financing your education. Here are some facts that may help you pay down your loans more quickly and make the most of your investment.

1.      Size doesn’t (necessarily) matter when it comes to paying off student debt.

No one wants to be burdened with huge amounts of educational debt. But when it comes to paying it off, the size of the debt may matter less than where you attend school, your degree choice, and where you decide to live after graduation.

In a recent report by the Federal Reserve Bank of New York, states with some of the highest average student debt burdens per person tend to have some of the lowest student loan delinquency rates. States where residents carry the lowest levels of student debt, on the other hand, have some of the highest delinquency rates.

The takeaway: Even a high level of student debt can be more easily tackled by a well-prepared graduate who settles in an area where opportunities abound. Graduates with much lower amounts of student debt may struggle with repayment if they choose a low-demand degree, move to an area with a high employment rate, or leave school before graduating.[1]

2.      Participating in an income-based repayment (IBR) program now can result in tax pain later.

Designed to help debt-burdened grads build a little more flexibility into their monthly budgets, IBRs allow you to adjust your federal student loan payments to take up no more than 15 % of your current monthly income. The payment timeline is extended to 25 years, and interest continues to accrue during that period. At the end of that time, Uncle Sam forgives the remainder of the debt.

Here’s the catch: The forgiven portion of the debt will be taxed as a gift, and those taxes must immediately be paid in full. The tax bill could be substantial. For example, on a forgiven balance of $41,000, taxes could be $10,000 or more depending on your tax bracket. Before enrolling in an IBR, be sure you fully understand the repayment terms and the tax bill that could be waiting for you down the road. [2]

3.      Repaying student loans by direct deposit can save you big bucks.

The Department of Education and most other educational lenders offer some type of discount – usually about 0.25 % – on interest for borrowers who sign up for direct deposit payments. Over the life of your loan, that can add up to significant savings. While you’re checking on the availability of direct deposit, it’s a great idea to ask the lender if they offer any other interest rate breaks that could help you pay your way out of debt faster. It never hurts to ask! [3]

References

[1] Weismann, Jordan. “These Maps About Student Loans Explode One of the Biggest Myths About Student Loans.” The Atlantic. Web. 15 May 2013. http://www.theatlantic.com/business/archive/2013/05/these-2-maps-about-student-loans-explode-one-of-the-biggest-myths-about-student-loans/275868/

[2] Lieber, Ron. For Student Borrowers, Relief Now May Mean a Big Tax Bill Later.” The New York Times. Web. 14 Dec. 2012. http://www.nytimes.com/2012/12/15/your-money/for-student-borrowers-a-tax-time-bomb.html?pagewanted=all

[3] Feldman, Benjamin. “4 Ways to Pay Off Your Student Loans Faster.” Yahoo! Finance. Web. 13 Feb. 2013. http://finance.yahoo.com/news/4-ways-pay-off-student-110002948.html

About the Author:

Today’s guest article comes from Donna Parshall. She writes articles about frugal living and personal finance for Allied Cash Advance. Allied Cash Advance is a responsible payday loans and cash advance lender.

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