Tag Archives: debt

America Saves Week: Pay Off High Interest Debt

3 Mar

In 2012, 71 percent of students who graduated 4-year colleges took out student loans. Debt isn’t fun, but education is one of the better reasons to take on debt. While you may not enjoy paying back student loans there are some steps you can take to save yourself some money and make your payments hurt a little bit less.

ASW high interest debt TXT.jpg

  1. Prioritize high-interest debt: While Federal Direct student loans are capped at 6.8%, private loans are not. Even worse interest rates? Credit cards. If you have credit card debt, prioritize paying it off before your student loans. 6.8% interest is no fun, but credit card interest rates 20% and higher can be crippling.
  2. Income based repayment: If you qualify for an income-based repayment (IBR) plan, do yourself a favor and apply for one. Generally if your debt is higher than your income you will probably qualify. Even if you are able to make your payments without much issue, an IBR can still save you money. How you may ask? If you keep paying the same amount you did before, you can target your payments toward either your highest interest or smallest loans depending on which repayment style fits you. Not to mention, if you are one of the approximately 50% of people who work in public service, you can qualify for loan forgiveness after 10 years.

Pick your payoff: There are two main methods for paying off debt when you have multiple balances to pay. The snowball and the avalanche method.

The snowball method entails taking the extra money you have and paying off your smallest debts first while paying the minimum on the rest. Then once that is taken care of, you roll that payment into the next smallest and knock off your obligations one-by-one. This is best for those who like the reward of seeing their different loans disappear the quickest and can help you stay on track easier.

The avalanche method is similar to the snowball where you make minimum payments on all loans but one. The difference is that you target the highest interest rates first. While you may not experience the visual rewards of seeing the small debts disappear quicker, you will save the most amount of money in the long run this way.

One way to not repay is by spreading out the extra you pay to all debts and pay a little bit additional on everything each month. This provides neither of the advantages that the avalanche and snowball method have while still costing you the same amount. You get less savings than the avalanche, and less of the reward that the snowball offers.

4 Financial Goals You Can Actually Achieve in 2017

21 Dec

Did you know that January 17th is known as “Ditch New Year’s Resolutions Day?” Most people start the new year with big, lofty goals and they quickly come to realize they bit off more than they can chew. According to the University of Scranton, around 40% of Americans usually make new year’s resolutions. Of that 40%, only 8% say they actually meet their goals.

The key to having successful resolutions is to make sure they are simple and achievable. Rather than setting a goal, such as “lose 10 pounds”, try to set a smaller resolution that you can control like, “go to the gym at least 3 days a week”.
Financial New Years Goals.jpg
In 2016, over 30% of Americans had a resolution to save more and spend less. In order to move closer to that goal, it’s important to set simple, achievable resolutions that will improve your finances. If you’re unsure where to start, try making any of these attainable goals your resolutions for 2017.

Saving Your Coffee Money
Coffee is a morning staple for so many people. However, those daily visits to your favorite shop can add up quickly. An average transaction at Starbucks this past year was nearly $9, that adds up to a whopping $2,340 a year! In 2017, set a goal to make your coffee at home. A new automatic coffee maker can be a great investment to ensure you get your coffee without having to spend the extra time and money every morning.

Cut One Service You Don’t Use
That $20 charge for a music-streaming service may not seem that expensive, but if you’re not using it, then you’re just wasting money you could actually be saving. Try laying out all of the expenses you have for services like these, in order of most used to least. For next year, cancel the service you least used this past year. Even if it’s only $20, it can lead up to $240 per year in savings! With technology improving more and more for streaming TV shows and movies, it may be time to finally cancel that cable subscription.

Understand Your Debt
Nearly every American will deal with debt at some point in their lives. From student loan debt to mortgages, it’s important to understand not only how much debt you have, but where it is and how it’s affecting your life. With the rising student loan debt each year, it’s important for graduates to understand each loan and how much their payments will be. To get ready for 2017, make a spreadsheet with all of the loan payments you have (education, car, home, etc.) and how much you can contribute each month to pay them off as quickly as possible. The sooner you pay them off, the more money you will save over the life of the loan. Also, the faster those loans are paid off, the quicker you can spend that money on something like retirement or that vacation you’ve always wanted. There are now even more services for graduates that allow to you refinance your loans, for a lower rate and even the ability to adjust or skip your monthly payment.

Brown Bag It
Grabbing that delicious salad from your favorite cafe may seem like a great idea in the moment, but doing that throughout the week can lead to a big chunk taken out of your bank account. The average lunch in the United States is around $10, so if you eat out every day of the week, excluding weekends, you will be spending around $2,600 a year just on lunch. For 2017, start bringing your lunch to work or school, rather than eating out, and watch just how much you save. Also, by making your lunch at home, you have the ability to control the portions and health benefits of your food.

Ultimately, whatever goals you hope to meet in 2017, just be sure that you make simple resolutions that you can actually achieve. Just like the fable The Tortoise and the Hare says, “slow and steady wins the race!”

Video

What Are The Factors That Affect My Credit Score? By Credit Card Insider

11 Oct

Looking for more information? Check out Credit Card Insider’s website and YouTube channel!

Your Federal Loan Repayment

23 Sep

Honest businessman

Alanna Ritchie is a content writer for Debt.org, where she writes about personal finance and little smart ways to spend (and save) money. Alanna has an English degree from Rollins College. Join our Debt.org Google+ Community

repay-banner

As you fill out your intent to graduate forms and begin looking into the post-college future, your stomach might start to turn. You might start to panic and it may become difficult to breathe as you start imagining your monthly student loan payments. Stop, take a step back, BREATH, and let’s think about the situation.

But guess what? There’s good news!

Not only do you have a six month grace period after you leave school or drop below half-time attendance for your federal student loans, you also have numerous options for repayment plans. A grace period is a period of time after borrowers graduate, leave school, or drop below half-time enrollment where they are not required to make payments on certain federal student loans. Some federal student loans will accrue interest during the grace period, and if the interest is unpaid, it will be added to the principal balance of the loan when the repayment period begins. Repayment plans are designed to accommodate the needs of graduates entering the job market and receiving introductory salaries, while carrying the responsibility of handling additional bills, like rent, insurance, gas and groceries.

You do have options. If the standard ten-year plan with fixed payments is too much for you to handle, contact your lender to negotiate payments that match your budget. Not sure who your lender is? You can view all your federal loans and their lenders online from the National Student Loan Database.

Which Plan Meets Your Needs?

Cartoon Family Portrait

Federal student loans come with a variety of repayments plans that are offering based on requirements such as income, family size, or loan type. Examples of federal loans include Direct Loans or Federal Family Education Loans, which could be Subsidized Stafford loans, Unsubsidized Stafford loans, or PLUS loans. There are three main categories of repayment plans for you to consider.

First, the Graduated Repayment plan will allow you to begin making lower payments. Although, like the Standard plan, this plan must be completed in ten years, the lower payments gives you time to increase your salary. Every two years, your monthly payments will increase.

Second, if the Graduated plan is still more than you can afford, the Extended Plan allows you to take up to 25 years to repay loans. There is more flexibility with this option, as you can choose between a fixed or graduated payment.

Finally, there are four different repayment plans that consider your income as a factor. Some of these plans also consider factors like family size, spouse’s income, and total amount of loans. Although these have similar-sounding names, each has specific requirements and formulas which influence the monthly amount you will owe.

Four plans with income factors:

Federal Loan Consolidation

While you are researching different payment cycles and methods, you may consider a Federal Loan Consolidation. A Federal Loan Consolidation allows you to merge all your Federal Student Loans into one loan. This can include your Subsidized Stafford Loan, Unsubsidized Stafford Loan, and Perkins loans. Once all your Federal Student Loans are merged into one loan, you will only have one monthly payment and one interest rate attributed to the loans. However, note that this will likely not reduce your overall interest rate since it is weighted by loan. As you can see, a Federal Consolidated Loan may allow for an easier way to manage monthly repayment.

How Can You Prepare Now?

cartoon roadmapGet in the habit of putting a portion of your paycheck in savings now, before you start paying back your loans. This will force you to make a budget and spend less every month, so when the time for repayment comes, it will be easier to part with this percentage of your paycheck.

The money you save up during your grace period can also be used as an emergency fund of accessible cash for unexpected situations. This cushion can enable you to afford your loan payments even when you have unexpected expenses such as a flat tire, broken arm or speeding ticket. Preparing yourself for the future can protect your loan debt from growing any larger.

Make sure your loan servicer has updated information, including your phone number and email. Your servicer will need this information in order to communicate any new information on your loans, including when your next bill is due.

Choosing a plan and taking a proactive approach with your finances can help you smoothly adjust into your repayment period.

10 Steps to Financial Success

9 Aug

  1. Assess your station in life

    Taking an honest look at your wants and needs can help you prioritize what is most important to you right now. Do you feel good about your current station in life? Are you headed in the right direction?

  2. Plan for life changes

    Almost without exception, your needs are going to be different in five years than they are now. Whether you will be graduating, getting married, having children, or switching careers, there will be changes to account for. The best thing you can do is to be prepared for them.

  3. Invest in yourself10 financial tips portrait.jpg

    The one person you have to live with your entire life is you. Taking care of yourself mentally, financially, and physically on a consistent basis will reap lifelong benefits. In addition, challenge yourself to improve and try new things because a good investment should focus on growth, not staying the same.

  4. Write down your goals

    Having goals gives you something to work toward. Writing these goals down makes your plans concrete and more likely to materialize.

  5. Keep adequate records

    In addition to keeping track of tax and other documents for an appropriate length of time, you also want to keep records of your spending habits. You might feel like you’re spending too much on something, like eating out, but being able to track your spending will help you find out for sure.

  6. Pay yourself first

    Saving money can be simple or nearly impossible. If you take money from your paycheck and immediately deposit it into a savings account, it’s easy (completely effortless if via direct deposit). If you try to scrape together what’s left at the end of a pay period and deposit it to savings, or keep it sitting in your checking account, it’s almost impossible. Be sure your bills are paid, but consider setting aside a certain amount for savings each pay period.

  7. Cut expenses

    Even the most frugal among us have places where we can afford to cut costs in some capacity. For the average person, things like reducing bills, food costs, or under-used entertainment and gym memberships can make a significant financial impact in the short term.

  8. Spend much less than you earn

    Spending just a little less than you earn is a good way to perpetually live paycheck to paycheck. However, if you can reshape your

  9. Pay down your debt

    Debt can be an enormous stressor and it doesn’t get better by itself. Every dollar that you can pay back ahead of time is a dollar that doesn’t collect interest. This can save you a lot of money in the long run.

  10. Create a budget and stick to it

    After you’ve gone through the first nine steps, this one is easy. Once you have an honest assessment of where you are and where you’re hoping to go, you can begin creating your budget. Design your budget so that you can pay for your needs, as well as the wants you have prioritized. The key is following through on your budget! Remember that the budget is simply a spending plan of where you want your funds to go. If you fail to follow through, you will hurt yourself, both now and in the future.

FAFSA: Who, What, When, How & Why?

26 Jan

fafsa
Getting you through FAFSA, one question at a time.FAFSAQs

 

  • Who

    • Who Should File a FAFSA?
      If you are interested in getting any Federal Financial Aid, including federal direct loans, you need to file the FAFSA at www.fafsa.gov/  to become eligible. Federal loans are almost always preferable to private loans.  In addition, many colleges’ need-based scholarships rely on FAFSA information to verify that you are eligible. In short, everyone should file the FAFSA – even if you don’t think you’ll qualify for any federal aid

     

    • Whose Information is Needed to File a FAFSA?
      This answer depends on if you are a dependent student or not. Unsure if you’re Dependent or Independent? Check here.(Note: this is not the same as being independent for tax filing)Dependent students: You need tax information for both you AND your parents. If your parents are divorced, you need the information on whoever you receive the most support (51%) from.

      Independent students: You only need your own information unless you are married. If so, you will need your spouse’s information as well.

  • What

     

     

    • What If Things Change After I File The FAFSA?
      If your family situation has a significant change after you’ve filed your FAFSA, and any time while you’re in school, stop by your Financial Aid office to see if you qualify for a “special circumstance”.  These could include job loss, divorce, death of a parent, child birth or other unexpected situations that impact your financial status.

     

    • What Types of Federal Financial Aid are there?
      There are three main types of financial aid:
      1. Grants — Federal Pell Grants do not have to be repaid and are sometimes referred to as “gift aid”.  Grants are similar to scholarships, except that they are often for those who demonstrate financial need, where scholarships can be either merit-based or need-based.2. Student Loans — This is the type you hear about most often.  Filling out the FAFSA is required to be eligible for Federal Direct loans.  Federal loans are almost always preferable to private loans from lending institutions, because they have fixed interest rates and flexible repayment options.3. Federal Work Study (FWS) — Work study may provide you with more opportunities to find on-campus jobs. Rather than being given the funds in the beginning of the semester like loans and grants, FWS earnings are distributed to you as part of your paycheck.
  • Where

     

    • Where Do I Get the School Code and FSA ID?
      You’ll need the school code for whatever schools you are interested in applying to. They are available here. Your FSA ID is used to login and electronically sign your FAFSA.  Set it up at here.

     

    • Where Do I Get Help?
      College Goal Sunday will be held on Sunday, February 21st at 2:00 p.m. in Indiana and it provides FREE FAFSA filing assistance. It is at Ivy Tech in West Lafayette, but to find a location near you in one of the participating 42 states, go to www.CollegeGoalSundayUsa.org.  You can always call the Financial Aid office of your prospective school to ask questions as well.
  • When

    • When Can I start the FAFSA?
      You can begin the FAFSA any time after January 1st of the year you plan to attend college.  The FAFSA uses the student/parent tax information from the previous year. You can estimate the required information to beat a college priority filing date, but the info must be corrected after the taxes are complete!

     

    • When is the FAFSA Due?
      If you are a Purdue student, the FAFSA priority filing date is March 1st, so be sure to have it done by then! Other colleges (and states) have their own priority dates. Check for deadlines here.
  • How

    • How Do I Get my Financial Aid?
      Your financial aid is sent directly to your school and they will apply it directly toward your billing and send any excess aid to you to be used for books and other education related expenses. The exception is Work Study which needs to be earned by working, and is paid via a paycheck.

     

    • How Much is the Maximum That Can be Borrowed?
      Most students don’t know this, but there is a maximum amount of Federal Loans you can take out each year. There is also a maximum amount you can take throughout your college career! If you take the maximum amount for four years, there won’t be as much left for a fifth year if needed. Plan ahead!

      Remember: Everything you borrow you will have to pay back with interest for the next 10 (or more) years. For every $5,000 you borrow at 6% interest, you pay back $6,661.23 over 10 years ($55.51/ month)

    • FAFSA-brw-chart

      Chart courtesy of Penn State University

      
      
  • Why

    • Why Should I Do a FAFSA?
      Other than qualifying for grants and Federal Loans? Many state grants and institutional scholarships require FAFSA information submitted. Even if you aren’t sure, it is always worth submitting!

Let’s Talk Credit Scores

22 Apr

*This blog ran earlier this year, but we decided to post it again for Money Smart Week*

Raysha Duncan, Financial Aid Administrator & Purdue Alumna
www.purdue.edu/mymoney

Here at MyMoney our goal is financial literacy. We want to teach students and our readers how to be smarter with their money and that makes the topic of credit kind of taboo. You see, credit talks about your relationship with debt: how much of it you have currently, how much you’ve paid off, how good you are at paying back your debt, what kinds of debt you have. We don’t want you to be in debt, but we do want you to be informed. And, since the average college student graduates with at least $20k in student loan debt, you should know how that affects you.

Girl in airport; text overlay: Let's Talk Credit Scores

Here’s the basic breakdown of what makes up a credit score, via wikiHow:

Payment history — 35%. How often do you pay your bills on time? Late payments hurt your score.

Debt usage — 30%. How much debt do you have in relation to your overall limit? Low debt and high limits is what you’re after.

Credit age — 15%. How long have you been establishing your credit? The longer the better.

Account mix — 10%. How many accounts or lines of credit do you have open? The more the better.

Inquiries — 10%. How often do you apply for new credit? Too many inquiries can hurt your score.

These are all taken into consideration and then get applied to a scale, typically between 300 and 850. You want to aim to have at least a good credit score, usually between 700 and 749. Go here for a breakdown of what the different levels of credit scores mean.

Your credit score is important for your future financial and personal prospects. Say one day you want to buy a house; the easiest way to buy a home is to take out a mortgage, and while paying the balance in cash sounds nice, it’s just not feasible for most people. And to get a good rate on that mortgage, you need a good credit score. This is probably all you’ve ever heard on the subject, with the exact same example (because it’s a good example). Now, how do you make sure you have a good credit score? Or better yet, how do you keep from having a bad credit score?

#1 Pay your bills on time

Every single one of them. Every time they are due. While you’re in college you can practice with your cell phone,  utilities, and rent. Then, consider a credit card that you use for only very specific things (gas, perhaps) and pay that off on time, every time the payment is due. Once you’ve graduated, make sure you don’t default on your student loans (i.e. make your payments on time, every time).

#2 Budget your money

But…what does that have to do with credit? Everything. If you’re not budgeting your debts (e.g. car payment, rent, utilities, student loan payment), then you’ll fall behind on your payments and your credit will start creeping downhill. Remember that credit card I mentioned in #1? Don’t use it for unbudgeted expenses (with the exception of it being a serious crisis like emergency roadside assistance that’s not covered by your car insurance, not when you desperately need a latte). Only spend what you have available to spend and can pay off at the end of the month.

#3 Minimize your debt

Take out the minimum amount of student loans you need. Don’t use a credit card on things you don’t need. Save up for a big down payment on your next car purchase so your payments are lower and you’re able to make them on time. Keep it small so that it’s manageable and you can still pay your bills on time. Don’t take on excess debt. You’re in college, live like a college student now so you can live the way you want once you are debuted to the world.

#4 Keep an eye on your credit score

You can check out your credit score for free once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion). You can check it every three months by using each one once a year or you can check them all at once and compare (they may be slightly different). Watching your credit score will let you in on any changes that happen. Your credit score may go down some if you missed a credit card payment, majorly if you have unpaid medical bills, or drastically if your identity is stolen. On the plus side, if you’re managing your credit wisely you may see it gradually increase over time. And then you can credit yourself with the independence and security it brings!

College Seniors Week 2: Paying Your Student Loans

16 Apr

Raysha Duncan, Financial Aid Administrator & Purdue Alumna
www.purdue.edu/mymoney

man jumping off dock; Text overlay: Paying Your Student Loans

Yikes! This is a scary topic, especially with student loan debt being broadcasted all over the news. Student loan payments can seem overwhelming, especially if you’re still on the JOB HUNT.  I’ve gone ahead and summarized some important information to know about your loans as well as some really helpful links to help you through the repayment process.

Grace Periods

If you have Stafford Loans and have stayed enrolled at least half-time (6 credit hours for undergrads and 4 credit hours for grads) for your entire college career, you will have your full grace period of six months before you are expected to start paying on those loans. If you have a Subsidized Stafford Loan, depending on when you took out your loans, they may start to accrue interest during this grace period. Unsubsidized Stafford Loans have accrued the entire time you’ve had them and will continue to during your grace period and beyond until they are paid off.

Grace periods for Perkins Loans are nine months, as long as you have remained continuously enrolled at half-time status during your entire college career.

Grace periods for private loans vary per lender, so you will want to check with your loan servicer to determine when you are expected to start making payments on them.

 Interest Rates

Stafford Loan interest rates have been changing a lot recently; they’ve gone down this past year (2013-2014) thanks to Obama signing the Bipartisan Student Loan Certainty Act of 2013. But, this also means you could have multiple Stafford Loans with different interest rates. You can log into your student loan account at the National Student Loan Database to check on your loans, their interest rates, and to see your loan servicer.
Perkins Loans have a 5% set interest rate.

Private Loans have variable or set interest rates, depending on your lender. You’ll want to check with the lender to see what your interest rate is currently and if it’s subject to change.

Repayment 

The biggest thing you need to know about your loans at this point? You need to repay them. I’d suggest starting at here. This website has a lot of helpful information:

Repayment Options: the different types, and what applies to you

Loan Consolidation: how to do it, can you do it

Making Payments: where to go, who you pay

Deferment & Forbearance: are you eligible, what to do

 

There’s a lot of information floating around about student loans these days, so set aside some time and actually do some research in figuring out what the best repayment options are for you. You have to pay them back, and you may be paying on them for the next few years, so you may as well know what’s expected of you.

Let’s Talk Credit Scores

12 Jan

Raysha Duncan, Purdue Financial Aid Administrator & Purdue Alumna

Here at MyMoney our goal is financial literacy. We want to teach students and our readers how to be smarter with their money and that makes the topic of credit kind of taboo. You see, credit talks about your relationship with debt: how much of it you have currently, how much you’ve paid off, how good you are at paying back your debt, what kinds of debt you have. We don’t want you to be in debt, but we do want you to be informed. And, since the average college student graduates with at least $20k in student loan debt, you should know how that affects you.

Girl in airport; text overlay: Let's Talk Credit Scores

Here’s the basic breakdown of what makes up a credit score, via wikiHow:

Payment history — 35%. How often do you pay your bills on time? Late payments hurt your score.

Debt usage — 30%. How much debt do you have in relation to your overall limit? Low debt and high limits is what you’re after.

Credit age — 15%. How long have you been establishing your credit? The longer the better.

Account mix — 10%. How many accounts or lines of credit do you have open? The more the better.

Inquiries — 10%. How often do you apply for new credit? Too many inquiries can hurt your score.

These are all taken into consideration and then get applied to a scale, typically between 300 and 850. You want to aim to have at least a good credit score, usually between 700 and 749. Go here for a breakdown of what the different levels of credit scores mean.

Your credit score is important for your future financial and personal prospects. Say one day you want to buy a house; the easiest way to buy a home is to take out a mortgage, and while paying the balance in cash sounds nice, it’s just not feasible for most people. And to get a good rate on that mortgage, you need a good credit score. This is probably all you’ve ever heard on the subject, with the exact same example (because it’s a good example). Now, how do you make sure you have a good credit score? Or better yet, how do you keep from having a bad credit score?

#1 Pay your bills on time

Every single one of them. Every time they are due. While you’re in college you can practice with your cell phone,  utilities, and rent. Then, consider a credit card that you use for only very specific things (gas, perhaps) and pay that off on time, every time the payment is due. Once you’ve graduated, make sure you don’t default on your student loans (i.e. make your payments on time, every time).

#2 Budget your money

But…what does that have to do with credit? Everything. If you’re not budgeting your debts (e.g. car payment, rent, utilities, student loan payment), then you’ll fall behind on your payments and your credit will start creeping downhill. Remember that credit card I mentioned in #1? Don’t use it for unbudgeted expenses (with the exception of it being a serious crisis like emergency roadside assistance that’s not covered by your car insurance, not when you desperately need a latte). Only spend what you have available to spend and can pay off at the end of the month.

#3 Minimize your debt

Take out the minimum amount of student loans you need. Don’t use a credit card on things you don’t need. Save up for a big down payment on your next car purchase so your payments are lower and you’re able to make them on time. Keep it small so that it’s manageable and you can still pay your bills on time. Don’t take on excess debt. You’re in college, live like a college student now so you can live the way you want once you are debuted to the world.

#4 Keep an eye on your credit score

You can check out your credit score for free once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion). You can check it every three months by using each one once a year or you can check them all at once and compare (they may be slightly different). Watching your credit score will let you in on any changes that happen. Your credit score may go down some if you missed a credit card payment, majorly if you have unpaid medical bills, or drastically if your identity is stolen. On the plus side, if you’re managing your credit wisely you may see it gradually increase over time. And then you can credit yourself with the independence and security it brings!

College Seniors Week 2: Paying Your Loans

14 Apr

Raysha Duncan Purdue University Student and Peer Counselor

Counting $50s

GIF from: compliancex.com

Yikes! This is a scary topic, especially with student loan debt being broadcasted all over the news. Student loan payments can seem overwhelming, especially if you’re still on the JOB HUNT.  I’ve gone ahead and summarized some important information to know about your loans as well as some really helpful links to help you through the repayment process.

 

Grace Periods

If you have Stafford Loans and have stayed enrolled at least half-time (6 credit hours for undergrads and 4 credit hours for grads) for your entire college career, you will have your full grace period of six months before you are expected to start paying on those loans. If you have a Subsidized Stafford Loan, depending on when you took out your loans, they may start to accrue interest during this grace period. Unsubsidized Stafford Loans have accrued the entire time you’ve had them and will continue to during your grace period and beyond until they are paid off.

Grace periods for Perkins Loans are nine months, as long as you have remained continuously enrolled at half-time status during your entire college career.

Grace periods for private loans vary per lender, so you will want to check with your loan servicer to determine when you are expected to start making payments on them.

 Interest Rates

Climbing Out of Debt

Stafford Loan interest rates have been changing a lot recently; they’ve gone down this past year (2013-2014) thanks to Obama signing the Bipartisan Student Loan Certainty Act of 2013. But, this also means you could have multiple Stafford Loans with different interest rates. You can log into your student loan account at the National Student Loan Database to check on your loans, their interest rates, and to see your loan servicer.
Perkins Loans have a 5% set interest rate.

 

Private Loans have variable or set interest rates, depending on your lender. You’ll want to check with the lender to see what your interest rate is currently and if it’s subject to change.

 

Repayment 

counting money

U.S. Navy photo by Mass Communication Specialist 3rd Class Frankie J. Colbry

The biggest thing you need to know about your loans at this point? You need to repay them. I’d suggest starting at here. This website has a lot of helpful information:

Repayment Options: the different types, and what applies to you

Loan Consolidation: how to do it, can you do it

Making Payments: where to go, who you pay

Deferment & Forbearance: are you eligible, what to do

 

There’s a lot of information floating around about student loans these days, so set aside some time and actually do some research in figuring out what the best repayment options are for you. You have to pay them back, and you may be paying on them for the next few years, so you may as well know what’s expected of you.

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