Tag Archives: HigherEducation

What are the Major Differences Between Private and Federal Student Loans?

The most recent statistics on higher education debt show that more than 44 million Americans carry $1.4 trillion in student loans. You read that correctly. This figure implies that Americans owe more in student loans than credit card debt. While a majority of borrowers have federal student loans, there are some who have private higher education debt. Federal loans are funded and issued by the federal government. Private loans are issued by banks or other private sources. However, there are many other differences between the two types of loans. Private loans can have variable interest rates. Interest rates for private student loans can increase. As your interest rates increase, so do your monthly payments. Depending on your credit history, you may be offered lower initial rates by a private lender for accepting this risk. Income-driven plans are not available for private loans. We have blogged extensively about income-driven repayment plans…
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What Types of Jobs are Eligible for Public Service Loan Forgiveness?

Our blog last week discussed one reason why student loan borrowers who enrolled in the Public Service Loan Forgiveness (PSLF) program had their eligibility revoked. Many of the borrowers carried federal loans that are not eligible for PSLF, such as FFEL or Perkins Loans. However, you could also be denied forgiveness because of where you work. Only certain types of jobs are eligible for PSLF. While Congress is poised to kill off PSLF, this does not necessarily mean you will lose eligibility if you are already enrolled. You should be careful if you are seeking forgiveness through the PSLF program and are planning a job change. According to the Department of Education’s website, only the following jobs can qualify for PSLF. Government organizations: Employees at federal, state, local or tribal organizations are eligible for PSLF forgiveness. Examples may include the Central Intelligence Agency or the Federal Bureau of Investigation. City…
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How Can I Handle a Student Loan Default?

There are multiple consequences you could face if you were to default on your student loans. Your wages and income tax refunds could be garnished to satisfy the debts. You could be reported to the three credit bureaus. The full amount of the loan becomes due and you could accumulate fees. If you have federal student loans, then you will lose eligibility for helpful repayment programs. Therefore, it is essential to avoid default at any costs. If you do default on student loans, it is crucial to look at your available options for bringing your loans back into good standing. Avoid default: There are a few options you could consider to get caught up on payments if you are at risk of defaulting. Consider enrolling in an income-driven repayment plan if you have federal loans. This option could also free up income that is needed to pay back private loans….
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