The so called “avalanche method” of paying down loans gets a lot of attention in personal finance blogs. The method is nothing more than distributing monthly payments to highest interest loans first, before paying down lower interest loans. The reasoning is obvious; a dollar at higher interest earns more interest (duh) than a dollar at lower interest.
Nurses have several federal and many state student loan forgiveness options available. For those nurses who work at a non-profit institution, Public Service Loan Forgiveness (PSLF) is the first program to consider, but there are many others.
This is a real case – the names and minor details were changed to anonymize person’s identity. Michael is graduating from medical school this May and will start a residency in Internal Medicine soon after. He expects his residency to last 3 years, but it could be 4 if he stays on as Chief Resident. After residency, he expects to complete a 3-year fellowship in Cardiology and then become an Attending Cardiologist, likely at a hospital.
If you’re graduating this spring and targeting Public Service Loan Forgiveness, you should consider skipping your student loan grace period.
If you want to figure out the optimal set of choices that will save you the most on your student loans, you’ll need a student loan calculator. In most cases, projecting your future student loan payments, under different assumptions, is nearly impossible without one.
It’s not enough that you have your own financial issues to deal with but now you’re stuck with a loan for your child’s education. Sure, it feels great to have helped your child by taking on this extra debt for them, but how are you going to pay it back?
Most student loan borrowers leave school with multiple loans with differing interest rates, loan balances, and sometimes with different loan servicers. To simplify repayments, extend the repayment term under the standard repayment plan, and to convert FFEL loans to Direct loans for income-driven repayment plans or Public Service Loan Forgiveness (PSLF), many financial blog writers suggest consolidating all the borrower’s federal loans into one federal consolidation loan. Before going into that, let’s clarify the difference between a federal consolidation and private refinancing.
PAYE and REPAYE are two income-driven repayment plans that sound similar but have some key differences. Make sure you understand what they are to avoid unnecessarily overpaying for your student loans.
This Monday, the White House released the 2020 President’s Budget proposal which includes several notable changes to the budget for the Department of Education and Federal student loans.
If you haven’t set aside some time to review your student loans, there’s a very good chance that you’re paying more than you should. Here are our top 6 ways to save money on your student loans.
Student loans and taxes are two topics that can trigger stress and anxiety from their mere mention. Taken together, they can really overwhelm the most financially savvy and cost-conscious among us. Team Gradaway always wants to help our readers and users maximize their savings, so we’ve tried to make things as simple as possible to ensure you don’t overpay this tax season!
It is incorrectly assumed by most borrowers that a loan with lower interest is always better than higher one with higher interest. If I can pay less in interest, why wouldn’t I want that, one might say. However, a financially literate borrower (i.e. a regular reader of Gradaway’s blog) knows that loans come with a variety of terms, features, and covenants, and that the loan needs to be viewed in the totality of its terms and conditions. It is this lack of knowledge and the common reflex that lower interest is better that is often exploited by private student loan lenders who advertise lower interest rate but neglect to mention the forfeited consumer friendly features of a federal student loan. Refinancing is a good choice for a borrower only when the interest rate is lower AND the borrower is making an informed choice to forgo the benefits offered by federal student loans.
The average starting salary for teachers is $39,000 which after taxes and living expenses can leave hardly enough money to cover the interest on those monthly student loan payments, never mind the principal. It may seem like teachers will be paying off their loans through their entire career and beyond. However, a closer look at federal repayment options as well as federal and state loan forgiveness programs reveals that maybe the teacher’s debt burden may not actually be as bleak as it seems.