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☆ White House targets 'junk fees' on student loans and other higher education costs
▼ + stars: | 2024-03-15 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The White House is talking up its actions to reduce the expenses burdening students, including moving to end origination fees on student loans. While most private lenders have done away with student loan origination fees, the federal government still charges them. Federal student loan borrowers can face expenses of 1% to 4% of their total borrowing amount. The White House said on Friday it considers these "junk fees," which it defined as "hidden costs or surprise fees that companies and institutions include on customer or student bills, increasing their costs." "By eliminating origination fees on federal student loans, borrowers should be able to borrow less to cover their costs," said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

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☆ Now that federal student loan payments have resumed, here's what to consider before refinancing
▼ + stars: | 2023-11-27 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

But converting federal student loans into private debt can lead to the loss of a number of consumer protections, experts warn. Federal loans have more safeguardsThe most important thing to keep in mind when considering refinancing your federal student loans is that, should you move forward, your debt will be transferred to a private company, and become a private student loan. "Private student loans don't have the same benefits as federal student loans," Kantrowitz said. While federal student loan rates reset annually for new loans, they're fixed once disbursed. Federal student loan borrowers don't need to refinance to get a slightly better rate, Kantrowitz pointed out: Most student loan servicers will offer a 0.25% interest rate deduction when you sign up for automatic payments.

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☆ Student loan repayments are back. Here’s what that could mean for the economy
▼ + stars: | 2023-10-09 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

New York CNN —This month marks the first time in more than three years that federal student loan borrowers will be required to make monthly repayments. Before the Bell spoke with Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, to talk about what that could mean for the economy. Before the Bell: When exactly do student loan payments resume? The last time I checked, there were more than 40 million federal student loan borrowers. That’s the policy discussion that has to be had in order to permanently fix the student debt crisis.

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NEW YORK (AP) — Federal student loan borrowers will need to start making payments again this month after a three-year-plus pause due to the pandemic. It's likely that most borrowers have received their bill already but if you have not, visit your loan servicer account. Czulada also recommended that you look at which type of student loan you have, so you know which income-driven repayment plans you might qualify for. Borrowers can find out what their monthly student loan payment will be on their account with their loan servicer. Betsy Mayotte, president of The Institute of Student Loan Advisors, recommends that you research if you qualify for an income-driven repayment plan.

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☆ Student loan interest resumes. Here’s what borrowers need to know
▼ + stars: | 2023-09-05 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Undergraduate subsidized student loans should not start racking up interest until after you've graduated and finished your six-month grace period. watch nowThe interest on undergraduate subsidized loans is usually suspended while you pursue more schooling. You can contact your loan servicer or visit StudentAid.gov to learn your loan type, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit2. Recent graduatesMost graduates get a so-called grace period after they've finished school before they need to start making their student loan payments. If you're unemployed when student loan payments resume, you can request an unemployment deferment with your servicer.

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☆ Student loan interest resumes today — what that means for borrowers
▼ + stars: | 2023-09-01 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The interest rates on federal student loans are fixed once disbursed, but vary depending on when they're taken out. "Millions of federal student loan borrowers are starting to adjust to the reality of having to figure out how to bake their student loan payments into their budget once again," said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. The typical monthly student loan bill is around $350. As a result of the policy, the average borrower likely saved around $15,000 in student loan payments during the pause, including around $5,000 in interest charges. Student loan borrowers can check their interest rate at Studentaid.gov or with their servicer.

Persons: they're, Betsy Mayotte, Mark Kantrowitz Organizations: The, Student Loan Advisors, Finance

☆ My Student Loans Were Just Forgiven. This Is How It Happened
▼ + stars: | 2023-08-23 | by ( Sunshine Flint | ) www.wsj.com time to read: +6 min

That’s how long it has been since I took out my first student loan. Though I received grants and held work-study jobs, I still needed around $60,000 in federal student loans to pay for my degrees. The only person possibly more upset about this than me was my accountant, who suggested I refinance into a private student loan. Having federal loans meant that I was eligible for the pause on student loan payments that began in 2020. (In general, if you took out a federal student loan or, like me, consolidated your loans on or after July 1, 2010, you have a federal Direct Loan.)

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☆ 3 options for struggling student loan borrowers when payments restart
▼ + stars: | 2023-08-10 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Jacob Wackerhausen | Istock | Getty ImagesWith other household debt on the rise, the restart of student loan payments in less than two months may cause financial hardship for many Americans. The pause on federal student loan payments is one of the last Covid pandemic-era relief measures still in effect, but the bills are expected to finally resume in October. If you're unemployed when student loan payments resume, you can request an unemployment deferment with your servicer. The maximum amount of time you can use an unemployment or hardship deferment is usually three years, per type. Kantrowitz provided an example: A $30,000 student loan with a 5% interest rate would increase by $1,500 a year under a forbearance.

Persons: Jacob Wackerhausen, Mark Kantrowitz, Kantrowitz, Betsy Mayotte, Biden Organizations: Istock, Deferments, Peace Corps, The, Student Loan Advisors Locations: Mayotte

☆ With college bills due soon, families should know the risks of private student loans
▼ + stars: | 2023-08-07 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

But, Kantrowitz said, "borrowing private loans may be a sign of overborrowing, so they should do so with caution." Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal and private lenders, said private student loans can fill the gap for those who've exhausted federal aid and scholarships. "We almost always advise against private loans," Mayotte said in an earlier interview. She also described severe terms private lenders may enforce. watch nowAs Mayotte pointed out, many private lenders require students to get a cosigner who is equally liable for the debt.

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☆ Biden administration has canceled $66 billion in student debt. How to know if you qualify
▼ + stars: | 2023-05-14 | by ( Annie Nova | ) www.cnbc.com time to read: +6 min

Still, advocates are worried about the administration's plan to soon resume federal student loan payments, which have been suspended since March 2020, without deeper debt cancellation. Even before the Covid-19 pandemic, 1 in 4 student loan borrowers were in delinquency or default. Here's a breakdown of the debt relief already granted — and how to know if you qualify for it. Defrauded borrowers got $13 billion in reliefThe Biden administration has been focused on canceling the student debt of borrowers who say their colleges misled them. Betsy Mayotte president of The Institute of Student Loan AdvisorsThe Project on Predatory Lending at Harvard University has a list of some of the institutions that were part of a student loan cancellation settlement.

☆ After being on pause for more than 3 years, student loan payments are expected to resume soon
▼ + stars: | 2023-04-28 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Three companies that serviced federal student loans — Navient , the Pennsylvania Higher Education Assistance Agency (also known as FedLoan) and Granite State — all said they'd be ending their relationship with the government. Impacted borrowers should get multiple notices, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. But if you can afford it, the standard repayment plan is just 10 years. To calculate how much your monthly bill would be under different plans, use one of the calculators at Studentaid.gov or Freestudentloanadvice.org, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. If you do decide to change your repayment plan, Mayotte recommends submitting that application with your servicer before payments turn back on.

☆ How borrowers can keep their student loan payments on hold once bills resume
▼ + stars: | 2023-03-29 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

watch nowThe Education Department in November said student bills would resume 60 days after the litigation over its student loan forgiveness plan resolves. If you're unemployed when student loan payments resume, you can request an unemployment deferment with your servicer. The maximum time you can use an unemployment or hardship deferment is usually three years per type. Forbearances also keep bills on holdStudent loan borrowers who don't qualify for a deferment may request a forbearance. Kantrowitz provided an example: A $30,000 student loan with a 5% interest rate would increase by $1,500 a year under a forbearance.

☆ Follow this rule of thumb to avoid taking on too much student debt, college experts say
▼ + stars: | 2023-03-24 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

As students weigh where to attend, making sure they won't borrow too much is key, experts say. The consequences of taking on too much student debt can be severe. "You may also have to take a job that pays better as opposed to the job that matches your career goals." Kantrowitz found in his research that under a third of student loan borrowers who took out $20,000 or less were stressed by their debt, compared with over 60% of those who'd taken out $100,000 or more. "If your total student loan debt at graduation is less than your annual starting salary, you should be able to repay your loans in 10 years or less," he said.

☆ What student loan borrowers need to know about the 2023 tax season
▼ + stars: | 2023-03-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Prostock-studio | Istock | Getty ImagesYou probably can't claim a student loan interest deductionBefore the Covid pandemic, nearly 13 million taxpayers took advantage of the student loan interest deduction, which allows borrowers to deduct up to $2,500 a year in interest payments they've made on their private or federal student loans. "You can claim the student loan interest deduction based only on amounts actually paid," Kantrowitz said. The break is only for payments to interest, Kantrowitz said, and interest has been suspended now for years. The best way to determine if you have potential interest to claim is to contact your loan servicer, said Betsy Mayotte, president of The Institute of Student Loan Advisors. Your lender reports your interest payments over a certain amount to the IRS on a tax form called a 1098-E, and should provide you with a copy, too.

☆ What to do if Supreme Court strikes down Biden's student loan forgiveness plan
▼ + stars: | 2023-03-06 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

Demonstrators in favor of canceling student debt gather outside the U.S. Supreme Court in Washington, D.C., on Feb. 28, 2023. Bloomberg | Bloomberg | Getty ImagesKeep your payments on holdThe Covid pandemic-era policy suspending federal student loan payments and the accrual of interest is still active. Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. For example, full-time teachers who work for five consecutive years in a low-income school may be eligible for up to $17,500 in loan forgiveness under the Teacher Loan Forgiveness Program. And lawyers in Texas who work for specific legal aid programs may be eligible for the Texas Student Loan Repayment Assistance Program.

☆ How to Read a Form 1098-E
▼ + stars: | 2023-03-02 | by ( ) www.wsj.com time to read: +10 min

By Kerri Anne RenzulliIf you have student loans, chances are you’ll encounter the IRS’s Form 1098-E. Those with multiple loans across multiple lenders will be sent a separate 1098-E form by each lending institution. But for those who do, this mark indicates that you took out your student loan before Sept. 1, 2004. Instead of relying on the Form 1098-E, you’ll need to request or download records of what you paid in interest and your payment history from your loan servicer, says Greene-Lewis. Who can claim the student loan interest deduction The $2,500 deduction phases out as your modified adjusted gross income rises.

☆ Some borrowers may qualify for a student loan interest deduction, despite payment pause
▼ + stars: | 2023-01-31 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Fewer borrowers will be able to claim the student loan interest deduction for 2022, with federal loan payments on hold for the duration of the year. However, since March 2020, the U.S. Department of Education has allowed most federal student loan borrowers to pause their monthly bills without interest accruing. As a result, most people with federal student loans haven't made a payment since, and don't qualify for the deduction. If you owe student loans that haven't been eligible for the government's break, including commercially-held Federal Family Education Loans (FFEL) or any private student loans, you may have made interest payments that can be deducted. The best way to determine if you have potential interest to claim is to contact your loan servicer, said Betsy Mayotte, president of The Institute of Student Loan Advisors.

☆ Here are some smart moves borrowers should make while the fate of student loan forgiveness is still up in the air
▼ + stars: | 2022-12-29 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Creatas | Creatas | Getty ImagesIt's been a strange time for people with federal student loans. (The Supreme Court will hear oral arguments at the end of February.) Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. Now that borrowers know how much in loan cancellation is on the table — if the president's policy survives the Supreme Court — borrowers may want to consider the option, Kantrowitz said. Betsy Mayotte president of The Institute of Student Loan Advisors

☆ Student loan forgiveness is headed to the Supreme Court. What that means for the payment pause
▼ + stars: | 2022-12-16 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

The pandemic-era relief policy suspending federal student loan bills and the accrual of interest has been in effect since March 2020. That development is why borrowers have gotten even more time without a student loan bill. Student loan bills could resume as soon as May 1The Education Department has left things a little open-ended when it comes to the timing of federal student loan payments resuming. During the extended payment pause, however, the Education Department is also ceasing all collection activity, it said. And while interest rates on federal student loans are at zero, it's also a good time to make progress paying down more expensive debt, experts say.

☆ Student loan forgiveness could fall through for 30 million borrowers. If it does, consider these 4 relief options
▼ + stars: | 2022-12-12 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Defer payments (once they resume)The pandemic-era policy suspending federal student loan payments and the accrual of interest is still active. Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. Use the Public Service Loan Forgiveness programThe Biden administration has recently made a number of improvements to the Public Service Loan Forgiveness program, which allows those who work for the government and certain nonprofits to get their debt cleared after a decade of payments. To reach forgiveness, you need to have made 120 qualifying, on-time payments in an income-driven repayment plan or the standard repayment plan. Lenders will likely be overwhelmed when they have to begin collecting loan payments from tens of millions of people again.

☆ Student loan payments may not resume until August. Here's what borrowers need to know
▼ + stars: | 2022-11-26 | by ( Annie Nova | ) www.cnbc.com time to read: +8 min

With so much still up in the air, the Biden administration has pushed back the due date on student loan bills again. With previous extensions of the payment pause, the Education Department provided one date for when student loan bills would resume. Betsy Mayotte, president of The Institute of Student Loan Advisors, warned borrowers to first understand the federal protections they're giving up before they refinance. "Refinancing can generate a lower interest rate than federal student loan rates," Mayotte said. Could it make sense to still pay my student loans?

☆ Families can get Pell Grants of up to $6,895 to help with college costs. Here's what you need to know
▼ + stars: | 2022-11-02 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

And it goes further for those who received a Pell Grant in college, a type of aid available to low-income families, by clearing as much as $20,000 from their student debt balance. The federal Pell Grant program, signed into law in 1965, is one of the largest sources of financial aid available to college students. Here's what families need to know about Pell Grants. There's a limit to how many Pell Grants you can getCollege students typically can receive the grant for up to six years. "The student can then use the money to pay for other college costs, such as textbooks," he said.

☆ College costs keep snowballing despite Biden’s efforts to ease student debt burden
▼ + stars: | 2022-10-01 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | Shannon Pettypiece | ) www.nbcnews.com time to read: +6 min

Loans from private banks have gone up even faster, with some charging more than 13% for student loans this fall, people familiar with the industry said. Borrowers with existing loans that have variable rates have started seeing their monthly payments go up from the higher rates, they said. Increased costs mean many students have to borrow more money at higher rates, further exacerbating the student debt problem the Biden administration set out to address. The problem is the cost of higher education,” said Betsy Mayotte, president of The Institute of Student Loan Advisors. “We commend this administration for responding to the call of addressing of the student loan debt crisis,” said Derrick Johnson, president of the NAACP.

☆ Everything parents need to know about student loan forgiveness
▼ + stars: | 2022-09-24 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

More from Personal Finance:How student loan forgiveness will be applied to your debtsKey events on the path to student loan forgivenessHow to calculate your bill for student loan forgiveness Currently, more than 600,000 parents take out student loans for their children each year, up from around 450,000 in 2000, according to data provided by higher-education expert Mark Kantrowitz. The average outstanding Parent PLUS loan is about $30,000, he said. What if I have Parent PLUS loans and my own student loans? Currently, Parent PLUS loans come with an interest rate near 8%, compared with under 5% for undergraduate student loans. If you're still in debt after student loan forgiveness, you'll want to be prepared for the bills to resume in January.

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