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☆ Interest rates rise to 5.5% on new federal student loans—why they're still better than private ones
▼ + stars: | 2023-05-12 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

If you're taking out federal student loans to pay for school next year, they're about to get more expensive. The interest rate on direct undergraduate federal student loans — which are determined by Congress each year — will increase to 5.5% from 4.99% for loans disbursed on or after July 1, 2023, an Education Department spokesperson confirmed. The 5.5% interest rate applies to both direct subsidized and unsubsidized undergraduate loans. Existing federal loans have not been accruing interest since the pandemic pause on payments and interest went into effect in 2020. It's possible you could find a better interest rate with a private lender, but federal student loans come with benefits that could wind up being more valuable than a lower rate.

☆ Parents and graduate students taking on new student loans are about to experience the highest interest rates in over a decade
▼ + stars: | 2023-05-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Treasury set the new interest rates for federal student loans in the 2023-2024 school year on Wednesday. They're the highest rates for student loans in over a decade. For graduate and PLUS loans in particular, the interest rate is surging to 8.05%. When it comes to the PLUS loans, this increase is particularly notable given that interest rates on those loans have not been this high since 2006. Insider has previously reported on the burden PLUS loans can bring, especially for parents.

☆ The federal student loan payment pause may end soon—how borrowers can get ready now
▼ + stars: | 2023-05-05 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +6 min

While the summer signals music festivals and vacations for many, this year it will also mean the return of federal student loan payments. Interest hasn't been accruing and borrowers haven't been required to make payments on their federal student loans since March 2020. But as the federal government winds down its pandemic relief, student loan borrowers are bracing to resume payments, or start making them for the first time. If you graduated or left school between March 2020 and now, you may have never been required to make a payment on your federal student loans. If you're not sure, you can log into your Federal Student Aid (FSA) account and scroll down to the "My Loan Servicers" section, or call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

☆ Why America's childcare system is crumbling and its workers are begging for help
▼ + stars: | 2023-04-23 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +8 min

Childcare workers earn less than half what the average US worker earns — and many are quitting. One Montessori school has seen people quit and had to raise tuition in order to cover staff pay. Almost all of the childcare workers in this story asked to be referred to by first name only, out of fear of professional repercussions. And childcare workers specifically in child daycare services make an average of $12.40 an hour. Sinead, a 24-year-old childcare worker in West Virginia, makes even less than the national average for childcare workers, with pay of $9.50 an hour.

☆ New York’s student loan forgiveness program covers 24 monthly payments. Here's what borrowers need to know
▼ + stars: | 2023-01-24 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Not all student loans qualify for the state relief. Private student loans are ineligible. Unsure of what kind of student loans you hold? Up to 24 months of student loan payments availableUnder the Get On Your Feet Loan Forgiveness Program, New York state may cover your full student loan bill for up to 24 months under a qualifying income-driven repayment plan. The state makes the payments directly to your student loan servicer.

The Biden administration has proposed changes that could dramatically lower monthly student loan payments. The plan calculates monthly payments based on a borrower's discretionary income. Insider's Featured Student Loan Refinance Companies SoFi Student Loan RefinancingSplash Financial Student Loan RefinancingEarnest Student Loan Refinancing Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. APR Variable: 4.49% - 8.99%, Fixed: 4.49% - 8.99% Editor's Rating 4.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Variable: 3.99% - 8.99% with AutoPay, Fixed: 4.39% - 8.99% with AutoPay Editor's Rating 3.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Actual rate and available repayment terms will vary based on your income. According to the Education Data Initiative, half of student loan borrowers still owe $20,000 each on outstanding loan balances after 20 years of entering school.

The increase in college tuition and predatory lending have created a situation where, unless you’re fortunate to get a full-ride scholarship or come from a lot of money, students are vulnerable. Though Biden’s debt relief focused on federal student loans, there have been problems with private lenders as well, including the suit against student loan giant Navient. Research has shown that student loans increase access to financing and add to student diversity, which is great, but data also shows that women and people of color are disproportionately more likely to have debt. Student debt relief is one way to let people be people, first and foremost, and loanees second. But we need to do these things because we choose to and not because our college system is broken.

☆ Investor Vinod Khosla says focusing on 2030 climate targets is the wrong approach
▼ + stars: | 2022-10-25 | by ( Catherine Clifford | In Catclifford | ) www.cnbc.com time to read: +7 min

Why Khosla thinks short-term goals are a mistakeFocusing on "short term goals will force us to deploy suboptimal technology," Khosla told CNBC. And if it doesn't do that, it's the wrong technology," Khosla told CNBC. Nuclear fusion is one example of the kind of breakthrough technology Khosla considers critical, but which will not be commercialized by 2030. "But I'm not interested in today's geothermal, because it is such a niche — it doesn't scale," Khosla told CNBC. And that's what we need," Khosla said.

☆ How to Apply for Student Loan Forgiveness
▼ + stars: | 2022-10-22 | by ( ) www.wsj.com time to read: +15 min

The official student loan forgiveness application is available on the Federal Student Aid website. What you can do now to prepare for student loan repayment and reliefFirst and foremost, you can fill out the application for up to $20,000 in student loan forgiveness on the Federal Student Aid website. “January will almost certainly be a chaotic time for the [student loan] servicers,” says Michael Lux, attorney and founder of The Student Loan Sherpa. You might also check out alternative options for student loan forgiveness, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. If your state charges a tax rate of 5%, for example, expect to pay about $500 in taxes on $10,000 in loan forgiveness or $1,000 on $20,000 in loan forgiveness.

The student-loan forgiveness application is live on the federal student aid website. Over 8 million Americans applied for student-loan forgiveness using the beta version of the application, released on Friday, October 14. Can I still get student-loan forgiveness if I haven't filed my tax return? To receive a non-filing letter from the IRS, fill out Form 4506-T.Will the amount of student-loan forgiveness I receive get taxed? Parents whose children are also applying for student-loan forgiveness must file a separate application for debt relief for their Parent PLUS loans using the same application.

The federal student-loan forgiveness application is now open in beta-testing mode. Access the student-loan forgiveness application here. Here's what you'll need to have on hand to fill out the application and apply for student-loan forgiveness. Here's what the application looks like from a cell phone:The student-loan forgiveness application does not include income verification documents. If you received a Pell Grant, you are eligible for $20,000 in student-loan forgiveness.

The amount of money you can get depends on your financial need, which is determined by your college's cost of attendance minus your Expected Family Contribution (EFC). Your college's financial aid office will determine your financial aid package, which includes both federal and institutional assistance. The more financial need you have, the higher likelihood you have to qualify for more financial aid. Work-study is a type of financial aid that provides part-time positions for students with financial need to earn money for academic expenses. Work-study is a type of financial aid that provides part-time positions for students with financial need to earn money for academic expenses.

You'll receive $10,000 in student-loan forgiveness if you meet the income requirements. You'll receive $20,000 in forgiveness if you received a Pell Grant and meet the income requirements. If you meet the income requirements above and did not receive a Pell Grant, you're eligible to receive $10,000 in student-loan forgiveness. Which loans qualify for student-loan forgiveness? studentaid.govThere is no partial student-loan forgiveness for people who do not meet the income requirementAt the time of this writing, student-loan forgiveness is not available for people who make more than the income requirements outlined in Biden's plan.

Only loans held by the federal government are eligible for Biden's student-loan forgiveness. If you refinance your student loans with a private lender, those loans are no longer eligible. You must have the correct federal student loan type to be eligibleGenerally, only loans held by the federal government are eligible for Biden's forgiveness plan. If you refinance your student loans, you won't be eligible for Biden's forgiveness plan of up to $20,000. The long-term benefits of student-loan forgiveness and income-driven repayment plans outweigh the short-term benefits of refinancing with a private lender.

☆ A 35-year-old financial coach who was raised in poverty gave 3 pieces of advice for getting and staying out of debt — and shares one thing she wishes she did differently when paying off her student lo
▼ + stars: | 2022-09-24 | by ( A.J. Cohen | ) www.businessinsider.com time to read: +13 min

"I got some grants, but also took out some student loans." I've been paying on these student loans and I still owe the same amount and I don't get why." According to the Federal Reserve, the total amount of consumer debt at the end of 2021 — including mortgages, student loans, auto loans, and credit card debt — was $15.6 trillion. Wolfe gave Insider three tips for getting and staying out of debt — and shared one thing she wishes she did differently when she was paying off her student loans. "It could potentially mean a lifetime of debt," Wolfe said.

To qualify for forgiveness, FFEL and Perkins loan borrowers can consolidate into a Direct loan. Student loan expert Sonia Lewis, who has worked with over 20,000 clients to help them navigate their student loans via the Student Loan Doctor LLC, says most people don't know their loan type in the first place. studentaid.govHere's a list of all the different loan types, and whether or not they qualify for student loan forgiveness. If you have privately-held FFEL loans, you must consolidate your FFEL loans into a Direct loan to qualify for Biden's student-loan forgiveness plan. Additionally, if you refinanced your federal student loans with a private lender, those loans are no longer eligible for Biden's student-loan forgiveness plan.

☆ Student loan forgiveness and income caps: Here's what married couples need to know
▼ + stars: | 2022-09-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Shapecharge | E+ | Getty ImagesWhen the income cap may confuse married couplesHowever, there may be some murky situations for married couples based on their income. They qualify for forgiveness based on their $210,000 joint income. Qualifying loans include Direct Stafford Loans, all Direct subsidized and unsubsidized federal student loans, Parent Plus and Grad Loans, for example. But would the lower-earning spouse qualify for forgiveness based on their individual income? This would render an amended tax return unnecessary, if it occurs.

The US Department of Education suggests students accept aid in the following order: grants and scholarships, work-study programs, subsidized federal loans, unsubsidized federal loans. With that rule in mind, here are the four types of financial aid, ranked from most to least desirable:1. Subsidized federal student loanOnly after accepting any free and earned financial aid should a student consider taking on federal student loans, which generally come in two varieties: subsidized and unsubsidized. Unsubsidized federal student loanBy contrast, unsubsidized federal student loans do accrue interest while the student is in school, beginning from the very first disbursement. Before turning to private loans, make sure you've exhausted all federal sources of financial aid.

☆ This 29-year-old makes $400,000 per year and owns 3 properties: '5 things I refuse to spend money on'
▼ + stars: | 2022-04-19 | by ( Alexandra Fasulo | ) www.cnbc.com time to read: +2 min

Now, at 29, I have six streams of income — from freelance writing, influencer sponsorships, eBook sales, course sales, ad revenue and affiliate revenue. Like any member of the gig economy, I know I can't count on making this much money forever. So while I sometimes splurge on food, entertainment and travel, I otherwise save and invest aggressively to boost my net worth. To live my dream life and still save most of what I earn, here are five things I refuse to spend money on:1. Not only do I save money this way, but I'm also helping the environment by donating all of my unused clothes to Goodwill.

Personal finance blogger Carmen Perez had $48,000 worth of student loans when she graduated in 2009. Three steps helped her tackle that debt: writing out everything she owed, choosing a method to tackle debt, and making sure to pay each month. In her journey to pay off her student loans, she found three steps that helped her to go from feeling overwhelmed to debt-free. Write out what you owe"I think the biggest advice is just to get organized around your student loans. By starting with these three steps, student loans can feel less overwhelming, more manageable, and be paid off sooner.

☆ My parents 'refinanced' my student loans, and even though I'm still paying them off I'll save over $9,000
▼ + stars: | 2020-02-12 | by ( Caroline Lupini | Freelance Reporter | ) www.businessinsider.com time to read: +7 min

When I took out student loans to attend grad school, I was able to get government loans at a fixed 6.21% interest rate. I started my MBA in 2014 and the majority of my student loans were direct unsubsidized loans serviced by NelNet with a 6.21% fixed interest rate. They mentioned the idea of paying off my student loans with their home equity line of credit, and then I would owe them instead. At the time, their home equity line of credit had a sub-prime 2.49% variable interest rate — significantly lower than my student loan interest rate. Many private lenders offer student loan refinancing, so make sure to get quotes from multiple lenders before deciding to refinance — you'll want to confirm you'll ultimately save money.

If you need student loans for college, here's a quick guide on how to choose one. APR Variable: 1.79% - 12.99%, Fixed: 3.22% - 13.95% Editor's Rating 4.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Variable: 3.25% - 13.59%, Fixed: 3.75% - 13.72% Editor's Rating 3.25/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Variable: 2.52% - 11.11%, Fixed: 3.89% - 13.16% Editor's Rating 3.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Find your rate On College Ave's website Find your rate On Sallie Mae's website Find your rate On Ascent's websiteHow to choose a student loan1. Research federal loan optionsWhen you fill out the FAFSA, your award letter will outline which federal student loan options are available to you. For example, federal student loan borrowers who go on to work in the public sector are eligible for student loan forgiveness under the Public Service Loan Forgiveness program. Research private loan optionsIf your federal student loans don't cover all of your costs, you may consider private student loans as well.

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