How a new financing model could fix America’s broken student loan system Student Loans |
- How a new financing model could fix America’s broken student loan system
- Is it worth taking 24k(5500/yr for 4 yrs) in student loans for undergraduate CS degree?
- Paying the interest first
- Details on income driven forgiveness?
- How to start
- What happened to the estimated end date for your PSLF on Fedloan?
- PSLF?
- Advice on Repayment Strategy - 70k Combined in Student Loans
- Loans and Impacts on Mortgage Shopping?
- Question
- How long do I have to have a loan?
- Help! I can't seem to find my loans.
| How a new financing model could fix America’s broken student loan system Posted: 24 Mar 2019 11:31 AM PDT Fortunately, some innovative colleges, in partnership with private investors and a small number of philanthropies, are experimenting with a new financing model called "income share agreements" or "ISAs" which address these two core issues. With an ISA, instead of assuming a fixed debt obligation, students simply agree to pay an affordable percentage of their future income over a set time period, subject to an overall cap. High earners will have larger payments than low earners, but all will have an affordable payment, based on what they will actually be making. Importantly, when the college is providing some or all of the funding for the ISA, its return will be aligned with its students' post-college earnings, giving it economic incentives to make sure its students both graduate and find jobs. The college is, literally, invested in its students' success. https://finance.yahoo.com/news/income-share-agreements-student-debt-111904922.html [link] [comments]  | ||||||||||||||||||||||||||||||||
| Is it worth taking 24k(5500/yr for 4 yrs) in student loans for undergraduate CS degree? Posted: 25 Mar 2019 12:39 AM PDT I'll be joining a university which is t50 in CS and i might have to take 5500/yr loan for 4 years to make the ends meet! Will it be worth ? [link] [comments]  | ||||||||||||||||||||||||||||||||
| Posted: 25 Mar 2019 02:20 AM PDT So I've been reading something on here that's been confusing me and i could use some help. I have roughly 100K in student loans. I set myself up for the 30 year repayment plan with the intention of taking the extra money from the low monthly payments and avalanching with it. I'm a mix of federal and PLUS loans from Great Lakes with the PLUS loans being the bulk of it. From what I've been reading though some lenders don't allow you to pay off early towards the principle and will instead apply it to interest first. Couple of questions: 1) how can you tell which kind of lender you have? Does it say it somewhere. Can I just go online? Do i have to start just paying and hoping for the best? 2) Is it applying to all the interest would accrue over the course of 30years or just the stuff its accrued over the past 2 or so years? 3) If they're applying to the interest first is it even possible to avalanche it? If not do you just have to ride out the duration of the loan? What are your options? Thanks [link] [comments]  | ||||||||||||||||||||||||||||||||
| Details on income driven forgiveness? Posted: 24 Mar 2019 03:04 PM PDT I stopped going to school in 2013 when the amount of debt I was accruing didn't seem worth the benefits of a bachelors degree. I don't really have much regret there, I got in with a large company making $10 an hour, worked hard and over an 8 year span and number of promotions, I'm now with the same company and making upwards of $100k a year. Still don't have a degree. I've had to move a few times and although work helped, it was still a lot of money out of my pocket and was also "starting over" every time I moved (buying furniture and doing all that). I've mainly payed the minimum on most of my loans, and lately I've been noticing that the debt isn't getting smaller. I was reading about forgiveness options on federal loans, I've definitely focused more on the private loans over the government loans. It seems the government loans are forgiven after 25 years but the fine print on this was somewhat unclear. Now that I'm on my feet, making enough money, and hopefully not moving again anytime soon, I'd like to get a plan in place to knockout these loans. Many of them are already 10+ years old trying to understand what options I have here. Edit: I've accumulated just over $40k in stock from bonuses and employee stock programs from the company I work for, does it ever make sense to sell stock to pay private student debt? I feel like it wouldn't given the fact that selling stocks would be taxed? [link] [comments]  | ||||||||||||||||||||||||||||||||
| Posted: 24 Mar 2019 09:01 PM PDT Hello, I am a soon to be high school graduate who is in search of student loans, but I am not sure where to start, do yall have any recommendations to a loan program or just any tips and tricks in general? [link] [comments]  | ||||||||||||||||||||||||||||||||
| What happened to the estimated end date for your PSLF on Fedloan? Posted: 24 Mar 2019 03:48 PM PDT The FedLoan website used to give me an estimated final payment date under my "Loan Details" section. Now I don't see it anywhere. Tried digging around and can't find it, was it moved? The website says this in their FAQ:
But the info is longer under my loan details for me. Edit: well they're back for me, and now the numbers are updated. Weird, anyone know if this always happens on Sundays and I've just never noticed? [link] [comments]  | ||||||||||||||||||||||||||||||||
| Posted: 24 Mar 2019 11:36 PM PDT Currently, my principal balance is around $203k and I have around $19k of outstanding interest. I have 1 year left of graduate school and my principal will likely be around 250k by then. I will (hopefully) be working as a school psychologist which would qualify me for the PSLF program. Does anyone have experience with this? I've read mixed things and I'm not sure if I should count on it as being an option. (All of my loans are federal.) I'm looking at the repayment calculator and using an average starting salary for my current balance. I'm married and plan on filing separately. It looks like PAYE would be the best in my situation. With PSLF, it says I would pay a total of ~$54k and have ~$300k forgiven in 10 years. Without, I would pay ~$152k and have ~$337k forgiven in 20 years. Obviously the PSLF is ideal but I worry about it actually working out. [link] [comments]  | ||||||||||||||||||||||||||||||||
| Advice on Repayment Strategy - 70k Combined in Student Loans Posted: 24 Mar 2019 10:58 AM PDT I almost never post to reddit, so I apologize if my formatting is poor Hi there - hoping to gather advice on the best way to handle repaying my student loans. I've included a fair amount of info below - hopefully enough for anybody to make suggestions, but if not I'd be happy to supply additional info. Background info:
I recently applied for a credit card to build credit and was denied for 2 reasons:
This denial has kind of been a wake up call and I need to figure out how to take down this debt as effectively and quickly as possible - hence, this post. Financial Info
Leaves me with about $1,425 on average per month. I currently have roughly $15k in savings (had maybe $500 to my name when I first started working). I realize I can be spending less on things I don't need, but this is where I am right now. Loan Info:
Note that I have a cosigner for these.
In addition to the fact that I feel like this isn't nearly as much as I should be paying, the majority of these payments are applied to the interest. Again, this is the payment plan that Discover gave me 'out-of-the-box'. There has to be a better strategy than this.
Groups, combined by interest rates:
Similar thoughts here - I should probably be paying more, though to me it makes more sense to prioritize my private loans due to higher interest rates. The majority of payments are applied to principle amounts for these, but I wonder if I should be targeting specific loans, if that's even possible. Overall, I don't think I'm in a terrible spot financially - or at least not when compared to some of the other users I've seen post on here. It is also worth noting that should I continue to work at my current place of employment (no plans to leave), I can expect to receive a yearly raise of at least 8%, but probably closer to 15% (dependent on performance) for the next few years. That being said, this debt is always in the back of my mind and I've been semi-ignoring it for far too long. I'm looking to better understand the most efficient way to handle this debt so I can put together a plan. Questions:
I understand that answers to some of these questions are out there - I'll be researching my options, but I definitely think there's some value in getting opinions from those who frequent this subreddit/have been in similar situations. Thanks for reading. [link] [comments]  | ||||||||||||||||||||||||||||||||
| Loans and Impacts on Mortgage Shopping? Posted: 24 Mar 2019 08:14 PM PDT My fiance and I will be getting married this year and would like to buy a house in the next 2 years, hopefully. We both made some not so savory financial decisions. In particular I went a little overboard on the student loans to support myself and she went a little overboard with consumer spending. We fixed the underlying reasons and feel confident enough to not make the same errors. So far this is where we're at: Me (27/M) -58k in federal student loans at 5.9% average, still deferred for another ~6 months but will do 10 yr plan (finishing up my masters this semester) -Income 64k (1.5 yrs of work experience in engineering, graduated college at 25) -Only other debt is about 2k in credit card debt (0% interest, will wipe down in the next 2 months) -FICO 660 -Assets: will receive 20k in inheritance (put towards down payment or loans?) have about 4k in savings and will receive 4k in tuition reimbursement from employer. Parents will probably give us a 3-4k to help with our wedding and will go straight towards the credit cards. Fiance (24/F) -26k in federal loans at about 4.8%, currently on 10yr plan -Income 40k (2 yrs of experience in recruiting, switched jobs to a lower paying but less stressful job) -Leases a car, about 10k in credit card debt (will consolidate into lower interest loan, a good portion of this is for our wedding -FICO 750 -Assets: 2k in savings and a smile that brightens even my worst days. Our goal is to buy in the next 2-3 years, the tough question is do we focus on saving towards a bigger down payment or reducing our loan debt as much as possible? I've seen lots of conflicting info on how student loan debt counts towards DTI, is it 0.5% of the loan balance or the monthly cost of standard repayment? I expect my income to jump a bit before we buy, if all goes with the PE, but her increases wont likely be as significant. [link] [comments]  | ||||||||||||||||||||||||||||||||
| Posted: 24 Mar 2019 08:09 AM PDT Making this as short as possible. 148,140.92 in student loan debt after refinance. 6.250% interest rate fixed 137,804.97 remaining in principal 1,301.43 is my monthly rate including interest. My payments are due on the 7th of every month. Typically I pay 1,500 a month on the 7th ( autodebit) . Roughly 200 extra a month. I was reading that I should be paying that extra 200 on the day that the interest is the lowest... So help me out please.
TYIA [link] [comments]  | ||||||||||||||||||||||||||||||||
| How long do I have to have a loan? Posted: 24 Mar 2019 05:52 PM PDT I'm looking to refinance my loans but I plan on doing it in stages. I want to refinance my current loans now with Sofi or Earnest to lower my interest rate and get the sign up bonus. Then once I get my tax return back, I plan on making a large payment down on the loan, and refinancing through Credible. My question is, how long would I have to be with Sofi or Earnest or anyone for that matter, before I then refinance again through Credible? [link] [comments]  | ||||||||||||||||||||||||||||||||
| Help! I can't seem to find my loans. Posted: 24 Mar 2019 04:13 PM PDT I'm in default, like many of us, but need to get things taken care of so I can clean up my credit score. The problem is, I don't know where to find all my loans! There are multiple listings on my credit report of loan servicers with a $0 balance. Are the loans that show up on NSLDS all the ones I have? It's so overwhelming. There are 11 different reports on my credit report for student loans, but I know I don't have 11 student loans out there. It looks like they have been bought and sold over and over again and I cannot for the life of me figure out how to find them! [link] [comments]  |
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