Why has college gotten so expensive in the last 30 years? Probably because the government handed them a blank check in 1993. Student Loans |
- Why has college gotten so expensive in the last 30 years? Probably because the government handed them a blank check in 1993.
- Mortgage refi to eliminate student loans?
- For those of you who paid off your loans sooner than you needed to, was it worth it?
- International student loans?
- I need help with a payment strategy
- Pay subsidized loans now or wait?
- How to finance an second degree Accelerated Bachelors of Nursing Program 101?
- Refinancing federal loans, talk me out of it
- Should I eventually refinance my federal student loans? (I have a gross amount)
- Repaying sub and unsub federal loans
- Student loans for off campus housing.
- University is charging me a $275 graduation fee. Do I have any right to not pay this?
- Taking on Student Loans
- Crippling student debt- advice please!
- Are student loans that are currently in the grace period still accruing interest?
- Feeling extremely overwhelmed
- Recent Refinancing Options/Advice
- How do I get started comprehending loans?...
- Refinance a SoFi Student Loan with a federal one. Possible?
- Put Mortgage Payment on Student Loans? (COVID)
- I suck and I need help
- Need some advice about rehabilitating my loans when factoring in the pandemic
- Should I refinance my federal loans post-COVID relief?
| Posted: 01 Sep 2020 09:45 AM PDT The acceleration in tuition costs in the past 30 years has a surprisingly simple origin, mostly stemming from the Student Loan Reform Act of 1993.
Up until 1993, the federal government merely guaranteed/backed student loans that private lenders gave. This meant that only in the case of someone defaulting on their loan would the government be on the hook, stepping in and paying the college what's owed. This amendment completely overhauled that system, making it so that for the vast majority of student loans, the federal government directly made the loans to students. More specifically, the federal government pays the universities/colleges up front, and the student then owes the government that money. This represented a large shift in the alignment of incentives. When the loans come from the federal gov, there's much less pressure on schools to compete on price. This is especially true since "increasing max student loan size => making college more accessible to everyone" is a political argument that both major parties benefit from in terms of optics. Unsurprisingly, this decision lead to exactly what the Bennett Hypothesis predicted in 1987, that "colleges will raise tuition when financial aid is increased" in order to capture as much of that government money as possible. In essence, the feds handed colleges a blank check, and the result is just as expected for a decision like that. The question then becomes a matter of how we fix this without diminishing access to a college education. In my personal view, the feds should handle student loans the same way they handle medicaid/medicare reimbursement. Given that the vast majority of universities are non-profit, the government can determine what it reasonably costs to operate a school and have enough extra for needed expansion, while factoring in some sort of adjustment/multiplier for differing costs of operation/salaries depending on location. In other words, the feds have the leverage here, and should say "this is what we estimate it costs per student per year to run your school, so this is the maximum in student loans that we will provide". The schools would still be free to charge more than that amount if they want, but it will be up to them to figure out how they plan to get that extra amount. The vast majority of colleges' student bodies attend using federal student loans, so they would have no choice but to adjust their tuitions to match that maximum, or risk losing a large chunk of revenue. [link] [comments]  |
| Mortgage refi to eliminate student loans? Posted: 01 Sep 2020 07:35 PM PDT Current mortgage: $188k @ 3.875% Student loans (all private): $122k @ 4.9% House is valued at about $500k. Potential refi: $310k @ 3.1% No other debt. I can afford my current payments so this would be to consolidate into 1 payment while saving some on interest long term. I would continue paying what I am now, but it would be about an extra $350/month to principal. I am in healthcare with a very stable income. Good idea? Bad idea? Thoughts? [link] [comments]  |
| For those of you who paid off your loans sooner than you needed to, was it worth it? Posted: 01 Sep 2020 11:36 AM PDT To keep my situation simple. Graduated in May. Loan balance of: $28,400. Currently employed FT in a stable industry. I've currently got $6850 in a high yield savings account and am putting away $1100/month away to pay off this debt as fast as possible. Or.. so I think. With the interest forbearance that's currently in place I am saving as much as I can by Dec. 31st and am projected to have around $14,916 excluding any additional overtime I pick up. This will leave me with a remaining balance of $13,484. Now this is where I am questioning things. I'm very fortunate in that my place of employment will pay $2000/yr towards my student loans starting this December, up to 5 years, or a total of $10,000. So my intuition says pay down my balance to around $9500 or so after December and let my job take care of the remainder over the 5 years. With all of this being said, I can not stand having the weight of loans on my shoulders and am considering making additional payments regardless. So ultimately my question is: Does anyone have any experience paying off loans earlier than needed? And if so did you regret it? I fully understand that this would be the equivalence of throwing money away but I'm questioning it. [link] [comments]  |
| Posted: 01 Sep 2020 11:44 PM PDT Is it possible for a European student to get a student loan in America or vice versa? Basically, I'm wondering if a student can obtain a loan from the country that they will attend school at, instead of their home country. [link] [comments]  |
| I need help with a payment strategy Posted: 01 Sep 2020 03:21 PM PDT So I have two private loans (I call them A+B) and loan C is a federal loan in forbiddance obviously. Heres a brief summary of my situation Loan A Current Principal $23,740 IR: 10.99%f Monthly: $290 Loan B Current Principal: $105,379 IR: 8.6%v average (total of 9 loans in this account) Monthly: $1100 Loan C (Federal in Forbiddance) Pirincipal: $25,821 IR: 4.3%v (4 loans in this account) Monthly: $305 Monthly income ~$3000 (+- $50) Questions 1. Should I be applying cash to the forbiddance loan or using the extra cash while thats in forbiddance towards loan A? 2. Should I be applying the extra cash I have from forbiddance to loan B? Any other advice would be greatly appreciated. I am living at home so most of my budget is allocated and focused on these loans. [link] [comments]  |
| Pay subsidized loans now or wait? Posted: 01 Sep 2020 09:29 PM PDT I applied a subsidized loan of 2500 to my account and payed the rest of my tuition in full. Literally 30 minutes later I got an email saying I have received $1000 as part of the CARES act.
I also start a work study job that is supposed to pay out 2500 for the term. The original plan was to put all of that money towards my loan and not have to worry about it. INFO: I'm a junior (transfer from Community College) with no other debt and living at home with parents. All living expenses that I have are covered by my part time job. Long term I have enough money to cover the rest of this academic year without having to use loans. I will have to utilize the loans, stipends, and scholarships that I have saved up for my senior year. Thank you in advanced for your advice! On mobile so formatting and grammar are non-existent. [link] [comments]  |
| How to finance an second degree Accelerated Bachelors of Nursing Program 101? Posted: 01 Sep 2020 09:23 PM PDT I have no idea about loans or anything. The program is about 60k - to me it's worth it since I can get done fast. I heard due to second degree we cannot get any financial aid? Thank you! [link] [comments]  |
| Refinancing federal loans, talk me out of it Posted: 01 Sep 2020 07:55 PM PDT I am an attorney that has $193,000 in federal student loans. My loans are consolidated and have an interest rate of 7.125%. I am on IBR at $1100 a month. This means my payments have never been applied to principal in the 7 years I've been paying... until the Covid forbearance—in March I had a balance of $198,000. Feels good to see the balance move in the right direction! With this interest rate I will end up paying 150K-200k in just interest alone even if I throw extra money at my payments and pay say $1500-2000 a month. In looking at refinancing it appears I can get an interest rate of around 2.5%. Plugging my numbers into Unbury.me shows that I could have this loan paid off in 12ish years while paying maybe 30-40k in interest. This almost sounds magical. But it goes against anything I've ever been taught about student loans, always keep your loans federal, it's a gift you don't have private loans. You get all the protections if income drops but that interest rate I don't know if I see it being worth it keeping my long federal. I'm a partner at a law firm so I see my job as very stable. But I know anything can happen. Once the Covid forbearance is over should I hesitate to refinance? [link] [comments]  |
| Should I eventually refinance my federal student loans? (I have a gross amount) Posted: 01 Sep 2020 03:59 PM PDT Hi all, this is my first post here. Thanks in advance for any guidance. Apologies for the long post, I'm just trying to be thorough. I have $210k in federal student loan debt from undergrad and grad (mostly grad school). The interest rates are high at like 6.5% on average or something like that. Right now I'm supposedly pre approved with Earnest for a loan at 4.7% (fixed rate) on a 15 year plan, which would put my payments around $1650/mo. I know I could handle this easily for the time being, but the concern would be losing federal protections in the event that I lost my job or worse— lose the ability to work or something equally catastrophic. About me: I'm a 25 year old single female and I have my very first job lined up for about $75k annually + benefits which includes a $300 monthly stipend for health insurance. I'm in healthcare, and in my particular line of work, job security is pretty solid, but I would imagine I could easily take a pay cut down the road with the way things are going in the industry. $75k is about $10k more than what a lot of entry level salaries are, so in other words I wouldn't want to count on my salary growing a whole lot in my career since it's already near the median and will likely stay that way in the long run. I can be a fairly frugal individual for sure and will be living with a roommate to keep my rent below $1000 (right now I estimate rent + utilities to be $900). Cost of living should be moderate (no state income tax where I'm at). I drive a 20 year old Honda with high mileage, but it's holding up well. I haven't actually executed a budget yet since this is all prospective, but I'm planning on being able to contribute several thousands of dollars ($8-9k?) to a 401k in at least this first year and hopefully beyond. If I could bank on my salary and expenses remaining consistent, I could likely afford a 10 year payment plan which would be over $2200/mo (although retirement saving would be mostly on hold). I obviously don't want to push the limits though, and would take out a loan with a longer term to be on the safe(er) side. I know life happens, unforeseen events happen, people lose jobs, people lose interest in their jobs, find themselves in heaps of medical bills, cars break down, all these things. So I'm debating if I should risk refinancing in the unlikely but certainly possible event that I can't keep up with payments to a private lender. I know my loans are huge so the risk would be drawn out over many years vs someone who only has double digit debt. At the same time though, I could save thousands upon thousands in interest by refinancing. I know that if I were to refinance, I would obviously need a pretty serious emergency fund to pay any unexpected bills. I don't think I will have too much trouble saving, but I would be inclined to throw all my savings into a 401k or IRA which would be subject to penalties for early withdrawal, and I don't really know how hefty those typically are (???). What do you all think? I want these loans off my back ASAP and don't really care about PSLF or loan forgiveness after 25 years because I don't trust that those programs will be in place in the future anyway (tax bomb or not), so I wouldn't want to count on them as I pay these stupid loans. I'm really just interested in keeping the federal loans for the protections, not the perks. Also, like everyone else with federal loans I'm not accruing interest right now, so it doesn't seem to make sense to refinance now anyway...UNLESS you guys think interest rates on private loans will skyrocket after the election/after Dec 31st/etc!?!? So a side question would be, when would be the best time to refi if I were to go that route in yalls' opinions? Any additional guidance beyond the refi or don't refi question is appreciated. If I do refi, I obviously want to minimize the risk of doing so. TL;DR— I have $210k in federal loans in a pretty stable job market with earnings that will probably average $70-80k long term, and I'm wondering if that's too much debt to risk a refi. Thanks guys! [link] [comments]  |
| Repaying sub and unsub federal loans Posted: 01 Sep 2020 07:43 PM PDT Hi, first time poster here. I'm currently in my 2nd day of university (it's a private Christian one) as a freshman majoring in nursing. I just received an email from the Dept. of Education this morning that both my sub and unsub federal loans are assigned to a student loan servicer. My parents are paying for my college which I'm very thankful for and they've already paid the bill for this semester which stands at like $8k. I'm asking here tonight about how to repay the loans. Do I call the servicer and announce myself? I know sub loans don't accrue interests until after I graduate which gives me some time as I'm currently looking for more scholarships and a part time job. But I'm kind of nervous about repaying the unsub loans since it's pretty much accruing interests immediately. I'll try to answer your questions ASAP as I have classes very early tomorrow. Thanks for helping and bless all! [link] [comments]  |
| Student loans for off campus housing. Posted: 01 Sep 2020 01:40 PM PDT Hello everybody. As of now I am living with one of my friends in Massachusetts. This arrangement will only be for the next year. I'd like to go back to school starting next fall semester and do 2 years at a community college and do the mass transfer (program in Massachusetts) to a state school. (Most likely Umass Boston) I am 19 years old with no family that I can live with in the area. I know that I will not be able to work full time so I can afford an apartment well being a full time student next year. So my question is will I be able to get enough in gov student loans to cover housing expenses? I was thinking just rent and I could pay for my own food and gas with a part time job. If anyone can help me out it would be really appreciated. Thank you ! [link] [comments]  |
| University is charging me a $275 graduation fee. Do I have any right to not pay this? Posted: 01 Sep 2020 01:35 PM PDT I will not be attending graduation. Can I refuse to pay this? Also they are charging me a $500 Student Services fee for what I understand to cover physical building costs. I will be in a clinical rotation at a hospital and will not be on campus at all. How can they get away with just charging me for whatever they want. I know I am preaching to the choir here but this just feels so wrong. [link] [comments]  |
| Posted: 01 Sep 2020 02:52 PM PDT Hello all! I've recently been considering returning to university. I would probably need 2 years full time to complete my bachelor's degree program of choose, in a STEM related field. If I were to return to school full time I would most definitely be taking out student loans, and having to work 2 part time jobs compared to my current full time salaried position. If I were to return part time and keep my current job, I may still have to take loans albeit smaller loans, and extend the amount of time to complete the degree. I imagine my full time loans would end up at roughly 50k. Part time loans I could almost certainly keep under 10k. These are rough estimates but I'm fairly certain of the amounts I would end up borrowing. The key cause for difference being changing from my current job. I'd really appreciate opinions on risk/reward of either strategy. Also if anyone feels they have had an overall positive outcome from taking on student loans. I just want to hear other people's opinions on either of these plans. Throw as many questions at me as you'd like I'm happy to discuss this at length. I'd most likely not be taking steps towards either route until after next May. Thank you for any responses. (I just really need someone to talk to about these ideas. I really only have my mother, fiancé, and dog to talk to, and a little sadly the dog may be providing the best back and forth when it comes to anything financial related.) Edit: Additional info, as it came up below. I'm 24, independent for all tax purposes, and earn roughly 50k a year. I was sort of assuming my loans would end up having to be private but if there are alternatives I'm obviously interest. [link] [comments]  |
| Crippling student debt- advice please! Posted: 01 Sep 2020 08:05 AM PDT Hi all! I am currently employed (53k) with a large amount of combined student debt (170k) from my undergrad and my masters. Private loans alone want 1,000 a month, that's not even considering what federal loans will be once COVID assistance lifts. I am trying to refinance to get a lower APR, but the debt to income ratio leads to declines. My current co-signer has gotten declined for refinancing as well, so I feel locked in and I don't want my credit to tank. Any advice will be helpful. Thanks. [link] [comments]  |
| Are student loans that are currently in the grace period still accruing interest? Posted: 01 Sep 2020 08:30 AM PDT |
| Posted: 01 Sep 2020 08:08 AM PDT I'm so concerned about how I'm going to manage paying this money back. I owe 26,000 so far and my dad took out PLUS loans for me and he owes about 96,000 on his part. Of course, those student loans are mine and I need to be responsible for paying them back but I don't even know where to start. I plan on going back to school for nursing (currently have my bachelors in psych) so that I can make more money and start actually paying these down. I don't know whether to refinance them or wait til I finish all my schooling and then start. It keeps me up at night. [link] [comments]  |
| Recent Refinancing Options/Advice Posted: 01 Sep 2020 01:21 PM PDT In early 2018 I refinanced two Sallie Mae Loans through Citizens Bank. I refinanced them down from 7-9% variable to one lump sum at 19.8k to a fixed rate of 6.4% through Citizens. I have roughly about 10.5k left on this loan with Citizens. If I keep my payments up throughout all my loans, I could probabky get this paid off within the next 14-16 months. I went in to Citizens today and asked if they could offer me anything lower than 6.4%, which was not met with any luck I feel as if I have seen people with better interest rates on here recently given with what is going on with COVID. Does anyone who recently refinanced (last 4ish months) have any suggestion on where they went through and their interest rates? Is it worth trying to refinance the last 10.5k? [link] [comments]  |
| How do I get started comprehending loans?... Posted: 01 Sep 2020 09:08 AM PDT Soooo just recently graduated this past April (while battling a case of corona) and have currently lost my job offer, so I'm having the BEST TIME Aaaand I need some help getting pointed in the right direction on what my best course of action is... I have both federal (subsidized and unsubsidized) and private loans (🖕🏼at S***e Me), and they're quite a few of them because i had to take them out on a per semester basis instead of per academic year... And I'm just so lost as to what my options are, I have vauge knowledge of a few things...the 0% interest for federal loans, and the option to consolidate, refinance, I also heard you can take out a private loan to pay them off instead of consolidating. My question is, is there a financial service/planner I can go to, to talk to someone about all this? My family has a financial planner we've seen for years but when i talked to him he knows nothing about student loans... TLDR; Where can a newby borrower go to get financial guidance based around repaying student loans... [link] [comments]  |
| Refinance a SoFi Student Loan with a federal one. Possible? Posted: 01 Sep 2020 12:33 PM PDT Does anyone know of a way to refinance a private student loan with SoFi to a Federal loan? [link] [comments]  |
| Put Mortgage Payment on Student Loans? (COVID) Posted: 01 Sep 2020 08:27 AM PDT Been screwing around paying interest only on loans for about 10 years and only got a bit more serious about paying them down in the past few years. Original balance was about $250k and down to $153k currently which are all still on the payment deferral and interest suspension. Before the suspension, they were on the extended repayment plan so my monthly was about $890 with $850 or so going to interest. As information $143k of my loans are at 6.5% or higher with about $70k being at 7.5%. Was planning on throwing $30k in a chunk payment at them before the expiration of the interest suspension, but we are currently on a mortgage suspension as well due to COVID due to my wife's reduction in hours. We have the ability to probably resume payments in October (the expiration of 6 months of mortgage suspension), however it appears under the CARES act, I can continue to get a payment suspension on our mortgage for up to 6 additional months. My wife's hours are not back to normal, so COVID is still impacting us to some extent. I'm wondering if I should extend the mortgage suspension and then set that monthly amount aside (about $3k) to add to my chunk payment. Additionally was planning on throwing $6k at my ROTH this year to max it, but may also put that on the chunk payment instead. (I already contributed about $15k to my 401k) As information, the missed mortgage payments will be appended to the end of our loan and will not be required to be repaid immediately at the end of the payment suspension. Good idea? Bad idea? Worst idea? Only downside to not paying mortgage is we'll have an escrow shortfall that will have to be made up, but that's workable. [link] [comments]  |
| Posted: 01 Sep 2020 11:50 AM PDT Hi everyone, this is my first post on Reddit and I have no idea what I'm doing here so if you have any input it would be greatly appreciated! Backstory: I have terrible credit, my parents credit is even worse, and they asked a close family friend to co-sign off my last semester of college. Unbeknownst to me, my parents promised them that they would get it paid off when the payment for selling my dads apartment building came in. The man who bought the apartment signed all the paperwork as a point of contact for multiple llcs, so basically my dad isn't getting paid. This family friend is now demanding to be taken off as a co-signer, quite angrily, and I literally cannot find anyone who will approve me. I would prefer to go through a lender that is legit, but I don't even know where to go as I've never been able to get pre-approved with someone I deemed "reputable" If you guys have ANY suggestions on my situation I'm very open. If I have to pay out of my ass on interest every month, that's fine. Thanks in advance! [link] [comments]  |
| Need some advice about rehabilitating my loans when factoring in the pandemic Posted: 01 Sep 2020 07:03 AM PDT So im like 60k in debt. Out of college I didn't make enough to pay the 500 a month they were asking for so I just didn't make payments. Then I kinda forgot about them for like 3 or 4 years and just recently learned they had defaulted, and what that even means. I currently am working part time as a soccer trainer and don't make much. I was unable to work due to covid and I ended up on unemployment making more than I've ever made before. Now I'd like to rehab my federal student loans in order to up my credit score and hopefully get an apartment. my question is- if I say I'm not making much and want to get on an income based repayment plan, will they take the unemployment money ive received into account? That will make it look like I'm making way more than I am so im worried about that. Is rehabilitating them even the best option? Thanks a bunch. [link] [comments]  |
| Should I refinance my federal loans post-COVID relief? Posted: 01 Sep 2020 05:07 AM PDT I have three federal loans left totaling $49,364.65 ($41,669.40 principal and $7,695.25 outstanding interest) at 6.55%. I've managed to pay $12,681.59 this year (I average a little more than $1500/month). Last year I spent 1/4 of my net pay on loans. If I up my payments by a few hundred a month I'll be on track to do the same this year. I make around $8000/month net pay, for context, and I max out my work retirement plan (I pay 7.9%, my work pays 15.8%). I have around $50,000 spread out between HYSA, regular bank accounts, and a Roth IRA. My question is, does it make sense to refinance these loans? I was offered 3.84% with Laurel Road and 4.11% with SoFi. I wouldn't do this until the 0% interest period on FedLoan runs out. The reason I'm a bit hesitant is because:
Generally I'm always torn between saving and loans, but now I also am wondering about refinancing these... [link] [comments]  |
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