May 14th, 2017 | Uncategorized
Consolidation loans allow you to combine multiple federal student loans into one loan, thus reducing the interest charges and increasing the total amount of money you can borrow from the government. There are advantages to consolidating a couple of loans, but it’s more difficult than one large loan.
Sallie Mae and CFPB have both called consolidation of student loans a “major reform” because it is an option for students with hard-to-get loans. However, as of September 2016, only 31% of students have taken advantage of the option to consolidate their federal student loans. Take advantage of the consolidation opportunity before it’s gone!
Federal Student Loans Federal student loans are basically like credit cards. They are purchased with your hard-earned money and are listed on a credit report that is available to all Americans. The most common type of federal student loans is Federal Direct Loans, which are typically repaid through a private lender (bank). A higher percentage of students using CFPB loans are using the Stafford loans, which are made by the federal government, repayment on the Stafford loans is not tax-deductible as income.
According to companies like SoFi, the amount of student loan debt owed by college graduates has tripled in ten years and will double by the end of this year if current trends continue, according to a December 2016 report by the Brookings Institution. More than 55 million college graduates are under the age of 30 and, of those, more than half are in default on their student loan. Experts say that students have significantly underestimated the cost of an education, to the point where, when students graduate, many are struggling to pay back the student loans they took out.
Does your income qualify you for one of the most popular federal student loan repayment options? Do you have student loan debt that you are struggling to pay back? Take your time to research the options for your situation and compare them to the options listed below. Click on the links below to get more information on student loan repayment options.
I want to borrow money to go to college what if my employer doesn’t allow student loans?
The Social Security Administration allows you to take out a portion of your Social Security benefits to pay off student loan debt. This is in addition to taking out your entire Social Security benefit for emergency and retirement. Student loan repayment is also available through most federally funded work study programs.
