Unless you’re a morlock and you’ve been living underground, you know that college isn’t getting any cheaper. Many students attending college bridge their financial aid gap with private student loans—and approximately 90% of those loans need a cosigner.
Have you ever cosigned for a student loan? Or has someone asked you to cosign for a loan? Better yet, do you know what cosigning for that loan really means for you? You should never take cosigning a student loan lightly. Let’s talk about why.
If you’ve come this far, you probably realize how important it is to have a good credit score. A bad credit score can prevent you from borrowing loans you may need to purchase a home or vehicle, cause you to have high interest rates, or even keep you from getting a job or an apartment.
Most lenders or companies that inquire about credit scores use the FICO score. But what goes into it? You may not realize everything that does or how each factor is weighed. If you don’t know, how are you supposed to better your score?
With many fall semester bills due on August 1, you may currently be looking for ways to cover your remaining tuition balance. And you may be considering private student loans for the job.
Unfortunately, when it comes to borrowing private student loans, things are as unruly as the Wild West—except there’s no John Wayne to make the tough decisions for you. So, before you sign the dotted line, here are some tips to help you choose the right option for you, pilgrim.
They say that there’s nothing certain except for death and taxes, but in the student aid world, we can almost always count on changes coming to our programs every July 1 (remember last year?). This year is no exception.
So, what’s going on, and how will it affect you? Here are the four big changes that you should know about.
Congratulations, class of 2014! Graduation came a lot faster than you expected, right?
I’m sure it already feels like the clock is ticking on a few things, like finding a job or getting your own apartment. However, don’t forget one more: If you took out federal student loans, your grace period has begun too.
Loans may not seem like a priority right now if your payments haven’t started. But, just like graduation, they’ll be here before you know it. Prepare accordingly by handling your grace period, well, gracefully. Here’s how.
Last week, the Department of Justice found Sallie Mae in violation of the Servicemembers Civil Relief Act (SCRA), ordering them to pay $96.6 million in restitution and penalties for unfair and deceptive practices while servicing private student loans. Sallie Mae admits no wrongdoing.
$60 million of that money is to compensate an estimated 60,000 borrowers whose SCRA benefits Sallie Mae may have improperly denied. So, what is SCRA, who does it affect, and why is violating it such a big deal?
When it comes to student loans, I’m always looking for new and innovative ways to pay them off—and no, I don’t mean this way. I’ve extensively researched forgiveness, repayment, and discharge options, and I thought I had seen it all.
Then, I found SponsorChange.org.
You applied to college and you got in. Congratulations! Why so blue? You’re an undocumented student and you can’t afford college on your own? I get it. The first eligibility qualification for federal student aid is “you must be a U.S. citizen or eligible noncitizen.” The second qualification for most (but not all) state aid—right after the one that says “you must be a resident of that state”—is “you must be a U.S. citizen or eligible noncitizen”. Don’t throw in the towel just yet! Sure, your options are limited—but you do have options.
There are many federal student loan repayment plans to choose from and it can be difficult to pick the right one for you. For example, some offer forgiveness after a certain amount of eligible payments if you qualify, but will you pay more in the long run to get that benefit? How do you know which option is the best fit for your situation?
It’s still cold outside, and I’ve been trying to find entertaining things to do inside since this winter seems like it will never end. (Are we in Westeros?) So, I rediscovered board games. Oh, the hours of mindless play you can have with Monopoly—especially if you play the wrong way.
During a recent visit to the Community Chest, I started thinking about paying for college (because who doesn’t ponder such issues while holding this stuff and wishing it was real?). I noticed similarities between financial aid misconceptions and the game; however, unlike that bank error, making either of these mistakes is definitely not in your favor.