Student Loans Lower Payments

Student loans are an example of a debt that is not easily discharged in bankruptcy court. There are two reasons for this: First, student loan debt is not considered taxable income. Second, student loans have some unique characteristics that make them difficult to discharge.

While federal student loans do fall under the Bankruptcy Code’s definition of non-dischargeable debts, private lenders may take action against borrowers who file for bankruptcy. Private lenders could seize assets such as cars or homes. Even if they don’t, the borrower might still owe money to the lender long after the bankruptcy proceeding ends.

Unlike your credit card bills, you won’t get any relief from private creditors if you declare bankruptcy. The only way to escape these types of debts is through wage garnishments, tax refunds (like TANF), or unemployment compensation. Federal student loans are a different story. Even though they’re unsecured, the government steps in and reimburses students’ lost wages while they go to school. So, the total amount you owe the government at the end of your repayment period will equal what you owed before going bankrupt.

If you default on your student loans, you’ll lose the ability to borrow additional funds. But, if you’ve already borrowed more than the maximum allowable limit, a private lender could prevent you from borrowing more. Your best bet would be to consolidate your loan balances into one. Consolidation lowers your interest rates, making repaying your student loans easier. Another option is to sign up for Income Based Repayment or Pay As You Earn. These options allow you to pay back your loans over time instead of the standard 10 year repayment schedule.

If you decide to refinance your student loans, consider getting them out of the United States Department of Education and into a private entity. Private entities offer lower interest rates and flexible payment plans. In addition, private lenders often provide refinancing without requiring the traditional credit checks conducted by USDE.

6.”There is no ‘Cure All'”

The above quote was taken from the article d, “What causes a hangover? It’s actually much simpler than we thought,” which appeared in Scientific American. This is a simple question for many people. When someone asks this type of question, it means that he/she wants to know how to cure a hangover. However, there is no “cure all”. Different things cause different types of hangovers.

Let’s look at each of the major factors contributing to hangovers.

Alcohol Consumption

Alcohol consumption is the number one factor that contributes to a hangover. A hangover is caused by alcohol metabolizing enzymes called CYP2E1 and CYP3A4. These enzymes work together with the liver to breakdown alcohol into acetaldehyde, a toxic substance that damages cells. Acetaldehyde oxidizes to acetic acid, causing nausea and vomiting.

Sleep Deprivation

Sleep deprivation causes a person to lack restorative sleep. Sleep deprivation increases levels of cortisol, a hormone that raises blood pressure and causes headaches. Cortisol also suppresses the immune system. Sleep deprivation then makes hangovers worse by decreasing the body’s ability to fight off sicknesses.

Stress

Stress affects everyone differently. Some people experience anxiety when stressed or anxious. Others feel nervousness or tension. And others experience anger or irritability. Stress causes the adrenal glands to secrete adrenaline and cortisol into the bloodstream. Adrenaline helps regulate heart rate and blood pressure. Cortisol helps produce and store glycogen (a storage facility for glucose) in the muscles and brain. Both hormones help increase blood sugar levels and keep us awake. However, too much cortisol and too little sleep can lead to a hangover.

Student Loans Lower Payments

Student Loans

If you’re currently paying back student loans, you likely know the feeling of being buried under hundreds of dollars in debt. Unfortunately, these types of debts often remain unsecured or non-dischargeable. While it may be impossible to eliminate your student loan balance entirely, you can significantly reduce the amount you owe by choosing a lower payment plan.

Income-Based Repayment (IBR)

An income-based repayment option allows you to pay off your student loans over a period of ten years while maintaining some standard of living. You can keep making payments each month or set up a biweekly payment schedule. Each year, your monthly payment will decrease, which means that if you start at $300 per month and make 36 payments, you would end up with only $180 remaining after 10 years.

Pay As You Earn (PAYE)

This type of plan allows you to pay back your student loan based on your income and family size. Instead of making fixed monthly payments, you can adjust your payment amount based on how much money you earn. Once again, your monthly payment decreases every year, starting at 8% of your discretionary income. After 20 years, you’ll have paid off your loans completely.

Public Service Loan Forgiveness (PSLF)

The PSLF Program was introduced in 2007, and was designed to help recent college graduates who work in public service jobs avoid accumulating any federal student loan debt while receiving their salary from the government. To qualify, you cannot have received more than 120 credits from a four-year degree program. If you meet this threshold, your outstanding student loans will be wiped out once you reach 270 months of employment in public service.

Direct Subsidized/Unsubsidized Consolidation

Under this consolidation method, you will combine all of your federal student loans into a single loan with a smaller interest rate. However, you will not qualify for any special programs, like IBR or PSLF. Your payment could go down slightly, but not enough to offset the difference between your current student loan rate and what the consolidated loan would cost.

Private Alternative Loan Programs

There are several alternative loan programs where private lenders offer low rates and flexible repayment options. Because they don’t get backed by the U.S. Department of Education, these programs aren’t eligible for certain consolidation options. These companies give borrowers flexibility by letting them choose between a 12-, 24-, 36-, 48-, 60-, 72-, 84- or 96-month payment plan.

Home Affordable Refinance Program (HARP)

If you have a mortgage on your home, then HARP might be right for you. If you have a federally issued student loan, however, it isn’t going to apply. But you can still gain access to competitive mortgage rates by refinancing your existing loan. Just remember that you’ll need to verify that the principal and interest on your student loan is less than your current mortgage balance – otherwise you won’t qualify.

Student Loans Lower Payments

Students often need loans to pay for tuition costs, books, housing, food, transportation, etc. A student loan is a type of unsecured personal debt where you borrow money to cover expenses. Most students take out loans to help pay for their education. Student loans are issued by private companies called lenders, and they have different terms depending on whether you choose to borrow for school now versus later, and how long you plan to repay the loan. There are two types of federal student loans: subsidized Stafford and unsubsidized Stafford. Subsidized Stafford loans are federal loans given to parents who qualify. Unsubsidized Stafford loans are available to students, and these loans are not guaranteed by the U.S. government. Lenders offer varying amounts of interest based on factors such as the amount borrowed and the length of time you plan on repaying the loan. You may want to consider taking out a private student loan instead of relying solely on federal loans. Private student loans tend to cost less than federal loans, and most private lenders offer lower interest rates. To apply for a loan, visit www.studentloans.gov.

Student Loans Lower Payments

Subscribe to my channel for more!

ABOUT STUDENT LOANS HELP: My name isStuartClayton, and I’m self taught at becoming a personal finance blogger. Since 2010, I’ve been sharing what I have learned about money and investing, and my mission is to help people achieve financial freedom no matter how little they start out with. And while I am a student loans expert, my articles are geared toward anyone looking for a post grad degree or those starting their journey to financial independence. By taking some free tips and resources I share here, readers can begin moving toward their own goals. If you want to learn more about me, visit my ABOUT page. You may contact me via email at stuartsays@gmail.com

Student Loans Lower Payments

As student loan debt levels continue to rise, many borrowers are making their payments smaller than ever before–with some borrowing less than $100 per month.

In fact, according to a recent report from FICO, nearly half of students who started repaying their loans last year were paying just $40-$60 per month.

To put this figure in perspective, FICO reported that at the same time last year, only 6 percent of student loan borrowers paid less than $30 per month on their loans.

While many people may view this small payment as a good thing, as these borrowers have less money left over each month after making their monthly bills and student loan repayments, they could actually be facing serious consequences.

According to a study out of Stanford University, student loan debtors who pay less than $120 per month on their student loans face higher risks of defaulting on those loans compared to borrowers who make larger payments.

If you’re already struggling to afford your monthly expenses, how much do you think you would sacrifice if you had even more to spend? Would you go without cable, cut back on groceries or skip on utilities? These sacrifices may seem insignificant now, but they can add up over time; and while cutting back won’t eliminate your financial obligations entirely, it will help you get ahead faster.

Your best bet for avoiding the inevitable is to start planning early. Start saving aggressively and focus on building a budget. Once you’ve established a regular income and determined how much you need to cover your monthly bills, you can use the extra cash to start paying down your student loan balance.

You should also consider refinancing any existing student loans to lower your interest rate. Student Loan Hero offers an awesome tool called RefiGenius to let you calculate your estimated savings based on rates from over 100 lenders.

When it comes to taking advantage of lower repayment options, don’t wait until your loan is fully repaid. Remember, every dollar you save today means a bigger chunk of your debt disappears tomorrow.

At Student Loan Hero, we believe that education shouldn’t cost a fortune, especially when your future is on the line. That’s why we developed LendEDU, a free service that provides access to personalized, expert-guided student loans information. We want to help ensure that you know exactly what you’re getting into when you sign on the dotted line.

If you’d rather explore other alternative ways to pay off your student loans, check out our post on “How to Build Credit Fast.”

Still not sure where to start? Our guide on How to Pay Off Your Debt teaches you everything you need to know about personal finance, including how to save money, manage credit wisely, apply for jobs online, and negotiate with creditors.

Finally, if you have questions about your specific situation that aren’t answered here, contact us directly at 1-800-270-0181.

►HEY, we’ve got more valuable information here: ►CLICK HERE LOANS FOR STUDENTS◄

►Cloud of related items ▼

►Loans For Students◄

 

bloque1x