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Most students entering post-secondary education after high school in Texas have student loans. Students who borrow money to pay for their college education need to know how they may use these loans to repay them and what rights they have if they would like to make payments outside of the loan terms.
After graduation, students who receive financial aid must begin repaying their federal student loans no later than 30 days after leaving school. Once the undergraduate loan repayment period ends, graduate students who receive financial aid may start repaying their federal student loan debt two years after leaving school. For both undergraduates and graduates, the amount borrowed determines the length of time until the first payment is due. In addition, interest begins to accrue on the outstanding balance on day one of enrollment at any post-secondary institution. Both undergraduates and graduates have six months to make a minimum monthly payment on their loans. After that, they must begin making monthly payments based on the remaining principal owed. If not enough money is paid each month, the balance increases and additional interest charges become added onto the account.
Income Based Repayments (IBR)
The Federal government offers income based repayment plans to borrowers with moderate to low incomes. These programs allow borrowers to pay back their loans over a longer period of time and reduce the total amount repaid. Undergraduate loan borrowers qualify for IBR if they meet certain income requirements. Graduate students do not need to meet specific income limits to participate in IBR. However, the program does limit borrower eligibility based on their expected future earnings. Interest rates will vary depending on income level. An example of an income based repayment plan is the 10 year standard repayment plan.
Pay As You Earn (PAYE)
Pay As You Earn Plans offer borrowers flexibility in paying back their student loans. Borrowers can determine whether or not they want to begin repaying their loans while still enrolled in school or once they have graduated. When borrowers begin repaying their loan under PAYE, they must pay the full interest rate on the unpaid portion of the balance. At the end of five years, borrowers are responsible for 20% of the remaining balance regardless of the original amount borrowed. Graduates who have completed their degree and are still working must continue making payments on their student loans even though their loan term ended. A partial breakdown of the interest rates borrowers pay on their student loans is shown below.
Interest Rate Breakdown
Graduate Loan Interest Rates – 5 year plan starts on January 1st of the fifth year, 10 year plan starts on July 1st of the tenth year
Undergraduate Loan Interest Rates – 4 year plan starts on July 2nd of the fourth year, 6 year plan starts on July 31st of the sixth year, 8 year plan starts on July 29th of the eighth year, 10 year plan started on July 1st of tenth year
Public Service Loan Forgiveness Program (PSLF)
Federal law gives borrowers the opportunity to have some or all of their student loans forgiven if they work in public service jobs for 10 years after graduating. For undergraduates, the program starts on July 1st and lasts for 15 years. For graduates, the program starts on August 1st and lasts for 25 years. While borrowers are making payments on their loans, they must work in public service jobs approved by the U.S. Office of Personnel Management. Job s that qualify include teachers, nurses, emergency responders, social workers, firefighters, police officers, and others.
Private Student Loan Forgiveness Programs
Private student lenders offer alternative loan forgiveness programs. For borrowers who earn less than $50,000 per year, private firms offer loan cancellation options. The types of private companies that offer loan forgiveness plans include Sallie Mae, Citibank, Bank of America, Capital One, Wells Fargo, and US Bank. Private lenders often charge higher fees than the federal government. Their loan forgiveness programs are not as generous as those offered through the federal government’s PSLF.
Texas Department Of Education Student Loans
Texas Tuition Assistance Program (TTA)
The Texas TAA program provides financial assistance for eligible students who attend public schools and community colleges in the state. Eligible families receive help paying for college expenses in the form of grants, loans, and work-study programs. TAA funds can be awarded based on family income, number of children enrolled in school, and the student’s academic performance.
Federal Direct Loan Programs
Federal loan programs provide low interest rates and flexible repayment options for qualified borrowers. If you have federal loans, contact your lender directly to find out about how to discharge your debt before filing for bankruptcy.
Private Student Loan Programs
Private loan programs may offer lower interest rates than federal loans. However, private loans do not qualify you for any federal aid programs and they cannot be consolidated with federal loans. Contact your bank if you want to explore private loan options.
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If you’re planning on relocating to Houston, TX, you might be looking for some great places to live near downtown. In fact, the city’s downtown core is home to many amazing neighborhoods where you can enjoy great dining, shopping, and entertainment. Whether you’re moving here for work, studying, fun, or a combination of reasons, finding a place to call home will make your transition much easier. Here are just a few of the best neighborhoods in Houston near downtown:
West University Place West University Place is one of the top residential areas in Houston. Located less than five miles away from downtown, Uptown residents have access to tons of restaurants, shops, parks, and transportation hubs. Plus, West University Place is only minutes away from Minute Maid Park, Minute Maid Field, and The Galleria. Many people choose to stay in West University Place because of its proximity to UT Medical Center, Rice University, the University of Houston, and the Museum District.
Montrose Montrose is a popular neighborhood located in the center of Houston. People love living in Montrose because it offers plenty of unique boutiques, bars, and restaurants. Residents can walk to many of these spots from their homes, making it convenient for everyone. Additionally, Montrose is close to several major highways including I-45, 610, and Beltway 8. There are several fantastic parks in Montrose, including Montrose Creek Greenbelt and Montrose Country Club.
Texas Department Of Education Student Loans
Texas State University
Texas State University (TSU) provides students at its three campuses, including the College Station campus, with access to many opportunities. TSU offers over 60 undergraduate majors and minors in addition to graduate programs and professional certificates. Students interested in pursuing degrees in architecture, business, criminal justice, education, engineering, environmental science, fine arts, human services, information technology, journalism and mass communications may find that TSU is the perfect fit for their academic interests. The University’s low student-to-faculty ratio, small classes and hands-on teaching methods foster an effective learning environment. And for those who seek leadership experiences outside of classroom settings, TSU also boasts several student organizations—including the American Institute of Architecture Students (AIA), National Society of Black Engineers (NSBE), National Association for Equal Opportunity in Higher Education (NAFEO), Panhellenic Council (PANHC), and the Hispanic Leadership Alliance (HLA)—that provide students with valuable networking opportunities. TSU’s four colleges offer a wide variety of bachelor’s degrees in fields ranging from biology and chemistry to art and music. In addition to being close to downtown Austin, TSU is located in central Texas, about 40 miles southwest of Waco and 100 miles northwest of Houston.
Southwestern Oklahoma State University
Southwestern Oklahoma State University (SWOSU) was established in 1893 and today enrolls approximately 5,000 undergraduate, graduate and doctoral students. SWOSU offers more than 80 degree programs and serves as a regional center of higher education, providing outreach and educational opportunities throughout the state. Located in Weatherford, Oklahoma, SWOSU has been ranked among America’s Best Colleges and Universities by U.S. News & World Report since 2009. Students enrolled in SWOSU’s programs enjoy personalized attention and a vibrant community; faculty members have won numerous awards for excellence in teaching. In addition to excellent academics, students attending SWOSU receive extensive training in cultural competency and diversity awareness. A number of student groups promote cultural understanding and enhance the quality of student life. Campus facilities include a 300-seat performing arts theater, athletic stadium, fitness centers, library, career counseling center, radio station KOSV-FM 91.9, sports complex, and computer labs. Enrollment in SWOSU‘s online programs continues to increase each year, making distance learning a convenient alternative for working professionals seeking continuing education.
University of North Texas
The University of North Texas (UNT) offers a comprehensive program in 18 schools and colleges. Programs in Business Administration, Engineering Technology, Nursing, Pharmacy, Psychology, Social Work, Teacher Education, Health Professions, Criminal Justice, and Human Services are offered across five academic divisions. UNT enrolls about 32,000 students and employs nearly 2,600 full-time faculty members. The University recently opened a $260 million research facility designed to expand scholarship and bring world-class research to the Dallas area. Located on a 75-acre site near Denton, north of Dallas, the university maintains strong relationships with corporations, businesses, governments, and civic organizations. UNT ranks among the top 10 universities in the United States and Canada for economic impact according to the 2008 edition of U.S. News and World Report. More than 20 percent of UNT graduates pursue careers in medicine,
Texas Department Of Education Student Loans
-Sub: “Student Loan Debt Statistics”
-Text: “There are currently 1,943,300 students enrolled in Texas school districts, according to the Texas Education Agency (TEA) 2013-2014 School Year Data Book. That number represents 8 percent growth over last year’s enrollment figures.”
-Byline: Zach Waugh | Staff Writer | March 22, 2015
-Publisher: Zach Waugh
-Date Created: March 22, 2015
-Copyright Statement: Copyright 2015 The Dallas Morning News
That figure represents a 0.
Texas Department Of Education Student Loans
A student loan is a debt incurred by someone who attends school. Generally, after graduation, they take out loans to pay for their education. These loans may be private (for example, if you borrow money from a bank) or government-backed (if you borrow money directly from the federal government). Private loans are generally easier to get than direct ones are. However, private loans have higher interest rates. If you do not make payments on time, you could lose some or all of your principal balance, depending on what type of student loan you have. In return for your interest rate, you give the lender the right to charge you late fees and fees for going over payment terms. You might also be charged for certain services, such as credit checks or garnishments.
Federal student loans are issued by the U.S. Department of Education. These are called Direct Subsidized Stafford Loans. They are guaranteed by the federal government. As long as you meet specific criteria, you won’t have to pay back all of your loan amount, just 10% of your monthly income. Your total payments each month will depend on how much you borrowed and how much you earn per year. Payments may be spread out over six months or twelve months, depending on which option you choose.
Private student loans are issued by banks or lenders. Most of them offer a flexible repayment schedule; however, they may be less forgiving about defaulting than federal loans are. Also, many private loans require you to cosign for a co-borrower’s loan, meaning that if anything happens to him/her, you’ll be responsible for the loan.
While most students don’t think twice about taking out student loans, the fact remains that they’re a huge burden on borrowers’ finances even after they graduate. Many people end up paying off their loans for decades without seeing any benefit. Therefore, you should consider your options before accepting these debts.
Public Service Loan Forgiveness offers borrowers who work in public service jobs a chance to wipe away their student loan debt. To qualify, you need to work full-time in public service jobs, including things like teaching, social work, law enforcement, nursing, firefighting, etc., for 10 years and then make 120 qualifying monthly payments. You cannot use this program if you’ve been convicted of a crime or declared incompetent by a court of law. Additionally, you cannot receive any other forms of financial assistance at the same time.
Income based repayment plans are another way that the federal government gives borrowers the opportunity to lower their interest rates while still making payments on their student loans. Typically, these programs allow you to make smaller payments while still paying down your debt faster. However, you have to prove to the IRS that you’re working in low-income circumstances.
If you do not make enough to live comfortably on, your payments may not be affordable. And if you ever want to increase your standard of living, you would have to repay your entire balance, regardless of whether you’re currently making payments. On the other hand, if you find yourself able to afford payments, you’ll save a lot of money in interest charges.
Graduated Repayment Plans are similar to income based repayment plans except they’re offered only by private lenders. Again, you have to prove that you’re working in a low-income situation, but unlike IBRPs, you can keep making payments under the plan. At the end of 20 years, you’ll fully pay off your loan.
The downside to this plan is that you’ll likely be saddled with a high interest rate. Private loans normally have interest rates between 4% and 12%, compared to the 6% federal interest rate on subsidized loans.
Refinancing your student loan is another option you have to reduce the overall cost of your loans. When refinancing your student loan, you might be able to negotiate a better interest rate, lower payment amounts, a longer term, or all three.
However, refinancing isn’t always an option. There are several companies offering student loan refinancing, so it pays to shop around. You also need to remember that you’ll be giving up the equity from your home, which means that you’ll be losing money.
Debt Consolidation refers to combining more than one kind of debt into a single loan. While consolidation seems attractive because you’ll only be making one monthly payment instead of multiple ones, you could actually find yourself in worse shape financially when your bills start getting paid again. Remember what happened when you took out those payday advances?
Payday Advances are unsecured loans given to people with bad credit. Normally, you’ll borrow a sum equal to two weeks worth of your salary, plus interest. The idea behind this is that you can easily get a cash advance when you really need it. But because you’re borrowing in this fashion, you’re probably not eligible for other types of financing.
You’ll never know exactly how much you’ll owe, so it’s wise to try to avoid using this method.
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