Pres. Obama’s New Student Loan Debt Relief Plan

SERVICES, Uncategorized

President Obama signed his Student Loan Debt Relief Order earlier this week. The plan opens up the availability of the Pay As You Earn Repayment option to those who have borrowed prior to 2007. An estimated 5 million student loan borrowers will be effected by this Executive Order. They will be able to limit monthly payments to no more than 10% of monthly income. It is not clear when the change will actually go into effect. The Washington Post is reporting officials as stating December 2015 is probably the earliest that borrowers can take advantage of this expansion of Pay As You Earn.

Watch President Obama sign and discuss his plan.

President Obama signs Student Loan Debt Relief Executive Order

There are over a half dozen repayment options for Federal Student Loans. Most borrowers will be eligible to use several of these options. Deciding which is best for you takes considerable thought. You are only allowed to Consolidate your Federal Student Loans once.

Consider the following:

What is your potential for salary increase and advancement in your job or career?

Do you understand the ramifications of taking a lower monthly payment on the overall cost of your loan and the increase in length of repayment?

Do you have other options such as employer repayment programs, federal or state loan forgiveness plans or profession specific repayment plans?

Wading through your loan repayment options can be confusing and overwhelming. If you would like help determining your options, schedule a Student Loan Debt Counseling appointment with me. Call 507-365-7330 or email me at headforcollege@netzero.com.

6 Quick Tips for Consolidating Federal Student Loans

College Debt, Student Loans, ,

In the last year I have begun working with recent college grads who are struggling under the burden of their monthly federal student loans. Consolidating the loans in many instances can lower monthly payments by 2/3 in my experience. There a few things to consider when consolidating.

1. You can only consolidate federal student loans.

2. There are 7 different repayment options and you may not be eligible for all of them, but you should be eligible for 3-4.

3. With consolidation your interest rates on existing loans will be averaged, so some of your interest rates will be reduced, while others will increase.

4. While your monthly payments will be reduced with consolidation, you may owe more overall.

5. You can only consolidate federal student loans once.

6. You can pay off you federal consolidated loan early without penalty, which woul reduce the overall loan debt.

Choose your consolidation option wisely for the greatest benefit. If you need student loan debt counseling, contact me at headforcollege@netzero.com.

Student Loan Debt: Making Life Difficult for Young Adults

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The Huffington Post reported today on the wealth gap created by student loan debt. There are some frightening insights based on the Pew Research Center report titled “Young Adults, Student Debt and Economic Well-Being”. A record 37% of households head by an adult under 40 has student loan debt.

Another piece of staggering data is that college graduates without college debt in the same age group have a typical net worth 7 times higher than those with student loans to pay back.

I can attest to the increase burden student loans are having on young adults. In the last year, I have counseled more young adults weighed down by student loan payments. As a result of this debt my young adults clients are choosing to live at home with parents or find multiple roommates to make ends meet, delay purchasing a home, buying used cars or relying on public transportation.

Read the full article here:
http://www.huffingtonpost.com/2014/05/14/student-debt-wealth-gap_n_5322614.html

4 Quick Tips For A Successful Scholarship Search

College Scholarships

Looking for additional funds for college, but have reached your student loan limit or want to minimize your loan debt? Consider applying for private scholarships. Here are some tips:

1. Check with your school’s Alumni Office to see what scholarships are available.

2. Be aware that private scholarships and grants are not just for freshman. In fact most are offered to any full time college student, including graduate students.

3. Make a list of the hobbies, talents, jobs, clubs & organizations you participated in and use these are search topics.

4. Search for scholarships based on your ethnicity, religion, and physical /personal characteristic you have (Tall, left-handed,adopted, etc).

What Students Really Need to Hear

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Very well stated. Having worked in education for years and operated my college planning service, I coach from the same point of view.

Chase Mielke's avatarAFFECTIVE LIVING

It’s 4 a.m.  I’ve struggled for the last hour to go to sleep.  But, I can’t.  Yet again, I am tossing and turning, unable to shut down my brain.  Why?  Because I am stressed about my students.  Really stressed.  I’m so stressed that I can only think to write down what I really want to say — the real truth I’ve been needing to say — and vow to myself that I will let my students hear what I really think tomorrow.

This is what students really need to hear:

First, you need to know right now that I care about you. In fact, I care about you more than you may care about yourself.  And I care not just about your grades or your test scores, but about you as a person. And, because I care, I need to be honest with you. Do I have permission to be…

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Sen. Warren Co-Sponosors Student Loan Debt Relief Bill

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Senator Elizabeth Warren has co-sponsored a bill which would allow borrowers to refinance their federal student loans and take advantage of the lower interest rates that are currently available. She  discussed the bill in a CBS News interview yesterday. Watch the interview here.

http://www.cbsnews.com/news/americans-seek-relief-from-student-loan-debt/