Tag Archives: Loans

Loan Websites

Federal Student Loan Websites

Complete FAFSA® – Complete your Free Application for Federal Student Aid (FAFSA®) to see what aid may be available to help you pay for college

 

Federal Student Aid– Get ready for college or career school, learn about federal student aid and how to apply using the FAFSA®, and get information on repaying student loans

 

Federal Student Aid: Loan Forgiveness, Cancellation and Discharge– Find out whether you qualify due to your job, disability, the closure of your school, or other circumstances

 

Federal Student Aid: Military Student Loan Benefits– Information Members of the U.S. Armed Forces need to know about your federal student loan benefits

 

National Student Loan Data System (NSLDS)– Lets you retrieve your loan information for your federally-owned or federally-guaranteed loans including any balances and which company is servicing them

 

StudentLoans.gov– Apply online for Income Driven Repayment plans, consolidate federal student loans, complete your Master Promissory Note, complete entrance and exit counseling, and more

 

U.S. Department of Education– Provides information about the Department’s offices, programs, information and assistance services, funding opportunities, education statistics, publications and more
https://www.mohela.com/DL/resourceCenter/AdditionalResources.aspx

Financial Literacy

What is financial literacy?

Financial literacy is defined as:

  1. The ability to read, analyze, manage and communicate about the personal financial conditions affecting material well being.
  2. The term is used to describe financial education programs on college campuses and within high schools. The objective of financial literacy programs is to help students better manage their finances,budget effectively, and borrow wisely.

Smart financial management includes a few basic good habits. If you are a student, you may already have a checking account, a credit card, or maybe even a car loan. When heading off to college, you may also need to borrow student loans to help finance your education. But have you determined your financial goals and established good financial habits? Here are a few tips to get you started.

Steps you can take now to get on the right financial path

  • Take charge of your spending. Establish a budgetPDF Document; set limits and prioritize; determine the difference between needs and wants; speak with a professional, nonprofit credit counselor if needed.
  • Start saving. The earlier you save, the more you’ll have.
  • Understand the costs of credit. Compare at least three offers before you choose a credit card; look for low interest rates and no annual fees; always pay more than the minimum payment.
  • Understand how credit use affects your future. Know the difference between good and bad debt; check your credit report annually.
  • Protect your credit and your financial future. Beware of identity theft; review statements and notify creditors immediately of errors; know what’s in your wallet/purse.

Planning for Financial Success

Minimize your student loan debt by following these Top 10 ways to graduate debt free.

  1. Complete the FAFSA annually.
  2. Qualify for federal grants.
  3. Research state scholarship and grant programs.
  4. Apply for institutional scholarships.
  5. Explore private scholarships.
  6. Inquire about work programs available on your campus.
  7. Set up a payment plan for your tuition.
  8. Secure summer employment.
  9. Invest in MOST, Missouri’s 529 college savings plan.
  10. Live like a student now, so you don’t have to later.

www.dhe.mo.gov/ppc/studentloans/finacialliteracy.php

 

Loan Payments

How to Make a Payment

Making payments on your student loan with Nelnet is easy! With options to pay anytime, anywhere, you can manage your account your way. We offers a variety of payment options, including automatic debits (ACH), to let you choose a method that’s convenient for you. And, if you wish, we can send you text alerts to confirm or remind you to make your payments! See details below.

+Your Accounts, Loan Groups, and Due Dates

http://www.nelnet.com/How-To-Make-A-Payment/

America Saves for College

Sallie Mae’s “How America Saves for College 2013” study, conducted by Ipsos, finds that despite rising college costs, fewer American families with children under age 18 save for college (50%) than did just two years ago (60%). Based on a nationally representative survey of parents of children under age 18, the study found that:

  • While nearly all parents believe college is an investment in their child’s future, only one-third have a plan to pay for college.
  • When asked to describe their feelings about saving for college, parents’ top answers were overwhelmed, annoyed, frustrated, scared, or that they don’t like thinking about it at all.
  • Among those not saving, 47 percent cite a barrier other than money. Top reasons included thinking that children would be awarded enough financial aid to cover the cost of college, children are too young or too old, uncertainty about which savings option to use, procrastination and feeling it is the child’s responsibility to save and pay for college.
  • Starting to save is most frequently prompted by major milestones such as a child’s birth (34%), starting school (24%), or learning about college costs from friends and family (20%).
  • Slightly more than one quarter (27%) of parents who are saving for college use a 529 college savings plan. However, more parents save for college using general funds or CDs (42%) and may miss out on tax incentives offered by a 529 account

Source: https://www.collegeanswer.com/saving-for-college/howamericasaves/

Simplify Student Loans

A Proposal to Radically Simplify Student Loan Payments

By March 24, 2014


Whether students leave college with a degree or without one, they face a dizzying array of challenges—where to live, how to get a job, and increasingly, how to repay their loans. Five organizations, including the National Association of Student Financial Aid Administrators and Young Invincibles, have a proposal that aims to answer that last question with a streamlined and automated alternative to the complex system of repaying loans.

As of now, and with few exceptions, borrowers must start paying back their loans six months after they leave school and repay according to a standard 10-year schedule. If their monthly payment is too high, things get complicated quickly. The government has six other repayment options. Two are pretty straightforward: Borrowers can reduce monthly costs either by extending payments over 25 years or by keeping the 10-year period but starting with smaller monthly payments that gradually increase over time.

Four more plans tie payment schedules to how much the borrower earns, each with different thresholds, eligibility, and terms. Those plans are far from perfect, but advocates for student borrowers generally like them because they provide graduates with flexibility and typically forgive the remainder of the debt after 10 to 25 years. For a long time, the Department of Education struggled to get students to use the plans, though recently borrowers are signing up in greater numbers.

The proposal rolls up a number of suggested improvements into one comprehensive attempt to fix the two biggest problems: the complexity of having so many options, and the relatively low participation by borrowers. Not unlike the successful effort to encourage automatic enrollment in retirement savings plans, the groups advocate what they call “auto-IBR,” short for income-based repayment. The plan would change the default payment option from the standard 10-year term to a repayment schedule that’s tied to a percentage of the borrower’s income and eventually forgives the remaining balance after a certain period of time. It also suggests the payments be automatically deducted from a borrower’s paycheck, similar to the way Social Security is collected, an idea championed last year by Representative Tom Petri, a Republican from Wisconsin.

The plan recommends various ways to make this work. One option is to require borrowers to pay 18 percent of everything they earn above $25,000 a year; another sets the payment level at 10 percent of income above $10,000 a year. The proposal also suggests longer terms for borrowers who take out a lot of debt, at least $50,000 or $60,000 in different scenarios. That’s to minimize giving a disproportionate benefit to students who borrow a lot—looking at you, law students!—and could see huge amounts forgiven. While this all may sound a bit complicated, it’s far simpler than the current situation.

Source: http://www.businessweek.com/articles/2014-03-24/student-loan-payments-can-be-simplified-reform-advocates-say

Helpful

Calculators

Repayment Amortization

You can estimate your payments with various interest rates and loan terms using this calculator.

Repayment Plan

You can estimate your payments under various repayment plans using this calculator.

Income-Based Repayment

This calculator can help you determine if you qualify for the Income-Based Repayment(IBR) plan. IBR is designed to make payments more affordable for borrowers.

Income Contingent Repayment

This calculator can help you determine if you qualify for the Income Contingent Repayment (ICR) plan.The Income Contingent Repayment plan is based on your Adjusted Gross Income.

https://www.mohela.com/DL/calculators/default.aspx

A Break From Payments

Take a Break from Payments

Both deferments and forbearances give you a break from monthly payments for a set period of time. Many options are available to meet a variety of needs. If you are having difficulty making payments and want to see which options fit your specific situation, log in to your account and click Postpone My Payment to see which deferment or forbearance works best for you. Of course, you can also call us at 888.486.4722 to talk through your options.

  • Log in to your account and click Postpone My Payment to apply for deferment or forbearance. You can also call us at 888.486.4722.
  • Learn more about the difference between deferment and forbearance.
  • Calculate accrued interest while in deferment or forbearance. (To avoid capitalization, you may choose to pay accruing interest or even small payments toward the balance.)

 

Avoid Default With Deferment or Forbearance

About Deferment

If you are experiencing financial hardship, go back to school, are unemployed, or are on active duty military service, postponing payments with deferment may be right for you. Subsidized Stafford loans and subsidized consolidation loans will not accrue additional interest, so your balance after the deferment period will be the same as when it started. However, for unsubsidized Stafford loans, PLUS loans, SLS loans, or unsubsidized consolidation loans, interest will accrue during the deferment period, so it’s wise to pay at least the interest on your loan each month. This will prevent your interest from being capitalized, or added to the principal of your loan, essentially increasing your total balance and requiring you to pay more in the long run.

About Forbearance

If you work an internship, perform certain types of community service, or find yourself experiencing financial hardship, you may be qualified to postpone payments with forbearance. All loans accrue interest during forbearance, so it’s smart to pay at least the monthly interest during this period to avoid interest capitalization. Forbearance resolves any delinquency on the account—log in to your account and click Postpone My Payment to see if you’re eligible. You can also call us at 888.486.4722.

Available Deferments

The federal government has allowed for these deferment options. Read on to see if these situations apply to you. Remember—just because you are eligible for a deferment does not mean you are required to request it; if you feel you can make payments on your loan, you are encouraged to do so.

Armed Forces Deferment

If you serve on active military duty in the Armed Forces or National Guard, you may be eligible for this deferment or other student loan benefits for members of the military.

http://www.nelnet.com/Postpone-Your-Payments/

Planning

Worksheets, Resources, and Tips

Budgeting Worksheet     Manage your budget and get on the right track using this itemized worksheet.

Budget Strategies     Good intentions aren’t enough. Try these strategies to save money for your future.

 Managing Your Money       Achieve financial wellness with these nine money-saving tips.

Credit Card Tips       Credit cards help establish and improve your credit score, but only when used responsibly. Make sound financial decisions with this info.

Identity Theft       Don’t be a victim. Keep your identity safe with these tips.

Explore Deferment and Forbearance       Trouble making payments? Discover how you could postpone them.

2013-2014 Federal Student Loan Programs       Compare your federal student loan options.

Financial Goals Worksheet       Healthy financial habits start by setting sound financial goals. Get started here.

Live Life Smart Guide Your complete guide to becoming financially savvy, whether you’re graduated or just starting your education.

Financial Literacy with the Department of Education Let the Department of Education help you find a balance between your income, financial aid, and living expenses.

http://www.nelnet.com/Get-Financially-Fit/