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9 Things You Didn’t Know About Student Loans

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Around 71% of Americans have student loan debt when they graduate from college–and paying it off isn’t easy. The standard repayment plan is set up so that students can pay off their loans around 10 years after graduation. Unfortunately, not every student is able to reach that goal. Some may take twenty years or longer to reach their student loan repayment goals–and that means a long time spent with debt hanging over their heads. Whether you’re thinking about taking out student loans in order to help pay for college or you’re looking for more information about paying your existing loans, these …

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How Does Student Loan Interest Work?

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The basics of student loans are pretty straightforward. A lender (usually the federal government) gives you a certain amount of money to help pay for college. Once you’ve graduated and you start your career, you pay that money back. However, student loans, like most other loans, generate interest on top of what was borrowed. Because of interest, you should always expect to pay back a more than your original student loan amount. To understand how special terms affect student loan interest and how you can pay as little interest as possible, let’s take a closer look. When Do Student Loans …

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How to Get Student Loans Without a Cosigner

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How to Get Student Loans Without a Cosigner Lending institutions are a business and, like any business, they want to control the risk that they take on with borrowers. One way that lenders avoid risk is by only lending to borrowers who have high credit scores and an established credit history. However, many students are just beginning to build their credit, and while attending school may not have a regular source of income. In spite of their position as higher-risk borrowers in the eyes of many lenders, students are nonetheless in dire need of financial aid (like student loans) to …

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5 Tips for Students Filing Taxes for the First Time

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Many people filing their taxes for the first time this season are college students or recent college graduates. Here are a few tips to help you tackle your first tax season on your own. 1. Call Your Parents Even if you have gone away for school or graduated in the past year, your parents may still be able to claim you as a legal dependent for tax purposes. If they paid more than half your living expenses for the tax year, they are probably planning on claiming you as a dependent. Give them a call and find out. 2. Organize …

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Should You Borrow Money to Study Abroad?

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Consider this scenario: You’re a third-year college student and you’ve chosen to study in Dublin, Ireland, for a semester. Your room and board costs will be roughly the same as at your stateside university, because of a reciprocal agreement. But there will be extra opportunities for enrichment activities, field trips, and travel to additional countries. You worked hard during the summer, so you have extra cash to cover some of these extra expenses. Your older sister who studied abroad before you urges you to take out an extra loan because, after all, this is a great opportunity to do more! …

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Students and Debt: Where the 2016 Democratic Presidential Candidates Stand on Student Loan Debt

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Current student loan debt stands at more than $1 trillion, with students graduating from four-year colleges and universities with the highest debt in the nation’s history. As such, it’s not surprising that the 2016 presidential candidates are being asked how they plan to tackle the student debt crisis, should they be elected the next president. With that said, here’s a look at where four of the leading Democratic candidates stand on student loan debt: Hillary Clinton Clinton’s plan for making college more affordable and reducing student debt comes with a $350 billion price tag over ten years, and will be …

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Students and Debt: Where the 2016 Republican Presidential Candidates Stand on Student Loan Debt

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With just over a year until the 2016 presidential election, candidates from both parties have found themselves having to answer more and more questions regarding how they feel about what some have called the student loan debt crisis. As such, here’s where a few of the 2016 Republican presidential candidates stand on student loan debt: Source: Michael Vadon Jeb Bush Bush has called on colleges to help ensure students graduate on time so they don’t continue to accumulate debt over years. In addition, he has said that colleges need to help students select degrees that will lead to employment after …

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4 Student Loan Options for Non-Traditional Students

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The term “non-traditional students” refers to students who are not enrolled full-time in a four-year college or university immediately after high school. Though the name would suggest otherwise, these students actually make up the majority of students seeking college degrees today. In fact, as recently as a few years ago, only 5.2 million of 18 million undergraduates were considered traditional students. To put it another way, a mere 29% of college undergraduates are technically traditional students. With so many more non-traditional students (older, married, divorced, working, attending school part-time, attending community college first, etc.) seeking college degrees, it is clear …

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What Is Cosigner Release on Private Student Loans?

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When comparing private student loans, it’s important to remember the needs of the cosigner. Often, students that are in need of additional college funding turn to loans, and may need a cosigner to get approved for some. Usually a parent ends up handling the duties, but before signing up, they should consider all the details. What is a cosigner release on a private student loan? It’s when a cosigner can be released from an application once certain repayment requirements are met by the primary borrower on a private student loan application. This allows for the cosigner’s credit to be cleared …

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4 Reasons Community Lenders are Better Than Big Banks

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When choosing a lender for your loan, you have two general options: community lenders or large national banks. Community lenders are smaller local banks and credit unions, while large national banks are the well-known names almost everyone is familiar with, like JP Morgan Chase and Bank of America. While both of these options offer their own distinct advantages, we’ve found that most borrowers benefit from working with smaller community banks and credit unions. Here’s why: 1. You’ll likely save money. Most people save money when they work with community lenders because of the way these institutions are set up. For …

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Aggregate Loan Limits: Federal and Private Student Loans

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There is a life-time cap for student loan eligibility. It is referred to as the “Aggregate Limit”.This is the point where a student is no longer eligible to receive any more loan funding. They are maxed out. It’s basically the same as having a max limit on a credit card. Lenders simply establish a maximum amount and will not lend any further than that. The Federal Direct Loans Program limits As indicated above, aggregate limit can be affected by Parent PLUS loan denials. If the Parent is credit denied for a Parent PLUS loan, the student becomes eligible for an additional …

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Student Loan Certification: What Is It and How Does It Work?

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Every year, students around the country complete student loan applications in order to pay for tuition and other related expenses for college. These applications can be for federal and private student loans. Before a student loan can pay to a student’s account a process called certification must be completed. Student loan certification is basically a borrower protection put in place to make sure that correct loan amounts are being distributed to students. There are two different types of student loan certifications out there; Self certification and school certification. Self certification A required part of any private student loan application where the …