Does a Student Loan Deferment or Forbearance Impact Your Credit?

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Considering deferring or placing your loans in forbearance due to financial struggles related to coronavirus (COVID-19)? Skip directly to our breakdown on how the CARES Act impacts you, your student loans, and your credit — or read on to learn more about how pausing your student loans typically works.

There’s no denying that getting a college degree is one of the best things you can do to pursue a prosperous future, but this professional head start can come at a steep cost. Over the past few years, student loan debt for the country has topped $1 trillion, leaving over 40 million Americans in a serious financial predicament.

Unfortunately, accompanying the ever-increasing mountain of student debt is the avalanche of loan delinquency. Recent graduates accustomed to the college lifestyle, often without the means to repay debt, are being severely ensnared in an endless cycle of late payments and possible default. While the future of a college education hangs in the balance, today higher education is still a necessity that often leads to significant debt for many Americans each year.

Don’t let student loans ruin your FICO score before you even get a chance to build credit in the first place. If hard times come knocking after graduation, loan deferment or forbearance are viable safeguards against overwhelming loan payments.

Deferment vs. Forbearance

If you’re having trouble making ends meet due to student loan payments, loan deferment or forbearance can offer some temporary relief. With that said, it’s important to recognize the difference between these two payment reprieves before taking action.

Deferment and forbearance both effectively put your minimum loan payments on hold in instances of economic hardship. A key distinction between these two options is whether interest continues to accrue:

  • Deferment: For government-subsidized loans, interest payments are suspended. Deferment is more difficult to qualify for, but will save you money on interest as it will not accrue during the time of deferment.
  • Forbearance: Your monthly loan payments may be reduced or put on hold, but you will continue to accrue interest on the outstanding balance of the loan regardless of the forbearance.

Both options offer a safety net for individuals in over their heads in a sea of student loan debt, but does this financial relief come at a cost to your credit score?

Does Deferment or Forbearance Negatively Affect Credit?

If the cost of student loan payments is too overwhelming, don’t hesitate to seek out deferment or forbearance, especially since it will have less of an impact on your credit score than would a reported late pay or defaulted loan status.

A common misconception is that pausing student loan payments will wreak havoc on your credit. In reality, suspending payment through deferment or forbearance should not significantly impact your credit score but may create some volatility once the loan status is updated to reflect the requested change. Meanwhile, not making loan payments that you can’t afford and running the risk of late payments is far more costly to your credit score than putting loan payments on pause.

FAQ: Pausing Student Loan Payments Due to COVID-19 

Those paying federal student loans now have the option to stop paying without accruing interest or penalties. Federal student loan payments are suspended as part of the $2 trillion stimulus package known as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This act was signed into effect on March 27, 2020, but you can request retroactive coverage as early as March 13, 2020. 

Chart: COVID-19 and Student Loans

See some fast facts below:

  • Timeline: Most federal loan payments are on hold from March 13, 2020, to September 30, 2020.
  • Who qualifies?: People paying back federal loans. Not all student loans are suspended due to coronavirus — private lenders are not required to participate.
  • Loan interest: No interest will accrue during this period, even though it’s called “forbearance” on the Department of Education site.
  • Collection agencies: Federal loan collections and department-contracted private collection agencies are suspended from sending collection notices, bills or calls.
  • Contact information: Call 1-800-4-FED-AID to get in touch with loan services or visit the StudentAid site for more details.

How does the CARES Act impact federal student loans?

The CARES Act COVID-19 provision has suspended student-loan payments, collections and interest on student loans through September 30, 2020. People don’t have to worry about making these payments or accruing additional interest during this time. But once October 1st arrives, regular payments will be required again (unless further aid is passed in the future or you make a private agreement with your lender). It’s also important to note that this act doesn’t expunge any of your total student debt, it just pushes payment dates back. 

Do I need to request the federal loan payment suspension?

No, for federal loans this measure was automatically put in place. It’s still a good idea to keep an eye out for mail or withdrawals from auto-payments, as glitches are always a possibility.

Are my loans through a private lender suspended?

No—at the federal level, private lenders are not held to the same standards and are not required to partake in student loan suspension. However, although they are under no legal obligation, some private lenders are working to provide relief. Check-in with your private lender and see what options they are offering at this time. Be ready with documentation to prove a change in your income or other extenuating circumstances.

Yes, in some limited situations, if you live in New York. The state-level government reached an agreement that included private lenders, to give similar benefits to what the CARES Act provides. Check-in with your private lender if you haven’t yet received any notice or update from them. 

Does the CARES Act provision get rid of my student debt?

No, the CARES Act provides federal loan suspension, not loan forgiveness. Once the suspension is over, borrowers will be expected to resume payments at the normal rate. Unless, of course, a separate agreement is made with the lender.

Will pausing loans hurt my credit score? 

In short, no. If you’re talking about federal loans, pausing your payments during this reprieve should not have any negative effects on your credit score as there would be no reports of any late payments or non-payments. 

If you stop paying back loans to a private lender without reaching an agreement to do so beforehand, that could have a damaging effect on your credit score. 

If you’re worried or unsure about the state of your credit try a free credit report and consultation. 

Can I continue making payments? 

Yes, you can but you may not want to under certain circumstances — including if you believe you should save more money in your emergency fund or if you’re trying to qualify for Public Service Loan Forgiveness (PSLF). According to the US Department of Education, each suspended payment will be considered a payment towards PSLF, so affect you in ways that are unhelpful to your situation. Make sure you understand how any action will affect the future of your student loans. 

It could be a good idea to continue making payments if you aren’t working towards PSLF and feel comfortable with your savings and income stability. Your interest will stay at 0% during this period and you can pay off your debt faster than if you wait. You could also make smaller payments if that’s a better balance. Contact your lender to better help you navigate your specific situation.

It’s crucial to note that this is general information and not personalized financial advice — consult a professional to see what the best option is for your individual situation. 

Will my tax refund still be withheld if I have defaulted loans?

According to StudentAid, federal tax refunds will not be returned “if the process to withhold your refund was completed before March 13, 2020.”  Your tax return will be refunded to you if the withholding process was in progress “on or after March 13, 2020, and before Sept. 30, 2020.”

What happens if I’m late turning in loan payments after September 30, 2020?

Until any further provisions are made, turning in late payments after this federal loan suspension period will likely result in the penalties you were subject to before the COVID-19 pandemic. Check with your lender for more details about your specific plan arrangements. 

The state of our economy is somewhat at the mercy of COVID-19. In this rapidly changing environment, new developments could urge politicians to take further action — only time will tell. Follow the Center for Disease Control (CDC) and World Health Organization (WHO) announcements to stay up-to-date on the latest coronavirus news. 

The Importance of Credit Repair

While loan deferment or forbearance are good options to help you protect your overall credit if needed, chances are there are other financial factors at play that affect your ability to pay your bills and thus threaten your credit score.

If you’re not meeting your financial goals, it might be time to conduct an in depth review of your credit score. After all, a less-than-stellar credit score can negatively impact overall financial security from high interest rates to the inability to secure a loan.

If poor credit is impacting your ability to achieve financial success, consider learning more about the credit repair process. For more than 20 years, Lexington Law has helped consumers improve their understanding of their credit score while distinguishing itself as a leader in the credit repair industry. If poor credit is inhibiting your ability to pay off loans or stands in the way of financial goals, contact Lexington Law today.

You can also carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter.

Source: lexingtonlaw.com

5 Ways Parents Can Help Kids Get the Most Out of Student Loans

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About the Author

Jeff Rose, CFP®

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

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Financial Advisor Student Loans

Bankruptcy and Student Loans: What You Should Know

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When you’re struggling to pay back your student loans, what’s your next step? With Americans owing approximately $1.7 trillion in student debt, you’re not the only one asking this question. With bills piling up, some might even consider bankruptcy.

The question is, does bankruptcy clear student loans?

Well, it is possible to discharge student loans in bankruptcy but it is difficult and rare. Read on for information on types of bankruptcy and other requirements there may be in order to potentially qualify to have student loans discharged in bankruptcy.

Can You File Bankruptcy on Student Loans?

It’s very unlikely. Discharging your student loans through bankruptcy requires proving to the court that you would suffer from “undue hardship” if forced to repay.

While this may sound like you—honestly, who doesn’t see that monthly payment as an undue hardship?—it’s worth thinking twice before contacting your nearest bankruptcy lawyer. If it were easy to use bankruptcy to clear student loan debt, there probably wouldn’t be millions of Americans still making payments, so this isn’t something anyone should count on.

What does it mean to declare bankruptcy?

Bankruptcy is a way of clearing your debts—which adversely affects your credit—through the court system, whose job is to sort through your assets and determine what debts to forgive that you’re unable to pay.

People looking to discharge student loans would be required to file eitherChapter 7 or Chapter 13 bankruptcy, according to the Federal Student Aid website.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also sometimes referred to as liquidation bankruptcy. In this case, assets of the person filing for bankruptcy will be liquidated—or sold—by the bankruptcy trustee. There are some exceptions of “exempt” property, but everything else will be liquidated in the bankruptcy. Generally, people who consider Chapter 7 are those with minimal assets or a lower-income.

What is defined as an exempt property can vary from state to state. In general, it may be possible to preserve some home equity, furniture, clothing, and some other necessities.

Chapter 7 bankruptcy is generally filed as a last resort.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy can be referred to as a “wage earner’s plan .” In this case, people filing bankruptcy can create a repayment plan to pay off their debts. Depending on the person filing’s financial situation, repayment may take place over either three or five years. Chapter 13 bankruptcy is more suited for individuals with valuable assets or who are earning considerable income.

In order to file Chapter 13 bankruptcy, certain debt limits must be met. As of this writing, unsecured debts, those not backed by collateral, must be less than $394,725. Any secured debts must be worth less than $1,184,200.

Filing Bankruptcy on Student Loans

So if nearly 20% of Americans with student loans are in default, why haven’t they declared bankruptcy? Simple: It’s extremely difficult to qualify to discharge student loans through bankruptcy. After all, if that kind of legal loophole existed for student loan debt, there would be nothing to stop people from graduating college and then immediately declaring bankruptcy.

While bankruptcy could provide some relief to individuals who are overwhelmed by immense debts, doing so has serious consequences. Bankruptcy is generally a last resort and filing for bankruptcy can have lasting impacts on an individual’s credit score.

Individuals struggling to stay on top of their debts should carefully weigh all of their options before filing for bankruptcy. Some alternatives to consider may be consulting with a credit counseling agency or contacting your creditors to negotiate a repayment plan. It can also be helpful to meet with an attorney who can provide more detailed information and personalized advice.

To have a shot at student loans being discharged in bankruptcy, the person filing typically needs to file additional action with the court, known as an “adversary proceeding ,” which is essentially a request that the court find that repaying the student loans would in fact be an undue hardship to both the individual and their dependents, if they have any.

Most, but not all, courts use the ‘Brunner Test’ to determine whether or not a borrower may qualify to discharge student loans in bankruptcy.

The qualifications for the Brunner Test include:

1. The borrower and their dependents cannot maintain a minimal standard of living if forced to keep paying their student loans. This is based on your income and expenses.
2. Additional circumstances exist indicating that your challenges are likely to persist for a significant portion of the student loan repayment period.
3. A good-faith effort has been made to try and repay the loans.

That criteria sets a high bar to qualify for discharging student loans in bankruptcy and in most cases, it takes extraordinary circumstances to do so.

What Happens If the Court Finds There Is Undue Hardship?

In the unlikely event that the court finds that repaying the student loans would indeed put an undue hardship on the person filing for bankruptcy, there are a few different things that could happen .

•   The loans might be fully discharged. This means that the borrower will not need to make any more loan payments. All activity from collections agencies would stop too.
•   The loans may be partially discharged. In this case, a portion of the debt would be discharged. The borrower would still be required to repay the portion of the debt that is not discharged.
•   The loan terms may change. In this situation, the borrower will still be required to repay the debt. But there will be new terms on the loan, such as a lower interest rate.

What alternatives could help me pay off my student loan debt without declaring bankruptcy?

Fortunately, there are alternative options to declaring bankruptcy.

For short-term solutions for federal student loans, deferring the loans or going into forbearance, could be options to consider if you qualify. These options allow borrowers to temporarily pause their student loan payments.

Unlike declaring bankruptcy, federal student loans in deferment or forbearance generally don’t negatively affect your credit.

Another option for federal student loans is switching to an income-driven repayment plan, which ties your monthly payments to your discretionary income. If your income is low enough to meet the thresholds for these plans, this could bring payments down significantly, though interest will still continue to accrue.

Refinancing your student loans means transferring the debt to another lender, with new terms and new (ideally, lower) interest rates.

Some borrowers may be able to qualify for lower interest than the federal rates depending on your financial standing. But, keep in mind that when federal student loans are refinanced, they lose all eligibility for federal student loan borrower protections—like the deferment, forbearance, and income-driven repayment plans mentioned above.

If you’re looking to refinance, make sure you do your research and see if you can find competitive rates with a lender you trust.

The Takeaway

While it may be possible to discharge your student loans through filing for either Chapter 7 or Chapter 13 bankruptcy, doing so can be extremely challenging—and succeeding is very unlikely. In addition to filing for bankruptcy, borrowers generally need to prove that continuing to repay the loan would place an undue burden on them and their dependents. And don’t forget: bankruptcy has considerable downsides, including the possible loss of assets and a substantial hit to your credit score that can last for years.

For federal student loan borrowers who are struggling with their student loan payments, deferment or forbearance may provide temporary solutions.

Federal student loan borrowers may also consider switching to an income-driven repayment plan, which ties their debt payments proportionally to their discretionary income. In some other cases, it might make sense to consider refinancing.

Is your student loan debt holding you back? Look into the options available for refinancing student loans with SoFi.



Bankruptcy Information: This article provides general background information only and is not intended to serve as legal/tax or bankruptcy advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal/tax or bankruptcy advice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’swebsite .

SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF SEPTEMBER DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

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Home Loans Guide

The 5 Most Popular Tampa Neighborhoods for Renters

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Tampa, FL is currently one of the hottest places to live and work.

Its tropical weather, quality schools, low unemployment rates and easy access to world-class attractions are the many reasons new residents are calling Tampa home.

If you are thinking about moving to Tampa, we can help you find the best neighborhood to meet your needs.

We combed through Google data using generic keyword searches and combined those results with the most searched Tampa neighborhoods on ApartmentGuide.com to determine the five most popular Tampa neighborhoods with renters.

Most Popular Tampa Neighborhoods

Tampa most popular neighborhoodsTampa most popular neighborhoods

Click for interactive version

Here is a quick overview of each neighborhood and what you’d expect to pay for rent in each area.

1. Downtown

downtown tampadowntown tampa

Downtown Tampa has a lot to offer visitors and residents alike. This bustling area along Tampa Bay attracts professionals looking for easy access to the business and financial districts and plenty of activities and entertainment. Some area attractions include the Florida Aquarium, Tampa Museum of Art, the River Arts District and the famous River Walk. With so much at your fingertips, expect to pay higher-than-average prices.

Property Size Downtown Average Tampa Average
1 BR $1,755 $1,357

2. Old Seminole Heights

old seminole heights tampaold seminole heights tampa

Old Seminole Heights is a quiet historic district in the northern area of Tampa. This tree-shaded gem features stately bungalows that attract a wide variety of renters, including families, young professionals, singles and retirees. Rent here is higher than the citywide average, but it’s among the cheaper options of the most popular neighborhoods.

Property Size Old Seminole Heights Average Tampa Average
1 BR $1,575 $1,357

3. Harbour Island

harbour island tampaharbour island tampa

Harbour Island has some of the best views of the Tampa Bay and some of the most expensive rentals. This residential neighborhood is often considered one of the best places to live in Tampa and is popular with young professionals and families. There are shops and a few restaurants located on the Island and TECO Line Streetcar offers public transportation options for residents.

Property Size Harbour Average Tampa Average
1 BR $2,167 $1,357

4. Channel District

channel district tampachannel district tampa

Conveniently located in downtown Tampa, the Channel District is an excellent choice for anyone who wants a residential area with access to a variety of entertainment options. The Channel District boasts a large entertainment complex, access to good schools and close proximity to all downtown Tampa has to offer. Average rent prices are similar to Downtown Tampa.

Property Size Channel District Average Tampa Average
1 BR $1,828 $1,357

5. North Hyde Park

north hyde park tampanorth hyde park tampa

Located west of the Hillsborough River, North Hyde Park is one of Tampa’s up-and-coming districts. This hidden gem has been going through numerous changes over the last few years and features modern urban living at affordable prices. North Hyde Park offers great access to Downtown Tampa and is a popular location for young professionals.

Property Size North Hyde Park Average Tampa Average
1 BR $1,576 $1,357
The rent information included in this article is based on current rental property inventory on ApartmentGuide.com and is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

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Home Loans Guide

Tips and Tricks to Survive Commuting in Washington D.C.

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© 2021 RentPath Holdings, Inc. All rights reserved. All photos, videos, text and other content are the property of RentPath Holdings, Inc. APARTMENT GUIDE and the APARTMENT GUIDE Trade Dress are registered trademarks of RentPath Holdings, Inc or its affiliates.

Financial Advisor Student Loans

7 Things to Do After College Besides Work

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Numerous college students have a trajectory in mind for navigating life after college. For some, getting a job is their top goal. But, are there other things to do after college besides work?

Beyond looking for a traditional entry-level job, there are alternative choices for new grads—including internships, volunteering, grad school, spending time abroad, or serving in Americorps.

Naturally, the options available will differ depending on each person’s situation, as not all alternatives to work come with a paycheck attached.

Here’s a look at these seven things to do after college besides work.

1. Pursuing Internships

One popular alternative to working right after college is finding an internship. Generally, internships are temporary work opportunities, which are sometimes, but not always, paid.

Internships may give recent grads a chance to build up hands-on experience in a field or industry they believe they’re interested in working in full time. For some people, it could help determine whether the reality of working in a given sector meets their expectations.

Whatever grads learn during an internship, having on-the-job experience (even for those who opt to pursue a different career path) could make a job seeker stand out afterwards. Internships can help beef up a resume, especially for recent grads who don’t have much formal job experience.

A potential perk of internships is the chance to further grow your professional network—building relationships with more experienced workers in a particular department or job. Some interns may even be able to turn their short-term internship roles into a full-time position at the same company.

Starting out in an internship can be a great way for graduates to enter the workforce, “road testing” a specific job role or company.

2. Serving with AmeriCorps

Some graduates want to spend their time after college contributing to the greater good of American society. One possible option here is the Americorps program—supported by the US Federal Government.

So, what exactly is Americorps? Americorps is a national service program dedicated to improving lives and fostering civic engagement. There are three main programs that graduates can join in AmeriCorps: AmeriCorps NCCC, AmeriCorps State and National, and AmeriCorps Vista.

There’s a wide variety of options in AmeriCorps, when it comes to how you can serve. Graduates can work in emergency management, help fight poverty, or work in a classroom.

However graduates decide to serve through AmeriCorps, it may provide them with a rewarding professional experience and insights into a potential career.

Practically, Americorps members may also qualify for benefits such as student loan deferment, a living allowance, education awards (upon finishing their service), and skills training.

It may sound a bit dramatic, but AmeriCorps’ slogan is “Be the greater good.” Giving back to society could be a powerful way to spend some time after graduating—supporting organizations in need, while also establishing new professional connections.

3. Attending Grad School

When entering the workforce, graduates may encounter job postings with detailed employment requirements.

Some jobs require just a Bachelor’s degree, while others require a Master’s–think, for instance, of being a lawyer or medical doctor. Depending on their field of study and career goals, some students may opt to go right to graduate school after receiving their undergraduate degrees.

The number of jobs that expect graduate degrees is increasing in the US. Graduates might want to research their desired career fields and see if it’s common for people in these roles to need a master’s or terminal degree.

Some students may wish to take a break in between undergrad and grad school, while others find it easier to go straight through. This choice will vary from student to student, depending on the energy they have to continue school as well as their financial ability to attend graduate school.

Graduate school will be a commitment of time, energy and money. So, it’s advisable that students feel confident that a graduate degree is necessary for the line of work they’d like to end up in before they apply or enroll.

4. Volunteering for a Cause

Volunteering could be a great way for graduates to gain some extra skills before applying for a full-time job. Doing volunteer work may help graduates polish some essential soft skills, like interpersonal communication, interacting with clients or service recipients, and time management.

Another potential benefit to volunteering is the ability to network and forge new connections outside of college. The people-to-people connections made while volunteering could lead to mentorship and job offers.

Volunteering is something graduates can do after college besides work, while still fleshing out their resume or skills.

New grads may want to volunteer at an institution or organization that syncs with their values or, perhaps, pursue opportunities in sectors of the economy where they’d like to work later on (i.e., at a hospital).

On top of all these potential plus sides, volunteering just feels good. It makes people feel happier. And, after all of the stress that accompanies finishing up college, volunteering afterward could be the perfect way to recharge.

5. Serving Abroad

Similar to the last option, volunteering abroad can be attractive to some graduates. It may help grads gain similar skills they’d learn volunteering here at home, while also giving them the opportunity to learn how to interact with people from different cultures, try to learn a new language, and see new perspectives on solving problems.

Though it can be beneficial to the volunteers, volunteering abroad isn’t always as ethical as it seems. And, not all volunteering opportunities always benefit the local community.

It could take research to find organizations that are doing ethically responsible work abroad. One key thing to look for is organizations that put the locals first and have them directly involved in the work.

6. Taking a Gap Year

According to the Gap Year Association , a gap year is “a semester or year of experiential learning, typically taken after high school and prior to career or post-secondary education, in order to deepen one’s practical, professional, and personal awareness.”

While a gap year is generally taken after high school or after college, one common purpose of the gap year is to take the time to learn more about oneself and the world at large—which can be beneficial after graduating from college and trying to figure out what to do next.

Not only might a gap year help grads build insights into what they’d like to do with their later careers, it may also help them home in on a greater purpose in life or build connections that could lead to future job opportunities.

Graduates might want to spend a gap year doing a variety of activities—including:

•   trying out seasonal jobs
•   volunteering
•   interning
•   teaching or tutoring
•   traveling

A gap year can be whatever the graduate thinks will be most beneficial for them.

7. Traveling Before Working

Going on a trip after graduation is a popular choice for graduates that can afford to travel after college. Traveling can be expensive, so graduates may want to budget in advance (if they want to have this experience post-graduation.

On top of just being really fun, travel can have beneficial impacts for an individual’s stress levels and mental health. Research from Cornell University published in 2014 suggests that the anticipation of planning a trip might have the potential to increase happiness.

Traveling after graduation is a convenient time to start ticking locations off that bucket list, because graduates won’t be held back by a limited vacation time. Going abroad before working can give students more time and flexibility to travel as much as they’d like (and can afford to!).

With proper research, graduates can find more affordable ways to travel—such as a multi-country rail pass, etc. It doesn’t have to be all luxury all the time. Budget travel is possible especially when making conscious decisions, like staying in hostels and using public transportation.

If graduates are determined to travel before working, they can accomplish this by saving money and budgeting well.

Navigating Post Graduation Decisions

Whether a recent grad opt to start their careers off right away or to pursue one of the above-mentioned things to do after college besides work, student loans are something that millions of university students have taken out.

After graduating (or if you’ve dropped below half-time enrollment or left school), the reality of paying back student loans sets in. The exact moment that grads will have to begin paying off their student loans will vary by the type of loan.

For federal loans, there are a couple of different times that repayment begins. Students who took out a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, will all have a six month grace period before they’re required to make payments. Students who took out a Perkins loan will have a nine month grace period.

When it comes to the PLUS loan, it depends on the type of student that’s taken one out. Undergraduates will be required to start repayment as soon as the loan is paid out. Graduate and professional students with PLUS loans will be on automatic deferment while they’re in school and up to six months after graduating.

Some graduates opt to refinance their student loans. What does that mean? Well, refinancing student loans is when a lender pays off the existing loan with another loan that has a new interest rate. Refinancing can potentially lower monthly loan repayments or reduce the amount spent on interest over the life of the loan.

Both US federal and private student loans can be refinanced, but when federal student loans are refinanced by a private lender, the borrower forfeits guaranteed federal benefits—including loan forgiveness, deferment and forbearance, and income-driven repayment options.

Refinancing student loans may reduce money paid to interest. For graduates who have secured well-paying jobs and have improved their credit score since taking out their student loan, refinancing could come with a competitive interest rate and different repayment terms.

Graduating from college means officially entering the realm of adulthood, but that transition can take many forms. There are various financial tips that recent graduates may opt to look into.

Thinking about refinancing your student loans? With SoFi, you could get prequalified in just two minutes.



External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF SEPTEMBER DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Lending Corp. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.

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Source: sofi.com

Financial Advisor Student Loans

The Ultimate College Senior Checklist

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Earning a college degree is no easy feat. Think countless late-night cram sessions, tedious loan applications, heavy textbooks to haul around. For some college seniors, June cannot come fast enough, and it’s understandable why senioritis kicks in. That said, there’s still a lot of important work to do before crossing that graduation stage.

From jumping through the logistical hoops of making it to graduation day to launching a job search and addressing student loan payments, there are a lot of important pre-graduation to-do’s that may require prompt attention.

Here’s a comprehensive checklist that will help college seniors be prepared to graduate and enter the working world.

Dotting I’s and Crossing T’s

Ideally, before senior year begins (or sooner for those planning to graduate early), students should meet with their guidance counselor to make sure they have all of their ducks in a row in order to graduate. Switching majors, studying abroad, or misunderstanding degree requirements can lead to confusion about which classes must be taken to graduate.

Before setting a class schedule for the year, it can’t hurt to double-check with a college counselor that all requirements are being met. Some schools even have a certain amount of community service or chapel hours required in order to graduate, so again, it’s smart to confirm that everything is moving along as it should be.

Preparing for the graduation ceremony needs to be done in advance. Colleges and universities often require students to apply to graduate and register their planned attendance at the ceremony well ahead of the actual day.

To streamline the process, many schools have grad fairs where students can pick up their commencement tickets; buy a cap and gown, class rings and commencement announcements; and ask questions about the logistics of graduation day.

Transcripts can come in handy when applying for jobs and graduate school programs, so picking up a few copies while still on campus can save time down the road. And don’t forget to turn in those library books! No one will want to trek back to campus after graduation to pay late fees.

Getting a Jumpstart on a Job Search

It’s no secret that college graduates flood the job market each June, so getting ahead of the pack can make job searching a little easier. Applying for jobs earlier in the spring can lessen the competition and give seniors confidence that they have a job lined up when they graduate.

If launching a full-blown job search during school isn’t possible, college seniors can at least take steps toward preparing for the job search.

Stop by the career center and see what resources it can provide. Schools have a career center for a reason! Most are ready to help students prepare their resumes and perfect their cover letters, and they typically have job postings from companies looking to hire recent graduates.

Some career centers may offer mock interviews so students can hone those skills, or they may provide support when issues arise during a job search. Popping by between classes to see what services are offered will only take a few minutes.

At the very least, college seniors can poke around online job boards and research local companies to see what opportunities are out there.

Making Connections

As a student, it may feel like having a professional network is unattainable, but many build one while in school without realizing it. One easy way to get a head start on a job search, without doing too much work during a hectic final year of school, is to focus on building relationships and requesting references.

Professors, employers, and intern supervisors can all provide references that can strengthen a job search. Finding that first job out of college can be tricky, when resumes are on the shorter side, so a handful of strong references can make all the difference.

While requesting references, college seniors should tell their connections what career path they’re hoping to pursue. One never knows where the next opportunity might come from.

Paying Back Student Loans

Preparing to navigate life after college can be overwhelming, especially when it comes to finances. No one wants to think about student loan payments, but it can be helpful to start making repayment plans before graduation day.

Try beginning the planning process by simply looking up the current balance for each student loan held, including both federal and private loans. Then note when the grace period ends for each loan and when the lender expects payment. It’s important to plan to make loan payments on time each month, as that can boost a credit score.

Lenders usually provide repayment information during the grace period, including repayment options. Many federal student loans qualify for a minimum of one income-driven or income-based repayment plan.

Federal student loans may qualify for a variety of repayment plans, such as the Standard Repayment Plan, Graduated Repayment Plan, Extended Repayment Plans, Revised Pay As You Earn Repayment Plan, Income-Based Repayment Plan, Income-Contingent Repayment Plan, and Income-Sensitive Repayment Plan. It is important to carefully research each payment plan before choosing one.

For private student loan repayment, it is best to speak directly with the loan originator about repayment options. Many private student loans require payments while the borrower is still in school, but some offer deferred repayment. After the grace period, the borrower will have to make principal and interest payments. Some lenders offer repayment programs with budget flexibility.

Whether students or their parents chose to take out federal or private student loans (or both), reviewing all possible repayment plan options can provide choices. And who doesn’t like choices?

One Loan, One Monthly Payment

Some graduates may want to consider refinancing or consolidating their student debt.

Borrowers who have federal student loans may qualify for a Direct Consolidation Loan after they graduate, leave school, or drop below half-time enrollment.

Consolidating multiple federal loans into one allows borrowers to make just one loan payment each month. In some cases, the repayment schedule may be extended, resulting in lower payments, after consolidating (but increasing the period of time to repay loans usually means making more payments and paying more total interest).

Refinancing allows the borrower to convert multiple loans—federal and/or private—into one new private loan with a new interest rate, repayment term, and monthly payment. The goal is a lower interest rate. (It’s worth noting that refinancing a federal loan into a private loan can lead to losing benefits only available through federal lenders, such as public service forgiveness and economic hardship programs.)

Refinancing can be a good solution for working graduates who have high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private loans.

If that sounds like a good fit, SoFi offers student loan refinancing with zero origination fees or prepayment penalties. Getting prequalified online is quick and easy.

Learn more about SoFi Student Loan Refinancing options and benefits.



SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF SEPTEMBER DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Source: sofi.com

Home Loans Guide

5 Easy Ways to Commute Without a Car in Philadelphia

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Whether by car, rail or human power, Philadelphia is inarguably one of the best cities in America for commuters. Getting to and from work can be easy, convenient and full of options from nearly any neighborhood.

1. Regional rail

Running approximately every hour or half-hour, depending on rail line and stop, SEPTA Regional Rail – Philadelphia’s commuter rail service – runs 13 convenient lines to and from every corner of the city.

Every Regional Rail line funnels through three main bustling downtown hubs: Jefferson Station in Market East, Suburban Station in Logan Square and 30th Street Station in University City.

Heading out of town? The same trains will transport you to Philadelphia International Airport, Amtrak Acela and Northeast Regional trains, as well as New Jersey Transit stations which can take you to New York City or Atlantic City.

2. Rapid transit lines

Philadelphia also has several convenient rapid transit lines for easy crosstown commutes departing every ten minutes or so.

The Broad Street Line subway is the main north-south spur in the city, extending from the Fern Rock neighborhood in North Philly to the South Philadelphia Stadium Complex – perfect for a game at any of the city’s three major league arenas.

Stretching east to west from the Frankford neighborhood Northeast Philly to 69th Street Station just across the street from the West Philly’s Overbrook neighborhood is the Market-Frankford subway and elevated line (or “El”).

And if you’re commuting across the river, PATCO offers rapid transit extending into the New Jersey suburbs. Trains run 24-hours a day from Lindenwold, NJ to Locust Street – just south of Center City.

3. Trolleys and buses

For a more localized commute, SEPTA offers multiple above-ground trolley lines as well.

The Girard Avenue Line of traditional streetcars runs from the River Ward neighborhood of Port Richmond to Haddington in West Philadelphia. The Green Line, a chain of light-rail trolley routes, connects Market Street in Center City with Southwest Philadelphia. And a series of three electric trolleybus lines crisscross Northeast and North Philadelphia from Torresdale to Rhawnhurst to Nicetown-Tioga.

Add 120 different bus routes to the equation and there’s nowhere in Philadelphia that mass transit can’t take you.

4. Bicycling

Commuting on two wheels more your speed? Then you might be happy to discover that the Alliance for Biking & Walking rated Philly as seventh in the nation for biking and walking to work. In fact, nearly 11 percent of Philly commuters arrive to work by bike or by foot.

Philadelphia has 75 miles of paved bike paths, and Center City alone has nearly 40 covered bike racks. If you wish to combine biking and transit, every single SEPTA bus is equipped with a front bike rack (but be aware that trains have bike restrictions during rush hours).

Don’t have your own ride? Philly’s Indego bike share program offers 600 bikes at 60 stations for an assortment of small fees and a helpful payment app.

5. Walking

As for walkers, a University of Minnesota study recently ranked Philly the eighth most accessible city for pedestrian commuters, with an exceptionally large number of jobs within a 10-minute walk from home.

Top downtown neighborhoods for walking to work include Avenue of the Arts, Rittenhouse Square and Bella Vista, with outer neighborhoods such as University City, Graduate Hospital and Fishtown assessed highly as well.

With walkability, bike friendliness and easy-to-use public transportation – not to mention dozens of garages and thousands of metered parking spaces – it’s easy to get around and get to work in Philadelphia.

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Financial Advisor Student Loans

Tips for Navigating Night Classes

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When the sun is setting, happy hour consists of a stiff caffeinated drink or two for some. Their brains are still on the job.

More on liquid stimulants later, but add that sort of choice to the list when it comes to getting an education: Commute or live on campus, study full time or part time, and pick a major, to name but a few.

Once you’ve landed on a college and enrolled, it’s time to sign up for courses and plan your schedule. In many cases, schools offer courses throughout the day and evening to accommodate a broad range of students and their different schedules.

Night classes may be a convenient option for students who have to balance work and school. Given the cost of education, this is a large share of the student body. In 2018, 43% of full-time students and 81% of part-time students were employed during their studies.

Taking night classes can be an adjustment from studying during the traditional 8-to-5 window. Staying focused after a long day of work or rewiring your brain to study at night can be challenging.

Whether you’re gearing up for a degree’s worth of night school or a one-off evening class, take a look at these tips to survive night classes.

Nocturnal Animals

Generally speaking, night classes take place between 5 and 10 p.m. College night classes typically follow the traditional semester schedule, though there may be shorter timelines for special-interest topics or certificate programs.

Because night classes are geared toward nontraditional students with family and work obligations, they typically occur once a week for two to four hours, but it depends on the course credits and subject matter.

Although this condensed format may mean fewer trips to campus, it can also make for much longer days. Students may want to keep the following issues in mind.

Controlling Caffeine Cravings

When feeling tired, it may be a natural inclination to grab a cup of coffee or other caffeinated beverage to get a boost of energy and keep going. While this may help a student get through a night class or hammer out an assignment at the last minute, it can disrupt sleeping patterns, creating further fatigue the next day.

Caffeine can last up to 12 hours in the system after consumption. Even for night owls, a coffee or a Red Bull® or a Monster® after lunch could keep them awake well beyond when they want to go to bed.

If cold turkey seems like too drastic a change, you might want to try experimenting with less caffeinated beverages, such as tea. Everyone is different, and the goal is finding the sweet spot between staying awake and engaged during night classes and not losing precious sleep later on.

Staying Nourished and Hydrated

Staying focused during night classes can take practice and preparation. Packing healthy snacks and water is one way to maintain energy and feel comfortable as class discussions and lectures progress into the later evening hours.

If a professor doesn’t permit eating in the classroom, a student can likely squeeze in a quick bite beforehand or during break time.

Remaining Active

Between work, studying, class time, and other obligations, exercising may seem like a luxury that there isn’t enough time for. This can feel especially true on days when a full day at work is followed by a three-hour night class.

The Department of Health and Human Services recommends that adults complete at least 150 minutes of moderate-intensity exercise a week. Broken down over the whole week, that’s about 20 minutes of exercise a day.

If you’re really in a pinch, fitting in a brisk walk before night classes start or during the midway break in a three-hour seminar can help with your energy and work toward meeting the 150-minute threshold.

Befriending Classmates

Night classes can draw a more diverse student body than traditional college classes. For discussion-oriented classes, this can enrich the conversation with more perspectives.

It is also an opportunity to network and find a study buddy or two. Because night classes usually meet only once a week for a 15-week semester, even one absence could lead to falling behind or missing out on critical information. Classmates can be a resource for sharing notes and staying in the loop on what happened in class.

Also, becoming friends with classmates could make lengthy night classes more fun and add motivation to keep up strong attendance.

Creating a More Flexible Work Schedule

Even full-time students can expect to have at least one or two nights free from scheduled classes. If you have a flexible work schedule, you’re already in a position to craft an ideal balance of work, school, and social life.

However, if you’re working some version of the standard 9-5 schedule five days a week, the days with back-to-back work and class can feel like a marathon. Getting an education takes work, but you may not get the most out of it if it becomes something you dread.

Redistributing work hours to accommodate your night class schedule might prevent burnout. For instance, being able to come in an hour later on mornings after night classes and make them up later in the week can spread out the workload and help in catching up on sleep.

Talking to supervisors may feel intimidating, but if your college night classes are providing skills and knowledge to perform better at your job, you can make a case for getting some wiggle room at work while you finish school.

Avoiding Procrastination

As school traditionally runs from morning to early afternoon, conventional wisdom dictates completing homework and assignments the night before, at the latest. With night classes, the window to procrastinate can be extended later in the day.

Planning can help a student avoid a situation that requires picking between going to work or completing an assignment for class. Mapping out assignment due dates at the onset of the semester is one method to stay on track.

Managing Time

Between exams and papers, college classes often have a steady stream of readings and assignments to keep up with from week to week. Setting aside specific time frames to study for each class may counteract an urge to slack off between major assignments. Repetition can also improve knowledge retention, compared with cramming at the last minute.

After taking care of other responsibilities, such as an internship, job, or team practice, it may be difficult to recall readings and information at the end of a long day. Finding a moment before night class to review your notes could better prepare you to participate in discussion or ace a quiz. Creating a brief study guide covering key themes and topics for each week could help if you’re pressed for time.

Pacing Yourself

Before going full steam ahead with a full course load, you can consider testing the waters with one or two night classes. Education is a financial and career investment, and figuring out what’s right for your work-life balance could be the difference between burning out and graduating.

Keep in mind that whether you study full time or part time could affect financial aid or scholarships.

Exploring Night Class Options

Night classes are offered at community colleges and four-year universities alike. Researching multiple options could help a student find an ideal balance of cost, reputation, student body demographics, and campus environment.

Online courses are another option to consider. Synchronous courses may still have online lectures and discussions but allow students to participate from the comfort of home.

Paying for Night Classes

Education comes at a cost. Beyond tuition, taking night classes may require buying textbooks, paying for a parking pass, and other associated fees.

Work-study programs, scholarships, and grants could cover all or part of these expenses, but some students take out loans to pay the remaining cost for their degree or night classes.

Federal loans can come with protections, flexible repayment benefits, and loan forgiveness in certain cases.

When federal loans and other aid aren’t enough, private student loans are an option to consider. Students enrolled full or half time may qualify for a loan from SoFi, whose no-fee private student loans offer flexible repayment plans, helping students find an option that best meets their needs.

SoFi is here to help you reach your educational goals. It takes only minutes to find out what you’re prequalified for.



SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Lending Corp. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Source: sofi.com

Financial Advisor Student Loans

Defaulting on Student Loans: What You Should Know

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“Student loan default” might be about the scariest combination of words possible. More young people than ever are starting their careers with large amounts of student loan debt, and for some, figuring out how to make the required monthly payments can be a struggle.

Student loan default is basically just a term for when you completely stop paying your student loans. You get a bill, hide it under the mattress, and go back to binging true crime TV—and that pattern repeats for several months until your student loan provider turns your debt over to a collection agency.

To get more technical, defaulting on federal student loans is a process that takes place over a period of non-payment . When you first miss a payment, the loans are delinquent but not yet in default. At 90 days past due, your lender can report your missed payments to credit bureaus. And when you reach 270 days past due, your student loans are officially in default.

get your student loans out of default.

First, stop avoiding those collection calls. If your student loan provider or a collection agency is calling, your best bet is to meet your lender or the agency head-on and take charge of the situation. The lender or the collection agency will be able to talk through the repayment options available to you based on your personal financial situation. They want you to pay, which means that they might be able to help find a payment plan that works for you.

The lender may be able to offer a variety of options tailored to your individual circumstances. Some of these options might include satisfying the debt by paying a discounted lump sum, setting up a monthly payment plan based on your income, consolidating your debts, or even student loan rehabilitation for federal loans. Don’t let your fear stop you from reaching out to your lender or the collection agency.

How to Avoid Defaulting on Student Loans

Of course, even if you can get yourself out of student loan default, the default can still impact your credit score and loan forgiveness options. That’s why it’s generally best to take action before falling into default. If the student loan payments are difficult for you to make each month, there are things you can do to change your situation before your loans go into default.

First, consider talking to your lender directly. The lender will be able to explain any alternate payment plans available to you. For federal loans, borrowers may be able to enroll in an income-driven repayment plan. These repayment plans aim to make student loan payments more manageable by tying them to the borrower’s income. This can make the loans more costly over the life of the loan, but the ability to make payments on time each month and avoid going into default are valuable.

Refinancing student loans could potentially help you avoid defaulting on your student loans by combining all your student loans into one, simplified new loan. When you refinance, qualifying borrowers may be able to secure a lower interest rate or loan terms that work better for their situation.

If a borrower is already in default, refinancing could be difficult. When a student loan is refinanced, a new loan is taken out with a private lender. As a part of the application and approval process, lenders will review factors including the borrower’s credit score and financial history among other factors.

Borrowers who are already in default may have already felt an impact on their credit score, which can influence their ability to get approved for a new loan. In some cases, adding a cosigner to the refinancing application could help improve a borrower’s chances of getting approved for a refinancing loan. Know that if federal student loans are refinanced they are no longer eligible for federal repayment plans or protections.

The Takeaway

Student loan default can have serious negative effects on your credit score and financial stability. If you’re worried about defaulting on your student loans, or you have already defaulted, consider taking immediate steps to remedy the situation before it gets worse. Contact your lender or servicer to learn about options available, and consider refinancing your loans to secure a lower interest rate or monthly payment.

If you’re ready to take control of your loans, learn more about how SoFi student loan refinancing may be able to help.



SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF SEPTEMBER DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’swebsite .

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Source: sofi.com