Student Loans & Our Philosophy
You've done it! You've reached the end of your education journey and received your diploma. Now that its over your focus shifts to repayment of those loans. Student Loans can be overwhelming. Interest rates can be steep and payments can feel tight on the initial budget. Questions such as consolidation, refinancing, loan forgiveness, and the balance between repayment and savings can often become overwhelming.
Our goal is to educate you on your options and devise a plan that is tailored to you, your family, and your thoughts about debt.
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Common Student Loan Concepts to Know
Repayment Plans
There are multiple repayment options available to you for your federal loans. The most common is the Pay as You Earn (PAYE) or the Revised Pay as You Earn (REPAYE). There are some major differences between electing either strategy and you should know the impact of each. For example, the REPAYE plan only accrues 50% of any unpaid interest while the PAYE accrues 100% of any unpaid interest but if using the PAYE strategy only one income in a household is calculated for your payments. Make sure to understand all of your options and the impact of each before selecting your strategy!
Consolidation
Loan consolidation is a great way to bring everything under one roof and simplify your current loan situation. Consolidation can happen either while under the federal repayment programs or with a private bank. If you're dealing with different interest rates, payments, and due dates, debt consolidation can be a sound approach to achieve more financial organization. Consolidator beware though; if you are planning on going for loan repayment from Public Service Loan Forgiveness or the longer 20-year payment forgiveness, consolidation can restart the clock. Make sure to discuss this with your loan servicing provider prior to consolidating.
Refinancing
If you know you are not heading down the path to federal forgiveness, refinancing can be a great option. Student Loan refinancing allows borrows to lock in lower fixed or variable interest rates by creating a new loan that pays off all or a portion of the current student loans debt. With student loan debt in the US surpassing $1.5 trillion the refinance market is hot with hundreds of banks trying to win your business. Be sure to shop around and look at sites that will compare multiple banks. Be sure to consider local credit unions or smaller banks as they can sometimes have the best offer in exchange for your banking business.