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Income Share Agreements: Better than Loans?

How Do Income Share Agreements Work? For families struggling for a way to pay for college without saddling themselves or their children with decades of debt, Purdue University in West Lafayette, Ind., is offering a new option—the Income Share Agreement. « Learn more about student loans So how do income share agreements work? Already in use in countries outside of North America, Income Share Agreements  (ISA) are beginning to take hold in the United States, with Purdue’s Back A Boiler program (referencing its…

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Balancing Student Loan Debt with Retirement Savings

Welcome to post-graduate life and, with any luck, professional success. Once you’ve bridged the chasm between what you want to do with your new disposable income and what you think you should do, you will find yourself with some life-impacting decisions. Should you put your efforts towards saving for retirement or would they be better allocated to the expedient repayment of student loans? Wanting to make smart decisions with your money is only the first step. A decision made with the most prudent of intentions…

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PSLF Public Student Loan Forgiveness

REPAYE: New Student Loan Forgiveness Program

Federal student loans are some of the most forgiving and debtor-friendly loans that you are likely to come across. In spite (or arguably because) of this, student loan repayment has declined considerably over the years. In an effort to combat the problem, the Federal government has instituted plans to make repayment even easier. Student Loan Forgiveness Program PAYE In an attempt to curtail the rise of borrowers failing to repay their loans, the Federal Government created student loan forgiveness programs to aid and incentivize borrowers…

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The Student Loan Forgiveness Illusion

Is Student Loan Forgiveness Real? It took a long time for the very generous forgiveness provisions included in the president’s 2010 Pay-As-You-Earn (PAYE) student loan program to finally get noticed by the general public. A full three years after launching the program, there were still only a handful of American families who knew about its existence. It’s hard to imagine a program that allowed a $40,000-a-year social worker with a $100,000 student loan debt to pay less than $200 a month for ten years and…

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How Subsidized Loan Usage Limit and Transferring Can Affect Your Eligibility

For many students from middle-income families, at least a portion of their student loans will be subsidized—i.e., interest-free during the school years and for the first six months after graduation. Recently, however, a new rule called the “Subsidized Usage Limit” (SULA) has been put in place to limit those loans.  This, of course, can affect what your students end up paying for their education. « Learn more about student loans Here are the current limits on subsidized loans: Direct Subsidized Loan…

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Loans or Retirement Account to Pay for College?

Can You Use Retirement Funds to Pay for College? Remember the birth of your child? As new parents we set out to give only the best to our children.  The first time they wrapped their tiny little hand around our finger we made a promise to give them the best. With that promise, of course, also came the responsibility of saving for college. Fast forward eighteen years later The time has come to live up to that promise.  If you are like most parents,…

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Federal Student vs. Mortgage Loans for College

  Mortgage Loans for College Students vs. Federal Student Loans There is no one-size-fits-all when it comes to financing a college education. Among the many choices in loans to pay for college, federal student loans, private student loans, home equity loans, refinancing your home, or mortgage loans for college students – all options must be on the table. « Learn more about student loans The Options Federal Student Loans have many pay-back options. Jack Schacht talked about these options in a recent…

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Student Loan Servicers Keep Families in the Dark

With the many flexible income-based repayment options now available for student loans, I continue to scratch my head why defaults have continued to increase. « Learn more about student loans Students Are Not Being Told About More Flexible Student Loan Payback Options While it may be true that most people don’t know about these student loan payback options wouldn’t you think their loan servicing companies would at least mention them as a way to help their customers avoid default? Apparently,…

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The Positive Side of Federal Student Loans!

Benefits of Federal Student Loans Often parents tell me they want their students to graduate from college debt-free because they are aware of the large debt burden many students are carrying these days. These same parents, especially those who also don’t expect their children to get campus jobs, are also seriously underfunding their retirement accounts. Prioritizing your retirement funding over college funding doesn’t make you a bad parent. Many years from now your children will actually thank you for it…

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