Ben Luthi is a money and travel writer based in Utah. He is passionate about helping people gain financial freedom and living the way they want. His work has appeared in publications like U.S. News & World Report, MONEY magazine, USA Today, CNBC and Marketwatch.
How Parents Can Save Money on their Taxes
Raising your child from infancy and guiding them along life’s journey to prepare them for college is a commitment that takes years and thousands of dollars to sustain. Fortunately, Uncle Sam offers eligible parents a way to soften this financial hardship during tax season, including tax credits for college and tax credits for just having children.
Rehabilitation of Defaulted Federal Student Loans
If you’re in default with one or more of your federal student loans, you’re not alone. In the last few years, about 10% to 15% of borrowers have defaulted within three years of entering repayment. If you are in default, though, there is a way out called rehabilitation. Rehabilitation clears the default from your credit history and stops wage garnishment and the offset of income tax refunds.
Strategic Default Does Not Save Money on Student Loans
Strategic default is a practice where a borrower intentionally defaults on a loan to obtain a settlement for less than what is owed. When it comes to student loan debt, however, strategic default is not an effective solution. Unless you qualify for student loan forgiveness, paying down your college debt is the best way to get rid of it.
Collection Charges on Defaulted Federal Student Loans
If you’re struggling to make payments on your federal student loans, the last thing you want is to default. At that point, the U.S. Department of Education can refer your account to a debt collection agency. Not only can the process damage your credit, but you’ll also be on the hook for the cost of collection charges on your own debt.
How to Settle Your Student Loans at a Discount
If you’ve defaulted on your federal student loans, you may be able to settle with the collection agency for less than what you owe. There are three standard settlement offers that collection agencies are authorized to accept without prior approval by the U.S. Department of Education.
How Much Parent Loan Debt Is Too Much Debt
Borrowing too much parent loan debt can affect a parent's ability to retire on time and with as little debt as possible. It is important to understand how much parent loan debt is too much, and what you can do if you borrow more than you can afford to repay.