Nick is a blogger, freelance writer and digital media enthusiast. He has been writing professionally for nearly a decade and specializes in business, finance, marketing and tech. He's also passionate about helping people save money and live debt free. His work has been featured in publications such as Best Legal Practices, Surplus Today and The Content Standard. In his spare time, Nick enjoys reading, outdoors and travel.
Why Do Some Students Borrow Private Student Loans?
The majority of student loans are federal. Federal student loans are a popular option because they offer low fixed interest rates, flexible repayment, no credit check (except for PLUS loans) and loan forgiveness. Nonetheless, some students choose to borrow private student loans. Here are some reasons why.
Should You Refinance Federal Student Loans into Private Student Loans?
Student loan refinancing offers lower interest rates, better repayment terms, and consolidated payments. But refinancing is not for everyone. Consider the pros and cons of refinancing federal loans into private student loans carefully before moving forward.
Unum Offers Innovative Student Debt Relief Program
Hundreds of companies are offering Loan Repayment Assistance Programs (LRAPs) to help employees repay their student loans. Financial protection provider Unum is expanding on this concept by allowing employees to exchange leftover paid time off (PTO) for student loan relief.
Questions Cosigners Should Ask Before Cosigning a Student Loan
Many lenders require a cosigner for a private student loan. This limits their risk and ensures the loan is repaid even if the borrower misses payments or defaults. But, cosigning a student loan comes with inherent risk to the cosigner and isn’t something to take lightly Cosigners should ask some key questions before agreeing to cosign a loan.
Signs You Need a Cosigner for Your Student Loans
One way lenders minimize the risk of making a student loan is by requiring a creditworthy cosigner. More than 90% of private student loans to undergraduate students require a cosigner. A cosigner is responsible for repaying a student loan if the student borrower is unable or unwilling to repay the debt. This reduces the risk for lenders and ensures that the loan is repaid on time and in full. There are several reasons why a borrower might be required to have a cosigner for their student loans.
Companies that Repay Your Student Loans
Millions of employees enter the workforce with student loan debt each year. Modern companies face immense competition and are looking to attract and retain top talent. This has given rise to a new type of employee benefit where some companies are willing to help employees repay their student loans.
Defense of Infancy for Student Loans
The defense of infancy is one way borrowers may attempt to deny responsibility for their student loans. With the defense of infancy, a borrower disputes their legal obligation to repay a debt by asserting that they lacked the legal capacity to sign the loan promissory note due to being under the age of majority. The defense of infancy applies to private student loans but not to federal student loans.
Is the student responsible for repaying a Parent PLUS loan?
Many Parent PLUS Loan borrowers are curious about who’s responsible for repaying a Parent PLUS Loan. Is it strictly limited to the parent? Or can the student step in and handle it? There are some very specific rules in place that dictate who must pay back the debt.
The Freezer Method for Dealing with Student Loans
Student loan debt can be overwhelming. Mail concerning loan payments, updates and forms to fill out only intensifies the problem. This leaves students buried in a pile of documents to deal with along with their schoolwork. One strategy that some people employ when handling student loans is called the freezer method.
Beware of student loan scams
According to the U.S. Department of Education, millions of borrowers are struggling to repay their federal student loans. Desperate for financial relief, some of these borrowers jump at enticing offers for lower monthly payments and loan forgiveness. Unfortunately, many of these opportunities are too good to be true, leading borrowers to fall prey to student loan scams. To avoid becoming a victim of a student loan scam, learn how these scams work and the warning signs of a student loan scam.
How to pay off parent loans more quickly
Today’s parents are borrowing record high student loans to cover their children’s college costs. In turn, many are struggling to repay the large balances, forcing them into longer repayment terms. Following a few key strategies should help them repay their student loans more quickly.