What would a student loan borrower change if he went back to college

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It’s easy to feel sorry for your college years, especially when graduation leaves you Tens of thousands of dollars in student loans. However, a recent survey revealed that the majority of student borrowers, in hindsight, would have continued their higher education.

to me Bankrate Student Loans Surveymore than half (59%) of adult respondents with student loans said they were still attending college but had done something different to reduce the amount of debt they took on, such as applying for more scholarships (23%), or working or working longer during They were in school (20%), had a degree in a different field (19%), attended a cheaper school (17%), attended a community college (15%) or did something different (5%).

It’s possible that those with a college degree – even if it cost them years later – found it opened the door to job opportunities and higher income-earning potential. to me 2021 US Bureau of Labor Statistics data, adults age 25 and older with a high school diploma but no college experience earned an average of $809 per week, while those with a bachelor’s degree earned an average of $1,334 per week. (Listed earnings are for full-time, salaried employees.) This works out to a difference of $27,300 in annual salaries, which is a significant amount.

If you’re among the millions saddled with student loan debt, here’s what you can do to manage it.

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If you have federal student loans

Federal student loan borrowers can still take advantage of the payment and interest freeze that has been in place for the past two years and Recently extended to August 31, 2022. Depending on where you stand financially, you can either make the most of the break while it lasts or use that time to make an impact on student debt.

If you’re feeling cash-strapped, focus instead on paying an amount High priority bills Because your student loans do not currently collect interest. If you do not have enough emergency fund Aside, now is the time to store the money in a file High yield savings account Like the Ally Online Savings Accountwhich offers an above average interest rate.

Ally Bank Online Savings Account

Ally Bank is an FDIC member.

  • Annual Percentage Return (APY)

  • Minimum balance

  • monthly fee

    No monthly maintenance fee

  • Maximum Transactions

    Up to 6 free withdrawals or transfers per statement cycle * Withdrawal limit for 6 cycle / statement of account is waived during the Coronavirus outbreak under Regulation D

  • Excess transaction fees

  • Overdraft Fee

  • Offer a checking account?

  • View ATM Card?

    Yes, if you have a checking account Ally

For those whose high priority bills and emergency fund have been taken care of, it’s worth making your federal student loan payments even while the downtime continues. With interest also paused at 0%, the payments will go directly toward your principal so you can get rid of it faster than if you were paying on the interest accrual balance. In addition, when the forbearance period ends and the payments and interest resume, you will have a smaller balance that will collect less interest.

Once the payment is over and the interest on your federal student loans is frozen, know that there are still income-driven payment plans that can help you if you feel like you’re Drowning in debt It can’t keep up. These plans recalculate your monthly bill based on any changes in your income, so your student loan repayment reflects how much you can pay. two specific plans, Pay as you earn (PAYE) And REPAYE REVIEWit will even cap your federal student loan payment at 10% of your discretionary income and after the repayment period expires, any remaining balance is forgiven.

If you have private student loans

Private student loan borrowers may wish to consider refinancing To record an interest rate lower than what they are currently paying on their debt. With refinancing, you can also choose a longer or shorter repayment period, depending on how quickly you want to pay off your loans and how much you can afford in monthly payments. For example, a shorter repayment period will help you get out of debt faster, but it will mean making higher payments each month.

Lenders Like SoFiAnd Common Pond And Grand You have a wide range of loan terms and interest rates to choose from. They also do not charge any application or creation fees, have no prepayment penalties and offer flexible payment terms, economic hardship payment options, and automatic payment interest rate reductions.

SoFi Student Loan Refinance

  • cost

    No setup fee for refinancing

  • Eligible loans

    Federal and Private Loans, Graduate and University Loans, Parent PLUS Loans, Medical Resident Loans, Dental Loans

  • Types of loans

  • Variable rates (APR)

    From 2.24% from 2.37% for residents in the medical / dental field (rates include 0.25% discount on automatic payment)

  • Fixed Prices (APR)

    From 2.99% from 3.12% for medical/dental residents (rates include 0.25% discount on automatic payment)

  • loan terms

  • loan amounts

    From $5000 over $10,000 for medical/dental residency loans

  • Minimum credit score

  • Minimum Income

  • Allow co-location

In addition, Common Pond It offers the option to edit co-signed after 24 consecutive monthly payments on time of loan principal and interest, which acts as an incentive if you need a parent or guardian to co-sign the loan in order to get it. Grand Applicants with a fair credit score are also allowed to qualify.

If you’re considering private student loan refinancing, it’s worth moving on quickly. with the The recent rise in interest rates – and the promise of more – borrowing money will only get more expensive.

CommonBond Student Loan Refinance

  • cost

    No setup fee for refinancing

  • Eligible loans

    Federal, private, graduate and university loans, pre-consolidated loans, corporate student loans, and international student loans

  • Types of loans

  • Variable rates (APR)

    4.44% – 8.09% APR (rates include 0.25% off automatic payment)

  • Fixed Prices (APR)

    4.49% – 7.74% APR (rates include 0.25% off automatic payment)

  • loan terms

  • loan amounts

  • Minimum credit score

  • Minimum Income

  • Allow co-location

Earn Student Loan Refinance

  • cost

    No setup fee for refinancing

  • Eligible loans

    Federal, private, graduate and undergraduate loans

  • Types of loans

  • Variable rates (APR)

    Starting at 1.99% (prices include 0.25% off automatic payment)

  • Fixed Prices (APR)

    Starting at 2.98% (rates include 0.25,000)% automatic payment deduction

  • loan terms

    Flexible terms ranging from 5-20 years

  • loan amounts

    Minimum $5,000 and up to $500,000 (California residents must request refinancing of $10,000 or more)

  • Minimum credit score

  • Minimum Income

  • Allow co-location

Editorial note: The opinions, analyses, reviews or recommendations contained in this article are those of the editorial board alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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