What student loan borrowers would change if they went back to college – CNBC | Vette Leader

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It’s easy to regret your college years, especially when graduating comes with tens of thousands of dollars in student loans. However, a recent survey found that the majority of student loan borrowers would have gone on to college after the fact.

According to Bankrate’s Student Loan Survey, more than half (59%) of adult respondents with student loans said they would still have gone to college but would have done something else to reduce their debt, such as buying a student loan. B. Applying for more scholarships (23%). , work while in school or work more (20%), get a degree in another field (19%), go to a cheaper school (17%), attend a community college (15%) or do something else differently (5%) .

It’s likely that those with a college degree — even if it still costs them years later — have found that it opens the door to job opportunities and higher earning potential. According to 2021 data from the US Bureau of Labor Statistics, 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 (those listed Income refers to full-time, hourly and salaried workers). This results in a difference in annual salary of $27,300, which is a significant sum.

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

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If you have federal student loans

Borrowers of federal student loans can still take advantage of the payment and interest freeze, which has been in effect for two years and was recently extended to August 31, 2022. Depending on where you are financially, you can either make the most of the relief while it lasts or use this time to pay off your student debt.

If you’re feeling cash-strapped, instead focus on paying your urgent bills since your student loans aren’t currently collecting interest. If you don’t have enough nest egg to spare, now is the time to stockpile cash in a high-yielding savings account like the Ally Online Savings Account with a higher-than-average interest rate.

Ally Bank online savings account

Ally Bank is a member of the FDIC.

  • Annual Percentage Return (APY)

  • minimum balance

  • monthly fee

    No monthly maintenance fee

  • Maximum Transactions

    Up to 6 free withdrawals or transfers per billing cycle *The 6/statement withdrawal limit is being waived during the Coronavirus outbreak under Regulation D

  • Excessive transaction fee

  • overdraft fees

  • Offer checking account?

  • Offer ATM card?

    Yes, if you have an Ally checking account

For those who have their high-priority bills and emergency fund done, it’s worth making payments on your federal student loans even as the hiatus continues. Because interest is also pausing at 0%, payments are made directly onto your principal, allowing you to use it up faster than if you were paying on an interest-bearing balance. Also, when the grace period ends and payments and interest resume, you’ll have a smaller balance that earns less interest.

Once the federal student loan freeze and interest rate freeze is over, know that there are still income-tested repayment plans that can help you if you feel like you’re drowning in debt and can’t keep up. These plans recalculate your monthly bill based on changes in your income, so your student loan payment reflects how much you can afford. Two specific plans, Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE), even limit your federal student loan payment to 10% of your discretionary income, and after the repayment deadline, any remaining balance is waived.

If you have private student loans

Borrowers of private student loans may want to consider refinancing to earn a lower interest rate than they are currently paying on their debt. When it comes to debt restructuring, you can also choose a longer or shorter term, depending on how quickly you want to pay off your loans and how much you can afford in monthly installments. For example, a shorter payment term will help you pay off your debt faster, but means you have to make larger payments each month.

Lenders like SoFi, CommonBond and Earnest have a wide range of loan terms and interest rates to choose from. They also charge no application or setup fees, have no prepayment penalties, and offer flexible repayment terms, payment options for economic hardship, and automatic interest rate reductions.

SoFi student loan refinancing

  • Costs

    No issuance fees for refinancing

  • Eligible Loans

    Federal, private, college and student loans, Parents PLUS loans, medical and dental residency loans

  • loan types

  • Variable Rate (APR)

    From 1.74% (prices include 0.25% autopay discount)

  • Fixed Prices (APR)

    From 3.49% (prices include 0.25% autopay rebate)

  • Loan Conditions

  • loan amounts

    From $5,000; over $10,000 for medical/dental residency loans

  • minimum credit rating

  • minimum income

  • Allow one co-signer

Additionally, CommonBond offers a co-signatory release option after 24 consecutive on-time monthly payments of principal and interest on the loan, which acts as an incentive if you need a parent or legal guardian to co-sign the loan in order to take it. Earnest also allows applicants with a fair credit history to qualify.

If you’re thinking about refinancing your personal student loan, it pays to act quickly. With the recent rise in interest rates – and the promise of more to come – borrowing money is only going to get more expensive.

Refinancing CommonBond student loans

  • Costs

    No issuance fees for refinancing

  • Eligible Loans

    Federal, personal, graduate and student loans, previously consolidated loans, corporate sponsored student loans and international student loans

  • loan types

  • Variable Rate (APR)

    4.44% – 8.09% APR (Prices include 0.25% Autopay rebate)

  • Fixed Prices (APR)

    4.49% – 7.74% APR (prices include 0.25% autopay rebate)

  • Loan Conditions

  • loan amounts

  • minimum credit rating

  • minimum income

  • Allow one co-signer

Serious student loan refinancing

  • Costs

    No issuance fees for refinancing

  • Eligible Loans

    Federal, private, graduate and undergraduate loans

  • loan types

  • Variable Rate (APR)

    From 1.89% (prices include 0.25% autopay discount)

  • Fixed Prices (APR)

    Starting at 3.24% (prices include 0.25%% autopay discount)

  • Loan Conditions

    Flexible terms between 5 and 20 years

  • loan amounts

    Minimum $5,000, up to $500,000 (California residents must apply for refinance of $10,000 or more)

  • minimum credit rating

  • minimum income

  • Allow one co-signer

Editorial note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of Select’s editors and has not been reviewed, approved, or otherwise endorsed by any third party.

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