Home Blog Page 5

CFPB Highlights Default Risk Factors for Student Loans | Troutman Pepper

 CFPB Highlights Default Risk Factors for Student Loans |  Troutman Pepper


On April 14, the Consumer Financial Protection Bureau (CFPB or Bureau) published a report titled Student Loan Borrowers Potentially At-Risk when Payment Suspension Ends. The publication uses data from the CFPB’s Consumer Credit Panel to identify which types of borrowers may struggle to make their scheduled loan payments based on five potential risk factors:

  1. Pre-pandemic crimes on student loans
  2. Pre-pandemic payment assistance on student loans
  3. Multiple student loan services
  4. Delinquencies on other credit products since the start of the pandemic
  5. New third-party collections during the pandemic

The CFPB finds that about 15 million borrowers have at least one of the potential risk factors considered in this report, and over 5 million have at least two.

On April 6, President Joe Biden announced an extension of the federal student loan pause through August 31. In his statement, Biden suggested that if these loan payments were to resume on schedule in May, analysis of recent data from the Federal Reserve indicated that millions of student loan borrowers would face significant economic hardship, and delinquencies and defaults could threaten Americans’ financial stability.

Much like the Bureau’s recent activity around medical debt, this report seems to signal a wider and more aggressive conversation the CFPB is having with consumers and financial institutions about student loan debt. In a blog post on April 14, the CFPB referenced the Biden administration’s student loan extension, noting three things that borrowers and lenders should keep in mind: borrowers are at risk of struggling when payments return; borrowers could face bills for unnecessarily high amounts; and millions of borrowers are also navigating servicing transfers. Two days earlier, on April 12, the Bureau published another blog post “busting myths” about bankruptcy and private student loans, explicitly stating that education loans “can” – emphasis in the original – be discharged in bankruptcy.

The picture here is of an administration and a regulatory agency deeply concerned with the economic well-being of American consumers, and willing to take much bolder action than previous administrations. How these actions will interact with the complex American economic system, however, is not as clear.



Source link

April 18, 2022—Loan Rates Start To Increase – Forbes Advisor

Private Student Loan Rates: April 18, 2022—Loan Rates Start To Increase


Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

The average interest rate on 10-year fixed-rate private student loans moved up last week. For borrowers pursuing private loans to fill in gaps to pay for higher education expenses, rates remain relatively low for borrowers with solid credit.

From April 11 to April 15, the average fixed interest rate on a 10-year private student loan was 5.39% for borrowers with a credit score of 720 or higher who prequalified on Credible.com’s student loan marketplace. On a five-year variable-rate loan, the average interest rate was 4.11% among the same population, according to Credible.com.

Related: Best Private Student Loans

Fixed-rate Loans

Last week, the average fixed rate on a 10-year loan climbed by 0.52% to 5.39%. The average stood at 4.87% the week prior.

Borrowers in the market for a private student loan now can receive a lower rate than they would have at this time last year. At this time last year, the average fixed rate on a 10-year loan was 6.12%, 0.73% higher than today’s rate.

If you were to finance $20,000 in student loans at today’s average fixed rate, you’d pay around $216 per month and approximately $5,916 in total interest over 10 years, according to Forbes Advisor’s student loan calculator.

Variable-rate Loans

Last week, rates on variable five-year student loans moved up, reaching 4.11% from 3.91% the week prior.

In contrast to fixed rates, variable interest rates fluctuate over the course of a loan term. Variable rates may start lower than fixed rates, especially during periods when rates are low overall, but they can rise over time.

Private lenders often offer borrowers the option to choose between fixed and variable interest rates. Fixed rates may be the safer bet for the average student, but if your income is stable and you plan to pay off your loan quickly, it could be beneficial to choose a variable loan.

Let’s say you financed a $20,000 five-year loan with a variable interest rate of 4.11%. You’d pay about $369 on average per month. You’d pay approximately $2,159 in total interest over the life of the loan. Keep in mind that since the interest is variable, it could fluctuate up or down from month to month.

Related: How To Get A Private Student Loan

How To Compare Private Student Loans

First, take a look at the loan’s overall cost. Consider both interest rate and fees. Also, look at the type of help each lender offers if you’re not able to afford your payments.

Remember, those with good or excellent credit typically get the best rates.

How much should you borrow? Experts generally recommend borrowing no more than you’ll earn in your first year out of college. How much can you borrow? Some lenders cap the amount you can borrow each year, while others don’t. When you’re shopping around for a loan, take to lenders about how the loan is disbursed and what costs it will cover.

Getting a Private Student Loan

If you reach the annual borrowing limits for federal student loans or if you’re otherwise ineligible for them, private student loans may be a decent option. But consider a federal student loan as your first option since the interest rates are typically lower. For example, the interest rate for federal undergraduate student loans is 3.73% for the 2021-22 school year. You’ll also receive more liberal repayment and forgiveness options with federal student loans.

When shopping for a private student loan, you’ll generally need to apply directly through a non-federal lender. This includes banks, credit unions, nonprofit organizations, state agencies, colleges and online entities.

If you’re an undergraduate with limited credit history, you’ll generally need to apply with a co-signer who can meet the lender’s borrowing requirements.

Here’s what to consider when applying for a private student loan:

  • Make sure you qualify.Private student loans are credit-based, and lenders typically require a credit score in the high 600s. This is why having a co-signer can be particularly beneficial.
  • Apply directly through lenders.You can apply directly on the lender’s website, via mail or over the phone.
  • Compare your options.Look at what each lender offers and compare the interest rate, term, future monthly payment, origination fee and late fee. Also, check to see if the lender offers a co-signer release so that the co-borrower can eventually come off of the loan.

The Rate You’ll Receive

Lenders offering private student loans generally offer both fixed and variable interest rates. These rates are, in part, based on your creditworthiness. Generally, the higher your credit score, the lower the interest rate you’ll receive. But credit history, income, the degree you’re working on and your career can factor into the interest rate you receive as well.



Source link

Accused loan shark targeted gamblers inside Encore casino

Accused loan shark targeted gamblers inside Encore casino


Accused loan shark targeted gamblers inside Encore Boston Harbor casino, Attorney General says

An accused loan shark was arrested earlier this month inside Encore Boston Harbor Casino, where she was loaning money to gamblers at extreme interest rates. Kimanh Le, 50, of Quincy, was indicted by a grand jury on Mar. 31 and arrested Sunday inside the Everett casino, Attorney General Maura Healey’s office announced. Le has pleaded not guilty to charges of criminal usury, also known as loansharking.”Loan sharks operating inside of a casino provide usurious loans, targeting individuals who are problem gamblers, struggling financially or, for some reason, are unwilling to seek credit from legal sources,” the AG’s office said in a statement. Le is accused of loaning money to gamblers in the form of cash or chips and charging illegally high interest rates of 5% per day or 10% per week, the AG’s office said. Massachusetts laws cap annual interest on loans at 20%. “These charges are the result of an investigation by the State Police Gaming Enforcement Unit and Gaming Enforcement Division assigned to the Attorney General’s Office, with assistance from the Massachusetts Gaming Commission and Encore Boston Harbor Casino,” the AG’s office said. of loansharking in Dorchester and Quincy. Le was released on personal recognition after her arraignment and is scheduled for a pretrial conference in Suffolk Superior Court on June 24.

An accused loan shark was arrested earlier this month inside Encore Boston Harbor Casino, where she was loaning money to gamblers at extreme interest rates.

Kimanh Le, 50, of Quincy, was indicted by a grand jury on Mar. 31 and arrested Sunday inside the Everett casino, Attorney General Maura Healey’s office announced. Le has pleaded not guilty to charges of criminal usury, also known as loansharking.

“Loan sharks operating inside of a casino provide usurious loans, targeting individuals who are problem gamblers, struggling financially or, for some reason, are unwilling to seek credit from legal sources,” the AG’s office said in a statement.

Le is accused of loaning money to gamblers in the form of cash or chips and charging illegally high interest rates of 5% per day or 10% per week, the AG’s office said. Massachusetts laws cap annual interest on loans at 20%.

“These charges are the result of an investigation by the State Police Gaming Enforcement Unit and Gaming Enforcement Division assigned to the Attorney General’s Office, with assistance from the Massachusetts Gaming Commission and Encore Boston Harbor Casino,” the AG’s office said.

Le is also accused of loansharking in Dorchester and Quincy.

Le was released on personal recognition after her arraignment and is scheduled for a pretrial conference in Suffolk Superior Court on June 24.

.



Source link

April 18, 2022—Loan Rates Move Down – Forbes Advisor

Student Loan Refinance Rates: April 18, 2022—Loan Rates Move Down


Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Rates on refinanced student loans moved down last week. Despite the rise, if you’re interested in refinancing your student loans, you can still get a relatively low rate.

For borrowers with a credit score of 720 or higher who prequalified on Credible.com’s student loan marketplace from April 11 to April 15, the average fixed interest rate on a 10-year refinance loan was 4.18%. On a five-year variable-rate loan, the rate was 3.46%, according to Credible.com.

Related: Best Student Loan Refinance Lenders

Fixed-rate Loans

Last week, the average fixed rate on 10-year refinance loans declined by 0.01% to 4.18%. The week prior, the average stood at 4.19%.

At this time last year, the average fixed rate on a 10-year refinance loan was 3.77%, or 0.41% lower than today’s rate. That means that borrowers who refinance now have the chance to lock in a rate that’s considerably lower than they would have received at this time last year.

A borrower who refinances $20,000 in student loans to today’s average fixed rate would pay around $204 per month and approximately $4,505 in total interest over 10 years, according to Forbes Advisor’s student loan calculator.

Variable-rate Loans

The average rate on five-year variable student refinance loans moved up by 0.34% last week. Now it sits at 3.46%.

In contrast to fixed rates, variable interest rates fluctuate over the course of a loan term according to market conditions and the index they’re tied to. Many refinance lenders recalculate rates monthly for borrowers with variable-rate loans, but they typically limit how high the rate can go—to 18%, for instance.

Let’s say you refinanced an existing $20,000 loan to a five-year loan with a variable interest rate of 3.46%. You’d pay about $363 on average per month. You’d pay approximately $1,809 in total interest over the life of the loan. Keep in mind that since the interest is variable, it could fluctuate up or down from month to month.

Related: Should You Refinance Student Loans?

Fixed-rate Loans vs. Variable-rate Loans

For most borrowers, the biggest motivation to refinance student loans is to reduce the amount of interest they’ll pay. That means choosing the lowest possible interest rate is a top priority.

While variable rates may start out low, they could rise in the future, making them a gamble. But one way to limit your risk exposure is to pay off your new refinance loan as fast as possible. Choose as short a loan term as you can manage, and pay extra when possible so that you’re not subject to potential rate increases in the future.

When considering your options, compare rates across multiple student loan refinancing lenders to ensure you’re not missing out on possible savings. Explore whether you qualify for additional interest rate discounts, potentially by choosing automatic payments or having an existing financial account with a lender.

The Right Time To Refinance Student Loans

Lenders generally require you to complete your degree before refinancing. Though it’s possible to find a lender without this requirement, in most cases, you’ll want to wait to refinance until after you’ve graduated.

Keep in mind that you’ll need a good or excellent credit score to get the lowest interest rates.

Using a co-signer is one option for those who don’t have strong enough credit or income to qualify for a refinance loan. Alternatively, you could wait until your credit and income are stronger. If you decide to use a co-signer, make sure they’re aware that they’ll be responsible for payments if you’re not able to for some reason. The loan will also appear on their credit report.

Finally, make sure you can save enough money to justify refinancing. At today’s rates, most borrowers with high credit scores can benefit from refinancing. But those with less-than-great credit who won’t receive the lowest fixed or variable interest rates may not. First, explore rates you could prequalify for via multiple lenders, then calculate your potential savings.

Refinancing Student Loans: What Else to Consider

When you refinance federal student loans to a private loan means you’ll lose access to some federal loan benefits. You’ll no longer have access to features like:

You may not need these programs if you have a stable income and plan to pay off your loan quickly. But make sure you won’t need these programs if you’re thinking about refinancing federal student loans.

If you do need the benefits of those programs, you could refinance only your private loans or just a portion of your federal loans.



Source link

China’s central bank pledges easier loans to support enterprises, households hit by coronavirus

China's central bank pledges easier loans to support enterprises, households hit by coronavirus


China’s central bank Photo: CFP

The People’s Bank of China (PBC), China’s central bank, on Monday rolled out a wide variety of support measures ranging from refinancing quotas to increasing loans, as the country ramps up efforts to relieve the economic burden caused by the sudden resurgences of the coronavirus in multiple cities.

Many of those policies aimed are to aid people and industries directly battered by the coronavirus outbreak such as logistics. But some experts said that the financial measures could function better in tandem with fiscal policies such as increasing government spending, to reactivate a cooling market.

On Monday, the PBC announced 23 steps to provide financial services for socioeconomic development and coronavirus prevention and control. The measures were rolled out along with the State Administration of Foreign Exchange (SAFE).

A major focus is helping people to get loans from banks. The central bank noted that it would continue to use the 400 billion yuan ($62.8 billion) relending quota that was originally used to support small and micro-credit loans. It added that the relending quota could be increased further if necessary.

The PBC said that it would use multiple monetary policy tools including open market operations, the Standing Lending Facility and other means to provide ample liquidity to the market. It would also prevent banks from restricting or stopping loans to help companies withstand the impact of the coronavirus.

Many of the measures are directly targeted at supporting companies or people that are taking a serious hit from the COVID-19 resurgence.

For instance, financial institutions were asked to offer loan extensions to logistics companies or drivers that have difficulties paying back loans. The country will also increase credit support to aviation companies and airports with new credit lines.

For people who are infected with the virus or who lose their income temporarily because of the epidemic, the banks are asked to support them by adjusting loan repayment arrangements, such as postponing their payment of mortgage loans.

The PBC also listed measures to provide monetary support for sectors like agriculture, energy and 5G.

Experts said that the government notice has made it very clear in terms of how to better ease the burden of industries, groups and individuals from the epidemic hit.

“The downward pressure faced by the economy is significant. If China does not come up with policy stimulus to cope with the situation, then it will be very difficult to achieve the 5.5 percent GDP growth target,” Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times.

Xi said the most urgent ease task for the government is to alleviate difficulties faced by companies because of COVID19, and those measures would help relevant companies their burden by filling their short-term capital needs.

Zhao Xijun, co-director of the Capital Market Research Institute at Renmin University of China, told the Global Times on Monday that the highlight of the notice is its actual support for industry groups by encouraging local banks to increase loans to small and micro-sized enterprises.

“For consumers, those who cannot repay their housing loans in a timely manner due to the epidemic may not be included in the personal default system,” Zhao said, another highlight of the notice in easing public concerns.

Experts said that monetary policy alone can’t lift China out of its economic dilemma, as the major problem isn’t a lack of liquidity but the scarcity of viable investment projects and banks’ concern over potential bad loans in the coming months.

“It’s difficult for lending to increase drastically,” Xi said. He added that the government should roll out more fiscal support policies to stimulate the economy, such as by accelerating government investment in infrastructure projects, and one feasible method is to expand the budget deficit.

China has set a target of 2.8 percent for 2022’s financial deficit, which Xi said might be insufficient to deal with the grave economic challenges.

Zhao said that the most important thing is to ensure the normal resumption of work and production of enterprises.

“The extent to which the 400 billion yuan relending quota can play a role in lifting the economy depends on the recovery of production and factory operations after the epidemic is put under control,” Zhao said.

According to the PBC, the central bank had transferred profits of about 600 billion yuan to the central government as of mid-April. The money is mainly used for tax refunds and local government fiscal transfers, it said.



Source link

Revolut taps Cross River to launch credit and personal loans in United States

Revolut taps Cross River to launch credit and personal loans in United States


“At Revolut, we’re building the world’s first global financial superapp so the move into credit and personal loans is a natural next step.”

Revolut has chosen Cross River Bank to build and scale its business in the United States using the embedded platform’s technology and regulatory infrastructure.

The partnership will open up the first US-based consumer personal loans for Revolut customers, with additional credit offerings slated to launch in the coming months.

The global financial superapp currently caters to more than 18 million customers worldwide, but the US comes as the ultimate challenge for the startup which has taken the world by storm in recent years.

Adam Goller, EVP, Head of Fintech Banking at Cross River, said: “At Cross River, we’re always looking for new and innovative ways to provide access to credit. Our partnership with Revolut is instrumental in facilitating responsible financial solutions to consumers, and we’re excited to be powering Revolut’s US expansion.”

Tarun Bhushan, Head of Lending at Revolut US, commented: “At Revolut, we’re building the world’s first global financial superapp so the move into credit and personal loans is a natural next step. Revolut has developed technology to provide loans instantly to approved customers, with no origination fees – so customers can get the credit they need, when they need it. We’re thrilled to partner with Cross River to offer US consumers an even more diverse range of financial services with the launch of our intuitive and hassle-free personal loan product.”

Revolut’s US operation will leverage to further expand across the country and scale across business verticals including credit. This means that, Revolut customers will soon be able to take out a loan without worrying about late fees, origination fees and prepayment penalties.

Customers can check their rates through the credit tab in their Revolut app without impacting their credit score. They can then seamlessly request the loan amount and term they need to accomplish their goals directly in the app.

The startup offers near-instant, same-day loan funding as well as automatic loan payments with the AutoPay feature. All US consumers will be able to apply for a Revolut loan in the coming months.

Revolut, which offers banking and trading services through an app, raised $800 million last year in a funding round that valued the firm at $33 billion. This valuation was a sixfold increase compared to nearly $5.5 billion the UK firm was worth in 2020.

Revolut has been among a number of app-only fintech companies that are looking to branch into banking as they diversify their revenue stream and bring new services to their existing customers.



Source link

How to Take Advantage of the Student Loan Moratorium Extension

How to Take Advantage of the Student Loan Moratorium Extension


We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Marielle Tomlin has taken advantage of student loan payment freezes to pay off over $50,000 in student loan debt. And she’s excited to have an extended opportunity to continue chipping away at her student debt.

The Biden-Harris Administration has extended the pause on payments, interest, and collections through Aug. 31, 2022. The latest freeze gives Tomlin, and millions of others with student loans, a fresh take from the burden of monthly payments.

Now is a great time to take advantage of the additional financial flexibility, but don’t count on it being a permanent situation because experts don’t believe blanket student loan forgiveness is likely.

Not having to pay interest has energized Tomlin and allowed her to fast track paying down her $170,000+ in student debt. This has motivated her to keep paying more, she says. Tomlin started off paying $500 a month and kept bumping it up from there, putting large chunks of the money she made from her midwifery practice toward her student loans. “I kinda feel like I’m racing the clock until the [no interest period] and the pause is all done,” she says.

If you’re taking advantage of this student loan freeze, here’s what you need to know about the pause and how to take advantage of it.

There’s a ‘Fresh Start’ for Those Struggling to Make Payments

During the student loan payment freeze borrowers who were behind on payments have had all collections paused. With this latest extension, there are plans to help borrowers who are behind on payments by eliminating delinquency and default status on loans. This is a big deal that will allow somewhere around 8 million borrowers to essentially have a fresh start, says Adam S. Minsky, an attorney specializing in student loan law.

At this point, the government has yet to provide details on what this will look like and how it will work. Once this plan is put into action, it could be a boon for borrowers’ credit scores, greatly improving the chances of qualifying for a mortgage or securing a lower interest rate for all types of loans.

However, what we don’t know is whether or not the changes in delinquency or default status will be automatically reported to the credit bureaus. If the government doesn’t release an automatic correction to your credit report, borrowers can self-advocate by writing dispute letters to their servicer and the credit reporting bureaus, says Catalina Kaiyoorawongs, co-founder of the student debt financial wellness platform LoanSense. “In some cases, your credit score can be increased by over 100 points,” she says.

How Experts Recommend Approaching This Payment Freeze Extension

Having flexibility with your student loans and not having to worry about interest increasing gives you some options. “The first thing I would have that person ask themselves is, how can I make the most of this?” says Anna N’Jie-Konte, a financial advisor and founder of Dare to Dream Financial Planning.

Here’s what the experts are saying about what you need to know about the student loan payment freeze and strategies for taking advantage of it.

Don’t Count on Blanket Loan Forgiveness

You may have extra room in your budget right now, but experts say you shouldn’t make long-term financial decisions based on that. You don’t want to commit yourself to a higher mortgage payment when you’re saving $100 or $1,000 a month by not paying student loans because, “that suddenly becomes a problem once those [student loan] payments restart,” N’Jie-Konte says.

The experts we talked to believe that total forgiveness of all federal student loan debt is unlikely to happen. It’s possible there will be some form of limited relief or an expansion of existing programs, but even that is up in the air. “I do not think [Biden’s] going to wipe out everyone’s student loan debt, but there could be some sort of broader student loan forgiveness initiative of some kind,” Minsky says. “The administration has confirmed that that’s still under consideration.”

The Public Service Loan Forgiveness program (PSLF) has already been overhauled to enable a larger number of borrowers to qualify. For those with an eligible public service job (teacher, firefighter, nurse, etc.), a wider range of federal loans and repayment plans will count toward the PSLF requirements. If you qualify, you’ll need to apply for this limited waiver by Oct. 31, 2022.

Supercharge Your Other Financial Goals

This could be a good time to save for a down payment for a home, jump start your child’s college education fund, or pay down high-interest credit card debt. “I had one client, I think he’s paid off $50,000 in credit card debt in the last two years,” N’Jie-Konte says. She has also seen people use the extra cash as seed money for a business. “I think a lot of people are using it to fund their dream projects.”

Tomlin is taking advantage of this interest-free period to rapidly pay off her school loans. Once she’s paid off her student debt she’ll be free to work less or expand her midwifery business by hiring another midwife. “I’ll be way more flexible once my loans are gone,” she says.

Understand How It Impacts Getting a Home Loan

Any debt will limit your ability to qualify for a mortgage and reduce the amount you can borrow by increasing your debt-to-income ratio (DTI). But student loans have a unique and complicated relationship with your mortgage application.

If your student loans are in active repayment, then your monthly payment amount is counted toward your DTI. This is true even if you have lower payments because you’re taking advantage of an income-driven repayment (IDR) plan.

However, the calculation changes if your payment is zero, which is currently the case for many borrowers. A lot of borrowers automatically assume because they’re not paying it, that the lender won’t count it, and that’s far from the truth, Kaiyoorawongs says. In that scenario, a percentage of your student loan balance is factored into your DTI. This percentage varies by loan type, but is typically 0.5% to 1% of your total loan balance. This means that for certain borrowers, not having your student loans in repayment staus can actually hinder your ability to purchase a home.

For an FHA loan the maximum DTI is generally 43%, a family making $6,000 a month could have up to $2,580 in monthly debt payments (including the future mortgage payment). If this family has $100,000 in student loans and the loans currently aren’t in repayment, then 0.5% of the loan balance counts toward their DTI, which would be $500.

In this scenario, the family might be able to increase their purchasing power by putting their student loans into active repayment. If they qualified for an IDR plan with a payment of $250 a month, here’s what that would look like for a 30-year loan with a 5% mortgage rate:

Student Loan’s DTI Impact Maximum Mortgage Payment Maximum Mortgage Amount at 5% over 30 years*
With $0 Payment $500 $2,080 $345,200
With IDR $250 $2,330 $386,700
*According to the NextAdvisor mortgage calculator

It may sound counterintuitive, but by restarting student loan payments, some borrowers can increase their homebuying budget. And once you’ve closed on the home, you can still take advantage of the freeze on federal student loan payments. “You only have to pay [student loans] for one month. You can put yourself in pause again,” Kaiyoorawongs says.

Whether or not this strategy makes sense for you depends on your personal situation. You can apply for IDR at Studentaid.gov.



Source link

Loan Watch: Torreira scores winner | News

 Loan Watch: Torreira scores winner |  News


Fourteen of our players have been in action for their respective loan clubs over the past week.

Read on to find out how they performed:

Lucas Torreira played 90 minutes and scored the winner for Fiorentina in their 1-0 victory over Venezia. Our midfielder bundled the ball over the line from close range after Venezia failed to clear the initial in-swinging free-kick. The win helps the Italian side up to sixth in Serie A after 32 matches played.

William Saliba had a busy week, featuring twice for Marseille. Our defender played the entirety of the French side’s 1-0 win over PAOK in their Europa Conference League quarter-final second leg – Marseille will now face Feyenoord in the semi-finals. Saliba also played the full match as Marseille lost 2-1 to table-toppers PSG.

Matteo Guendouzi also played two full matches for Marseille, and provided the assist for Dimitri Payet’s goal in the win over PAOK. The French side stay second in Ligue 1 following defeat against PSG, and now sit 15 points behind the league leaders after 32 matches played.

Pablo Mari played the entirety of Udinese’s 4-1 win over Empoli. The win moves the Italian club up to 12th in Serie A with seven matches left to play.

Hector Bellerin played the full match and helped Real Betis to keep a clean sheet in their 0-0 draw with Real Sociedad. The point keeps the Spanish side fifth in LaLiga after 32 matches.

Reiss Nelson played 67 minutes as Feyenoord beat Slavia Prague 3-1 in their Europa Conference League quarter-final second leg. The Dutch side will now face Marseille in the semi-finals of the competition.

Mavropanos Dinos played the full match as Stuttgart drew 0-0 with Mainz 05. The German side currently sit 16th in the Bundesliga after 30 matches.

Folarin Balogun was an 82nd-minute substitute as Middlesbrough drew 0-0 with Bournemouth. Chris Wilder’s side stay seventh in the Championship, two points short of a play-off spot with five matches left to play this season.

Brooke Norton Cuffy played the full match and provided an assist as Lincoln City lost 3-2 to Portsmouth. The Imps stay 18th in League One after 43 matches played.

Jordi Osei-Tutu was in action twice for Rotherham United. Our young defender played 84 minutes of his side’s 3-0 defeat to Portsmouth and 89 minutes of their 1-0 win over Ipswich Town. Paul Warne’s side stay second in League One with four matches remaining.

Harry Clarke played the full match as Hibernian lost 2-1 to Hearts in the Scottish Cup semi-final.

Matt Smith played 88 minutes as Doncaster Rovers were beaten 2-1 by Bolton Wanderers. Rovers stay second from bottom in League One with three matches remaining.

Daniel Ballard played the entirety of Millwall’s 1-1 draw with Preston North End. Gary Rowett’s side now sit 10th in the Championship table with four matches left to play this season.

Jordan McEneff played 59 minutes of Shelbourne FC’s 2-1 victory over Derry City. The Irish side stay eighth in the League of Ireland Premier Division after the win.

Copyright 2022 The Arsenal Football Club plc. Permission to use quotations from this article is granted subject to appropriate credit being given to www.arsenal.com as the source.



Source link

Should You Refinance Your Student Loans Before Interest Rates Rise?

Should You Refinance Your Student Loans Before Interest Rates Rise?


While federal student loan payments are still paused and interest rates are set at 0% through at least August 31, 2022, it’s reasonable to believe monthly payments and accrued interest will likely resume within the next year. Fortunately, federal student loans come with competitive fixed interest rates that never change, so you don’t have to worry about facing a higher interest rate than you were paying before.

For the most part, the pause will simply end at some point, leaving you back with the same student loan balance and payment you faced before March of 2020.

For some background, Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students first disbursed on or after July 1, 2021, and before July 1, 2022 come with a fixed interest rate of 3.73%. Meanwhile, Direct Unsubsidized Loans for graduate and professional students disbursed over the same timeline come with a fixed rate of 5.28%.

That’s pretty competitive, although interest rates on private student loans have dropped even lower for borrowers with excellent credit over the past few years. In fact, College Ave Student Loans is still advertising undergraduate student loans with variable rates as low as 0.94% (with auto-pay), as well as fixed interest rates as low as 3.24% (with auto-pay).

Even so, we all know that payments on private loans have not been paused throughout the pandemic. As a result, the majority of borrowers with private student loans have been on the hook for payments and interest charges this entire time.

Student Loan Interest Rates Set To Rise This Year

By now, you have probably heard that the Federal Reserve has plans to raise interest rates in the coming months. In fact, the Fed recently approved an interest rate hike of a quarter of a percentage point while also signaling the announcement of six more rate increases throughout 2022. According to reporting from the Consumer Financial Protection Bureau (CFPB), the rate hikes are being used as a tool to address inflation.

This won’t pose any threat to borrowers who already have federal student loans since most rates are fixed for the duration of the repayment period. However, students who plan to take out federal loans for college later this year (and in the future) could face much higher borrowing costs than those in the past few years. The same can be said for parents who plan to take out federal loans to help their children pay for college later this year and next year as well.

Of course, interest rate hikes will also affect private student loans, which have advertised astoundingly low interest rates over the last few years. This is particularly true for borrowers with good or excellent credit, as well as those who have cosigners with the credit to help them qualify for loans with the best rates and terms.

With all this in mind, you may be wondering if you should refinance your existing student loans (federal or private) in order to lock in lower rates before the Fed starts jacking up rates to keep inflation at bay. While refinancing your federal student loans with a private lender can make sense in some situations, there are definitely pitfalls to be aware of before you make this move.

Reasons NOT To Refinance Your Student Loans

If you currently have federal student loans, the first thing to know is that your interest rate is set at 0% through at least August 31, 2022. With the midterm elections coming up, many experts agree that the current pause will be extended at least one more time, and potentially even into next year.

As a result, refinancing student loans now would mean giving up the 0% you’re paying on federal student loans for as long as it lasts. If the Biden administration were to extend the current pause on payments and 0% rate several more times, you would miss out on the benefits of those extensions, too.

Plus, we all know that there are other benefits that come with federal student loans, including the regular deferment and forbearance programs that were offered before the COVID-19 pandemic. Federal student loans are also eligible for programs like Public Service Loan Forgiveness (PSLF) and income-driven repayment plans.

Finally, the Biden administration has talked about forgiving some level of student loan debt (around $10,000 per borrower) in the past. While most experts believe broad student loan forgiveness is unlikely to come to fruition, refinancing your federal loans with a private lender would likely mean missing out on any forgiveness that takes shape.

When You Should Refinance Your Student Loans

That said, maybe you have considerable student loan debt, so you want to save as much on interest if you can. If you also tend to believe that forgiveness is unlikely, then it could make sense to refinance your federal student loans with a private lender before the Fed brings the record low interest rates to a screeching halt.

Just keep in mind that you’ll be giving up some benefits if you make this move. For example, you’ll be saying the current 0% rates most borrowers are afforded on federal student loans through at least August 31, 2022. You’ll also be giving up the chance for federal deferment or forbearance, or for paying off your student loans through an income-driven repayment plan.

You do have the potential to save some money with this move. However, how much you can save depends on how much you owe on your student loans, the type of loans you have now and the interest rate you originally locked in.

As an example, let’s say you currently have $60,000 in Direct Unsubsidized Loans for graduate or professional students, and that they were first disbursed after July 1, 2021. In this case, the interest rate on these loans will be 5.28% after the current deferment period ends as soon as August 31, 2022. If you choose to repay your loans on a standard, 10-year repayment plan, your monthly payment would work out to $644.64 and you would pay total interest of $17,356.37 over the decade-long repayment period .

However, you can still find fixed rates as low as 2.15% for graduate school loan refinancing on Credible, a loan comparison site. If you refinanced your loans at this new fixed rate and decided to stay on the same 10-year repayment plan, your monthly payment would drop to $556.12, and your total interest costs would decrease to $6,734.47. That’s more than $10,000 in long-term savings for refinancing your student loans, and it could be yours if you took steps to refinance your loans before today’s low rates disappear.

.



Source link

My ex-husband encouraged me to drop out of college after a year, and now I’m struggling to repay my student loans. Is there anything I can do?

 I'm 67 now owe 3x what I borrowed in student loans.  What can I do?


It’s also important to make sure you don’t neglect the emotional impact of this situation.

Getty Images/iStockphoto

Question: I took out a student loan in 2006, but my ex-husband was very controlling, pushing me to drop out after a year. I’ve tried working with the servicer to lower the debt, but haven’t had any luck. Is there anything I can do?

Answer: First, it’s important to make sure you don’t neglect the emotional impact of this situation. Financial therapist Alex Melkumian, founder of the Financial Psychology Center in Los Angeles, recommends focusing on processing the psychological trauma associated with being in a financially abusive relationship. And Dr. Kirsten Thompson, board certified psychiatrist and founder of Remedy Psychiatry, says while there may not be much legal recourse in this situation, it can be a good reminder of your personal growth. “When we look back on our prior decisions, whether they be tolerating an abusive partner’s command to drop out of school, or something else, and we realize that we would have done things differently, if given the chance again, it’s a reminder of how much we have grown,” says Thompson. For 24/7 access to resources and support for anyone in an abusive relationship, visit the National Domestic Violence Hotline or call 800-799-7233 (SAFE).

Understand how the student loan was handled in the divorce

Certified family law specialist and former therapist David Glass recommends checking your Judgment of Dissolution, as the student loan should have been assigned or divided by the court to one of the parties at the time of dissolution, the same way assets are assigned or divided. Here is how student loan debt is typically handled in a divorce. “If you haven’t gotten formally divorced, then there is still time to ask the court to handle the issue of student loan debt,” says Glass.

Income-driven repayment plans and loan forgiveness

An estimated 40% of student borrowers have debt and no degree. “It’s more difficult for borrowers without degrees to repay their student debt. If you have federal student loans, you can access income-driven repayment plans, which tie payments to a portion of your income and extend the length of time you’re paying,” says Anna Helhoski, student loan expert at NerdWallet. These plans set the amount you pay each month to a portion of your income, which should make payments more manageable. “It’s a safety net, if you’re out of work for example, your payment would be zero dollars and after 20 to 25 years, the remainder of your debt is forgiven,” says Helhoski. This isn’t a perfect option, but it’s one that makes payments more manageable for most borrowers.

Have a question about getting out of student loan or other debt? Email chill@marketwatch.com.

While you’re probably responsible for paying off your student loan, Leslie H. Tayne, financial attorney at Tayne Law Group, says you may be able to get your federal student loan balance forgiven if one of the following situations apply: Your school closed within 120 days of you leaving, purposefully misled you, or engaged in misconduct or broke the law, or you’ve become totally and permanently disabled.

“If none of the above reflect your circumstances, you still have some options to ensure your loan doesn’t negatively impact your life,” says Tayne. If you worked for the government or a non-profit and made 10 years worth of qualifying payments under an income-driven repayment plan, you may be eligible for Public Service Loan Forgiveness. “You could also be eligible for partial or total Perkins loan forgiveness if you worked four to seven years in public service occupations such as law enforcement or teaching,” says Tayne.

If your monthly bill under an IDR plan is still too high, Tayne says you can ask your servicer for a deferment or forbearance to temporarily postpone payments. “With a deferment, interest will stop increasing on your balance but with forbearance, interest will keep increasing which increases what you owe — so think of it as a last resort,” says Tayne. This guide will help you figure out the difference between a deferment and a forbearance.

Should you consider refinancing?

With a private student loan, you have fewer options for more forgiving repayments and loan forgiveness. “It’s worth researching location-specific student loan assistance programs near you or applying for jobs with employers who offer student loan repayment assistance as an employee perk,” says Tayne.

Sometimes, borrowers can benefit from refinancing, but borrowers who are struggling financially probably won’t qualify for a private refinance, says Mark Kantrowitz, Author of Who Graduates from College? Who Doesn’t?. “If they do qualify, the benefit may be limited as the interest rates are based on the borrower and co-signer’s credit scores. A borrower who is struggling financially might not qualify for a lower interest rate because of a lower credit score and a lower fixed interest rate often requires a shorter repayment term which increases the monthly loan payment,” says Kantrowitz.

Questions edited for brevity and clarity.

.



Source link