Latest news with #SavingonaValuableEducationPlan
Yahoo
a day ago
- Business
- Yahoo
Don't Wait – These 3 Steps Could Save you a Ton on Your Student Loans
Confused over new rules for student loans and repayments? Informed decisions made now could save thousands of dollars and lots of headaches trying to manage life's other financial challenges. Finance and policy expert Elaine Rubin worked for seven years at the U.S. Dept. of Education's Federal Student Aid office, making her extremely knowledgeable on this complex subject. Here is the cheat sheet of her three top tips to save money on your student loans. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Find out what you've borrowed and how much you still owe. Copy or snap key figures for later reference if you don't want to slog through contracts and fine print. Include sections that show interest rates and how much they've been adding to your loan liability. Look at your repayment plans. Are you enrolled in the government's Saving on a Valuable Education Plan, also known as SAVE? If so, pay attention to garnishment rules arising from legal challenges during the Biden administration. Rubin says total indebtedness is a "question that most borrowers can't answer." She adds that folks behind in their payments often don't know it, adding to interest costs. "Many borrowers I've worked with are surprised to find they owe more than they initially borrowed when it's time to start repayment, Rubin explained. "Because most loans, except subsidized ones, begin accruing interest from the moment they are disbursed." Trending: Maximize saving for your retirement and cut down on taxes: . SAVE enrollees have been in limbo since last summer, caught in a court-ordered administrative forbearance. That stopped interest rates, but the payment hold is scheduled to end no earlier than September, after government systems are updated. Check out the Department of Education's Loan Simulator for possible repayment options when the interest clock runs again. That site also has eligibility information for specific to Rubin, borrowers can also restate income if they earn less now than at the time of the first loan forbearance in 2020. Lower income may reduce your student loan payment if you are enrolled in an income-driven repayment plan. Borrowers on that program may also qualify for student loan forgiveness. But they shouldn't count on relief because, as Rubin notes, "legal challenges continue to threaten SAVE and some of the other IDR repayment plans." As a side note, teachers, nurses and other public service employees under the Department of Education's Public Service Loan Forgiveness program can cancel debt if they meet strict job length and repayment rules. Not everyone has the resources to pay for college, and a college loan, at the same time. But student loans generally don't start the repayment clock until six months after graduation, or after failing to meet enrollment guidelines. So, Rubin says it helps if the borrower can "pay off any interest that accrues while you're still in school. Even small contributions can help reduce the overall cost of your loans in the long run." Read Next: Many are using retirement income calculators to check if they're on pace — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Don't Wait – These 3 Steps Could Save you a Ton on Your Student Loans originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-04-2025
- Business
- Yahoo
Managing student loans amongst federal confusion
SIOUX FALLS, S.D. (KELO) – The US Department of Education is headed toward some major changes as the Trump Administration proceeds with it's plan to dismantle the agency. In March, the President signed an executive order to return the power over education to the states. Trump also announced the Small Business Association will take over the responsibility of handling the federal student loan programs. 'We have a portfolio that's very large, lots of loans, uh, tens of thousands of loans, pretty complicated deal,' President Donald Trump said in March. 'And that's coming out of the Department of Education immediately and it's gonna be headed up by Kelly Loeffler SBA and they're all set for it. They're waiting for it and it'll be serviced much better than it has in the past. It's been a mess.' State to seek possible land sites for prison project Some experts have warned this order could throw student loans into disarray and lead to frustration for borrowers. In this Your Money Matters, we sit down with a financial advisor to find out what borrowers should know amid the confusion. Lutheran Social Services in Sioux Falls offers a variety of resources for people in the community. There's even a Center for Financial Resources, and program director Sara Ramirez says one of the things they counsel people on is student loans. 'It's gotten trickier over probably the past five years to navigate with all the options that have come out, so just helping individuals look at their individual loans and what options they have specifically,' Ramirez said. Ramirez says anytime there's a shift or change in systems there's potential for errors in data transfer. So, she recommends people keep track of their student loans. 'Keep track of your payment history, proof of payments, your bank statements, things that show that you made your payments,' Ramirez said. 'There's also, on the student loan website, there's a place where you can download your data file that gives you a whole list of all your federal student loans, all the details and statuses and stuff like that.' One thing borrowers might be considering right now is refinancing their federal loans into a private entity. 'We always caution people to really weigh the pros and cons when they look at that because you're moving your then federal student loans to private, meaning you're going to permanently lose any federal benefits that you may have. I know those are kind of questionable right now but by refinancing you're going to lose them,' Ramirez said. She says people who need some help navigating the student loan confusion can seek help at LSS. 'For us as consumers, it's taking care of what is in front of you and what you've got and what you've got control over,' Ramirez said Something else that's been up in the air for some borrowers is the Saving on a Valuable Education Plan and parts of other income-driven repayment plans after a federal court issued an injunction preventing the Department of Education from implementing them. However, as of March 26, the online applications for some income-driven repayment plans have become available again, as well as the online loan consolidation application. The Department of Education is also currently reviewing an executive order that would alter the public service loan forgiveness program. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
26-03-2025
- Business
- The Hill
Education Department reopens applications for student loan repayment plans
The U.S. Education Department reopened online applications Wednesday for income-driven repayment plans for student loan borrowers. The applications had been taken down in response to a February court ruling, which blocked the Biden administration's Saving on a Valuable Education Plan and parts of other income-driven repayment plans. The materials' removal had complicated the renewal process for borrowers already enrolled in repayment plans. The American Federation of Teachers had filed a lawsuit seeking to force the department to accept and process applications for repayment plans. Delays in processing applications held up relief for borrowers including those enrolled in the Public Service Loan Forgiveness program, said Persis Yu, deputy executive director for the Student Borrower Protection Center, which represented the plaintiffs. 'Every day these applications go unprocessed deprives borrowers of critical time toward PSLF relief and financial stability,' Yu said. The Trump administration needed to revise the income-driven repayment plan application in order to comply with the February ruling, said James Bergeron, acting under secretary at the Education Department. While the online application was down, officials said there were no disruptions to the paper application process. Income-driven repayment plans take a borrower's finances and family size into account when calculating monthly payments, but borrowers must periodically demonstrate they still qualify. When forms were unavailable, some borrowers were unable to complete that process. Advocates for borrowers encouraged them to be prepared for delays in processing as the department begins accepting applications again. 'Looking at the application today, it does appear that everything is back online,' said Sabrina Calazans, executive director of Student Debt Crisis Center. 'Borrowers should still apply for the plan that works for them.' She said borrowers should continue to plan for how to tackle their student debt, despite the Trump administration's dismantling of the Education Department. Not paying back loans or meeting payments can result in delinquency and defaults. 'We have heard a lot of people say that if the department is going away, so do their loans. That is not true,' Calazans said. AFT President Randi Weingarten said in a joint statement with the Student Borrower Protection Center that the government 'took a step because of our lawsuit to restore some borrowers' rights' but that many borrowers are still being met with 'red tape, backlogs and dead ends.' The Education Department's Federal Student Aid office has been hit hard by layoffs, with more than 300 FSA jobs eliminated. The Trump administration has said the cuts won't affect students and families. ___ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Yahoo
26-03-2025
- Business
- Yahoo
Education Department reopens applications for student loan repayment plans
The U.S. Education Department reopened online applications Wednesday for income-driven repayment plans for student loan borrowers. The applications had been taken down in response to a February court ruling, which blocked the Biden administration's Saving on a Valuable Education Plan and parts of other income-driven repayment plans. The materials' removal had complicated the renewal process for borrowers already enrolled in repayment plans. The American Federation of Teachers had filed a lawsuit seeking to force the department to accept and process applications for repayment plans. Delays in processing applications held up relief for borrowers including those enrolled in the Public Service Loan Forgiveness program, said Persis Yu, deputy executive director for the Student Borrower Protection Center, which represented the plaintiffs. "Every day these applications go unprocessed deprives borrowers of critical time toward PSLF relief and financial stability,' Yu said. The Trump administration needed to revise the income-driven repayment plan application in order to comply with the February ruling, said James Bergeron, acting under secretary at the Education Department. While the online application was down, officials said there were no disruptions to the paper application process. Income-driven repayment plans take a borrower's finances and family size into account when calculating monthly payments, but borrowers must periodically demonstrate they still qualify. When forms were unavailable, some borrowers were unable to complete that process. Advocates for borrowers encouraged them to be prepared for delays in processing as the department begins accepting applications again. 'Looking at the application today, it does appear that everything is back online,' said Sabrina Calazans, executive director of Student Debt Crisis Center. 'Borrowers should still apply for the plan that works for them." She said borrowers should continue to plan for how to tackle their student debt, despite the Trump administration's dismantling of the Education Department. Not paying back loans or meeting payments can result in delinquency and defaults. 'We have heard a lot of people say that if the department is going away, so do their loans. That is not true," Calazans said. AFT President Randi Weingarten said in a joint statement with the Student Borrower Protection Center that the government 'took a step because of our lawsuit to restore some borrowers' rights' but that many borrowers are still being met with 'red tape, backlogs and dead ends.' The Education Department's Federal Student Aid office has been hit hard by layoffs, with more than 300 FSA jobs eliminated. The Trump administration has said the cuts won't affect students and families. ___ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
The Independent
26-03-2025
- Business
- The Independent
Education Department reopens applications for student loan repayment plans
The U.S. Education Department reopened online applications Wednesday for income-driven repayment plans for student loan borrowers. The applications had been taken down in response to a February court ruling, which blocked the Biden administration's Saving on a Valuable Education Plan and parts of other income-driven repayment plans. The materials' removal had complicated the renewal process for borrowers already enrolled in repayment plans. The American Federation of Teachers had filed a lawsuit seeking to force the department to accept and process applications for repayment plans. Delays in processing applications held up relief for borrowers including those enrolled in the Public Service Loan Forgiveness program, said Persis Yu, deputy executive director for the Student Borrower Protection Center, which represented the plaintiffs. "Every day these applications go unprocessed deprives borrowers of critical time toward PSLF relief and financial stability,' Yu said. The Trump administration needed to revise the income-driven repayment plan application in order to comply with the February ruling, said James Bergeron, acting under secretary at the Education Department. While the online application was down, officials said there were no disruptions to the paper application process. Income-driven repayment plans take a borrower's finances and family size into account when calculating monthly payments, but borrowers must periodically demonstrate they still qualify. When forms were unavailable, some borrowers were unable to complete that process. Advocates for borrowers encouraged them to be prepared for delays in processing as the department begins accepting applications again. 'Looking at the application today, it does appear that everything is back online,' said Sabrina Calazans, executive director of Student Debt Crisis Center. 'Borrowers should still apply for the plan that works for them." She said borrowers should continue to plan for how to tackle their student debt, despite the Trump administration's dismantling of the Education Department. Not paying back loans or meeting payments can result in delinquency and defaults. 'We have heard a lot of people say that if the department is going away, so do their loans. That is not true," Calazans said. AFT President Randi Weingarten said in a joint statement with the Student Borrower Protection Center that the government 'took a step because of our lawsuit to restore some borrowers' rights' but that many borrowers are still being met with 'red tape, backlogs and dead ends.' The Education Department's Federal Student Aid office has been hit hard by layoffs, with more than 300 FSA jobs eliminated. The Trump administration has said the cuts won't affect students and families. ___ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
