Student Loan Debt Consolidation Myths

Introduction

Myth #1: Consolidating your student loans is the same as refinancing.

Myth #2: You can consolidate both federal and private loans.

Myth #3: Consolidating your private and federal loans will affect their interest rates differently.

Myth #4: Consolidating loans doesn’t affect your payment terms or interest rates.

Myth #5: You can only get a consolidation loan from the government.

Takeaway: The government doesn’t offer student loan consolidation, you can’t change repayment dates when you consolidate, and more — so be careful before consolidating!

Why you shouldn’t wait to refinance your student loans

Introduction

If you graduated from college between 2010 and 2016, you’re among the generation that owes the most student loan debt in history. The average debt burden for a recent graduate is $37,172—and that number has increased consistently over the past decade.

If you haven’t considered refinancing your student loans yet, now may be a good time. We’ve got four reasons why refinance should be a top priority for borrowers looking to get out of debt sooner, better manage their cash flow, and improve their financial situation overall:

Paying off student debt tips

Introduction

For many people, student debt is the first major financial challenge they face. And it’s no surprise—payments can be a big monthly strain on your budget. But there are lots of different strategies to make repayment easier, and if you know what you’re doing, paying off your student loans doesn’t have to be difficult. Here are some things you should consider as you look for a way forward:

Income Sensitive Repayment Plan

Introduction

An income-driven repayment plan can be a lifesaver for borrowers who are struggling to make their student loan payments. It can also help federal student loan borrowers who want to lower or manage their monthly payment amount, even if they’re not in financial distress. Income-driven repayment plans were designed to help keep your payments at a manageable level based on your income and family size. In this post, we’ll walk you through how these plans work, as well as some of the pros and cons of using them.

Are student loans considered taxable income

Introduction

You likely know that student loans are a good way to pay for college, but did you know that they can also be taxed? That’s right: you may need to pay taxes on your student loans. Even though taking out student loans isn’t considered taxable income, any interest or benefits that you receive from the loans are almost always taxable. In the sections below, we’ll explain exactly how this works, what deductions you can use to lower your taxable income, and how to get help paying off your student loans.

How to determine debt to income ratio

Introduction

Your debt to income ratio, or DTI, is a number that represents how much of your income is going towards monthly payments. This information can be helpful for understanding how much debt you have compared to what you earn and whether or not you’ll be able to afford a mortgage payment. It’s also important for lenders when they’re deciding whether or not to give you a loan.

Below are the steps for calculating your debt-to-income ratio:

College Affordability Study

Introduction

College is increasingly unaffordable for Americans across the country. This study aims to highlight how college affordability impacts student loan debt in America and what students can do to make college more affordable. After all, a debt-free life is possible, but it takes time and a spending plan to achieve that dream. For now, here are some of our key findings:

Student Loan Refinancing vs Income Driven Repayment

Introduction

Deciding whether to refinance your student loans or sign up for an income-driven repayment plan can be a big decision. Refinancing can get you a lower interest rate, which translates into fewer payments over time. On the other hand, income-driven repayment plans allow you to pay less on your loans every month but will require you to pay more in the long run. I’ve created this guide to help you research and decide which option is best for you.

How Much Student Debt is Too Much?

Introduction

College students want to know how much student debt is too much. That’s because we’ve all heard the horror stories of people graduating with six-figure debts, or even more. The good news is that most people won’t reach that level of debt. The average college student graduates with $30,000 in debt, according to the Institute for College Access and Success (TICAS). But what about people who graduate from Ivy League colleges? Or law school? Or medical school? We’ll cover those questions and more in this post—after all, we’re not just here to talk about averages; we’re here to make sure you can pay off your student loans without eating ramen for the rest of your life.

Do Student Loans Affect Your Credit Score

Introduction

You know that saying, “You have to spend money to make money?” Well, the same is true with student loans. To be clear, we’re not saying you should take out more than you need. After all, as of 2018, it’s estimated that Americans collectively owe 1.6 trillion dollars in student loan debt—and the average borrower owes over $30,000. So it’s important to only borrow what you need and no more! But just because you have student loan debt doesn’t mean this will always negatively impact your credit score. In fact, for those who’ve never borrowed before (for example: if you don’t have a car or house), taking out a student loan means building up a track record of responsibly repaying your debts—an important factor that can contribute to increasing your credit score (more on this later). Keep reading for everything else you need to know about how borrowing money for college affects your credit history!