Graduation Debt » federal loans

Have Questions for Me on Student Loans or Paying for College?

Reyna — Tue, 14 Aug 2012 19:17:46 +0000

Ask me live at 8p EST today on www.collegeweeklive.com.

Boomer University

Reyna — Thu, 08 Mar 2012 19:13:38 +0000

When 53-year-old Rochelle Van Driel returned to school after twenty years at the age of 45, she was intimidated. A stay-at-home mom who was raising two kids, now ages 30 and 21, she hadn’t looked at a math problem in over two decades. None of her credits from her short stint
in college were transferable, so she’d have to start as a freshman.

Van Driel enrolled in a program at American Rivers College in Sacramento, Calif., to study Gerontology, and quickly excelled. Today, she’s an assistant to
the chair of Gerontology at American Rivers College and pursuing her master’s in the subject. Her goal is to become a professor.

CollegeWeekLive Paying for College Webcast tonight

Reyna — Thu, 08 Mar 2012 16:07:08 +0000

Join me at 7p EST tonight for a chat about all aspects of paying for college. Future students, current students and parents welcome. Register for free anytime beforehand.

Should You Consolidate Your Federal Student Loans?

Reyna — Wed, 14 Dec 2011 06:20:36 +0000

It’s indisputable that consolidating all your federal student loans into one loan paid off over an extended time frame eases the monthly burden of student debt payments. However, what if the interest rates of your individual loans vary by several percentage points? Should you avoid consolidating in order to concentrate on paying off the higher rate loans first?

How Consolidated Loan Interest Rates Work

When you consolidate your federal student loans into one loan, your interest rate is an average of all your federal student loans interest rates. For example, say you you earned your Bachelor’s degree in four years and graduated in 2011 . If you borrowed conservatively ($2,500 of subsidized federal Stafford loans per school year), your interest rates are as follows: 2010/11 at 4.5%; 2009/10 at 5.6%; 2008/09 at 6%; and 2007/08 at 6.8%.

Since you borrowed the same amount each year, each interest rate represents an equal amount of money, which is called a weighted average. Thus, you can divide the sum of all your loans by four to get your consolidated rate of 5.725%. If you had different amounts at each interest rate, your interest rate would be based on a fraction of your total new loan. For instance, if you borrowed $3,000 as a freshman at 4.5% and $2,000 as a senior, your consolidated interest rate would drop.

The End of Subsidized Grad School Loans

Reyna — Wed, 14 Dec 2011 06:18:10 +0000

Graduate students (or prospectives) beware: Beginning July 1, 2012, new federal graduate school loans will no longer be subsidized. But what does this mean for the price of your education — and how does the new regulation impact your wallet? It depends on whether you’ve graduated, are currently in graduate school, or plan on going to graduate school after 2012.

Subsidized Versus Unsubsidized Loans

Subsidized loans are interest-free while you are an in-school or otherwise have a deferment (authorized break from payments). As an example, let’s say you spent four continuous years in college, plus two years in graduate school. You have a subsidized loan from your first semester for $1,000 with a 5.3% interest rate. After completing your schooling, you would only owe the original $1,000, thanks to the subsidized nature of the loan. If your loan was unsubsidized, you’d owe your loan balance plus any interest occurred totaling $1,318.

Will Obama’s Executive Order on Student Loans Help You?

Reyna — Fri, 28 Oct 2011 05:01:07 +0000

It’s a tough year for college students – and student loan borrowers, in general: the unemployment rate is high, subsidized graduate school loans are slated for elimination next year, and tuition is rising. But there’s potential good news, in the form of a recent executive order issued by President Obama designed to help some borrowers repay their student loans. It’s been dubbed by some as a student loan bailout.

But how will the executive order help you – and can these changes be made without Congress?

Andrew Asks: How Should I Pay for Grad School?

Reyna — Tue, 23 Aug 2011 04:17:10 +0000

Andrew emailed Mint asking how he should finance grad school. Are you considering graduate school? Checkout my answers.

CollegeWeekLive Webchat Tonight

Reyna — Wed, 23 Mar 2011 17:11:03 +0000

Wondering how your going to repay your student loans, or you want to plan ahead before starting college or returning to school. Ask me questions tonight a 7 EST on www.collegeweeklive. Registration is free and can be done anytime before the session.…

Can I Afford to Go Back to School?

Reyna — Sat, 19 Mar 2011 23:18:44 +0000

Unsure whether you can afford to return to college for a graduate-level degree. Read Can I Afford to Go Back to School?

2 Ways To Finish Undergraduate And MBA Programs Faster

Reyna — Wed, 02 Mar 2011 04:43:01 +0000

While I don’t recommend rushing through your degree without taking time for internships and shadow days, I do recommend graduating faster by not repeating transfer courses and earning credit for skills you already have. Checkout 2 Ways To Finish Undergraduate And MBA Programs Faster for tips on getting all the credits you deserve.