Tucked in the Stimulus Legislation is a tax break that incentivizes employers to pay down their employees student loans. Here is what you need to know to set up this plan.
From 2009 to 2019, total student loan debt in the U.S. increased 113% from $658 billion to $1.5 trillion. More than half of all Americans go into debt to finance their undergraduate education with average student loan debt topping $37,500 in 2020. Obtaining a degree requires a much bigger financial sacrifice today than it did a generation or two ago as tuition rates typically increase at twice the general inflation rate. Housing, food, transportation, and books can also add thousands of additional dollars to indirect college expenses. The average tuition and fees at private universities have jumped 144%, and out-of-state tuition and fees at public universities have risen 165%, while in-state tuition and fees at public universities have grown the most – increasing 212%.
The pandemic relief for student loan borrowers is scheduled to end on September 30, 2021. What should student loan borrowers be doing to prepare for payments coming due in October 2021?
The CARES Act, which is the Coronavirus relief legislation that passed in March, provided for a temporary period of relief for federal student loan borrowers. Student loan payments were temporarily halted, and interest rates on all federally owned student loans were set at 0% until September 30, 2021. In October 2021, federal student loan payments are scheduled to start up again and your loans will begin incurring interest. Here is a helpful guide on how to prepare for payments coming due in October.
Congratulations to GradFin’s new Senior Vice President of Business Development – George Walters. To understand what this promotion means for George and GradFin, we conducted a short Q&A to learn more about him and his new role.
In this Q&A, George discusses how he is going to use this new role to make a positive impact at the company. He also touches on the unique challenges that COVID-19 has presented, and how GradFin has adapted to over them.
When entering residency, choosing your repayment plan for your student loans is critical. If you’re an individual who will be working for a private practice, loan forgiveness is likely not going to be an option and you’ll need to repay your full loan amount.
Therefore, it’s critical to understand and take advantage of the best interest rate and repayment options for your loans. Schedule a free consulation with a GradFin Loan Expert to ensure you’re exploring all of your options.
In March, the federal government provided the first layer of student loan assistance through the CARES Act. The CARES Act provides 0% interest on all Federally owned student loans from March 13th through September 30th, 2020.
This is a huge financial assistance for graduating dentists who average about $300k of student debt with a 6% interest that is accruing approximately $1,500 of interest every month. Six months of accrued interest is $9,000 of government assistance for you. That is great, but how do you take this opportunity and think about your loans over the long term? Schedule a free consulation with a GradFin Loan Expert to find out.
On March 13th, 2020 President Trump directed the Department of Education to implement a 60 day waiver on interest for federal student loans. Two weeks later, Congress passed and President Trump signed into law the CARES Act, which was a more far reaching policy that suspends payments (interest and principal) on all federal student loans through September 30, 2020.
If you are enrolled in the Public Service Loan Forgiveness (PSLF) program, this article provides guidance from the Department of Education on the impact of the CARES Act on your student loans. To learn more about how to get your loans in compliance with PSLF, schedule a free consulation with a GradFin PSLF Expert.