Can a student loan be discharged? It’s a common question among those saddled with student loan bills, especially with so many college graduates still struggling to find high-paying jobs. The short answer is “yes,” but it’s not a simple or easy process to undertake. In fact, a study by Jason Luilano suggested that in 2007 there may have been as many as 69,000 borrowers eligible for student loan debt relief, but fewer than 300 actually attempted to have their loans discharged. One reason fewer borrowers may try to have their debt erased is the urban myth that it’s impossible to achieve. Recent studies, however, suggest that up to 40 percent of those who attempted relief through bankruptcy actually succeeded. Another obstacle may be the perceived time and money involved. Last year, there were reports that it took one borrower 10 years to have his loans partially discharged, but this is not the norm.
For many consumers, the most readily available source of credit can be found right in their wallet. We have credit cards for general uses, loyalty, gas, and merchants. Some of our general use cards, like a bank-issued Visa or MasterCard, may even have a fairly high credit limit. With such easy access to financing, you might be wondering if it’s ever a good idea to pay tuition with a credit card.
Where would you turn if you had exhausted your federal financial aid and still did not have enough funding through scholarships and grants to help cover your college expenses? Private students loans, right? For most students that would be the logical next step, but it’s certainly not your only option. Over the last few years, peer-to-peer lending (also known as social lending) has increased in popularity. Why? It’s simple. Peer-to-peer loans typically offer lower interest rates and they often approve loans to those who may not qualify for traditional private student loans. There are basically two formats you can choose from: (1) framily (friends and family) loans and (2) stranger-to-stranger loans. Both have their advantages and disadvantages.
College is an expensive investment, so finding ways to increase your savings during the years leading up to it, as well as during it, is a must. There are traditional methods, such as 529 Plans and prepaid college savings accounts, which offer you the ability to make contributions over several years, but you shouldn’t limit your saving habits to these conventional options. You could actually be saving and earning money by completing everyday tasks. How? The answer is right in the palm of your hand. Your smartphone can unlock the door to a multitude of apps that can help you do everything from finding the cheapest gas to earning money while you shop for this week’s groceries. The rewards may seem small at first, but over time they can really add up. Here are just a few of the apps worth checking out.
Understanding the basic concept of variable vs. fixed rate student loans if fairly simple. A variable interest rate will change periodically over the term of the loan whereas a fixed rate will not. The questions many borrowers face is, “which is better?” Answering that question is more difficult than you might think–at first. Let’s take look at the pros and cons of each, so you can make an informed decision about which type to choose for your student loans.