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7 Actions to Take Before Your Grace Period Ends

Posted on September 8, 2020September 8, 2020

Congratulations! You graduated from college and have hopefully settled into the start of your career. If it has been almost 6 months since your graduation, it’s most likely your student loan grace period is nearing the end if you have federal student loans. Are you prepared for when your grace period ends? Luckily we have some actions you can take to prepare.

If you have federal student loans, there is a six month grace period before you have to begin making payments after you graduate, leave school or drop below a half-time student. Not all federal student loans have a grace period. The loans that do include: direct subsidized and direct unsubsidized. PLUS loans for graduate school have a six month deferment period after graduation where payments are not required. Some private student loans also have a grace period but it may not be six months. Be sure to check with your lender to determine if any grace period exists.

Actions to Take

Here are a few actions you should take before your grace period ends to ensure you are prepared.

Determine Your Debts

First, it’s important to understand the types of student loans you have. For example, do you have private or federal loans? If you have federal student loans, you’ll need to determine whether you have subsidized or unsubsidized loans. Subsidized loans mean the U.S. Department of Education will pay the interest on the loan during the grace period for most loans. (Note: If you have a direct subsidized loan that was disbursed between July 1, 2012, and July 1, 2014, you are responsible for the interest during the grace period.) If you have a Direct Unsubsidized loan you will always be responsible for the interest, even the interest accruing during the grace period. This means that if you don’t need the grace period you may want to think about at least paying the interest on the loan.

Be sure to take stock of your other debts, such as a car loan or credit card payments, and their minimum payments.

Make a Budget

Determine a budget that includes your new student loan payment and all other debt payments. Once you determine your budget, start following it before your grace period ends. The money budgeted for your student loan can be put aside to use as an emergency fund. Or use the money you saved during the grace period to make a principal-only payment to get ahead on your repayment.

Set Up Auto-Pay

Another great action to take during your grace period is setting up auto-pay through your loan servicer. Setting up auto-pay will ensure your student loan payment is always made on time. Another great benefit of using the auto-pay feature is that federal student loans are given a 0.25% interest rate reduction. Some private student loan lenders also provide a discount for auto-pay so check with your lender if any discount is available.

Establish a Debt Repayment Plan

Your grace period is a great time to establish a student loan debt repayment plan. A debt repayment plan will help you decide exactly how you will pay off your debts. There are two main types of student loan debt repayment plans, the snowball method, and the avalanche method. You have to decide which method would work better for your financial situation and motivation. Either method will be helpful if you have multiple student loans or other debts to pay off. Once you decide on your method, you will know how to allocate any extra money you have in your budget for debt repayment. When it comes time for your grace period to end you will be more than ready to start paying down your loans efficiently!

Research Repayment Options

If you have multiple student loans you can pay each loan, keeping track of each loan individually and their due dates.
Another option is to consolidate your federal loans into one loan. The average interest rate of the consolidated loans becomes the fixed interest rate on the new consolidated loan. This is consolidating your federal loans into a Direct Consolidation Loan through the U.S. Department of Education.
Refinance student loans. Once you start getting your finances in order you may realize your student loan payment is not going to fit in your budget or has a much higher interest rate then what is available now. That’s where refinancing your student loans can help. Refinancing your student loans means you will borrow a new private student loan to pay off any previous student loans (including federal and other private student loans). Refinancing can save you money because interest rates can be much lower than for federal loans. A lower interest rate means you are saving money in interest costs monthly and over the life of the loan. To find out how much you could save use our Student Loan Refinance Calculator.*

Learn About Borrower Protections and Programs

When you have federal student loans you are provided benefits that are not always provided by private student loan lenders. The grace period of your loans is a good time to find out about any federal borrower protections you may want to use in the future, such as deferment and forbearance for your loans. Also, if you work for a non-profit or government agency, your loans may qualify for forgiveness under the Public Service Loan Forgiveness (PSLF) program. During the grace period, it is helpful to learn about the requirements for the program so when your payments begin you can be sure they qualify under the specific rules of the program.

Learn About the Repayment Plans

If you are shocked by what your monthly payment will be on the standard repayment plan, check into the other student loan repayment plans provided for by the U.S. Department of Education. Certain loans are eligible for an Income-Driven Repayment Plan, where your payment will be based on your income. Or you can elect to have your loans on the Graduated Repayment Plan that will extend your loan term to provide for a smaller monthly payment. However, keep in mind that you will end up paying more interest over the loan term.

The Bottom Line

Taking these actions will help you be prepared for the end of your grace period. You are already a step ahead by thinking about this now. This preparation will start you off on a bright financial future knocking out your student loans. Good luck!

*Subject to credit approval. Terms and conditions apply.

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8 Apps That Can Help You Pay Off Your Student Loans Faster

Posted on August 20, 2020August 20, 2020

Over the past few decades, student loan debt has skyrocketed. That’s no secret. Fortunately, at the same time, hundreds of tools have been created to help make paying off student debt easier and faster. Many of them can be accessed entirely through your phone, turning student loan relief into a mobile, accessible service. We’ve compiled a list of several apps that can help you pay off your student loans. Take a look:

Mint

There are dozens of fantastic budgeting apps, and Mint is among the best. It allows you to track and plan for expenses by providing easy access to statistics and other information about your spending.

How does this pertain to student loans? The answer is simple. Proper budgeting and paying off student loans go hand in hand. Being able to set aside portions of your income every month for your student loan payments is key to successful financial management. Plus, by looking at your budget and determining where you can cut spending, you’ll be able to put more money toward your student loan payments, allowing you to become debt-free faster.

EveryDollar

Created by personal finance guru Dave Ramsey and his team, EveryDollar is another great budgeting application. Designed to be simple and efficient, EveryDollar is a very effective budgeting tool. As with Mint, maintaining a budget is key to every quick student loan payoff. EveryDollar is best used to identify where you can spend less money in order to reallocate that money to your student loan payments, and with all the information laid out in front of you, it’s hard not to see where you can make some improvements.

ChangEd

Built by two individuals who struggled to pay off their student loans, ChangEd is an app that links to your credit and debit cards. When you make a purchase with those cards, ChangEd rounds up to the nearest dollar, taking that change and sending it straight to your student loan provider when you reach a minimum threshold. While seemingly a small amount, this extra change adds up. It’s more money going directly to your student loan payments. Who would turn that down?

Qoins

Qoins functions very similarly to ChangEd. You connect your credit and debit cards, and after every purchase, Qoins will round up and send that money to your student loan provider. The difference between Qoins and ChangEd: there’s no minimum threshold to reach, all the extra money goes straight to your loan provider. That said, it charges a higher monthly fee than ChangEd to do this.

Undebt.it

Undebt.it is a handy app that allows you to track all your debt in one place, then it provides a plan to help you pay it off in the most efficient way possible. One way is the ever-popular debt snowball method, where you pay off all of your smallest loans first, but you can also choose from a variety of repayment strategies. You can choose whichever works best for you. One highlight is the app’s ability to show what a difference an extra payment makes.

Debt Payoff Assistant

Debt Payoff Assistant is a debt tracker focused mostly on the debt snowball method. Input each of your debts, student debt especially, and a unique debt repayment plan is generated. The app offers great utility, with several built-in calculators, as well as the ability to view a payoff schedule, estimated payoff dates and more.

Givling

Givling is a quirky way to deal with student debt faster. Twice a day, Givling hosts a trivia contest via their app. Winners earn a cash prize, and as one plays more, they help to crowdfund future giveaways and prizes. So if you’re good at trivia, this could be your chance to tackle some student debt. If you aren’t good, you’re still helping to pay off someone else’s student loans. That said, the odds are against you winning big through Givling, and it’s definitely better to consider it a fun diversion rather than a serious solution for dealing with student debt.

Google Opinion Rewards

A little like a side hustle, Google Opinion Rewards and other survey-for-pay websites are a different way to deal with student debt. When you complete a survey, you will receive a very small reward, but the rewards add up over time. It’s a great way to fill short periods with nothing to do. You can easily earn a little pocket change in a waiting room or while waiting for the tea kettle to boil. Put it towards your student loans, and you’ll be well on your way!

There are dozens more apps that can help you pay off your student loans, and undoubtedly there will be even more in the coming years. It’s never been easier to get organized and tackle your student loans head on, and with these apps, we hope you’ll get it done in style. If the apps don’t cut it, it may be time to consider student loan refinancing, check it out here.

The Benefits of Making Consistent Student Loan Payments

Posted on August 18, 2020August 18, 2020

If you have student loans and consistently make your monthly payment, congratulations! You know how beneficial that can be for your financial health. However, if you are in the habit of skipping student loan payments because you think it won’t affect you, you need to keep reading.

Although missing a student loan payment isn’t quite as detrimental as missing a car or mortgage payment, missing student loan payments can have a strong negative impact on your financial future. Still need convincing? Here are four great reasons to continue making consistent student loan payments, and what to do if you’re struggling to make your payments.

Benefits of Consistent Student Loan Payments

Whether you have federal student loans or private student loans, there are many benefits to making consistent payments on time. When you make consistent student loan payments, you’re more likely to:

Have a Better Credit Score

Your credit score can affect many facets of your life. For example, if you want to buy a car, rent a home or buy a home, your credit score will be reviewed before you’re approved.

One of the most important factors in determining a person’s credit score is their payment history. The payment history shows if you miss a payment, and missed payments remain on your credit history for 7 years. So any missed student loan payments could take a significant toll on your credit score, while making consistent payments can help improve your score. A better credit score can:

Qualify for a Mortgage, Car Loan or Better Interest Rate

When you apply for a loan, sometimes lenders require a minimum credit score to approve the loan. Even after you are approved for a loan, a higher credit score means a better chance of receiving a lower interest rate. A lower interest rate equates to paying less interest over the life of the loan, saving you money!

Qualify for Refinancing

Whether you want to refinance your student loans or your mortgage, having a good credit score can help you qualify for refinancing and a better interest rate.

Qualify for Better Credit Card Limits and Rates

Having a strong credit score and good credit history shows lenders you are responsible with credit and making payments. Therefore, when you apply for a credit card, you are more likely to receive a higher credit limit and lower interest rate.

Qualify for Rental Housing

Even if you think you will not be taking out any other loans, if you are trying to rent a house or apartment, some locations require a credit report. A low credit score or negative credit history can prevent you from qualifying for certain housing.

Save on Interest

When you make consistent payments on your student loans, you will save on interest costs. Interest compounds daily, meaning more interest is added to your loan each day. Some interest accrues based on the principal of the loan (the amount you borrowed), while other loans interest compound based on the total outstanding balance. Therefore, consistently making payments, and making extra payments when you can, will save you from paying more interest.

Avoid Late Fees

When you make consistent payments by your due date, you will avoid having to pay any late fees. Saving yourself money that could be put towards your loans!

Pay Loans Off Faster

One of the best benefits of making consistent payments is that you can pay your student loans off faster. For example: if you are paid bi-weekly and decide to make half your monthly payment each time, you will ultimately make one extra payment per year.

Here is how it works: If you owe $50,000 at 7% interest and have a 20 year loan term, your payment would be approximately $387.65 per month. If this is paid consistently monthly you would end up paying over $43,000 in interest over the 20 years. However, if you divide your payment in half to $193.82 and pay that every two weeks you would pay the loan off 3 years sooner and save over $7,000 in interest.

What to Do If You Can’t Make Consistent Payments

If you are worried because you can’t make the payments by your due date, here are some options to try:

Switch to a Different Repayment Plan

If you have federal student loans, look into whether a different repayment plan would help make your payment more manageable. Although switching to a longer loan term or income-driven repayment plan will increase the amount of interest you owe in the long term, it’s best to have an affordable payment you can make so you do not default on your loan.

Try Refinancing Your Student Loans

Refinancing your student loans is an excellent way to make your loans more affordable and save on interest costs. Refinancing is taking out a new loan to pay off your old student loans. When you apply for a new loan you may qualify for a new lower interest rate, which reduces the amount you’ll pay over the life of the loan. A lower interest rate can also reduce your required monthly payment, making it more budget-friendly. After you refinance, you may also see that it is easier to make more consistent payments, such as bi-weekly, to pay your loan off faster. Use our Student Loan Refinance Calculator to see how much you can save with refinancing.*

When you are paying off any type of debt, it’s always best to make consistent payments on time. This will not only keep you in the habit of making payments but will save you money in the long run. Although paying off student loans may seem like a marathon at times, you will reach the end! Keep going because it will literally pay off!

*Subject to credit approval. Terms & Conditions apply.

Amazon, Apple, Best Buy, and More: Getting the Most Out of Student Discounts

Posted on July 27, 2020July 27, 2020

Student life can be expensive, but the good news is, most businesses are aware of that. Many provide college student discounts and special offers.

With the new school year rapidly approaching, now is the time to take advantage of the many deals available to you. With that in mind, we’ve compiled a list of student discounts to help you save some money during college.

Music Streaming Services

If you’re into streaming music, you’re in luck. Many music streaming services provide large discounts to students. Apple Music, Spotify, Youtube Music, and Tidal all offer 50% discounts to students for up to eight semesters. Some subscriptions even offer additional benefits, for example, Spotify provides student members with access to both Hulu and Showtime.

Apple

Apple is currently offering a variety of back to school deals for students or and teachers. Qualifying product purchases, including many models of MacBooks and iPads, come with a free pair of AirPods.

Amazon

Let’s be honest. We all love two-day free shipping. What a wonderful feeling it is to order something and have it delivered to your door in what feels like no time. The good news is, Amazon offers a Prime Student discount. After a six-month free trial, students can access Amazon Prime for $59 a year.

In addition to two-day free shipping, a prime student membership includes access to Prime Video and Amazon Prime Music. Canceling a membership is easy, so even if you don’t choose to pay for the membership, it’s worth taking advantage of the six-month free trial.

Best Buy and Other Tech Retailers

If you’re on the market for some new tech, don’t miss Best Buy’s student discount program. From TVs to TI-84s, Best Buy offers student discounts on a variety of products. A number of other tech retailers, including Logitech and Lenovo, also offer student discounts.

Clothing Retailer Discounts

If you’re a fashion icon, these retailers have your back. JCrew, Banana Republic, TopShop, H&M, and many other clothing retailers offer student discounts of around 10%-15%. Retail discounts will occasionally stack with other promotions, as well. For even better deals, check out your local Goodwill, as they, too, often offer student discounts.

Software Discounts

A number of companies provide student discounts on software. For instance, Adobe offers a 60% discount on their Creative Cloud software for students. Github also provides a number of developer tools at discounted student rates. If you’re into producing music, Ableton Live offers a student discount. For note-takers, Evernote offers their premium accounts at a 50% student discount. If you’re not looking to spend any money, check with your college to see if they provide any free software. For example, many colleges provide access to Creative Cloud programs and the Microsoft office suite, accessible through your .edu email.

News Sites

Several newspapers offer student discounts for current college students. The New York Times offers a discounted plan for students at $1.00 a week, which includes online access to the newspaper’s complete archives and articles. The Wall Street Journal offers a comparable student discount for digital access to the newspaper, and an additional option at $10 a month to receive a print copy of the newspaper six days a week.

Service Discounts

When you think of service discounts, senior discounts often come to mind. Several service-based industries, however, also offer student discounts. Many museums offer free or reduced admission to students. Several movie theater chains such as Regal and Cinemark also offer student discounts.

If you’ve caught the travel bug, don’t forget to keep an eye out for travel discounts. Amtrak, for example, offers regional student discounts. Greyhound has a similar program, offering 20% discounts to students. Student airfare is even up for grabs, so make sure to check with your airline before you buy your tickets.

Car Insurance Discounts

It’s no secret that car insurance is expensive for young people. Fortunately, many car insurance providers offer student discounts to help balance some of that cost. These discounts vary by provider, but often include discounts for good grades.

If you participate in any campus-sponsored activities, keep an eye out for organization-based discounts. For instance, Geico offers discounts to members of some fraternities, sororities, and honors societies.

Cell Phone Plan Discounts

AT&T, Sprint, T-Mobile, and Verizon Wireless all offer special student pricing. Several of them also offer student phone discounts. However, these discounts vary, so it’s best to check with your cell service provider and university to find out what discounts are available for students.

UNiDAYS

UNiDAYS is a great website for finding college student discounts on almost anything. It functions as a platform that shows student discounts as well as verifies the student. It makes it easy to apply student discounts to wherever you shop regularly.

By no means is this a conclusive list of all student discounts. If you’re curious whether a place you frequent offers student savings, the best thing you can do is ask. The discounts add up over time, so take advantage of them whenever you can.

If you’ve already graduated and you’re looking to save a little money, you may be out of luck on the student discount front. However, there are other ways to save money after graduation. One such option is refinancing student loan debt. Check out your student loan refinance options with ELFI.*

*Subject to credit approval. Terms and conditions apply.

Tips for 2020 Graduates Entering the Job Market

Posted on June 10, 2020

While your last semester may have been online, you’ve graduated nonetheless, and you’re finally ready to head out into the world and face the job market. After graduating amidst a global pandemic, you may feel a bit uncertain about your job prospects coming out of college. The fact is you’re entering the job market at a somewhat inopportune time – job openings on Glassdoor have dropped 20.5% after all, and articles are published weekly on the status of the 2020 graduate. However, there’s no need to panic. We’re here to tell you that you’re more prepared than you think, and there are still jobs out there for you. But just in case you feel uncertain, we’ve compiled 5 tips to help you seamlessly enter the job market.

Be Practical

It’s no secret that the economy is on somewhat shaky footing, making it a little more difficult than usual to get that perfect job. Obviously, that perfect job is the ideal, but now is the time to be practical and expand your job search. Look in areas that you may not have considered before or in fields other than your major. These may be lower-paying than you’d hope for, but the work experience is still valuable, and stepping out of your comfort zone won’t go unnoticed when pursuing future opportunities. Search on job sites like Indeed for entry-level jobs and work from there. Your college also likely has a career center that can help you find employment. Reach out to them to see what help they can offer. Many colleges have partnered with platforms like Handshake that serve to link students with employers.

Acquire Skills

If you want to hold out for a job in your chosen field, that is not necessarily a bad thing. Now is the perfect time to acquire skills that your employers will find valuable and that will benefit you in the long run. You might take this time to practice job interviews to improve your interview skills. The more interviews you do, the more comfortable you will be during them. As such, never turn one down, even if you aren’t interested. It’s still worth gaining the experience. As for skills that will make you more appealing to prospective employers, sites like Linkedin Learning can help you brush up on things you know or help you pick up new skills. Online classes can also serve as a way to pass the time while acquiring new skills. While building new skills doesn’t bring in immediate income, these skills will serve to make you more valuable to a prospective employer and could improve your income in the future.

Polish What Employers Will See

Employers see a wide variety of things when looking at a prospective candidate. The resume is perhaps one of the most important. Now is the time to perfect your resume. Add in any relevant work experience you may have forgotten to add. Do some research on what employers are looking for on a resume. This should be an ongoing process. Your resume should be constantly evolving as you acquire new skills and experiences. Likewise, this is the perfect time to get your social media profiles polished. Many employers use social media as a vetting tool for prospective employees. Remove any material that could hinder you from being hired, and, in particular, get your Linkedin profile as professional and complete as possible. Employers love Linkedin, and as more and more of the hiring process is moved online, it has become an invaluable tool for them to look at prospective hires. Thus, it is important for your Linkedin to be filled out and representative of you and your workplace skills.

Expand Your Circle

As important as your skills, networking is essential is you are in the job market. Particularly in these uncertain times, an effective network can mean the difference between being employed and not. Reach out to people in your field via Linkedin or other social media outlets. Ask questions and demonstrate your interest. You may be able to get an interview with them. Even if a job doesn’t come of it, your demonstrated interest will place you in the back of their minds as well as provide you with valuable interview experience. Similarly, interacting with people within your prospective field on any of your social media platforms is beneficial to you. Employers want to see that you are engaged within the wider community of the field. Also, be sure to attend virtual industry meetups and conventions. The importance of becoming involved cannot be understated.

Persevere

It’s important to treat your job search as a job because, for a time, it is your job. Stay at it, and constantly be reaching out to prospective employers. It can be hard to stay motivated in the job search, but remember that this is necessary. Plan out your job search and keep track of the contacts you make. They could be useful later on. Make sure to take breaks when necessary. Like any job, the job search is tiring and can lead to burnout, so make sure that you rest between sending out those surges of applications. Eventually, you will make it.

Congratulations on graduating. Now for your next challenge. It would be a lie to claim this as a great time to enter the job market, and it is certainly an unfortunate time for you to graduate. The job search will be difficult, but by working hard and following these five tips, you could certainly still succeed. You can do it. If you’re looking for more post-graduation tips, we’ve got you covered. Check out this article on saving money after graduation.

Can You Refinance Student Loans While in School?

Posted on May 26, 2020August 18, 2020

If you have student loans you probably have wondered what’s the best way to handle them. Should you wait to pay them after graduation or start paying them while in school? Or maybe you have heard about student loan refinancing and are wondering if it is right for you. Read on to find out one way you can manage your student loans that will benefit you right now.

What is Student Loan Refinancing?

When you refinance student loans you take out a new loan to pay off one or multiple federal or private student loans. You will have a new loan term and presumably a lower interest rate. You can refinance to a new loan with the same amount of years left as your old loan or stretch out the term to allow a longer time for repayment. If you increase the amount of time to repay this will lower your monthly payment but likely will cause you to pay more interest over the loan term.

Can You Refinance Student Loans While in School?

The short answer is yes, but it may be difficult to find a lender that you can refinance with if you are still in college. Many lenders require a Bachelor’s degree as an eligibility requirement for refinancing. The other requirements to refinance* with ELFI include:

You must have a credit score of at least 680 and a minimum yearly income of $35,000.
Must have a minimum credit history of 36 months.
Must be a U.S. citizen, the age of majority.

If you cannot currently meet these requirements, you can have a cosigner that fits these requirements.

If you have federal student loans some may argue you should wait to refinance them until you graduate because they offer more flexibility with deferment and forbearance. However, some private lenders also offer deferment and forbearance options. Some other things to consider are:

If you think you will get a job in the public sector that would qualify for Public Service Loan Forgiveness, you may not want to refinance because you would lose the benefit of having your federal student loans forgiven under the program.
If you think you will want to take advantage of an income-driven repayment plan when you graduate, you may not want to refinance because this is only offered for federal student loans. Tip: Be aware that when you take advantage of income-driven repayment plans, your monthly payment is lower, but you will end up paying more for the loan in interest costs.

There are many benefits to refinancing while in school to put you on a better financial path when you graduate. The average college graduate has $31,172 in student loans. However, you can work to reduce that amount by refinancing. Student loan refinancing can be beneficial for many reasons:

Consolidate – Refinancing allows you to consolidate multiple federal and private student loans into one new loan. You can refinance some or all of your loans. Consolidation makes it easier to manage one loan as opposed to multiple loans. With only one loan you will be less likely to miss a due date, and avoid any associated late fees.
Lowers Interest Rate – When you refinance you can potentially qualify for a lower interest rate. A lower interest rate saves you in interest costs over the life of the loan.

- If you have unsubsidized federal student loans (the ones where interest accrues while you are in school) your loans could be growing by an average of 4.53%. But if you refinance you may qualify for a lower rate, as low as 3.86%, and less interest would be accruing.

Lower Monthly Payment – If you score a lower interest rate when you refinance you will be paying a lower monthly payment. To find out how much you could potentially save, use our Student Loan Refinance Calculator.*
New Lender – Do you always have trouble with customer service when you want to ask a question about your loan? When you refinance, you can get a new lender if you choose. It’s great to find a lender with high customer reviews. At ELFI we pride ourselves on providing award-winning customer service.
Fixed Interest Rate – if you have a loan with a variable interest rate it may be more advantageous to refinance and lock in a fixed interest rate. With a variable interest rate your payment can increase when interest rates increase, which could put a financial strain on your budget.

Important tip: if you refinance while in school and after graduation your credit score and income increase, you can always try refinancing your loan again to possibly get an even lower rate.*

Conclusion

Researching how to handle your student loans while still in school is a great initiative to set yourself up for a strong financial future after graduation. Student loans may seem like a heavy burden, but utilizing resources available to you will make the monthly payments easier on your budget.

*Subject to credit approval. Terms and conditions apply.

ELFI Parent Company Helps Former Student-Athletes Obtain Degrees

Posted on May 8, 2020

Empowering others to reach their full academic potential is an integral part of Education Loan Finance’s mission, and this extends to its parent company, SouthEast Bank.

This was shown in a recent UTSports.com article highlighting how several former standout University of Tennessee athletes are set to complete their undergraduate degrees after putting their education on hold to pursue professional sports careers – these athletes, including former NFL wide receiver Peerless Price, were able to obtain their degrees with the help of the SouthEast Bank Renewing Academic Commitment (RAC) program, which helps former University of Tennessee student-athletes return to the university to complete their undergraduate studies.

As a company, we are proud to empower these individuals in achieving their academic goals and we congratulate them for their achievements both on the playing field and in the classroom.

Read the SouthEast Bank blog for more details on how this program has helped former University of Tennessee student-athletes achieve their academic goals.

Financial Aid Options for Middle-Income Families

Posted on February 10, 2020April 21, 2020

It’s no secret that college comes with a hefty price tag. Every year, students and their families have to figure out how they’re going to pay thousands of dollars in school bills. While high-income families may have the resources to pay tuition, footing the entire bill just isn’t realistic for some families, especially if they have more than one child attending college. This is why many students rely on financial aid to fund their education.

It’s generally known that students from lower-income families can qualify for special scholarships and grants that help fill the gap to fund their education, but for families around the middle-income tier, financial aid options may be harder to come by and make them feel that their options are limited. Rest assured that there are options for middle-class families to receive the financial assistance they need – it just may take a bit more effort.

FAFSA

When it comes to looking for financial aid for college, the FAFSA is a great place to start. The Free Application for Federal Student Aid has no income cutoff for eligibility, so your child could still receive some need-based aid from the FAFSA, especially if he or she plans on enrolling at a higher-cost school. The FAFSA opens October 1 every year, and you can apply as early as the year prior to your child’s first day of college. The earlier you apply, the more likely your child is to receive financial aid.

Scholarships

Researching and applying for scholarships has continually proven itself worthy of the effort. Many scholarships are merit-based instead of need-based, so your child may be eligible for many different scholarships depending on the qualifications. Start by looking for local scholarships – many locally-owned businesses and organizations offer scholarships for graduating high school students. If your child visits the school guidance office, they may have some applications on file. You or your spouse could also ask your employer if they offer any type of scholarships or financial aid for employees’ children. After exhausting local options, your child may want to research national opportunities. A quick web search could reveal countless free scholarships – Niche, Fastweb, and eCampusTours are a good place to start. Finally, many colleges offer merit-based scholarships and endowment scholarships. Make sure your child looks for institutional scholarships at the school he or she plans to attend. You may discover that if your child joins a club or raises a standardized test score by a couple of points, he or she could receive thousands more dollars of financial aid.

Tuition Discounts

If a family member, such as a parent or grandparent attended the same college or university you’re enrolled in, you may receive a tuition discount. There may be additional requirements to qualifying for this discount, such as, your family member being active in the school’s alumni association or maintaining a certain GPA.

Tax Rewards

Middle-income families are perfectly positioned to receive tax credits for college expenditures. For example, the Lifetime Learning credit has income requirements that exclude those who earn over and under certain amounts. Programs like this, as well as tuition savings plans, offer a few different ways for middle-income families to receive tax benefits.

Federal Loans

If you’ve taken advantage of all your financial aid options and find you still have more to pay, it may be time to consider loans. Non-need based federal loans such as the Unsubsidized Federal Stafford Loan for students and the Federal PLUS Loan for parents can bridge whatever gap you find in your aid and your expenses. Federal education loans generally have low interest rates or may be tax-deductible, so they’re a smart alternative to using a credit card, for example.

Private Loans

You may find that you still need financial assistance after exhausting all the options above. If that’s the case, private student loans may be for you. We always recommend you take advantage of grants, scholarships, and federal aid before taking out a private student loan. To learn more about ELFI’s private student loan options,* click here.

The cost of college can present a challenge for families at all income levels, but middle-income families often struggle the most to find good financial aid options because their finances fall between affording college and needing assistance. If your family is in this situation, don’t let it get you down. The options in this article are a good place to start searching for financial assistance. Don’t lose sight of the end goal – getting the degree you want and establishing a successful career. If you’re already looking for financial aid options, you’re well on your way.

*Subject to credit approval. Terms and conditions apply.

Note: Links to other websites are provided as a convenience only. A link does not imply SouthEast Bank’s sponsorship or approval of any other site. SouthEast Bank does not control the content of these sites.

FAFSA Deadlines for 2020

Posted on January 27, 2020April 21, 2020

Congratulations! You are graduating high school and taking the next step into college. You may have been accepted into different schools and still deciding where you will attend or you have already been admitted into your dream school and are now wondering how you will pay for it. Whether you’re already committed to a school or still planning your future, it’s important to know what the FAFSA is and the deadlines associated with it when you are figuring out how to pay for college.

What is the FAFSA?

FAFSA stands for Free Application for Federal Student Aid. You should complete the FAFSA in order to be eligible to receive federal, state financial aid, and aid from your school. The aid can be in the form of grants, scholarships, work study, and federal student loans. The application is easy to complete online or by paper. The application provides the necessary information to calculate your financial need to see what aid you would be eligible for. There are no income limitations so it’s smart to fill out FAFSA regardless of your financial situation. Even if you think you and/or your family may not qualify for financial aid, you will not know for sure until your university’s financial aid office reviews your application.

Note: As the name states it is a free application, so be aware of any websites that charge you to fill out the application to avoid any scams!

Who Should File the FAFSA?

If you are a senior in high school and will be attending college you should fill out the form. Also, returning college students who previously filled out the FAFSA must fill out the FAFSA every year while in school. The information allows financial aid offices to determine your financial need.

Your financial need is determined by taking the Cost of Attendance (COA) and subtracting your Expected Family Contribution (EFC). COA – EFC = Financial Need.
The COA is different for each school and includes tuition, books, supplies, transportation, and room and board.
Your EFC is calculated by a formula established by law based on the information provided on the FAFSA. The formula takes into account your family’s income, assets, and family size, among other factors for a dependent student.
If your EFC is low you may be eligible for more financial aid.

So how does all this work? Here is an example:

You plan to attend a school with a COA of $25,000.
Your EFC is $10,000.
$25,000 – $10,000 = $15,000 is your financial need. This amount could be awarded to you in grants by the school, state or federal grants or by subsidized federal student loans.

Preparing to File the FAFSA

Ready to file? Here is the information you will need to complete the application.

If you are a dependent student (receiving financial help from parents) you will need the following for both you and your parents:
- Social Security Number
- Tax returns
- Bank statements
You will also need to apply for a FSA ID. This is a username and password that will allow you to access the Federal Student Aid’s system to complete and sign the FAFSA electronically.

Important Dates to Know

The earlier you file the FAFSA, the better because you will be eligible for more aid. It is also important to file before the federal deadline because some states set their own deadlines that may be earlier than the federal deadline. Your state may also require an additional form, so be sure to check the Federal Student Aid website to see what your state requires. In addition, some schools have an earlier deadline then the federal deadline so you should check with your school’s financial aid office to ensure that you don’t miss their deadline.

The important federal dates to know are:

October 1 – the application becomes available
June 30 – the deadline to file each year

The application becomes available on October 1, the year before you would start school. While you have until June 30 after the school year to submit the application, it’s advantageous for you to apply as early as possible.

This means for the 2019-2020 school year the application became available on October 1, 2018 and the deadline is June 30, 2020. For the 2020-2021 school year the application became available on October 1, 2019 and must be submitted by June 30, 2021. On October 1, 2020 the application for the 2021-2022 school year will become available.

Other Options: Private Student Loans and Student Loan Refinancing

Maybe you didn’t know about the financial aid process and the deadline passed or didn’t receive enough aid and are looking to cover the gap in education expenses. Luckily, there are other options to help you pay for school.

Private student loans are a great resource to help you pay for higher education. Private student loans are from a private lending company or bank that you can use to pay for your school expenses included in the cost of attendance. You can apply for private student loans at any time. Just like with the FAFSA, you will need to provide some financial information and documents, such as your most recent W-2 and paystub. If you do not have these items you may need a co-signer, such as a parent, who will have these documents.

There are many private lenders so it’s best to do your research and compare. You want a lender that is reputable and offers a good rate on your loan. It’s also important to compare the terms of any loan offers. For example, you should check if there is a prepayment penalty on the loan or any fees associated with the loan.

A private student loan company should make the process easy. At ELFI there are no fees to apply, no origination fees and no prepayment penalties*. There are also flexible repayment options. The online application is a simple process that allows you to see personal rates within minutes and you receive a dedicated Personal Loan Advisor to help you through the loan process.

Private student loan companies can also help if you have already taken out loans. Through student loan refinancing*, you can reduce the interest you are paying on your student loans and as a result, reduce your monthly payments and the amount you pay over the lifetime of the loan. To see how much you could save by refinancing, check out our student loan refinance calculator.

Bottom Line

Mark the dates in your calendar and be sure to fill out the FAFSA early. Paying for school can be one less worry if you plan ahead!

*Subject to credit approval. Terms and conditions apply.

This Week in Student Loans: January 24

Posted on January 24, 2020October 5, 2020

Please note: Education Loan Finance does not endorse or take positions on any political matters that are mentioned. Our weekly summary is for informational purposes only and is solely intended to bring relevant news to our readers.

This week in student loans:

A Zero Based Budget Helped This Woman Pay Off $215k Worth of Student Loan Debt in 4 Years
Court Cites Student Loans As Reason To Deny Bar Admission To New Lawyer
Student Loan Debt Is a Key Factor for Gen Z When Making Career Decisions

A Zero Based Budget Helped This Woman Pay Off $215k Worth of Student Loan Debt in 4 Years

When Cindy Zuniga accomplished a major milestone when she graduated from law school in 2015, however, she also came out with $215,000 in student loan debt. See how she managed to eliminate her debt in just four years by both refinancing her student loans and using a zero based budget.

Source: ABC News

Court Cites Student Loans As Reason To Deny Bar Admission To New Lawyer

Student loan debt can sometimes be a barrier to obtaining professional licensure, specifically for teachers, doctors, and nurses. For one recent graduate of law school, her student loan debt played a significant role in her being denied a license to practice law.

Source: Forbes

Student Loan Debt Is a Key Factor for Gen Z When Making Career Decisions

A recent survey found that Gen Z’s concern over student loan debt is a key factor in their career decisions, causing many to prioritize finances over passion when it comes to their fields of study. The study found that an overwhelming 61% of college students would take a job they’re not passionate about due to the pressure to pay off their student loans.

Source: Yahoo News

That wraps things up for this week! Follow us on Facebook, Instagram, Twitter, or LinkedIn for more news about student loans, refinancing, and achieving financial freedom.