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This Week in Student Loans: July 31, 2020

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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:

white house

Trump: Student Loans May Be Suspended For “Additional Periods Of Time”

With a second stimulus package on the way, Trump has stated that student loan suspensions may be extended past the already in place deadline.

 

Source: Forbes

 


GOP Coronavirus Relief Proposal

Here’s How the Latest GOP Coronavirus Relief Proposal Would Impact Student Loans

The GOP has released their coronavirus relief proposal, but experts claim that it is largely ineffective in helping student loan borrowers.

 

Source: CNBC

 


student loan servicers

What to Know About Changes Coming to Student Loan Servicing

In an attempt to streamline student loan servicing, the US government has signed contracts with five companies to provide customer service and back-office support to federal student loan borrowers.

 

Source: U.S. News & World Report

 


man researching whether to refinance student loans

Should You Refinance Student Loans? What to Consider as Legislators Debate New Stimulus Package

Refinancing rates are incredibly low, but due to the second stimulus package not yet being put in place, student loan borrowers are unsure of when the best time to refinance will be.

 

Source: Newsweek

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

This Week in Student Loans: July 24, 2020

Posted on

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:

Next Stimulus, What It Could Mean For Student Loans

Next Stimulus, What It Could Mean For Student Loans

With a second stimulus package as a near certainty, a number of plans to help student loan borrowers have been introduced as possible components of a second stimulus package.

 

Source: Forbes

 


Employer paying off student loans

Some Employers Are Starting to Pay Off Student Loans – Here’s How it Works

As student loans have become a larger part of the public consciousness, employers have begun to offer programs to help their employees pay off their student loans more quickly and effectively.

 

Source: CNBC

 


low federal student loan interest rates

With Student Loan Refi Rates Dropping, is This a Good Time to Refinance?

Due to the Coronavirus, student loan refinancing rates have dropped substantially, potentially allowing those who qualify to save extensively on their student loan payments.

 

Source: Newsday

 


millennial preparing for private student loan changes within cares act

House Extends CARES Act Protections to Private Student Loans

In an effort to help student loan borrowers deal with the effects of the coronavirus, the House of Representatives have vocally agreed to a provision that would offer CARES act protections to borrowers of private student loans.

 

Source: Newsweek

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

This Week in Student Loans: July 17, 2020

Posted on

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:

borrower stressed about student loan payments restarting

Student-loan borrowers could face headaches when loan payments resume

While the CARES Act has provided some form of student loan relief during a time of economic downturn, there are fears of what will happen to many borrowers when the federal government turns student loans “back on” September 30.

Source: MarketWatch

 


low federal student loan interest rates

Student loan interest rates hit record lows, thanks to COVID-19

Due to the economic fallout from COVID-19, interest rates for federal student loans for the upcoming academic year will be fixed at the lowest levels in history.

Source: Yahoo Finance

 


millennial preparing for federal student loan servicing changes

Major student loan servicing changes: 5 tips to protect yourself

The U.S. Department of Education is planning to move forward with a major overhaul of its federal student loan servicing system as soon as December. Due to prior experiences in which the government has gone under contract with loan servicers to take over a portion of their loan portfolio, there is some fear that this will create confusion among the different servicers’ policies and guidelines. This Forbes article explains how to prepare for this change.

 

Source: Forbes

 

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Current LIBOR Rate Update: July 2020

Posted on

This blog provides the most current LIBOR rate data as of July 7, 2020, along with a brief overview of the meaning of LIBOR and how it applies to variable-rate student loans. For more information on how LIBOR affects variable rate loans, read our blog, LIBOR: What It Means for Student Loans.

 

What is LIBOR?

The London Interbank Offered Rate (LIBOR) is a money market interest rate that is considered to be the standard in the interbank Eurodollar market. In short, it is the rate at which international banks are willing to offer Eurodollar deposits to one another. Many variable rate loans and lines of credit, such as mortgages, credit cards, and student loans, base their interest rates on the LIBOR rate.

 

How LIBOR Affects Variable Rate Student Loans

If you have variable-rate student loans, changes to the LIBOR impact the interest rate you’ll pay on the loan throughout your repayment. Private student loans, including refinanced student loans, have interest rates that are tied to an index, such as LIBOR. But that’s not the rate you’ll pay. The lender also adds a margin that is based on your credit – the better your credit, the lower the margin. By adding the LIBOR rate to the margin along with any other fees or charges that may be included, you can determine your annual percentage rate (APR), which is the full cost a lender charges you per year for funds expressed as a percentage. Your APR is the actual amount you pay.

 

LIBOR Maturities

There are seven different maturities for LIBOR, including overnight, one week, one month, two months, three months, six months, and twelve months. The most commonly quoted rate is the three-month U.S. dollar rate. Some student loan companies, including ELFI, adjust their interest rates every quarter based on the three-month LIBOR rate.

 

Current 1 Month LIBOR Rate – June 2020

As of July 7, 2020, the 1 month LIBOR rate is 0.18%. If the lender sets their margin at 3%, your new rate would be 3.18% (0.18% + 3.00%=3.18%). The chart below displays fluctuations in the 1 month LIBOR rate over time.

 

Chart Showing Current 1 Month LIBOR Rate for July 2020

(Source: macrotrends.net)

 

Current 3 Month LIBOR Rate – June 2020

As of July 7, 2020, the 3 month LIBOR rate is 0.27%. If the lender sets their margin at 3%, your new rate would be 3.27% (0.27% + 3.00%=3.27%). The chart below displays fluctuations in the 3 month LIBOR rate over time.

 

Chart Showing Current 3 Month LIBOR Rate for July 2020

(Source: macrotrends.net)

 

Current 6 Month LIBOR Rate – June 2020

As of July 7, 2020, the 6 month LIBOR rate is 0.36%. If the lender sets their margin at 3%, your new rate would be 3.36% (0.36% + 3.00%=3.36%). The chart below displays fluctuations in the 6 month LIBOR rate over time.

 

Chart Showing Current 6 Month LIBOR Rate for July 2020

(Source: macrotrends.net)

 

Current 1 Year LIBOR Rate – June 2020

As of July 7, 2020, the 1 year LIBOR rate is 0.49%. If the lender sets their margin at 3%, your new rate would be 3.49% (0.49% + 3.00%=3.49%). The chart below displays fluctuations in the 1 year LIBOR rate over time.

 

Chart Showing Current 1 Year LIBOR Rate for July 2020

(Source: macrotrends.net)

 

Understanding LIBOR

If you are planning to refinance your student loans or take out a personal loan or line of credit, understanding how the LIBOR rate works can help you choose between a fixed or variable-rate loan. Keep in mind that ELFI has some of the lowest student loan refinancing rates available, and you can prequalify in minutes without affecting your credit score.* Keep up with the ELFI blog for monthly updates on the current 1 month, 3 month, 6 month, and 1 year LIBOR rate data.

 


 

*Subject to credit approval. Terms and conditions apply.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

This Week in Student Loans: July 10, 2020

Posted on

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:

US Capitol

GOP Concerns Over Costs Could Limit Student Loan Relief In Next Stimulus

GOP Senate leaders are showing increasing concern about the costs of additional economic relief, particularly when it comes to student loan relief, as they weigh a second stimulus bill.

Source: Forbes

 


State Senate Chambers

Democrats Fail to Override Trump Veto on Student Loan Policy

This Friday, House Democrats were unable to override the Trump Administration’s veto on a proposal to reverse the Education Department’s strict policy on loan forgiveness for students misled by for-profit colleges. The House voted 238-173 in support of the override measure, coming up short of the two-thirds majority needed to send it to the Senate.

Source: ABC News

 


question mark

Study Finds Gen Z Borrowers Are Unaware of COVID-19 Student Loan Relief Programs

While the CARES Act allowed those with federal student loans to pause payments until September, a recent survey from Student Debt Crisis shows that Gen Z borrowers, in particular, were the least aware of the relief program.

 

Source: CNBC

 


note saying pay off debt

Author Shares Her Big ‘Wake Up Call’ That Led Her to Pay Off $81,00 in Student Debt

35-year-old Melanie Lockert, the author of “Dear Debt,” shared with CNBS the story of how she was able to pay off $81,000 in student loan debt over 9 years, with her big wake up call coming five years into repayment.

 

Source: CNBC

 

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

This Week in Student Loans: June 18, 2020

Posted on

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:

photo saying legislation

NAACP And 60 Other Groups Call On Congress To Cancel Student Debt

After the federal government has provided student loan relief to all federal student loan borrowers through the CARES Act, a coalition of over 60 organizations including the NAACP, American Federation of Teachers, and the National Consumer Law Center are now calling Congress to cancel student loan debt altogether in their next stimulus package.

 

Source: Forbes

 


low rates on federal student loans

Student Loans: 3 Ways To Get A Lower Interest Rate

This Forbes article lays out the three ways to get a lower interest rate on your student loans, covering options such as refinancing, borrowing a new student loan, or even switching to a variable rate loan.

 

Source: Forbes

 


question mark

How to Pay Off Student Loans When You’re Broke

With many individuals struggling to pay off their student loans due to lack or income or overwhelming expenses, this Fox Business article lays out options for paying down student debt when faced with difficult financial circumstances.

 

Source: Fox Business

 


student debt in america

How Student Loans Became a $1.6 Trillion Problem

With the cost of college increasing almost 25% in the past decade and total student loan debt reaching $1.6 trillion, this CNBC video offers a historical view of the path the U.S. took to arrive at this state.

 

Source: CNBC

 

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Current LIBOR Rate Update: June 2020

Posted on

This blog provides the most current LIBOR rate data as of June 9, 2020, along with a brief overview of the meaning of LIBOR and how it applies to variable-rate student loans. For more information on how LIBOR affects variable rate loans, read our blog, LIBOR: What It Means for Student Loans.

 

What is LIBOR?

The London Interbank Offered Rate (LIBOR) is a money market interest rate that is considered to be the standard in the interbank Eurodollar market. In short, it is the rate at which international banks are willing to offer Eurodollar deposits to one another. Many variable rate loans and lines of credit, such as mortgages, credit cards, and student loans, base their interest rates on the LIBOR rate.

 

How LIBOR Affects Variable Rate Student Loans

If you have variable-rate student loans, changes to the LIBOR impact the interest rate you’ll pay on the loan throughout your repayment. Private student loans, including refinanced student loans, have interest rates that are tied to an index, such as LIBOR. But that’s not the rate you’ll pay. The lender also adds a margin that is based on your credit – the better your credit, the lower the margin. By adding the LIBOR rate to the margin along with any other fees or charges that may be included, you can determine your annual percentage rate (APR), which is the full cost a lender charges you per year for funds expressed as a percentage. Your APR is the actual amount you pay.

 

LIBOR Maturities

There are seven different maturities for LIBOR, including overnight, one week, one month, two months, three months, six months, and twelve months. The most commonly quoted rate is the three-month U.S. dollar rate. Some student loan companies, including ELFI, adjust their interest rates every quarter based on the three-month LIBOR rate.

 

Current 1 Month LIBOR Rate – June 2020

As of June 9, 2020, the 1 month LIBOR rate is 0.19%. If the lender sets their margin at 3%, your new rate would be 3.19% (0.19% + 3.00%=3.19%). The chart below displays fluctuations in the 1 month LIBOR rate over time.

 

Chart Showing Current 1 Month LIBOR Rate – June 2020

(Source: macrotrends.net)

 

Current 3 Month LIBOR Rate – June 2020

As of June 9, 2020, the 3 month LIBOR rate is 0.31%. If the lender sets their margin at 3%, your new rate would be 3.31% (0.31% + 3.00%=3.31%). The chart below displays fluctuations in the 3 month LIBOR rate over time.

 

Chart displaying Current 3 Month LIBOR Rate – June 2020

(Source: macrotrends.net)

 

Current 6 Month LIBOR Rate – June 2020

As of June 9, 2020, the 6 month LIBOR rate is 0.46%. If the lender sets their margin at 3%, your new rate would be 3.46% (0.46% + 3.00%=3.46%). The chart below displays fluctuations in the 6 month LIBOR rate over time.

 

Chart displaying Current 6 Month LIBOR Rate – June 2020

(Source: macrotrends.net)

 

Current 1 Year LIBOR Rate – June 2020

As of June 9, 2020, the 1 year LIBOR rate is 0.63%. If the lender sets their margin at 3%, your new rate would be 3.63% (0.63% + 3.00%=3.63%). The chart below displays fluctuations in the 1 year LIBOR rate over time.

 

Chart displaying Current 1 Year LIBOR Rate – June 2020

(Source: macrotrends.net)

 

Understanding LIBOR

If you are planning to refinance your student loans or take out a personal loan or line of credit, understanding how the LIBOR rate works can help you choose between a fixed or variable-rate loan. Keep in mind that ELFI has some of the lowest student loan refinancing rates available, and you can prequalify in minutes without affecting your credit score.* Keep up with the ELFI blog for monthly updates on the current 1 month, 3 month, 6 month, and 1 year LIBOR rate data.

 


 

*Subject to credit approval. Terms and conditions apply.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

This Week in Student Loans: June 12, 2020

Posted on

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:

will there be a second student loan stimulus package?

Will There Be A Second Student Loan Stimulus Package?

The CARES Act passed in wake of the coronavirus pandemic provided relief to many federal student loan borrowers, but the payment suspensions are set to end on September 30. However, the newly proposed HEROES Act included provisions that will provide relief to borrowers through September of 2021. This Forbes article provides detail as to whether their will be a second stimulus package for borrowers.

 

Source: Forbes

 


low rates on federal student loans

Take Advantage of Low Student Loan Interest Rates

The interest rate on federal direct student loans for undergraduates for 2020-2021 is 2.75%. These historic lows can be attributed to the coronavirus pandemic, and this U.S. News article explains why those planning to attend college should take advantage.

 

Source: U.S. News & World Report

 


question mark

Should You Continue Paying Private Student Loans if Payments Are Suspended?

With many wondering whether they should continue to pay federal student loans during the CARES Act suspensions, there has also been some question around private student loans, as a multi-state pact that emerged recently provides relief to private student loan borrowers.

 

Source: Fox Business

 


debt relief

Student Loan Debt Relief: What Are Your Options Now?

With many changes happening in the world of student loans as of late, from the CARES Act passed months ago to the newly proposed HEROES Act, this Forbes article outlines the current options available for student loan borrowers to obtain relief.

 

Source: Forbes

 

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

This Week in Student Loans: June 5, 2020

Posted on

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:

around 1.5% of applicants were approved for public service loan forgiveness.

Why 147,000 People Were Rejected For Student Loan Forgiveness

Out of 150,545 borrowers who have applied for Public Service Loan Forgiveness, just 2,215 borrowers (about 1.5%) have been granted forgiveness. Forbes writer Zack Friedman breaks down the details behind this low approval rate in the article linked below.

 

Source: Forbes

 


Government and mass debt cancellation

Student Loan Expert on Mass Debt Cancellation: ‘We don’t need these blunt solutions’

With around 44 million borrowers across the country holding more than $1.6 trillion in student loan debt, there is much talk about mass student loan forgiveness or cancellation. Jason Delisle at the American Enterprise Institute explains why he believes mass debt cancellation isn’t the answer for the U.S. economy.

 

Source: Yahoo Finance

 


college student upset about not being able to afford college due to the financial impact of the coronavirus.

More than Half of Students Probably Can’t Afford College Due to COVID-19

According to a new survey by OneClass, the coronavirus crisis has already had a significant impact on many families’ ability to pay for college. The survey found that more than half, or 56%, of college students say they can no longer afford their tuition. Nearly half of those surveyed said they needed to find a new way to pay for college due to the impact of the coronavirus on their financial situation.

 

Source: CNBC

 


millennial debating whether to pay student loans during CARES Act suspension of loan payments

Student Loan Borrowers In CARES Act Forbearance Can’t Buy Or Refi Homes

According to this Forbes article, certain mortgage lenders are considering the forbearance caused CARES Act suspensions on federal student loans a reason to deny mortgages or mortgage refinancing, during a time where mortgage rates are lower than they have been in years.

 

Source: Forbes

 

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

This Week in Student Loans: May 22

Posted on

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:

what you need to know about student loan debt relief

What you need to know about debt relief on student loans

As there have obviously been some major changes in the world of student loans recent, the Washington Post covers many frequently asked questions in this article, from the details of the Heroes Act to how the new changes affect a variety of borrowers.

 

Source: Washington Post

 


college's loan default rate

Why a college’s student loan default rate matters

With the extended deadline for “decision day” approaching, this US News & World Report brings to light how a college’s default rate, or the average portion of students who default on their student loans, should matter to students who are choosing where to attend college.

 

Source: US News & World Report

 


Donors provide students with debt relief

Anonymous donors paid off $8 million in student loans for first-generation grads

According to CBS News, a group of anonymous donors contributed a total of $8 million to pay off college loans for up to 400 first-generation college students who have overcome financial hardships, from homelessness to poverty. The donors are longtime supporters of Students Rising Above (SRA), a Bay Area nonprofit.

 

Source: CBS News

 


Student Loan Debt Relief

More relief could be coming for student loan borrowers

While the CARES Act has already suspended federal student loan payments through September 30, 2020, a new bill known as the HEROES Act, passed by the House last Friday, would include additional relief for borrowers with both federal and private student loans, including potentially suspending federal student loans another year through September 30, 2021.

 

Source: CNBC

 

 

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

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.