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This Week in Student Loans: May 22

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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:

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.

Current LIBOR Rate Update: May 2020

Posted on

This blog provides the most current LIBOR rate data as of May 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 – May 2020

As of May 7, 2020, the 1 month LIBOR rate is 0.20%. If the lender sets their margin at 3%, your new rate would be 3.20% (0.20% + 3.00%=3.20%). The chart below displays fluctuations in the 1 month LIBOR rate over time.

 

(Source: macrotrends.net)

 

 

Current 3 Month LIBOR Rate – May 2020

As of May 7, 2020, the 3 month LIBOR rate is 0.43%. If the lender sets their margin at 3%, your new rate would be 3.43% (0.43% + 3.00%=3.43%). The chart below displays fluctuations in the 3 month LIBOR rate over time.

 

Chart of 3 Month LIBOR for May 2020

(Source: macrotrends.net)

 

Current 6 Month LIBOR Rate – May 2020

As of May 7, 2020, the 6 month LIBOR rate is 0.69%. If the lender sets their margin at 3%, your new rate would be 3.69% (0.69% + 3.00%=3.69%). The chart below displays fluctuations in the 6 month LIBOR rate over time.

 

Chart of 6 Month LIBOR May 2020

(Source: macrotrends.net)

 

Current 1 Year LIBOR Rate – May 2020

As of May 7, 2020, the 1 year LIBOR rate is 0.78%. If the lender sets their margin at 3%, your new rate would be 3.78% (0.78% + 3.00%=3.78%). The chart below displays fluctuations in the 1 year LIBOR rate over time.

 

Chart of 1 Year LIBOR May 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: May 15

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:

person calculating the savings when refinancing

Consumers are refinancing loans as a form of personal stimulus

Despite the economic callout due to the coronavirus pandemic, Americans are using historically low interest rates to refinance their loans as a form of personal stimulus during the pandemic. The article explains how mortgage refinancing volume has skyrocketed and how the low-interest rate environment is also applying to student loan refinancing.

 

Source: Yahoo Finance

 


Government building

House Democrats scale back $10,000 student-loan-forgiveness measure

On Thursday, House Democrats introduced an amendment to their $3 trillion coronavirus relief spending package that significantly scaled back a student-debt provision, also known as the HEROES Act, because of its higher-than-expected cost.

 

Source: Business Insider

 


Government proposing HEROES Act

HEROES Act promises 5 ways to help your student loans

As mentioned above, House Democrats proposed a new $3 trillion stimulus bill called the HEROES Act to provide financial assistance to Americans due to the coronavirus pandemic. Read about the five changes this act includes in the Forbes article.

 

Source: Forbes

 


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

Coronavirus pauses federal student loans for 6 months — should you pay anyway?

The CARES Act put a pause on all student loan payments through September 30 – but should you pay anyway? This Fox Business article argues that if you have the financial means to do so, you might consider continuing to repay your school loans or even refinance your student loans in a low interest rate environment.

 

Source: Fox Business

 

 

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.

ELFI Parent Company Helps Former Student-Athletes Obtain Degrees

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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.

 


 

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 1

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:

CARES Act Bill

Federal Student Loans For 6 Million People Aren’t Covered By The CARES Act

The CARES Act offers many benefits for student loan borrowers, including the suspension of federal student loan payments until September, the interest rates on federal student loans being set to 0%, and the pausing of student loan debt collection on defaulted federal student loans. However, not all loans are covered by the CARES act, specifically Family Federal Education Loan Program loans (FFELP Loans) that aren’t backed by the federal government, which are currently held by approximately 6 million borrowers who hold approximately $142 million of debt in these loans.

Source: Forbes

 


Government building

U.S. Is Sued Over Student Loan Wage Garnishments During Pandemic

A New York home health aide is suing the federal government for continuing to garnish wages to repay defaulted student loans, despite a temporary ban on such collections under the CARES Act. The lawsuit against the Department of Education was filed late Thursday in federal court in Washington.

 

Source: Bloomberg

 


How A Couple is Paying off $50,000 in Student Loans, Even With a Job Loss During Coronavirus

After paying off over $30,000 of student debt last year, an Indianapolis couple still planning to pay off $21,000 in student loans, despite experiencing a job loss due to the coronavirus outbreak. See the budgeting and debt-payoff strategies they’re using to make it happen in the article below.

 

Source: Money.com

 

 

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: April 24

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:

CARES Act Bill

New Student Loan Proposal Helps Borrowers Left Out Of The CARES Act

Rep. Elise Stefanik (R-NY) introduced new congressional legislation that would expand protections for student loan borrowers who do not benefit under the CARES Act. The bi-partisan bill proposal, known as the Equity in Student Loan Relief Act, would make student loan borrowers with Federal Family Education Loan (FFEL) loans eligible for the benefits afforded under the CARES Act.

 

Source: Forbes

 


Government building

Government is Still Garnishing Wages From Student Loan Borrowers

On March 25, the Trump administration announced that during the coronavirus pandemic it would stop garnishing the wages of struggling student loan borrowers. But after a month has passed, there are still borrowers who say they’re not getting their entire paychecks, due to a past-due student loan. Read the CNBC article to learn more.

 

Source: CNBC

 


 parent-and-child-looking-for-financial-aid-options

Student Loan Options for Parents to Fill a College Tuition Gap

Obtaining enough funding to finance college tuition is a challenge that many families face. Filing the FAFSA early can help, however sometimes families still face a gap between the amount of financial aid and loans offered and the cost of attending school. This Yahoo Finance article explains how private student loans may help bridge the gap.

 

Source: Yahoo Finance

 

 

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.

4 Options if Your Student Loans are Ineligible for the CARES Act Protections

Posted on

If you’re like a lot of recent graduates, you’re living paycheck to paycheck. And chances are, your monthly student loan payments eat up a significant portion of your income. According to the Federal Reserve, the average student loan payment is $393 per month. Any disruption to your paycheck can leave you scrambling to make ends meet, and you could be at risk of defaulting on your loans. 

 

By Kat Tretina

Kat Tretina is a writer based in Orlando, Florida. Her work has been featured in publications like The Huffington Post, Entrepreneur, and more. She is focused on helping people pay down their debt and boost their income.

 

The COVID-19 pandemic has caused many people to lose their jobs or a substantial part of their earnings. If that’s the case for you and you can’t keep up with your student loan payments, the CARES Act could help. However, not all loans are eligible for the CARES Act protections. If you have a student loan that doesn’t qualify for the benefits outlined by the CARES Act, here’s what you can do to manage your debt. 

 

What is the CARES Act?

President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27 and it went into effect immediately. As part of its efforts to bolster the economy, the CARES Act introduced new changes for some student loan borrowers. 

 

From March 13, 2020, until September 30, 2020, the government will completely suspend federal student loan payments, meaning you won’t have to make any payments until October. The payment suspension is automatic, so there’s no need to do anything at all; your loan servicer will adjust your account for you. 

 

In addition, the interest rate on eligible student loans is reduced to 0% until September 30, 2020. During that time, no new interest will accrue on your loans. 

 

Not all student loans qualify for the CARES Act’s protections. You qualify for the payment suspension and interest rate reduction if you have one of the following loan types: 

  • Direct Subsidized or Unsubsidized Loans
  • Direct PLUS Loans, including Parent PLUS Loans and Grad PLUS Loans
  • Direct Consolidation Loans
  • Some FFEL program loans
  • Some Perkins loans

 

However, not all FFEL and Perkins loans are eligible. Only FFEL and Perkins Loans issued by the federal government qualify for the CARES Act’s benefits. If your FFEL or Perkins Loan is owned by a commercial lender or your school, you can’t take advantage of these perks. 

 

If you have private student loans, they don’t fall under the CARES Act at all, and your payments and interest rate will remain the same. Your regularly scheduled payments are still due each month, unless you can make an alternative arrangement with your lender. 

 

4 other options if your loans aren’t eligible for CARES Act

If you have private student loans, FFEL program loans, or Perkins Loans that are ineligible for the CARES Act’s benefits, there are other ways to manage your debt if your income has been affected by the coronavirus pandemic. 

 

1. Apply for administrative forbearance

If you have FFEL Program Loans or Perkins Loans, you may be eligible for an administrative forbearance. With this approach, you can temporarily postpone your payments without becoming delinquent or entering default. 

 

During the forbearance, unpaid interest will capitalize on FFEL program loans, but unpaid interest is never capitalized on Perkins Loans. 

 

Depending on your situation, you could postpone your payments for up to 12 months at a time. 

 

To request a forbearance, contact your loan servicer directly. 

 

2. Consolidate with a Direct Consolidation Loan

Some FFEL Program Loans and Perkins Loans aren’t eligible for the CARES Act benefits, but there is a loophole: you can consolidate your loans with a federal Direct Consolidation Loan. When you do so, your loans will fall under the Direct Loan program and will then be eligible for the CARES Act payment suspension and interest rate reduction. 

 

When the CARES Act’s payment suspension is over, the Direct Consolidation Loan can still be beneficial. With a Direct Consolidation Loan, you can extend your repayment term to 30 years. And, you can apply for an income-driven repayment plan, reducing your monthly payment. It can be a useful alternative if you need long-term financial relief. 

 

You can apply for a Direct Consolidation Loan online

 

3. Consider student loan refinancing

If you have private loans or a mix of federal or private loans, another option is student loan refinancing, where you take out a loan for the amount of your existing debt. The new loan will have different terms, including the interest rate and loan length. 

 

If you can’t afford your current payments, you can choose a longer loan term when you refinance. With a longer term, you may be able to get a much smaller monthly payment. 

 

To get a rate quote and find out how student loan refinancing would affect your payments, use ELFI’s “Find My Rate” tool.* You can get an interest rate estimate and view loan terms without affecting your credit score. 

 

4. Contact your lender

If you have private student loans, make sure you contact your lender as soon as possible if you’re having financial issues. Some lenders offer forbearance and hardship policies to help borrowers get back on their feet. 

 

If you need help with your Education Loan Finance student loans, contact the customer care center by calling 1-844-601-ELFI. 

 

Managing your loans while going through financial difficulties

The coronavirus outbreak has had a major impact on the entire globe, as well as the economy. If you’ve lost your job or had your income cut, there are different ways to get some relief from your student loan payments. If you’re not sure where to start, contact your lender right away and ask what kind of repayment options are available. 

 


 

*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.

Current LIBOR Rate Update: April 2020

Posted on

This blog provides the most current LIBOR rate data as of April 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 – April 2020

As of Thursday, April 9, 2020, the 1 month LIBOR rate is 0.81%. If the lender sets their margin at 3%, your new rate would be 3.81% (0.81% + 3.00%=3.81%). The chart below displays fluctuations in the 1 month LIBOR rate over time.

 

Chart of 1 Month LIBOR April 2020

(Source: macrotrends.net)

 

 

Current 3 Month LIBOR Rate – April 2020

As of Thursday, April 9, 2020, the 3 month LIBOR rate is 1.22%. If the lender sets their margin at 3%, your new rate would be 4.22% (1.22% + 3.00%=4.22%). The chart below displays fluctuations in the 3 month LIBOR rate over time.

 

Chart of 3 Month LIBOR April 2020

(Source: macrotrends.net)

 

Current 6 Month LIBOR Rate – April 2020

As of Thursday, April 9, 2020, the 6 month LIBOR rate is 1.23%%. If the lender sets their margin at 3%, your new rate would be 4.23% (1.23% + 3.00%=4.23%). The chart below displays fluctuations in the 6 month LIBOR rate over time.

 

Chart of 6 Month LIBOR April 2020

(Source: macrotrends.net)

 

Current 1 Year LIBOR Rate – April 2020

As of Thursday, April 9, 2020,, the 1 year LIBOR rate is 1.05%. If the lender sets their margin at 3%, your new rate would be 4.05% (1.05% + 3.00%=4.05%). The chart below displays fluctuations in the 1 year LIBOR rate over time.

 

Chart of 1 Year LIBOR April 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.

The Best Ways to Use Your 2020 Stimulus Check

Posted on

Have you heard about the government stimulus check coming in 2020? Do you know how much money you expect to receive? Maybe you already have some ideas of how you can use the money. When you get newfound money, you should always consider the best ways you can spend so that it will pay off for you now and in the future. Here are a few tips for how to spend your 2020 stimulus check. 

 

By Caroline Farhat

 

What is the Stimulus Check?

The COVID-19 pandemic has caused a major financial impact. Experts say we’re heading towards a recession, if not already experiencing one. In an effort to stabilize the economy, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March. This provides, among other benefits, a stimulus check. Here is the information you need to know about the government stimulus check: 

 

Who will receive a check?

  • Eligible adults earning up to $75,000 will receive a check for $1,200. 
  • Couples earning up to $150,000 will receive $2,400.
  • Families will receive $500 for each child under the age of 17, if they meet the income requirements.
  • The check amount is reduced for earners making over $75,000 and disappears completely for individuals earning $99,000 or more. 
  • For couples earning between $150,000 to $197,000, they will receive a reduced amount. Couples earning $198,000 or more will not receive a check. 

 

What income is this based on?

  • The income thresholds to determine eligibility for the stimulus check is based on your 2019 adjusted gross income, or 2018 if you have not yet filed your 2019 taxes. 
  • When can you expect the money?
  • Although it is technically called a check, if the IRS has your banking information from your tax return, you may receive a direct deposit as early as mid-April 2020. However, if a paper check has to be mailed, you may not receive the money until May or later. As of April 13, 2020, the IRS is preparing to provide a tool on their website to track the status of your stimulus check. 

 

The Best Ways to Use Your Stimulus Check

Once you receive the money, here are some of the best ways to use it to help you financially:

 

1. Pay bills

A Pew Research Center study predicts 38.1 million U.S. workers are working in an industry that will most likely feel an immediate impact from the pandemic, including layoffs or reduced hours. If you have been laid off or if you’re uncertain how your job may be impacted, it is time to look at your emergency fund to examine how many months of basic living expenses you have saved. If you do not have an emergency fund, you should use the stimulus money for your basic living expenses, including rent or mortgage, food, or necessary household items.

 

2. Start or Add to Your Emergency Fund 

If your job is safe from layoffs and you have a healthy stream of income still coming in, you should consider using the stimulus money to start or add to your emergency fund. Financial experts suggest it’s best to have six to eight months of living expenses in your emergency fund. It can come in handy if you are dealing with a sudden job loss or an unexpected expense, like a car repair. To determine the amount you need for your emergency fund, do the following:

  1. Add up your living expenses for a month, including your mortgage or rent, car payment, money for food and gas, and any other necessary monthly expenses you pay.
  2. Multiply your monthly amount by 6 (or 8 if you’d like to aim higher).

 

For example, if your monthly expenses are $3,500 and you want to save a six month emergency fund, you will need to save $21,000 in a savings account. The stimulus check you receive can be a great foundation for a healthy emergency fund. 

 

3. Pay Down Debt

If you feel secure in your job and have an emergency fund, using your check to pay down debt may be a wise option for you. Look to see what debts have the highest interest rates and tackle those first. If you have student loan debt, research whether refinancing your student loans makes financial sense for you. In many cases, you may be able to lock in a lower interest rate and save on your monthly payment, as well as the total amount you spend on the loan. To see what you may be able to save, check out our student loan refinance calculator.* Lowering your expenses, especially in this uncertain economic time, is always a good financial decision. 

 

4. Invest

If you have a stable paycheck, a strong emergency fund, and no debt or at least a plan to tackle your debt, spending some of your check on investing in a retirement account is not a bad idea. Stock prices are low so your money will go further if you invest now. Note: This option is only recommended if you are able to live without the money you invest for many years.  

 

5. Donate and Support Local Businesses

If you are in a good financial situation with a stable paycheck and have the ability to help, think about donating some or all of your government stimulus check. You can donate to charities that are helping others that have been negatively impacted during this pandemic. Tip: Be sure to verify the charity is legitimate as unfortunately scams do happen! Another great use is to support local businesses in your neighborhood. Use some of the money to order takeout from local restaurants that are undergoing a large economic loss. Or consider buying gift cards from local stores or restaurants that may not be open at this time.

 

The government stimulus check may be helpful during this difficult time to help pay basic necessities or start you on a good financial path. Use your check for one or more of these uses and a brighter future will be ahead!

 


 

*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: April 10

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:

Student Loan Relief in CARES Act

Senators Seek Help For Student Loan Borrowers Left Out Of Coronavirus Relief Bill

The CARES Act passed recently included some major changes in federal student loan repayment – however, the Act doesn’t provide relief to all student loan borrowers. Now, senators within Congress are seeking help for borrowers from the old bank-based system, known as the Federal Family Education Loan (FFEL) program, as well as borrowers with private student loans, who weren’t included in the CARES Act.

 

Source: Forbes

 


31-Year-Old Making $118,000 in Philadelphia Paid Off $55,000 in Student Loans in 4 Years

In this CNBC feature, the story is told how a 31-year-old IT manager was able to pay off $55,000 in student loan debt in just four years, using a combination of the famous debt snowball method and making a pact with his mother to stay committed to paying down their debt. The article lays out his budgeting strategy in detail.

 

Source: CNBC

 


Bernie Sanders Ends Presidential Campaign

Senator Bernie Sanders ended his presidential campaign on Wednesday, clearing way for Joe Biden in the presidential race. Sanders was known for his progressive views toward student loan reform.

 

Source: CBS News

 


Joe Biden Introduces Plan for Student Loan Forgiveness

On Thursday, the day following Bernie Sanders withdrawing his candidacy for the 2020 Presidential Race, Democratic Candidate Joe Biden pitched a new student loan forgiveness plan. This Forbes article outlines the details in his new plan.

 

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.