Student Loans in the News: Best Nursing School Loans
A brief round-up of recent articles and blog posts that discuss current student loan debates and data
About the author: Kevin Mahoney, CFP® is a fee-only financial advisor in Washington, D.C. Kevin's work with his clients focuses on paying off student loans, buying a house, investing savings, and budgeting. Kevin is the founder & CEO of Illumint, a virtual financial planning firm specifically designed to help couples and young families with their financial decisions.
Graduate school debt is driving up the cost of helping borrowers manage their student loans
The Washington Post
Author Danielle Douglas-Gabriel writes:
"The evolution of income-driven repayment plans has deepened ideological rifts over the programs. Although the plans have existed since the 1990s, few people took advantage of them until the Obama administration expanded eligibility, lowered monthly payments and shaved five years off the path to forgiveness. The goal was to help more people manage their debt. The CBO found that objective has largely been met: Borrowers in income-driven plans default on their loans at much lower rates than people in other repayment plans.
But soaring enrollment and costs have made conservatives leery of the federal policy.
'Our nation is currently facing trillion-dollar deficits and any system that lends more than is repaid will ultimately become a liability to American taxpayers,' Senate Budget Committee Chairman Mike Enzi (R-Wyo.) said in a statement Wednesday. Enzi and Sen. Lamar Alexander (R-Tenn.) requested the CBO study.
Enzi said lawmakers must ensure the programs are 'targeting limited federal resources appropriately and slowing the unsustainable growth in the cost of higher education.'
The Trump administration has proposed folding five income-driven repayment plans into one that shortens the payment period to 15 years for undergraduates but raises the monthly bill to 12.5 percent of income for undergraduate and graduate borrowers. But people with graduate school debt would have to pay for 30 years before receiving loan forgiveness."
[Read the entire article over at The Washington Post]
8 Best Nursing Student Loans of March 2020
Author Ryan Lane writes:
"If you need nursing student loans, exhaust your federal options before turning to private lenders. Federal student loans offer benefits like Public Service Loan Forgiveness, which many nurses may be able to take advantage of post-graduation.
Private loans for nursing students are available, and these can make sense if you’ve maxed out your federal aid. Graduate students with good credit may also want to consider a private nursing student loan if they can qualify for a low interest rate.
Here are our picks for the best student loans for nursing school, as well as information on how to weigh these options."
[Read the entire article over at Nerd Wallet]
7 Ways to Pay Off Your Student Loans Faster
Author Miriam Caldwell writes:
"Create a Payment Plan
You need to create a debt payment plan for your student loan debt, along with any credit card debt and car loans. Prioritize the debts based on the interest that you are paying and tax advantages. This means that you should usually put your federal student loans last, since they typically have a lower interest rate, while you work on paying off your private student loans faster. This plan can help you focus your efforts and make it easier to get out of debt.
Get on a Budget
Once you land your first job, you need to set up a tight budget that will limit your spending so that you have extra money to put toward your loan payments. With a steady income, it is essential to establish a realistic budget that allows you to move forward on saving and getting out of debt. It's easier to make the sacrifices now, when you are used to being broke, than after you are accustomed to spending a lot every month. Your budget can help you identify areas where you can cut back on your spending and pay down your student loans faster."
[Read the entire article over at The Balance]