A college education may be the ticket to a higher-paying job after graduation, but for many people it also leads to a mountain of debt that can take years—or even decades—to pay off. Americans currently owe a record-high $1.41 trillion in student loans, according to the credit reporting agency Experian. [...]
What is a Guaranteed Loan? A guaranteed loan is a loan that a third party guarantees – or assumes the debt obligation for – in the event that the borrower defaults. Sometimes, a guaranteed loan is guaranteed by a government agency, which will purchase the debt from the lending financial institution and take on [...]
Table of Contents Expand How Much Can You Borrow? Federal Direct Student Loans Federal Direct PLUS Loans Private Student Loans Annual and Aggregate Loan Amounts Loan Eligibility by Type There are limits to almost everything in life, including how much you can borrow on student loans. Student loan limits are [...]
What Is the Total Debt Service Ratio (TDS)? The total debt service ratio (TDS) is a debt service measurement that financial lenders use as a rule of thumb when determining the proportion of gross income that is already spent on housing-related and other similar payments. Lenders consider each potential borrower’s [...]
Table of Contents Expand What Is Student Loan Bankruptcy? Know This Before You File Filing an Adversary Proceeding The ‘Undue Hardship’ Hurdle Special Circumstances The Bottom Line You may have heard that student loans can’t be discharged in bankruptcy. That statement oversimplifies the truth. You actually can get student loans [...]
What Is a Variable Interest Rate? A variable interest rate (sometimes called an “adjustable” or a “floating” rate) is an interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically. The obvious advantage of [...]
What Is a Senior Bank Loan? A senior bank loan is a debt financing obligation issued to a company or an individual by a bank or similar financial institution that holds legal claim to the borrower's assets above all other debt obligations. Because it is considered senior to all other [...]
Table of Contents Expand Overview General Federal Loan Forbearance Mandatory Federal Forbearance Private Student Loan Forbearance Pros and Cons Alternatives to Forbearance The Bottom Line Student loan forbearance is a way to suspend or lower your student loan payments temporarily, typically for 12 months or less, during times of financial [...]
If you need help paying for college, private student loans can help fill the gap that federal financial aid doesn't cover. Most college students don't earn a lot of money, nor do they have lengthy credit histories, so many private loan lenders encourage applicants to have a cosigner on their [...]
Table of Contents Expand Federal Repayment Options Which Federal Option Is Best? Private Student Loan Options The Bottom Line Student loan repayment options offer borrowers some flexibility in repaying education debt. With federal student loans, you have multiple repayment paths to choose from. If you borrowed private student loans, however, [...]