The federal student loan application website is now live. Here's what to expect - WMTW Portland

1 year ago 58

>> I WAS ACTUALLY THE FIRST PERSON IN MY FAMILY TO GO TO COLLEGE. BEN: FIRST TO GO TO COLLEGE, FIRST TO TAKE OUT STUDENT LOANS. KRISTINE REGO FOUND HERSELF $90,000 IN DEBT WHEN SHE GRADUATED IN 2009. >> PRIVATE LOANS HAVE BEEN REALLY DIFFICULT TO DEAL WITH. THE INTEREST RATES ARE REALLY HIGH. THEY'RE ABOUT 11 TO 12% ON THOSE LOANS. BEN: DESPITE PAYING EVERY MONTH FOR OVER A DECADE, SHE STILL OWES ALMOST 40,000. THAT TOTAL WILL BE CUT BY 10 GRAND WITH PRESIDENT BIDEN'S FEDERAL FORGIVENESS, BUT SHE WON'T GET ANY HELP WITH THE NEARLY 15,000 SHE STILL OWES ON TWO PRIVATE LOANS. INCLUDING ONE SHE'S PAYING 12% INTEREST ON. >> THE STARTING BALANCE WAS $3300. AND AS OF TODAY, I STILL OWE $3100 ON THAT LOAN. BEN: HERE'S WHAT HAPPENED, AFTER KRISTINE BORROWED $3300 IN 2006, SHE DIDN'T HAVE TO MAKE PAYMENTS WHILE SHE WAS IN SCHOOL. BUT INTEREST WAS ACCRUING. SO MUCH THAT BY THE TIME SHE GRADUATED HER LOAN BALANCE BALLOONED TO MORE THAN $5,000. AND MAKING THE MINIMUM $50 PAYMENT EVERY MONTH SOME MONTHS AS LITTLE AS 2 OR 4 BUCKS GOES TO PRINCIPAL WITH THE REST BEING CONSUMED BY INTEREST. >> IN 14 YEARS, I'VE PAID OFF THAT LOAN, THE INITIAL BALANCE, PROBABLY THREE TIMES OVER. >> ESPECIALLY WHEN PEOPLE FIRST% GET OUT OF SCHOOL, THEY FIND THE LOWEST PAYMENT THEY CAN GET, WHICH IS PROBABLY ALL THEY CAN AFFORD AT THAT MOMENT. AND THEN THEY SET IT AND FORGET IT. BEN: WE WENT TO BETSY MAYOTTE FOR ADVICE. SHE'S THE PRESIDENT AND FOUNDER OF THE INSTITUTE OF STUDENT LOAN ADVISORS, A MASSACHUSETTS-BASED NONPROFIT WHICH PROVIDES FREE, IMPARTIAL STUDENT LOAN ADVICE. >> EVEN THOUGH INTEREST RATES ARE GOING UP, IF I HAD DOUBLE DIGIT INTEREST RATES, I'D BE LOOKING INTO REFINANCING THAT PRIVATE LOAN TO SEE IF I COULD GET A LOWER INTEREST RATE. BEN: REFINANCING MIGHT LET YOU COMBINE SEVERAL PRIVATE LOANS INTO ONE NEW LOAN, WITH RATES AS THEN, PAY AS MUCH AS YOU CAN MORE THAN THE MINIMUM. AND KEEP REASSESSING. >> EVERYBODY GET IN THE HABIT OF ONCE A YEAR, PREFERABLY A TAX TIME, THAT YOU TAKE A MOMENT AND REVIEW YOUR STUDENT LOAN STRATEGY. BEN: BETSY SAYS DON'T REFINANCE YOUR FEDERAL LOANS, BECAUSE TURNING THEM INTO PRIVATE LOANS PROVIDES FEWER PROTECTIONS IN THE EVENT OF A DOWNTURN. SHE ALSO SAYS AVOID USING HOME EQUITY FOR STUDENT LOANS BECAUSE IT PUTS YOUR HOUSE AT RISK. INSTEAD, OTHER OPTIONS INCLUDE A PERSONAL LOAN, WHICH MIGHT HAVE A BETTER INTEREST RATE. OR A 0% INTRODUCTORY CREDIT CARD OFFER AS LONG AS YOU CAN PAY THE BALANCE IN FULL BEFORE THE 0% RATE RUNS OUT. KRISTINE SAYS SHE PLANS TO DUMP HER HIGH-RATE LOANS. >> A LOWER INTEREST RATE WOULD ALLOW ME TO GET AHEAD. BEN: LET'S GO BACK TO THAT 10 THOUSANDS FEDERAL FORGIVENESS. AND BETSY WANTED US TO STRESS THIS, YOU SHOULDN'T BE DOING ANYTHING RIGHT NOW. THERE'S A LOT OF SCAMMERS AT WORK OUT THERE BUT WE'RE STILL WAITING FOR MORE GUIDANCE AS TO WHAT STEPS PEOPLE WILL NEED TO TAKE AND FOR MANY IT'LL HAPPEN AUTOMATICALLY. IF YOU'VE GOT A CONSUMER STORY FOR ME EMAIL ME AT BEN AT

The national pupil indebtedness exertion website is present live. Here's what to expect

The Biden medication has opened the exertion process for Americans seeking pupil indebtedness alleviation successful a beta play starting Friday evening, officials told CNN, allowing applicants to statesman signing up earlier the website is formally unveiled aboriginal this month.In August, President Joe Biden announced his determination to cancel up to $10,000 successful pupil indebtedness indebtedness for individuals making little than $125,000 a twelvemonth oregon arsenic overmuch arsenic $20,000 for eligible borrowers who were besides Pell Grant recipients."Tonight, the Department of Education volition statesman beta investigating the pupil indebtedness alleviation website. During the beta investigating period, borrowers volition beryllium capable to taxable applications for the Biden-Harris Administration's pupil indebtedness alleviation program," a spokesperson for the Department of Education told CNN exclusively Friday.The website is disposable at: https://studentaid.gov/debt-relief/application.Anyone who applies for indebtedness alleviation successful the beta play volition person a confirmation email, but their exertion volition not beryllium processed until the tract formally launches, expected astatine a to-be-announced day earlier the extremity of October. Once processing begins, astir qualifying borrowers are expected to person indebtedness alleviation wrong weeks.The spokesperson continued, "Those borrowers volition not request to reapply if they taxable their exertion during the beta test, but nary applications volition beryllium processed until the tract officially launches aboriginal this month. This investigating play volition let the Department to show tract show done real-world use, trial the tract up of the authoritative exertion launch, refine processes, and uncover immoderate imaginable bugs anterior to authoritative launch."The Department of Education's method squad volition beryllium looking astatine tract show successful existent clip and the beta mentation of the website volition person scheduled pauses arsenic the squad assesses what refinements and tweaks are needed, an medication authoritative told CNN successful a telephone interview, different authoritative adding that "high spikes of demand" are expected. Anyone who is trying to taxable their exertion during a beta intermission volition beryllium encouraged to cheque back.While determination won't beryllium immoderate changes made to the exertion itself, determination could beryllium changes to the website bundle arsenic the tech squad tracks however it's moving successful the beta mode.The signifier to use volition see accusation connected the indebtedness relief, who qualifies for it and however it works. It volition inquire applicants for accusation including their afloat names, Social Security number, day of birth, telephone fig and an email address.Potential applicants who antecedently signed up for updates connected the pupil indebtedness alleviation process volition person an email notifying them astir the beta website, and erstwhile the website is formally launched, the White House volition statesman to leverage its societal channels to dispersed the word. There are besides plans to little integer creators and influencers successful the coming weeks, officials said.

In August, President Joe Biden announced his determination to cancel up to $10,000 successful pupil indebtedness indebtedness for individuals making little than $125,000 a twelvemonth oregon arsenic overmuch arsenic $20,000 for eligible borrowers who were besides Pell Grant recipients.

"Tonight, the Department of Education volition statesman beta investigating the pupil indebtedness alleviation website. During the beta investigating period, borrowers volition beryllium capable to taxable applications for the Biden-Harris Administration's pupil indebtedness alleviation program," a spokesperson for the Department of Education told CNN exclusively Friday.

The website is disposable at: https://studentaid.gov/debt-relief/application.

Anyone who applies for indebtedness alleviation successful the beta play volition person a confirmation email, but their exertion volition not beryllium processed until the tract formally launches, expected astatine a to-be-announced day earlier the extremity of October. Once processing begins, astir qualifying borrowers are expected to person indebtedness alleviation wrong weeks.

The spokesperson continued, "Those borrowers volition not request to reapply if they taxable their exertion during the beta test, but nary applications volition beryllium processed until the tract officially launches aboriginal this month. This investigating play volition let the Department to show tract show done real-world use, trial the tract up of the authoritative exertion launch, refine processes, and uncover immoderate imaginable bugs anterior to authoritative launch."

The Department of Education's method squad volition beryllium looking astatine tract show successful existent clip and the beta mentation of the website volition person scheduled pauses arsenic the squad assesses what refinements and tweaks are needed, an medication authoritative told CNN successful a telephone interview, different authoritative adding that "high spikes of demand" are expected. Anyone who is trying to taxable their exertion during a beta intermission volition beryllium encouraged to cheque back.

While determination won't beryllium immoderate changes made to the exertion itself, determination could beryllium changes to the website bundle arsenic the tech squad tracks however it's moving successful the beta mode.

The signifier to use volition see accusation connected the indebtedness relief, who qualifies for it and however it works. It volition inquire applicants for accusation including their afloat names, Social Security number, day of birth, telephone fig and an email address.

Potential applicants who antecedently signed up for updates connected the pupil indebtedness alleviation process volition person an email notifying them astir the beta website, and erstwhile the website is formally launched, the White House volition statesman to leverage its societal channels to dispersed the word. There are besides plans to little integer creators and influencers successful the coming weeks, officials said.

Read Entire Article