Student loan servicers are the companies that collect payments on your debts for you. Sometimes these are private lenders, but most times they’re government-backed, meaning that it’s not just you making the monthly payment and dealing with paperwork. What does this mean for you? It means that we have to know who these servicers are and what they do so we can make sure our money is going where it needs to go.

What are student loan servicers?

A student loan servicer is a company or a collection agency that gets your loan payment and processes it for you. They typically handle your student loan debt through an installment loan, which means you pay a fixed monthly payment that goes directly to them. Some private student loan servicers offer plans that involve your monthly payment going directly to the lender, while others may rely more on receiving payments and managing your debt. Can I switch student loan servicers? While many borrowers don’t have a choice in who their student loan servicer is, there are ways you can switch. Your student loan servicer can switch out in its contract with the government, at the option of you, or through a special program if you’re under a deferred payment plan.

How to find your student loan servicer

The easiest way to figure out who your student loan servicer is is to call them up. Talk to them, find out what the process of making a payment is, and make sure that it’s happening in a timely matter. If you’re having a hard time making your payments, this is a good first step in figuring out who to talk to about it. But that’s only step one. The next step is finding out your repayment plan options. There are several different repayment options out there for your debt. Most options require you to work with one servicer. But if you have one servicer and decide to try something else, you’ll have to go through all of the steps again. If you find that you have multiple loans, it’s a good idea to choose the one with the lowest monthly payment.

What do student loan servicers do?

They set up and manage your student loans, handling paperwork like billing, collection of payments, and collection or modification of your loan if you apply. You have some say in what happens with your money too. You have the right to a dispute resolution hearing where you can request that your servicer lower your payments or make other changes. Advertisement What can I do if my loan servicer is not treating me fairly? There are a few options available to borrowers if their servicer isn’t treating them fairly. If you find that your servicer is doing a bad job, you can speak to your servicer to request a review of your servicer. If this doesn’t work, you can file a complaint with the CFPB. How do I complain to the CFPB?

How often do student loan servicers collect payments?

Usually monthly (although a few loan servicers will make an exception for a grace period of 14 days, in which case, you need to make sure that you know what the timing is when you move to a new student loan servicer). It’s probably not a good idea to pay more than your minimum payment on any loan you have, because that will send you into default quicker. However, this doesn’t mean you can’t pay a little bit more—if you make your payments on time and have good credit, then they’re a federal student loan servicer, you can likely make extra payments and your account will be grandfathered. How many kinds of student loans do we have? There’s federal loans and then there’s private loans. In other words, there are federal PLUS loans and federal federal Direct Loans.

How can we make sure student loan servicers are doing their job?

Ask these questions about your student loan servicer, and see if you can get a straight answer: Are they collecting enough of the payments that you’re supposed to make? Are they providing the correct amount of information? Are they telling you where to send your payments, and what you need to send them? What should I do if I find that my student loan servicer isn’t doing its job? If you find that your student loan servicer isn’t doing what it’s supposed to be doing, you should file a complaint with the Consumer Financial Protection Bureau . This may cost you a small fee, but it’s the right thing to do. The CFPB has made it clear that its main focus is to help consumers. The government and banks have a clear stake in the student loan servicing business because it impacts all of us.

Conclusion

Understanding your student loan repayment options and the ins and outs of making payments to these companies is one of the most important things you can do as a student or parent. The more money you put in, the less they can ask you for. This is how student loan servicing works: it’s not just about you. It’s about you, the government and your loans. While the information is helpful, don’t rely solely on it. Do your research and get as much information as possible before you start working with a servicer. You are your best source of information, so make sure that you are making informed decisions.

The post Student Loan Servicers: Who They Are and What You Need to Know appeared first on Loan App.

Student loans are a hot topic these days. With the cost of college skyrocketing, more and more students are finding themselves in need of financial aid. While it can be helpful to get scholarships or grants, many times that isn’t enough. That’s where student loans come in! In this blog post we will discuss how student loan debt works and what you need to know before taking out your first loan for school.

What is a student loan?

First, you need to understand what a student loan is and what it’s used for. According to Student Loan Hero, student loans are essentially a loan given to students in order to pay for school. They’re given by the U.S. Department of Education to students who are 18 years of age or older and enrolled in at least half-time enrollment in a college or university. How much do I need to borrow? In order to borrow money for school, you will have to apply for a federal loan. This type of loan must be repaid in accordance with your contract with the school. There are four basic types of student loans: Direct Loans, Federal Family Education Loan (FFEL) Loans, Pell Grants, and Graduate PLUS Loans.

What is a FAFSA?

Before we dive into the specifics of what you need to know when applying for student loans for college, let’s review the basics of student loans. The Free Application for Federal Student Aid or FAFSA is the first step towards applying for a student loan. This forms the basis of how your student loans are determined and how much you will be able to borrow. There are different types of student loans: Federal Student Loans In most cases, a Federal Student Loan will be the most popular option. In some circumstances, however, a private student loan may be a better option. Federal loans allow you to borrow any amount up to the cost of attending school without having to pay a fixed interest rate. Instead, you receive a fixed repayment rate for a set number of years.

What is a cosigner?

There is a big difference between a private loan and federal student loans. A private student loan is where the lender gives you money for school and you have to repay it with interest. But a federal student loan, on the other hand, comes with no interest. Both loans are for a specific amount of money. If you go into a program for 4 years and complete it, then you have to pay back the loan balance. There is a catch though. The government lets you make monthly payments, however, once you reach the end of the loan term (usually you’re 25), you can no longer make payments. If you can’t make the payments on your own, then your student loan will be transferred to your cosigner.

How does the interest work?

First, the term and interest rates of a loan will be the same for everyone. The issue, however, is that most people take out a loan that will have an interest rate higher than what is offered by their bank or credit union. There are two main types of student loans, private and federal. Generally, the more you borrow, the more interest you’ll pay. Private Student Loans Private student loans are made to students by private lenders. A lot of this loan business has its roots in the automobile loan business, as an example. However, as tuition has gone up, private student loans have grown in popularity and because of that, the interest rates have risen to a point where it has become almost prohibitive for students to take these loans out.

What are the repayment options?

Student loans have a few different repayment options. To see what your repayment options are visit Federal Student Aid. This will provide you with the repayment plan you will be using. The plan is based on the amount of money you borrowed and your expected income after graduation. It is also based on your credit report to make sure you aren’t going to struggle to pay off the loans. Also, you will be required to pay it off within ten years or it will start accruing interest. How do I get student loans? There are several options to get a student loan. Generally, you are supposed to be an undergraduate student at a school accredited by the Accrediting Council for Independent Colleges and Schools (ACICS). However, there are other options as well.

Conclusion

In the end, student loans are debt that you will have to pay back over time. Student loans come in all shapes and sizes, as well as varying levels of interest. It is important to use the resources above as a starting point for learning more about what student loans are and what they can do for you. Student loans can be a great tool to help pay for school, but they also have the potential to change your life if you don’t make the right decisions.

The post How Student Loans Work: Guide for First-Time Borrowers appeared first on Loan App.

Are you currently paying off your student loans? If so, then the chances are that you have been with the same servicer for a while. The only problem is that this may not be the most cost-effective way to do it. In fact, there are many people who could save thousands of dollars by switching their student loan servicers. This blog post will show you how to switch and explore some of the benefits that come with change!

Why should I switch?

There are many reasons why you might want to switch to a different student loan servicer. The most notable reason is to improve the student loan repayment process for you. If your loan servicer is unable to adjust your payments to keep your loan debt under control, then they will cancel your loan. This is a big deal because your financial situation will significantly affect the overall future financial security of yourself and your family. Another reason to switch to a different student loan servicer is if you are worried about how you will be treated during your transition period. The Sallie Mae and HSBC student loan servicer have both been known to be harsh towards those that have been in debt for an extended period of time.

What should I do before I switch?

Before making a switch, you should contact the servicer you are currently with and find out what their cancellation or termination policy is. This will determine how much of a delay you will face when you finally leave. Furthermore, you should give the servicer a deadline to respond to your inquiries. If you are not satisfied with their response, you should follow up with them. How can I get out of my contract early? In order to get out of your student loan servicer contract early, you need to have the following three things: Your student loan is at least 6 months delinquent, The servicer can’t prove that you would have been delinquent on your account for an extended period of time, and You pay your student loan in full at the beginning of the contract period.

How do I switch?

The first thing you need to do is calculate how much you could save by switching your student loan servicer. Use Mint.com or a similar tool to create a chart of the interest rate you currently pay, the total balance of your loans, and the fees that you pay annually. This information will help you to arrive at the amount of student loan debt you owe. Using the information above, you can calculate how much you could save by switching from your current servicer. For example, if you currently pay interest of 9.2%, you could pay 7.5% with a different servicer, resulting in an extra $250 paid annually. Tips for changing servicers So how do you make this change? Follow the tips below to take full advantage of the switch to a more cost-effective servicer: Check out the default rate.

What steps do I need to take if I switch?

There are a few things you will need to take before you can go through with this. The first thing that you will need to do is contact your loan servicer and ask for a consolidation letter. You can do this by going to their website and clicking on “My Lender”. The consolidation letter that you will receive will explain all of the options that you have and which ones are better than the one that you are currently using. You will also be asked to provide all of your pertinent information about yourself and your loan. You will be asked for proof of income, your address and your loan information. Once you have the letter, you will need to contact your new servicer. Your new servicer will ask you a few questions about your student loan and then set up a payment plan for you.

What are the benefits of switching?

It is not often that we see these types of deals. Switching student loan companies can lead to some incredible saving. Not only are the companies offering great rates, but there are also great fees. The downside is that you have to pay for the switch. This includes all of the marketing, testing, and the transfer process. The good news is that there are a few companies that offer to do all of this for you at no charge! This means that you are not spending anything out of pocket. You can earn as much as $2,500 if you switch your student loan servicer! This can be great news for people who are in need of extra cash. Not only will you not have to pay for the switch, but you will also be saving more money than expected.

Conclusion

If you are on a fixed income and your student loan payments are not saving you any money, then switch to a different student loan servicer now. Your monthly payment could be cut in half, and there could be countless other benefits. If you are currently paying off your student loans and you have not found a better option, then please leave a comment and I will be happy to help you!

The post The Complete Guide to Switching Student Loan Servicers appeared first on Loan App.

Paying off your student loans can be a daunting task, especially if you are dealing with high interest rates and a pile of debt. It can feel impossible to make any progress on paying them down when all you see is the number increasing every month! But don’t worry, we’ve put together this guide to help you find ways to pay off your student loans faster. In this blog post, we’ll cover 10 different tips that will show you how to tackle those high-interest rate debts and get out of debt once and for all!

Refinance your loan

Refinancing your student loans can be the best way to pay them down faster, especially if you have the cash available to do so. You may be wondering if refinancing your student loans is even a possibility. Well, if you have private student loans, you can refinance them with an eligible private loan refinancer at rates which are often much lower than the current standard variable rate, even though you have less than 15 years of remaining repayment. Note: if you have federal student loans, you can only refinance them with the Department of Education. But don’t worry, your interest rates won’t change with the amount of debt you carry. For example, one of our student loan refinancing partners, SoFi, is currently offering a 7% fixed-rate loan with only 2.14% of your loan being variable.

Create a debt reduction plan

It’s no secret that getting out of debt is a lengthy and difficult process. In order to achieve long-term success, you will need a solid plan to help you get out of debt. Our next tip will help you create a solid plan for achieving long-term financial success. In a previous blog post, we’ve gone through how to create your debt reduction plan. If you don’t have a solid plan already, then take a look at our free Debt Relief Planner tool to help you build a debt reduction plan that works for you. But if you do have a solid plan, then take a look at our Debt Reduction Planner tool to help you create a plan that will help you get out of debt.

Cut back on your spending

Let’s be real, there are a lot of items that you need every day. Whether it’s a new shirt to wear or a bag to hold your latest purchase, you’ll need a few. And, you can’t just go shopping once or twice a year to replace them all. You need to save up a nice little reserve so that when you do need new clothes, you don’t have to go all out. To get started, the best place to save is in a savings account. Your bank will let you set up an automatic transfer from your checking account, which will allow you to save money every month without even thinking about it. Plus, you’ll get the added benefit of earning interest for your money while you are saving it! Make a budget One of the best things that you can do to get your finances in order is to create a budget.

Increase your income

Everyone wants a piece of that American dream, right? Many students go to college thinking that after they graduate and get a degree, everything they’ve worked for will just fall into place. In reality, that’s not the case. You can have a degree, but if you don’t have the skills to get hired, or you don’t have the money to pay the bills, then you’ll be struggling for a long time. In order to combat this, make sure you increase your income, as this can help you increase your salary and reduce your student loans faster. Tip 5 Pay attention to interest rates Interest rates are probably the most important factor when it comes to paying down student loans quickly. You can’t pay the same amount of money out each month and pay it off in the same amount of time if the interest rate is too high.

Open a retirement account

This may be the easiest of the tips to implement, and it’s the most important! Because student loans are tax-deductible (since you’re paying them off as a student), you should make sure to save as much as you can in an IRA or 401k. Even if you are a small-business owner, or simply don’t have the option of a 401k, you should consider setting up an IRA to help you reach your retirement goals. When you have paid off your loans, this account can act as a savings account, growing tax-free, and then you can use that money for your retirement! Pay your student loans on time In most cases, you have to pay your student loans on a monthly basis, but just because you don’t have the option of deferring them, doesn’t mean you should avoid them!

Negotiate with your lenders

If your student loan has interest rates in the double digits, it is possible to negotiate your payment. Contact your loan servicer to discuss ways you can reduce the payment of your loans. For example, if your interest rate is 7%, you could call your loan servicer and ask them if you can pay a little more than the regular amount each month. If they agree, you could get paid less each month and make more progress paying off your student loans faster! Track your student loans One of the best ways to reduce your loan payments is to know exactly where you stand with your student loan balance. If you have a high-interest rate student loan, you should definitely review your payments and payments made to avoid any unexpected penalties.

Consolidate your loans

A lot of people don’t realize that there are many different loans that can be consolidated together into a single loan. This will likely reduce your interest rate and monthly payments. If you’re already paying a big chunk of your income on student loans, this is a great way to pay off your debt faster! consolidation is easy If you are in desperate need of making extra cash or if you simply don’t want to continue paying the high interest rates on your loans, you should consider consolidating your loans and taking out a single loan at a lower rate. As with all loans, you need to follow all of the rules regarding terms, so you will need to meet the criteria, but it can give you a significant discount on your monthly payment.

Establish a budget

When we hear about budgeting, many of us automatically think about saving money. But a budget is much more than that! When it comes to paying down debt, you must be able to see the dollar signs. A budget is a guide that will help you find ways to save and get the most bang for your buck. By figuring out how much you need to save each month in order to pay off your debt, you’ll be able to see how much it’s going to cost you each month to repay your debt and set a realistic goal for paying it off. Track your spending If you don’t have a budget, you have no idea where your money is going! This is a big issue for those of us who have student loans. Since you won’t be getting a pay raise for a while, you must be sure that you’re going to find ways to save money each month.

Pay more than the minimum

One of the biggest challenges to paying off your student loans is how much money you have to spend each month. Unless you have some fancy/extra money, you won’t be able to pay off your student loans as fast as you might like. However, if you keep on top of your payments you may actually be able to pay off your student loans quicker if you have the funds to spare. You’ll need a certain amount of money each month, but you also need to have a certain amount left over. By spending less than you usually would, you’ll be able to pay off your student loans faster. So what do I mean by this? Well, here’s a couple of examples: Let’s say you’re in the 25% tax bracket. Let’s also say you’re making $30,000/year. You’ll need to budget $1,300 per month towards your student loans.

Negotiate with your lenders

Saving over $500 a month on your student loan payments is a big deal, especially if it frees up some cash for saving and investing. For this reason, you should start paying your student loans off before refinancing your mortgage or taking out a new credit card. Start with your first lender The first lender you’re dealing with is likely the company that issued your student loans. Even though your federal loan is the responsibility of the Department of Education, some private lenders are also involved. If you can pay your student loan off before moving on to refinancing your mortgage or taking out a new credit card, do it. Chances are, the other lenders you’ve looked at are just out for your money.

The post X Ways To Pay Off Your Student Loans Faster appeared first on Loan App.

Building an emergency fund is a wise decision for anyone. It provides a sense of security and comfort knowing that you have money put away to cover any unexpected expenses. But how do you build your emergency fund if you’re paying off debt? If you are still repaying student loans, it can seem impossible to save anything at all! Luckily, there are some ways that will let you save more than half of what’s owed on your loan balance each month. In this article, we’ll explore the best methods for saving money while paying off student loans – with or without an emergency fund in place!

Why it’s so hard to save before paying off debt

Student loans are not the easiest debt to pay off. The interest rate on student loans is so much higher than almost any other type of debt that the best way to pay it off is to quickly pay as much of it off as possible while also making extra payments. When you pay off your student loans, you will be able to cut the payments in half and then a third in just a few years! But there are more expenses than just loans when you’re in school. It seems like you are always renting new outfits and buying new pairs of shoes when you’re not on campus! Fortunately, this is one area where having student loans is actually advantageous. Because of your income being deducted for student loans each month, you can lower the amount that you pay for things that you have to spend money on.

How to save while paying off debt

If you owe a great deal of money on your loans, you may need to make sacrifices. But the first step in doing so is to create a budget, and consider using a calculator to help you see exactly how much money you’re spending each month. If you’re spending more than you’re making, it may be a sign that you can save more, so take a look at your spending, and make some adjustments. Some common areas to consider cutting include groceries, entertainment, and the occasional frivolous purchase. Before you make your adjustments, though, it’s important to determine why you’re overspending in the first place. A budget calculator can help you figure out where the money is going and what it would take to bring it back under control.

How to save even more

Even if you already have an emergency fund, it’s a good idea to save even more. Here are two ways you can do so: Make a larger monthly payment on your student loan debt . It might be tempting to think you can make your monthly payment and put the rest of the money toward other debts, like credit card debt. Unfortunately, that’s usually a recipe for disaster. Your credit score will inevitably take a hit, and your debts will continue to grow. You’ll eventually end up with a mountain of debt that you’ll never be able to get rid of. Instead of dipping into your emergency fund to pay off your student loans, make a larger payment. Doing so will make it easier to cover your monthly payments, but your credit score will also improve as a result of the effort. .

Why it’s so important to have an emergency fund

The idea behind building an emergency fund is simple: whenever you encounter a financial crisis, you have the option to dip into that emergency fund in order to deal with it. But why should you do this? First off, it might sound counterintuitive. After all, building up that emergency fund would mean you wouldn’t have any money left over to save for big purchases, right? Well, that’s not quite the case. By using the emergency fund to cover all of your expenses, you’re freeing up a significant chunk of money each month that you can use to invest in the stock market. That means that if you have extra money available each month, you’ll have extra capital to invest and grow your wealth over the long term. Second, an emergency fund is a good way to avoid debt collectors.

How to build an emergency fund

There are several ways to save money while paying off debt. It all depends on your debt strategy and goals. Save up some extra money and then pay down your debt . You could just set a goal of being debt-free in 5-10 years. This could be a reasonable time frame considering that you have several years to work and save up. . You could just set a goal of being debt-free in 5-10 years. This could be a reasonable time frame considering that you have several years to work and save up. Work toward becoming debt-free and then get rid of all of your debt . This is the goal we’ve set for ourselves. It’s not realistic to get rid of your debt in a short amount of time, so don’t get too caught up in the goal itself. We’re looking to become debt-free, not debt-free now.

Conclusion

Are you paying off student loans? If so, you’re in good company. A 2017 Pew Research Center survey found that a whopping 42% of Americans were student loan debtors. But don’t let that number scare you. There are ways to pay down your student loans without exhausting your savings. In fact, the first step to paying off your student loans is saving money now. Consider using a debt snowball to reduce your monthly payments, like our Student Loan Debt Snowball Calculator, to the point where you’re spending less than you did in the last five years to cover your outstanding balance. Once you’re completely out of debt, building an emergency fund is an affordable and responsible way to restore financial stability.

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