Student loans 11-29 - Plus: 7.9% or 8.5% Loan Servicer:...

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Student Loan Notes 11/29/07 -Get an education from student loans and gaining experience Impacts: Ability to obtain credit o Debt to income ratio: DEBT= < .16- .20 of income Ability to obtain mortgages o Housing: DEBT payments/Income < .28 monthly GROSS income o Housing expenses + Debt payments/income < .36 monthly GROSS income Credit FICO score o 35% pay on time What type of loan do you have? Federal Programs: 6.8% max o Need baded- subsidized ( gov. pays for you through college then start paying back afterwards) o Not need based- unsubsidized Limits and Benefits: Dependent Independent Grad $23,000 $46,000 $138,000 Private: Variable interest rates Not need based No limits on borrowing No benefits for hardship, forbearance, death, or disability
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Unformatted text preview: Plus: 7.9% or 8.5% Loan Servicer: sends bills, computes interest Lender: originates the loan PLUS loans= 60 days after &lt; full time Stafford= 6 months after Perkins= 9 months after What are payment options?-Standard-Extended up to 30 yrs-Graduated repayment-Income sensitive or income contingent Discounts?-1/4 of 1% for automatic payments!-2% reduction of interest rate after 48 months of on-time payments! Consolidate? Combine several loans into one payment Comparison Shop! o Discounts o Lose benefits it consolidate? Tax savings: Student loan interest deduction Hope tax credit Lifelong learning tax credit...
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Student loans 11-29 - Plus: 7.9% or 8.5% Loan Servicer:...

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