Last year, an announcement was made by the Federal Government that student loan interest rates would be set in accordance to the auction results of the 10-year notes in the Treasury. As a result, there has been a change for such types of loans in 2014-15 that you should be aware of. Here is a look at all of the changes that were made for the upcoming school year.
Student loan interest rates for Stafford Loans have raised from 3.86 percent in the 2013-14 year to the current rate of 4.66 percent for both subsidized and unsubsidized (undergraduates only). For those that are in graduate programs, the interest rate has seen an increase from 5.41 percent to 6.21 percent in 2014-15. When it comes to PLUS Loans, there has been a rise in interest rate for such types of loans well. For parents, the previous it was set at 6.41 percent but that has risen to 7.21 percent. This number is identical for those in graduate programs receiving a PLUS Loan. It is expected that these numbers will continue to rise in the coming years, but there is a maximum on those loans cannot be exceeded. For undergraduate subsidized and unsubsidized loans, the maximum interest rate is 8.25 percent. For graduate students this number is 9.5 percent. As for PLUS Loans for parents and graduate students, the maximum is 10.5 percent.
The current interest rates for the 2014-15 school year will be effective from July 1, 2014 through June 30, 2015. If there is a chance in the 2015-16 school years, it will likely be announced in the first week of May, 2015.
Some have received offers for a private loan in which their interest can be lower than even that of a Federal Government loan. It’s rare to see unless you have tremendous credit, but it’s possible. Again, a student loan has more of a chance for being forgiven if you work in some of the right fields.
It’s easier just to pay your related loan on time and over the minimum if you have the needs. Some want a quick fix to eliminate their student loan debt, but the standard repayment is the suggested route.
Make sure to log onto the American Financial Benefits Center website at www.afbcenter.com to get all of the latest news and information on student loans!
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Student debt relief involves various ways through which individuals who have been beneficiaries of student loan programs can be exempted from paying back the loan. Education is expensive; this is why student loan programs are running all over the country to help many of the individuals who cannot afford self sponsorship to pay for school. However, most of these loans are required to be repaid once the student completes their education. Here in Miami, student loan debt relief can be achieved in a number of ways if you are unable to repay your loans.
First of all it is important to know which loans are eligible for student loan debt relief. You can get the help of a student loan lawyer in Fort Lauderdale to get through the debt relief process. Generally, federally controlled loans are the types of student loans from which one can get debt relief. Federal student loans such as Federal Direct Plus loans, direct consolidation loan, and Stafford Loans are eligible for debt relief.
If you have any other kind of federal student loan, a lawyer can help you to convert your loan to direct consolidation loans before you can get debt relief. This is because the provisions for such borrowers have not been established so it would be difficult to get relief from such debts without converting them.
Relief from student loan debt can be granted for public service. That is, individuals who take up employment in the public and non-profit sectors such as policemen, teachers and firemen can get relief from student loans. There is a minimum working period of ten years for any of these debts to be cleared. Consult with a to find out if your employment area is eligible for this program.
Income based loan relief programs require one to meet a certain number of requirements before the debt is forgiven. Generally, paying back student loans based on what you earn may reduce the monthly payments but also slows down the repayment process and leads to accruing of more interest. To participate in this program you have to understand which qualifications you must meet.
You should also speak to an attorney about the tax implications of loan or debt forgiveness. In some scenarios, your debt will be forgiven but you will be required to pay the taxable portion of the debt.