October 2024, Student Loan Updates
There's a lot going on in the student loan world right now so we wanted to reach out and give you an update on how things are going.
tl;dr - Federal Payments have resumed, so make sure you're in the right plan for you.
Interest rates have dropped, which might present an opportunity for you to re-finance your debt, especially any high cost loans you have - student or otherwise (more on this inside).
One of our non-profit partners Neighborhood Trust is offering free financial coaching to help you navigate this all.
Federal Student Loan Repayments Resume
After a prolonged pause, full payments on federal student loans are back in action. If you haven't already, it's crucial to review and sort out your payment plans with the federal government.
Ensure your plan aligns with your current financial situation to prevent unnecessary strain. If you're unsure which plan suits you best, we put together a few guides on how to think about it.
We assume this is a big shock for many of you, and as such it's vital to reassess your budget and adjust accordingly.
Our Guide to understand repayment on your Federal Student Loans.
Our Guide to Federal Student Loan Forgiveness.
Interest Rates Take a Dip
In a surprising move, the Treasury has reduced interest rates, creating ripples across different forms of debt.
This is the first time rates have dropped in several years, which may have a trickle down effect on the cost of all forms of debt. So, if you took out a high-interest rate loan in the past few years, it may make sense to start considering your options.
This change could be a game-changer, especially for those holding student loans. Lower interest rates present an opportunity to explore refinancing options, potentially lightening your financial burden.
Free Financial Coaching with Neighborhood Trust and Trust Plus
We understand that all of this is a lot to understand. So, we've partnered with Neighborhood Trust to offer free financial coaching through their Trust Plus Platform.
Neighborhood Trust is a non-profit organization dedicated to providing financial education and coaching services to individuals and families in need. They can help you navigate the complexities of student loans, refinancing options, budgeting, and more.
Don't hesitate to schedule a session with one of their experts if you could use some guidance during these uncertain times. For more information please go here.
Also, they are looking for people to help them pilot a new initiative to manage other forms of high cost debt. Specifically, credit cards and Auto Loans.
If you're interesting in learning more about how to lower your car payments, please visit them here.
If you're interested in learning more about how to consolidate your credit card debt, please visit them here.
If you have any questions about any of the above, please don't hesitate in reaching out.