Author: it-teaam

Which Student Loans Should I Refinance?
Should I refinance my student loans?

The decision to refinance your student loans can help you get a lower interest rate, save money and pay off student loan debt faster. Before you refinance, it’s important to understand which student loans you should refinance. A good place to start is to ask these 10 questions before you refinance student loans. You should also evaluate your own unique circumstances to decide whether to refinance private loans, federal loans or both:
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Should you refinance private student loans?

Many borrowers ask: “Should I refinance private student loans?” With student loan refinancing, private student loans are a good place to start. Private student loans are issued by private lenders, not the federal government. Private student loans do not include any programs through the federal government such as income-driven repayment or student loan forgiveness. Therefore, if you can refinance private student loans and get a lower interest rate, then it’s a smart move. Why? You can save money with a lower interest rate, save on your monthly payment and get out of student loan debt. For example, if you have an 8% private student loan and you can refinance with a 3% student loan, then that can amount to a significant cost savings.

Should you refinance federal student loans?

Many borrowers ask: “Should I refinance federal student loans?” The decision to refinance federal student loans is different than the decision to refinance private student loans. Why? If you have federal student loans, there are certain student loan benefits that come with federal student loans:
- Income-driven repayment plans
- Public service loan forgiveness
- Forbearance
- Deferment
Let’s discuss each one of these options.

Income-driven repayment plans: These are student loan repayment plans intended for borrowers who are struggling to repay student loans. There are four main types of income-driven repayment plans: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE) and Income-Contingent Repayment (ICR). After 20 (undergraduate student loans) or 25 years (graduate student loans) of federal student loan payments, you can receive federal student loan forgiveness.

Public Service Loan Forgiveness: The Public Service Loan Forgiveness program is a program to forgive federal student loans for borrowers who work full-time for a qualified public service or non-profit employer.

Forbearance: Student loan forbearance enables you to stop making student loan payments temporarily. However, even if you’re not making student loan payments, it’s possible that interest still accrues on your student loan balance.

Deferment: When you have a deferment for your federal student loans, you can stop making student loan payments. However, interest may still accrue. How do you know if interest will accrue? If you have Direct Subsidized Loans, Subsidized Federal Stafford Loans or Federal Perkins Loans, for example, then you are generally not responsible to pay the interest that accrues. However, if you have Direct Unsubsidized Loans, Unsubsidized Federal Stafford Loans or Direct PLUS Loans, then you are responsible for paying the interest that accrues.

If you think that you may want to pursue of any of these federal student loans benefits, then you may not want to refinance your federal student loans. For example, if you plan to pursue an income-driven repayment plan or public service loan forgiveness, then student loan refinancing may not be for you. Why? When you refinance federal student loans, you will receive a private student loan in exchange, and that new private student loan will be used to pay off your existing federal student loan.

How much money can I save with student loan refinancing?

Most people refinance both their federal loans and private loans. Why? The reason to refinance your loans is to save money and pay off your student loan debt faster. How much money can you save with student loan refinancing?

This student loan refinancing calculator shows you how much money you can save with student loan refinancing.

For example, let’s assume you have $75,000 of student loans with an 8% interest rate and a 10-year repayment term. If you refinance your loans with a 3% interest rate and a 10-year repayment term, you could save $186 each month and $22,290 total.

Student Loan Refinancing: Bottom Line

If you have good to excellent credit, a stable monthly income and a low debt-to-income ratio, then you could be a good candidate for student loan refinancing.

If you don’t need an income-driven repayment plan or work in the public sector, then you likely can refinance your federal loans. Conversely, if you are struggling to pay off student loans or work in the public sector, then you may want to keep your federal loans outstanding and only refinance your private loans.
December 14, 2020
10 Questions to Ask Before Refinancing Student Loans
Should I refinance my student loans?

It’s a popular question on Google that many student loan borrowers ask.

Student loan refinancing is a smart strategy to get a lower interest rate, lower your monthly payment and save money. Many borrowers consider student loan refinancing to be the best student loan repayment strategy.

Before you decide to refinance your student loans, it’s important to ask these 10 questions:
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1. Why should I refinance student loans?

Why should you refinance student loans? There are many advantages of refinancing student loans. First, you can get a lower interest rate. Second, you can lower your monthly payment. Third, you can pay off student loan debt faster. Make sure you understand your goals before you decide to refinance student loans.

2. What interest rate can I get?

When you refinance student loans, your first question may be: What interest rate can I get? You can compare the latest rates for student loan refinancing on Mentor Money.

There are many factors that determine your interest rate. Lenders will evaluate your credit score, income, monthly cash flow and debt-to-income ratio, among other criteria. Your interest rate also depends whether you choose a fixed or variable interest rate. A fixed interest rate means your interest rate will not change during the term of your student loan. A variable interest rate can increase or decrease during your loan term. Typically, a variable interest rate is lower than a fixed interest rate. If you choose a shorter loan term such as a 5-year loan term, you can get a lower interest rate. In contrast, a 20-year loan term, for example, typically has a relatively higher interest rate. Finally, your credit and income profile may affect your interest rate.

Most lenders will let you check your interest rate for free within about two minutes. This process is known as a soft credit check, which doesn’t impact your credit score.

3. What credit score do I need to refinance student loans?

You may be wondering what credit score you need to refinance student loans. Each lender has its own criteria for student loan refinancing. Some lenders have no minimum credit score. Other lenders have a minimum credit score of at least 650. Most borrowers who are approved have a credit score above 700. Lenders want to ensure that you have a history of financial responsibility, including on-time payments. This helps lenders ensure that you can pay off your student loans responsibly. The lowest interest rate often is available to the borrower with the best credit score, which is typically 750 or higher.

4. What income do I need to refinance student loans?

You also may be wondering how much income you need to refinance student loans. The good news is that most lenders don’t require a minimum income level. Rather, lenders want to ensure that you have enough monthly cash flow to pay your living expenses and monthly debt obligations. Other lenders may specify a minimum required income. A debt-to-income ratio may be a better metric on which to focus. This ratio evaluates the relationship between your monthly debt payments and your income. Your goal is to have as low a debt-to-income ratio as possible.

5. Can I lower my student loan payment?

Student loan refinancing is a smart way to lower your student loan payment. There are several ways to lower your student loan payments. The best way to lower your monthly student loan payment is to get a lower interest rate. The most popular reason to refinance student loans is to get a lower interest rate. With a lower interest rate, your monthly payment can decline, which helps you save money. Alternatively, you could choose a longer student loan repayment term. For example, if you choose a 20-year repayment term, you could get a lower monthly payment. However, a longer student loan repayment period also could cost more money since more interest can accrue.

6. Should I refinance federal student loans?

Student loan refinancing is available for both federal student loans and private student loans. You can refinance federal student loans, private student loans or both. If you have federal student loans, there are several considerations. First, if you’re struggling to pay off student loans, determine if you think you’ll need an income-driven repayment plan. To qualify for an income-driven repayment plan, you will need a federal student loan. Similarly, the Public Service Loan Forgiveness program requires federal student loans. If you plan to participate in either of these options, you may choose to keep your federal student loans outstanding and only refinance private student loans. However, if you don’t need these options or other federal student loan benefits such as forbearance or deferment through the federal government, then you could refinance both your federal student loans and private student loans.

7. Do I need a cosigner?

Many borrowers ask whether they need a cosigner when they refinance student loans. A cosigner is someone such as a parent or spouse that takes equal financial responsibility for your student loans. A qualified cosigner can help you get a lower interest rate and help you get approved for student loan refinancing. Student loan refinancing lenders prefer cosigners with a good to excellent credit profile, stable monthly income, a low debt-to-income ratio and strong monthly cash flow. There is no requirement to have a cosigner when you apply to refinance student loans. However, it’s possible that you can strengthen your chances to get approved for student loan refinancing.

8. Is there a cosigner release option?

If you decide to use a cosigner when you apply to refinance your student loans, some lenders also may offer a cosigner release option. A cosigner release option helps you release your cosigner from financial responsibility for your student loans. After you refinance, you can ask your lender for a cosigner release. Importantly, not every lender offers a cosigner release option. Each lender may have certain requirements for a cosigner release so make sure you understand the requirements. It’s also possible that you don’t need a cosigner release and can continue to pay off your student loans even if you still have a cosigner.

9. How many lenders should I apply to?

After you compare the student loan refinancing lenders on Mentor Money, you can apply to as many lenders as you prefer. To increase your chances of approval, you should apply to multiple lenders. The good news is that multiple applications typically only count as a single credit inquiry. For example, if you submit five student loan refinancing applications within one week, a credit bureau would count only one inquiry on your credit report or credit score. Plus, the more lenders you apply to, the more you can compare interest rates and loan terms.

10. Can I refinance my student loans more than once?

Yes, you can refinance your student loans as many times as you would like. If you can find a lower interest rate, it may make sense to refinance your student loans again. Student loan refinancing has no fees, so it won’t cost you money each time you refinance.
December 11, 2020
2021 Tax Brackets and Income Tax Rates
The IRS has released the 2021 tax brackets and income tax rates, including tax deductions, tax credits and cost-of-living adjustments. These new tax rates are effective beginning January 1, 2021 and apply for the 2021 income tax year.

In this article, we will discuss:
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Tax Brackets and Tax Rates

In 2021, there are seven income tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Here is the breakdown depending if you file as:
- Individual Taxpayer
- Married Filing Jointly
- Married Filing Separate
- Head of Household
Standard Deduction

In 2021, the standard deduction will increase slightly to $12,550 for individual taxpayers and married couple filing separately. The standard deduction for married couples filing jointly will be $25,100. The standard deduction for head of households will be $18,800.

Capital Gains Tax

Capital gains taxes are taxes on the growth of the value of an investment when an individual sells that investment. Long-term capital gains is applied to assets or investments that held for more than one year. The long-term capital gains rates are 0%, 15% and 20%. Short-term capital gains is when an asset or investment is sold within one year or less. The short-term capital gains tax rate is the same as the ordinary income tax rate. The table below shows the maximum capital gains rate for 0% and 15%:

Alternative Minimum Tax

The Alternative Minimum Tax, or AMT, applies to taxpayers with higher income and ensures that these taxpayers pay at least a minimum amount of tax. These are the exemptions amount for the Alternative Minimum Tax for 2021:

Tax Credits and Tax Deductions

For 2021, there are many types of tax credits and tax deductions that are available. Here are several tax credits and tax deductions:

Child Tax Credit

For 2021, the child tax credit is $2,000 per child. However, there are phaseouts, including $200,000 of income for individual taxpayers and $400,000 for taxpayers who are married filing jointly.

Earned Income Tax Credit (EITC)

For 2021, the Earned Income Tax Credit (EITC) is a maximum $6,728 for taxpayers who are married filing jointly who have three or more children. Like the child tax credit, there are phaseouts based on income.

Itemized Deductions

Here are some popular itemized deductions:
- Home mortgage interest
- State and local taxes
- Charitable donations
- Medical expenses
- Job expenses
Above The Line Deductions

Here are several popular above-the-line deductions:
- Student loan interest deduction
- Charitable donations
December 4, 2020
How to Pay off Dental School Loans: A Guide for Dentists
There are many paths to pay off dental school debt. Today, according to the American Dental Education Association, dental school student loans can average almost $300,000 for each borrower. What are the best ways to pay off dental school debt?

Here are five strategies to pay off dental school debt:
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1. Explore dental school student loan forgiveness

If you work as a dentist in public service or for a non-profit, you may qualify for student loan forgiveness or student loan repayment assistance programs.

The Public Service Loan Forgiveness program offers student loan forgiveness after 120 monthly payments if you work full-time for a qualified non-profit or a public service employer. The advantage of public service loan forgiveness is that you can receive federal student loan forgiveness after 10 years of qualifying payments. The disadvantage is that you may earn a lower income during this period compared to working in private practice, for example.

There also may be other opportunities for student loan forgiveness from state governments, dental organizations and other foundations and non-profits. If you don’t work in public service, you can still receive student loan forgiveness for your federal student loans for dental school after 25 years of monthly payments. Importantly, you would income tax on the amount of student loan debt that is forgiven. In contrast, if you get student loan forgiveness through public service loan forgiveness, there is no income tax liability.

2. Choose an income-driven repayment plan

An income-driven repayment plan helps dentists lower their monthly dental school loan payments for federal student loans. Income-driven repayment plans are best for dentists or residents who are struggling to pay student loans.

There are four types of income-driven repayment plans:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
The advantage of income-driven repayment plans are that you can lower your monthly payment for your federal student loans and get student loan forgiveness after 25 years of monthly payments. Monthly payments are based on discretionary income, family size and state of residence.

The disadvantage of income-driven repayment plans is that your student loan balance can grow significantly. While your monthly payment may decrease, your student loan balance increases because interest still accrues.

3. Refinance dental school student loans

Student loan refinancing can save you tens of thousands of dollars on your student loans. If you work in private practice, and have a stable monthly income, then refinancing student loans could be a great option. Student loan refinancing can get you a lower interest rate, which can lower your monthly payment and limit the amount of interest that accrues.

When you refinance federal student loans, you won’t have access to student loan forgiveness programs such as public service loan forgiveness or income-driven repayment. However, the cost savings from student loan refinancing can be significant.

How much money can you save with student loan refinancing? This student loan refinancing calculator shows you how much money you can save.

For example, let’s assume you have $300,000 of student loan debt, an8% interest rate and a 10-year repayment term. If you refinance dental school debt with a 3% interest rate, you can lower your monthly payment by $743 and save $89,161 total.

4. Make extra student loan payments

One way to pay off student loans faster is to make an extra student loan payment. Student loans have no prepayment penalties, so you can pay off dental school debt anytime with no penalty. When you make an extra student loan payment, you can pay any amount. Any time you get a signing bonus, annual bonus, tax refund or any other one-time payment, you can use that money to make a student loan payment. You can either make a one-time, lump-sum payment or increase your regular monthly payment.

This student loan payment calculator shows you how much you can save when you make an extra student loan payment for your dental school debt.

For example, let’s assume that you have $200,000 of dental school student loans, and an 8% interest rate and 10-year repayment term. If you pay an extra $200 each month, you would save $11,106 total and pay off your student loans 1.08 years earlier.

5. Don’t defer dental school debt during residency

Many residents decide to defer dental school debt during residency. Specifically, they choose to defer federal student loan payments, which pauses student loan payments. Why? The goal of deferment is to save money each month. This can be especially helpful if your salary is relatively low, which is the case for most residents.

However, unsubsidized dental school debt still accrues interest, which can grow your student loan balance. If you have $300,000 of dental school debt and defer your student loan payments for three years, you could owe more than $40,000 of additional student loan interest.

Ideally, even if your salary is low, try to make student loan payments at least to cover the accrued interest.
November 28, 2020
MOHELA Customer Service: Overview and How to Contact
MOHELA, or the Missouri Higher Education Loan Authority, services both federal student loans for the U.S. Department of Education and private student loans. Based in St. Louis, Missouri, the U.S. Department of Education chose MOHELA as the student loan servicer for the Public Service Loan Forgiveness program.

Here’s what you should know about MOHELA to maximize your customer service experience, if MOHELA is your student loan servicer. In this guide, we will discuss:
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What is a student loan servicer?

A student loan servicer collects and manages your student loan payments. If you have federal student loans, the U.S. Department of Education assigns you a student loan servicer when your student loan is disbursed to your college or graduate school.

A student loan servicer may be different than your lender. You borrow a student loan from your lender, but you make payments to your student loan servicer.

Student loan servicers can help you with student loan payments, but they are not necessarily acting as your financial advisor. Therefore, it’s important to understand all your repayment options because your student loan servicer may be acting in its own best interest rather than in yours.

MOHELA student loan repayment options

MOHELA offers several student loan repayment options:

Standard Repayment Plan: A standard repayment plan lasts up to 10 years. If you consolidate your federal student loans, you can repay for up to 30 years. The payments are fixed amounts with a minimum of $50 per month.

Extended Repayment Plan: An extended repayment plan gives you up to 25 years to repay your student loans.

Graduated Repayment Plan: A graduated repayment plan starts with a low monthly payment and increases usually every two years. The repayment term is 10 years (and may be up to 30 years for a Direct Consolidation Loan).

Income-Driven Repayment Plans: You can also enroll in an Income-Driven Repayment plan, which lowers your monthly payment based on your discretionary income. With an income-driven payment, your monthly payment may be as low as $0.MOHELA offers five types of income-driven repayment plans:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
- Income-Sensitive Plan (ISP), which is available for FFELP Loans.
How to make student loan payments to MOHELA

The best way to make student loan payment is on the MOHELA website. You can use your MOHELA student loans login. When you register on the MOHELA website, you will create an ID and password.

Make sure to sign up for MOHELA’s Auto Debit program so that your student loan payments are automatically withdrawn from your bank account each month. This will help ensure that you don’t receive any late fees or negative impact to your credit score.

You can also make a student loan payment through MOHELA’s automated phone system at 1-888-866-4352..

MOHELA deferment and forbearance

If you face financial hardship or lose your job, MOHELA offers several deferment and forbearance options. Forbearance and deferment can help you pause or postpone your payments for a temporary period.

Deferment allows you to pause your student loan payments temporarily. This can help reduce your monthly payments. However, interest will still accrue on your student loan balance during this period.

Forbearance is a temporarily postponement of your student loan payments. With forbearance, you can either pay the interest when it accrues, or the unpaid accrued interest gets capitalized and added to your student loan balance.

Unemployment Deferment: This deferment postpones payments for up to 36 months. You may be eligible if you receive unemployment benefits or you are unable to find full-time unemployment.

Economic Hardship Deferment: This postpones payments for up to 36 months if you face financial hardship.

Education Deferment: This postpones your payments if you are in agraduate fellowship, medical or dental residency, medical or dental internship or related educational program.

In-School Deferment: This postpones your student loan payments while you are enrolled in school at least half time. If you’re a graduate or professional student with a Direct PLUS Loan, you can qualify for an additional six months of deferment after you are no longer enrolled at least half time.

Parent PLUS Deferment: This postpones payments for Parent PLUS Loan borrowers with a child enrolled in school.

Military Service Deferment: There are various options for borrowers serving active military duty or in the National Guard. The Service members Civil Relief Act (SCRA) caps the interest rate on both federal and private student loans for borrowers and cosigners. During periods of active duty, interest rates are capped at 6% for loans obtained prior to active duty military service.

Medical or Dental Internship or Residency Forbearance: You can postpone student loan payments if you participate in a medical or dental internship or residency.

Student Loan Debt Forbearance: You can receive this forbearance when the total amount you owe each month for all the student loans you received is 20% or more of your total monthly gross income.

Be aware that even though you can pause payments through forbearance, interest still accrues on your loans during the forbearance period.

How to contact MOHELA customer service

There are various ways to contact MOHELA customer service:

MOHELA Phone Number: 1-888-866-4352

MOHELA Hours of Operation: Monday – Thursday 7 am – 9 pm CT and Friday 7 am – 5 pm CT

MOHELA Login: You can login to MOHELA with this link at MOHELA.com.

MOHELA Email: Log in and access the “Email Us” feature in the Help Center

MOHELA Social Media: MOHELA Facebook, MOHELA LinkedIn and MOHELA Twitter

MOHELA Fax Number: 1-866-222-7060

MOHELA Website: MOHELA.com

MOHELA Mailing Address For Loan Payments: Payment address may vary based on your account. Login to your MOHELA account or call MOHELA for your student loan payment address.

MOHELA Mailing Address For General Correspondence:

MOHELA
633 Spirit Drive
Chesterfield, MO 63005-1243

How to file a complaint against MOHELA

If you want to complain about MOHELA customer service or file a complaint against MOHELA as your student loan servicer, you have several options. First, you can file a complaint with the MOHELA Ombudsman. You can contact the MOHELA Ombudsman by completing this MOHELA Ombudsman Formal Request and faxing this form to 1-866-222-7060.

You can also mail the MOHELA Ombudsman Formal request to:

MOHELA
633 Spirit Drive
Chesterfield, MO 63005-1243

You can also file a complaint against MOHELA with:
You should maintain written communication between you and MOHELA. This may include your monthly statements, records of communication with a MOHELA customer service representative, emails and other correspondence.

You may also contact the U.S. Department of Education Ombudsman:

Phone: 1- 877-557-2575

Mailing Address:U.S. Department of Education

Federal Student Aid Ombudsman Group

P.O. Box 1843

Monticello, KY 42633

Make sure to complete the Federal Student Aid (FSA) Ombudsman Information Checklist as well.
November 25, 2020
How to Pay off Medical School Debt
Paying off medical school debt can be daunting. The latest student loan debt statistics show that medical school graduates can have $175,000 of student loan debt. If you feel stressed about student loan repayment, you’re not alone. Many doctors face the same financial hurdle, even if practicing medicine is a lucrative profession.Here are the best ways how to pay off medical school debt:
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1. Enroll in an income-driven repayment plan

An income-driven repayment plan helps doctors lower their monthly medical school loan payments. Income-driven repayment plans are best for doctors or residents who are struggling to pay student loans.There are four types of income-driven repayment plans:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
The advantage of income-driven repayment plans are that you can lower your monthly payment for your federal student loans with an income-driven repayment plan. Monthly payments are based on discretionary income, family size and state of residence.The advantage of income-driven repayment plans are that you can lower your monthly payment for your federal student loans with an income-driven repayment plan. Monthly payments are based on discretionary income, family size and state of residence.

2. Make extra student loan payments

The advantage of income-driven repayment plans are that you can lower your monthly payment for your federal student loans with an income-driven repayment plan. Monthly payments are based on discretionary income, family size and state of residence.

This student loan payment calculator shows you how much you can save when you make an extra student loan payment for your medical school debt.

For example, let’s assume that you have $200,000 of medical school student loans, and an 8% interest rate and 10-year repayment term. If you pay an extra $200 each month, you would save $11,106 total and pay off your student loans 1.08 years earlier.

3. Explore student loan forgiveness

If you work as a doctor in public service or for a non-profit, you may qualify for student loan forgiveness or student loan repayment assistance programs.

The Public Service Loan Forgiveness program offers student loan forgiveness after 120 monthly payments if you work full-time for a qualified non-profit or a public service employer. The advantage of public service loan forgiveness is that you can receive federal student loan forgiveness after 10 years of qualifying payments. The disadvantage is that you may earn a lower income during this period compared to working in private practice, for example.

There also may be other opportunities for student loan forgiveness from state governments, medical organizations and other foundations and non-profits. If you don’t work in public service, you can still receive student loan forgiveness for your federal student loans for medical school after 25 years of monthly payments. Importantly, you would income tax on the amount of student loan debt that is forgiven. In contrast, if you get student loan forgiveness through public service loan forgiveness, there is no income tax liability.

4. Don’t defer medical school debt during residency

Many residents decide to defer medical school debt during residency. Specifically, they choose to defer federal student loan payments, which pauses student loan payments. Why? The goal of deferment is to save money each month. This can be especially helpful if your salary is relatively low, which is the case for most residents.

However, unsubsidized medical school debt still accrues interest, which can grow your student loan balance. If you have $200,000 of medical school debt and defer your student loan payments for three years, you could owe more than $30,000 of additional student loan interest.

Ideally, even if your salary is low, try to make student loan payments at least to cover the accrued interest.

5. Refinance medical school student loans

Student loan refinancing can save you tens of thousands of dollars on your student loans. For medical school debt, there are two challenges: a high interest rate and a high student loan balance. Student loan refinancing can get you a lower interest rate, which can lower your monthly payment and limit the amount of interest that accrues.

You can refinance student loans when you are a practicing physician. Alternatively, you can complete medical school refinancing as a resident or fellow. When you refinance federal student loans, you won’t have access to student loan forgiveness programs such as public service loan forgiveness or income-driven repayment. So, you should decide whether the amount of savings is worth the trade-off for you.

How much money can you save with student loan refinancing? This student loan refinancing calculator shows you how much money you can save.

For example, let’s assume you have $200,000 of student loan debt, a 7% interest rate and a 10-year repayment term. If you refinance medical school debt with a 3% interest rate, you can lower your monthly payment by $391 and save $46,915 total.

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November 22, 2020
How to Pay Off MBA Student Loans
If you want to pay off MBA student loans or explore student loan forgiveness, the good news is there are several options. Today, 45 student loan borrowers collectively owe more than $1.6 trillion of student loan debt. On average, MBA graduates can owe approximately $70,000 of student loans.

What’s the best way to pay off MBA student loans? Here are three options:
Student loan refinancing

If you want to pay off student loans fast, then student loan refinancing is your best bet. When you refinance student loans, you get a new student loan at a lower interest rate, which helps you save money and pay off debt faster. Your new student loan is then used to pay off your old student loan. With student loan refinancing, you can lower your monthly payment, choose a fixed or variable interest rate and choose a student loan repayment term from 5 to 20 years. The standard student loan repayment term is 10 years. With a shorter repayment term, you could save significantly on interest. With a longer repayment term, you could lower your monthly payments. You can refinance both your college and MBA student loans together. If you already refinanced your college student loans or MBA student loans, or both, you can refinance again so long as you can get a lower interest rate. There are no fees to refinance student loans, and the student loan refinancing process is easy.

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This student loan refinancing calculator shows you how much money you can save on your MBA student loans when you refinance.

Income-driven repayment

You also could place your federal student loans into an income-driven repayment plan. These are plans based on your discretionary income, family size and state of residency. Typically, you pay 10-20% of your discretionary income. Income-driven repayment plans are not available through the federal government for your private student loans, however. Income-driven repayment plans won’t help you pay off student loans faster. However, if you are struggling to make monthly student loan payments, income-driven repayment plans can help you manage your payments. After 20 years (undergraduate loans) or 25 years (graduate loans), you can get student loan forgiveness on your federal student loans. That said, you will owe income tax on the amount of student loan debt is forgiven. It’s also important to remember that your monthly payment will rise as your income rises. So, an income-driven repayment plan may become more expensive than the standard repayment plan if your income after your MBA rises each year.

Student loan forgiveness

If you work for a public service or non-profit employer, you may consider the Public Service Loan Forgiveness program. While most MBA graduates work in the private sector, you may apply for student loan forgiveness if you work in the public sector. Public service forgiveness requires that you work full-time for a qualified employer and make 120 monthly payments while being enrolled in an income-driven plan like REPAYE. Unlike student loan refinancing, public service loan forgiveness does not help you pay off student loans faster. Rather, public service loan forgiveness takes at least 10 years to complete, and you have to fulfill several requirements. Unlike income-driven repayment plans, the good news is that you won’t owe any income tax on the amount of student loan debt forgiven.

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November 19, 2020
How Do I Know if My Student Loans Are Federal Student Loans?
If you want to know if your student loans are federal student loans or private student loans, the good news is that most student loans are federal student loans. There are several ways, however, that you can double check that you have federal student loans.
1. Check the National Student Loan Data System database

You can use your Federal Student Aid (FSA) ID to login to the National Student Loan Data System (NSLDS) website. When you access the NSLDS website, you can determine if you have federal student loans. You can find information on the balance of your federal student loans, disbursements and loan status.

2. Visit Federal Student Aid website

The fastest way to determine if you have federal student loans is to visit the Federal Student Aid (FSA) website located at studentaid.gov. If your student loan appears on this website, then you have a federal student loan. If you don’t any student loans listed, then you don’t have a federal student loan. This website also helps you enroll in an income-driven repayment plan, and can provide information about your outstanding student loan balance.

3. Contact your student loan servicer

You can contact your student loan servicer to determine if you have a federal student loan. Your student loan servicer is the company where you send your student loan payments. You can call 1-800-FED-AID to find your federal student loan servicer. You can ask your student loan servicer whether they service your federal student loans.

4. Check your credit report

You can get a copy of your credit report for free at AnnualCreditReport.com. Your credit report will list your outstanding debt obligations so that you can learn whether you owe federal student loans to the federal government.

5. Check your promissory note

You can check your promissory note to determine if you have federal student loans. Your promissory note is the student loan agreement that you signed before your student loans were disbursed. On your promissory note, you will notice name of your federal student loan program, if you have federal student loans. Examples may include the William D. Ford Direct Loan Program or the Federal Perkins Loan Program.

6. Check your student loan statement

Finally, you can check your student loan statement to determine if you have federal student loans. Your monthly student loan statement will clearly identify the name of your federal student loan servicer and the name of your federal student loan program. Your credit report will also show you your outstanding student loan balance and whether you make on-time payments.
November 15, 2020
How to Submit the FAFSA
The Free Application for Federal Student Aid (FAFSA) is the form that you complete to apply for financial aid for college or graduate school. You can access the latest FAFSA form on Federal Student Aid, which is part of the U.S. Department of Education.

FAFSA Advice

Here is some helpful advice when completing the FAFSA:

1. FAFSA Deadline

Know the FAFSA deadline in your state. Each state may have a different deadline.

2. Start early

Don’t wait until the last minute to complete your FAFSA. Take your time and prepare in advance so you have sufficient time. The earlier you apply for the FAFSA, the better.

3. FSA ID

Make sure you have your FSA ID when you apply for FAFSA.

4. Complete financial aid forms

In addition to the FAFSA, your college or university likely will have you complete additional forms when you apply for financial aid.

5. Everyone should complete the FAFSA

You never know how much financial aid you may qualify for. If you are applying to college or graduate school, you should complete the FAFSA. Don’t assume you won’t qualify for financial aid.

10 FAFSA Mistakes

Be careful to avoid these common mistakes when applying for financial aid. Here are the 10 biggest FAFSA mistakes:
1. Using a name other than your legal name.
2. Leaving parts of the FAFSA blank or incomplete.
3. Using the wrong address.
4. Using the wrong Social Security Number.
5. Using the wrong income taxes.
6. Using the wrong income.
7. Forgetting to sign the FAFSA.
8. Incorrectly listing your marital status.
9. Forgetting to include yourself as a member of your household.
10. Failing to register for the Selective Service if you’re male and ages 18-26.
FAFSA Document Checklist

To apply for the FAFSA, you will need several key documents. These documents include:
- Driver’s license
- Social Security card
- Any W-2’s or 1099’s
- Income tax returns
- Bank statements
November 12, 2020