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Student loans

By Terry Savage on April 04, 2021 | College Savings / Student Loans

My children have federal student loans and private student loans they don’t make much money where is best way to combine them for 1 payment and are the ones calling me about forgiveness worth it

Terry Says

First, there is no major forgiveness program yet (except for a public service plan that doesn’t work very well), so anyone calling you about student loan FORGIVENESS is a scam!
Second, you need to understand a lot more about student loans before you get involved in consolidating any loans.
For example, Federal student loans offer programs like forbearance and income based payments, so you don’t want to consolidate them with private loans.
And whose names are on the loans? If it’s a PARENT PLUS loan, you are responsible. And if you are a co-signer on a PRIVATE Loan, you are also responsible. Students are responsible for their own Federal student loans.
Spend some time on this website: Finaid.org.

You can consolidate and perhaps get a lower rate on PRIVATE student loans at places Like Credibloe.com and SoFi.com. BUT the student needs good income and credit. Parents have a difficult time getting any relief on loans they have co-signed with private lenders. The only real way to make a dent is to refi your home, and use some of the equity to pay off those loans. The interest on that portion of the mortgage won’t be deductible, but it will be a lower rate than continuing to pay the private student loans.

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