Author: Drew Cloud

Federal Direct Consolidation Guide

If you have multiple student loans out against your name right now, you may be wondering how you can reduce them all into one payment. Sometimes, having multiple loans and payments can be confusing and after a while, you may lose track of how much you owe and where your money is going. Before you start to panic, there are some options for you to consider to make student loan repayment less of a hassle and that is through federal direct consolidation. Let’s take a closer look at what consolidation is and how it can benefit you in the...

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Sen. Brown Announces Support of Federal Student Loan Refinancing Legislation

There has been activity in Washington D.C. regarding student loans.  More support for the Bank on Students Emergency Loan Refinancing Act has been garnered.  This time, United States Senator Sherrod Brown, a Democrat from Ohio, announced his support for the legislation in Congress.  This is just one step the government is taking in addressing the issue of student loan debt.  The focus of this legislative act is to improve interest rates by allowing federal student loan refinancing. Currently, only private lenders offer student loan refinancing. Today’s students are graduating with an average student loan debt of around $30,000, and this amount is projected to increase.  In addition to rising costs, more Americans are defaulting on their loans each year.  One of the main culprits behind the rising default rate is the interest rate. Federal student loans utilize fixed interest rates, yet these interest rates are redefined every academic year.  In short, 2016 graduates have a complete different set of interest rates compared to 2020 graduates.  Federal interest rates lack a degree of flexibility compared to private lenders.  If a borrower is having trouble with interest payments, there is little he or she can do to alleviate the burden of large payments. This student loan refinancing act seeks to allow more flexibility and options when it comes to federal student loans such as Stafford and Parent PLUS loan options.  In a...

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Earnest Unveils Unorthodox Student Loan Refinancing Policy

Earnest has announced a new unorthodox refinancing policy for student loans that will revolutionize student loan repayment for millennials and generations to come.  Following a recent close of $17 million in investments by Maveron, Earnest is slated to expand across the nation as they implement a new underwriting process that turns out refinanced student loans with especially low interest rates. While the student loan debt toll increased to $1.3 trillion, companies were awarding loans based off of the backward-looking underwriting process that focused solely on credit history.  In short, loans were being disbursed based off past earning potential and history of a student or co-signer; therefore, rates were assigned based on inaccurate data pertaining to other individuals besides the primary borrower. With the help of new data driven software analysis, Earnest offers highly tailored loans based off of new factors instead of strictly credit history.  Loans are designed and awarded based off of analysis of full financial profiles and future earning potential rather than solely examining a traditional FICO score.  This earns Earnest a much better probability of receiving a return on investment. Each loan is highly flexible and specific to individual cases, so borrowers have considerable flexibility when choosing the terms and conditions to their student loan.  Interest rates are based on future earning potential and overall financial health which leads to interest rates as low as 1.92%...

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Starbucks Unveils Program to Pay for Employees College

  In June of 2014, coffee giant Starbucks announced that they had partnered with Arizona State University, or ASU, to helps its employees pursue a higher education. The program, called Starbucks College Achievement Plan, covers all tuition costs for four years through ASU’s online program. All Starbucks employees, and employees of Starbucks-owned businesses, who work an average of at least 20 hours per week in a U.S. store are eligible for the program. ASU’s online program costs around $60,000 for a 4-year degree. Starbucks covers up to 58% of the costs while ASU provides a scholarship for the remaining...

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