Being a ‘Student Loan Hero’ is a hot topic in the mainstream news. It’s also a hot topic around my family’s kitchen table these days, because 2015 was our son’s first repayment year on a private college loan and in 2016 our daughter finalizes her college finance decisions.
To sort the choices we looked at CFPB (Consumer Financial Protection Bureau) tools to understand student loans (federal or private) available and repayment options.
A new ‘income-driven’ repayment option for student debt is getting attention. It’s called REPAYE (Revised Pay As You Earn), and it is based on a certain percentage of your income. The loan repayment details under all the income-based repayment plans were best described by Federal Student Aid (U.S. Department of Education).
Much has changed in the world of college finance during the five years between our son’s and daughter’s college entrance. Federal loans issued before July 1, 2010 were made through the Federal Family Education Loan (FFEL) program. If you’re unsure and need details about your personal federal loan you can find your information on the National Student Loan Data System database.
Whether you are a new college graduate or a soon-to-be college freshman, be a ‘Student Loan Hero’ by thoroughly researching all your borrowing and repayment options.
Carol Ehlers is a Family Finance specialist working to empower consumers to take control over their economic lives.