July 2015 Education


3 Options to Consider if You Can’t Afford Your Student Loan Payment


www.hamptonroadsmessenger.com repayment plan now


The Hampton Roads Messenger 11 Under certain circumstances, you


If one of the income-driven


repayment plans is not a good option for you, we offer other options. Your servicer can help you identify the best plan to fit your needs.


2. Consolidate your Student Loans


Loan consolidation can simplify your payments by combining multiple federal student loans into one loan. Consolidation can also lower your monthly payment.


Benefits: Can lower your monthly payment


by extending your repayment period (spreading your payment out over more


years). The repayment term


ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.


Will allow you to qualify The U.S. Department of


Education offers a number of affordable repayment options for borrowers who are struggling to pay back their student loans. The important thing to remember about all the options below is that it’s completely free to apply! Also, if you ever have questions or need FREE advice about your student loans, you can always contact your Department of Education loan servicer.


1. Switch Your Repayment Plan You may be able to lower your


monthly switching


student to


a loan payment by different repayment


plan. Use this calculator to compare what your monthly payment amount could be if you switched your plan.


If you don’t pick a different plan


when entering repayment, you are automatically enrolled in the 10-year Standard Repayment Plan. However, many borrowers don’t realize that you can switch your plan at any time by contacting your loan servicer.


One of the most popular options for borrowers who are looking to lower their payments is the income-driven repayment plans.


We offer three income-driven repayment plans:


Pay As You Earn


Income-Based Income-Contingent Benefits: Your monthly payment will be a


percentage of your income. Depending on the plan, that may be 10% or 15% of your discretionary


income, or


something else. What you ultimately pay depends on the plan you choose and when you borrowed, but in all cases, it should be something you can afford.


Your monthly payment amount


will be lower than it would be under the 10-Year Standard Repayment Plan if you qualify to make payments based on your income. In fact, it could be as low as $0 per month!


Any remaining balance on your


loans is forgiven if your federal student loans are not fully repaid at the end of the repayment period (20 or 25 years).


Income-driven repayment plans


are a great option if you need lower monthly payments. However, like all benefits, there are also costs. All of these benefits will ultimately increase the amount of interest you pay over time. The income-driven repayment plans also have tax consequences for any forgiveness received.


Apply for an income-driven Scholarship Watch


Thermo Scientific Pierce Scholarship Award


Applications must be submitted by July 27, 2015


Thermo Fisher


Scientific is offering their future science scholars an opportunity to win $10,000 in scholarship funding for the fall 2015 semester. This scholarship was created to help provide educational opportunities for the future generation


of scientists.


Graduate students or undergraduate students must be enrolled in an accredited college for the 2015-2016 fall/spring semester to qualify for this scholarship. A pre-selected committee will award two $10,000 scholarships and four $5,000 scholarships among the candidates.


Applications may be obtained online at ThermoScientific.com. All interested students must be pursuing a career in Biology, Chemistry, Biochemistry or a related life science field. A detailed list of all eligibility requirements is available online. Recipients will be notified by August 17, 2015.


Dementia FROM PAGE 6


withdrawing fund. When Coffman questioned him again the customer was more forthcoming. He told her that his grandson was in trouble and needed to pay legal fees.


Coffman encouraged him to


talk to his daughter — his grandson’s mother — but the man eventually withdrew $30,000 and left. The next day, the customer’s daughter came to the bank and redeposited the $30,000. The grandson wasn’t in legal trouble after all.


Trained to Know Customers Crediting the happy ending to the


training Chase gives its employees, Coffman said, “One of the things we try to do is to get to know our customers and their families, if at all possible, just so when stuff like this occurs, it pops out at you.”


The Investor Protection Trust,


a nonprofit investor education organization, works to educate doctors, nurses and other


frontline professionals to recognize when their medical


older clients may be vulnerable to or victims of financial abuse.


The organization supplies a


pocket guide that suggests questions medical professionals should ask their older patients to determine financial capacity: Who manages your money daily? Do you run out of money at the end of the month? Do you regret or worry about financial decisions you’ve recently made?


The trust operates a similar program for lawyers.


Lynne Egan’s association of securities administrators has made expanding and strengthening protection for senior investors a top item on its congressional agenda. She said it’s sorely needed.


“We’ve got a population that’s aging over time, so we’re seeing a trajectory to a higher number as we move forward, as the baby boomers start to retire,” Egan said. “It takes a while to get good policies and procedures and laws in place. We need to act now before it’s too late.


“It takes a village of people to protect a senior.” for


additional repayment options. If you have FFEL or Direct PLUS Loans, consolidating your loans into a Direct Consolidation Loan will allow you to qualify for additional repayment plans, such as the Pay As You Earn or Income-Contingent Repayment Plans, that you wouldn’t have qualified for if you hadn’t consolidated.


Your variable interest rate loans


will switch to a fixed interest rate. It’s important to note that consolidation will lock-in interest rates on variable-rate loans, but will not lower them further. This would be a benefit if, like now, interest rates are low.


The benefits listed could provide


relief to some borrowers. However, it’s important that you also weigh the costs before


consolidating.


because you’re restarting and possibly extending


your repayment


For example, period,


you’ll pay more interest over time. Additionally, you may lose borrower benefits, such as interest rate discounts and loan cancellation benefits, offered with the original loans.


Apply for a direct consolidation loan now 3. Postpone your Payments


can receive a deferment or forbearance that


allows postpone you to or reduce


student loan payments. Deferment


temporarily your federal and forbearance


may be a good option for you if you are temporarily having a difficult time paying back your student loans. Deferment and forbearance are


not


good long-term solutions. If you think you’ll have trouble paying back your loans for more than a year or you’re uncertain, you should consider an income-driven


repayment plan or


consolidation. Benefits: You do not need to make student


loan payments during a deferment or forbearance.


The federal government may


pay the interest on your loan during a period of deferment. This depends on the type of loans you have.


Again, deferment and forbearance are not good long-term solutions for borrowers who are struggling to pay back their student loans. Some reasons why:


With a deferment, interest will


continue to be charged on your unsubsidized loans (or on any PLUS loans).


With a forbearance, interest will continue to be charged on all loan types, including subsidized loans.


The interest you accrue during


periods of deferment or forbearance may be capitalized (added to your principal balance), and the amount you pay in the future will be higher.


making interest


If you can, you should consider payments on your


loans during periods of deferment or forbearance


To request a deferment or


forbearance, contact your loan servicer If you need help deciding which


of these options is best for you, contact your loan servicer. They can help you weigh the different options based on your unique situation.


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