As of October 1, 2020 FAFSA applications can be completed for the 2021 - 2022 academic year. And don’t forget, even if you’re already in college and you plan on attending next year you need to complete the FAFSA for each and every academic year.
College Planning Considerations for Parents
Student loans impact people of all ages, from high school through retirement. This may come as a surprise to some people, because it’s often thought that student loans are a millennial “issue”, but that’s not necessarily the case. In fact, many adults who are either planning on retirement or already in retirement are faced with student loan payments.
College Planning Through a Pandemic
We are in a period of uncertainty, in particular around the education system. Some colleges that opened their doors for in person learning have already switched to online classes, within just a couple of weeks. For future college students what does this mean for your college planning and student loans?
Public versus Private Student Loans
Take out federal student loans before taking out private loans. Federal student loans usually offer lower fixed interest rates, less interest accrues on subsidized loans while you are in school, they offer the ability to access income-driven repayment options and depending on your career and type of repayment option you could also be eligible for Public Service Loan Forgiveness. Fed Loans also generally have a disability clause.
Tracking Your Student Loans
If you have student loans or expect to, create a spreadsheet to track these loans. It’s likely that every semester you will be taking out loans and it can be very easy to forget how many you took out, especially when they are through different loan providers. Things to include in your spreadsheet would be: what type of loan was taken out, who the loan provider is along with their contact information, when the loan was taken out, the amount the loan is for, what the grace period is, and what the interest rate is.
Automate Your Student Loan Payments and Save!
When your student loans go into repayment get setup with automatic payments. Many loan providers will offer you a lower interest rate for doing this. It will also help ensure you don’t miss a payment, which will have a positive effect on your credit score.
Working in a Public Service Field with Student Loans?
Are you thinking about a career in a public service field? If you are, be sure to check out Public Service Loan Forgiveness. Depending on the types of loans you have and what type of organization you plan on working for you may be eligible for Public Service Loan Forgiveness (PSLF). If you are eligible, be sure to set up your loan repayments with an eligible repayment plan.