SafeAmerica Credit Union

Student Loans

• By Kevin Alvarez

Student Loan Repayment, Simplified

After a historical hiatus throughout the pandemic, borrowers now face federal student loan repayment. Evaluating your full financial picture and making a repayment plan goes a long way towards reducing stress and uncertainty. Unsure where to start? Read on!

Verify servicer(s).

As an outcome of contract transfers and terminations mid-pandemic, your servicer(s) may have changed since 2020. Translation? You’ll need to confirm who will be receiving future payments and ensure they have your updated contact information.

If you have private loans, review any correspondence you’ve received from your original loan servicer, reach out to your school’s financial aid office for help tracking that information, or visit AnnualCreditReport.com for a free weekly report that lists loans in your name.

If you have federal loans, visiting the Federal Student Aid website is the simplest, most efficient way to access your federal loan information and verify current servicers. You’ll first need to log in with your FSA ID (create one here if you don’t have one already.) Once logged in, you can view your original principal amount, current balance, and interest rate as well.

Evaluate repayment.

Much can change within our big picture in three years. Is your student loan payment still affordable? Check out the Department of Education’s Loan Simulator to help decide what repayment strategy fits your priorities—for example, do you value a lower monthly payment or faster payoff? Look into an income-driven repayment plan which takes your current earnings into account and can lower your monthly payment.

Set aside savings. Once you know what your monthly loan payment will be, transfer that amount to a separate savings account monthly, starting right away. By accounting for this reduction in your budget sooner rather than later, you’ll lessen the initial impact of repayment (since you’ll now have money set aside) and you’ll be back in the habit of making this a monthly routine.

Consider consolidation.

Depending on whether you have federal loans, private loans, or a combination, loan consolidation could potentially reduce your payment burden. For federal loans, you can apply for a Direct Consolidation Loan which allows you to combine education loans with zero application costs, and most people complete the process in 30 minutes or less. You can also refinance your private education loans (in which you replace one or more private loans with another.) This happens through a private bank, credit union, or online lender.  SafeAmerica Credit Union offers members free access to private Student Loans and Student Loan Refinancing through our partners at LendKey.

Seek support.

If you're feeling overwhelmed at the prospect of repayment, you don't have to figure it all out on your own!

SafeAmerica Credit Union is here to help!  You can take advantage of free student loan counseling through our partners at GreenPath Financial Wellness. GreenPath counselors help you look at your total financial picture to develop a personalized repayment plan

This information is brought to you by our partner, GreenPath Financial Wellness

Greenpath Financial Wellness

• By Kevin Alvarez

Webinar: Time to Prepare for Student Loan Payments to Resume

After more than three years on pause, federal student loan payments are now required by Congress to resume this fall. The Supreme Court also rejected the forgiveness plan announced in late 2022, leaving many people who were counting on reduced or forgiven balances scrambling to prepare for payments to resume.

Join us to learn what actions to take now to prepare for payments to resume in October, as well as what to do if you’re concerned about making payments. Learn about the different repayment plans available, including the new SAVE repayment plan, and how to decide what option is best for you.

Click through each tab below to learn more.

Who Should Attend

  • Anyone with federal student loans 
  • Anyone who is concerned about resuming student loan payments
  • Anyone who provides guidance to someone with federal student loans

What You Will Learn

  • Steps to take now in preparation for student loan payments to resume
  • Factors to consider when choosing a repayment plan
  • What to do if you are worried about affordability of payments

Details

Date: Tuesday, August 15, 2023

Time: 5:00 PM PST

If you are unable to attend this webinar, you can register and a link with a recording will be sent out to all registrants after the webinar.

Register Now

This free, webinar is presented by GreenPath Financial Wellness

• By Kevin Alvarez

Cumpla El Sueño De Comprar Una Casa – Achieve Your Dream of Owning A Home – Free Webinar

El webinar sera alojado en espanol.

¿Sueña de comprar una casa para usted y su familia? Permítanos ayudarle a conocer mejor el sistema y a como navegarlo con confianza. Sin importar donde se encuentre en el proceso nosotros le ayudaremos para adquirir la casa que siempre ha deseado.

Do you dream of buying a home for you and your family? Let us help you to better understand the system and how to navigate it with confidence. We’ll help you figure out where you are in the process and help you to purchase the home you’ve always wanted.

¿Quién Pudiera Atender? (Who Should Attend)

  • Primeros compradores. First-time homebuyers.
  • Quien no haya comprado una propiedad recientemente. Those who haven’t bought a home in a while.
  • Aquellos que ofrecen orientación en el proceso de comprar casa. Those who are supporting homebuyers in the process.

Lo Que Aprenderá (What You Will Learn)

  • Los pasos que necesita para adquirir una propiedad. The necessary steps to buy a property.
  • Los básicos del financiamiento y el proceso de aplicación. The financial basics and the application process.
  • Lo que uno puede esperar ya que habite la propiedad. What you can expect once you buy the property

Detalles

Fecha: Wednesday, September 13, 2023

Tiempo: 3:00 PM PST

Presentado por:

  • Bilingual Spanish Program Design Leader Deborah Green
  • Bilingual Partner Experience Manager Lauren Simon

¿No puede llegar a la hora del webinar? Can't make the webinar time?

¡No hay problema! Regístrese de todos modos y le enviaremos el webinar grabado. No worries! Register anyway, and we’ll send you the recorded webinar.

Regístrese Hoy!

Este webinar es gratis y presentado por GreenPath Financial Wellness

• By Kevin Alvarez

Paying Down Debt Is Saving — America Saves Week 2023

Making the decision to pay down debt, particularly consumer debt, can be mixed with emotion. You feel good about choosing to take concrete steps to pay off balances on credit cards, auto loans, student loans or other installment loans. On the other hand, you feel less positive about the amount of money you are directing into a savings account. Well, we’re here to show you how reducing debt is a form of saving, to give you strategies for the best way to do so that align with your personal situation, and to boost your financial confidence to keep you working toward your goals.

As you pay off your debt you are freeing up money, allowing you to direct those funds toward saving for something else that’s important to you – perhaps an emergency/opportunity fund, a vacation, home purchase, or retirement. This money is freed up as you spend less on interest, and possibly late fees, and lowering the debt balances themselves.

If you have more than one debt you want to pay off, for example an auto loan and a credit card balance, there are two main strategies to help you decide which debt to pay off first.

  • The snowball method focuses on the balances of each loan. In this strategy, you make the minimum payment on all your loans except the one with the smallest balance. With this loan, you put as much money as you can toward it and when it is completely reduced you allocate that money to the next smallest balance. Your confidence gets a boost every time you see an account balance at zero.
  • The avalanche method focuses on the interest rates of each loan. In this strategy, you pay the minimum payment on all your loans except the one with the highest interest rate. You apply any remaining money you have for debt repayment to the highest interest rate loan. By paying off the debt with the highest interest rate first you reduce the overall amount of interest you must pay.

You choose which method is right for you and your situation.

Once you are on a path to reducing your debt, reflect on the type of relationship you have with credit. Credit is a tool. When used wisely and with purpose, credit can help you achieve your financial goals and build financial confidence. Having a clear view on when and for what purpose you use credit is the foundation for a positive relationship.

Sometimes we’re told that there are good types of debt (home mortgage) and bad debt (credit cards). This type of categorization is based only on the financial aspect and not the personal situation you are dealing with. It may feel better to ask yourself if the type of debt you are taking on is a good decision for you or not.

For example, when an emergency expense crops up and it is large enough that it will deplete all or nearly all of your emergency savings, you may feel like you’re on shaky ground if another expense crops up before you can replenish your savings. So, you may weigh this option against using a combination of savings and credit based on what feels best for you in the situation.

Making purposeful choices about credit, something that you plan for financially and mentally, can help you build more financial confidence.

You can use the America Saves Spending and Saving Tool to calculate how much you have available for debt repayment, take the America Saves Pledge to make a plan for this repayment, or listen to the ThinkLikeASaver Podcast for even more tips.

SafeAmerica Credit Union is here to help you on your saving journey. Check out all the Savings opportunities we have to offer.

Savings Accounts

• By Kevin Alvarez

What’s On Your New Year Financial To Do List?

Start the New Year Strong

Most of us stay current with routine weekly and monthly money tasks– like paying bills, monitoring credit card balances and savings accounts – yet some financial wellness tasks lend themselves to the beginning of a New Year.

The following suggestions are not intended as an exhaustive list, but can be considered reminders as part of your New Year financial to-do list:

To Do 1: Know Where You Stand

A healthy financial future begins with understanding your current situation. Start your New Year To Do List with a financial assessment to get a clear picture of your financial health.

An online financial assessment helps you see how mortgage, consumer debt, student loans or other debt might be affecting your budget, how long it will take to pay your debt off, and other personalized information.

This is a useful first step to understand the impact of interest charges to help you effectively manage your debt and reduce your financial stress.

To Do 2: Review Your Credit Report

Taking stock of New Year finances means getting a view of your credit history and credit score – important measures of financial health. If a mortgage, car loan or new line-of-credit is in the New Year plan, note that lenders look to your credit score as an indicator of your creditworthiness. The New Year is a good time to know how your credit score is calculated and understanding how to read your credit report is an important component of your overall financial health. Obtain a free copy of your credit report from annualcreditreport.com or other sources.

To Do 3: Build a Budget

A simple budget is the foundation of financial health. As the year gets underway, make a realistic plan for the money that you earn. Develop a line item in your budget for groceries, gas, savings, and entertainment as well as debt payments. If you haven’t had the chance to get around to a budget, take time to create one and track your expenses so that you can go back, review and adjust as needed.

Financial To Do List

To Do 4: Plan and Build an Emergency Fund

For a financially aware New Year, it is helpful to plan for the unexpected.  Depending on your budget, determine a set amount to put into a savings account from each paycheck. Some people have their employer directly deposit part of their paycheck into a savings account. Over time, you can build a budget buffer to help with unexpected expenses or emergencies.

To Do 5: Get Ready to Manage Student Loan Debt

For the more than 45 million people who carry student loan debt, the New Year is the time to prepare for the end of federal student loan payment relief measures, which paused federal student loan debt collection and reduced interest rates on federal student loans to 0%.

As of December 2022, the Student Loan Repayment Pause has been extended to June 30, 2023. Click here to read the U.S . Department of Education's press release regarding the matter.

This article is brought to you by our partners, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

What Are Your Student Loan Repayment Options?

Even with news of payment extension to August 31, 2022, student loan repayment is on the  minds of millions of Americans.

If you're looking for a way to set up affordable student loan payments, there are income-based repayment plans that can help you get a handle on what you pay each month and provide a little room in your budget at the same time.

These plans let you make payments based on your income and the size of your family. Knowing what to expect, based on what you are making can relieve some of the pressure associated with paying back your student loans.

GreenPath Partner Experience Manager Doug Brady offers specific tips on student loan repayment options in the following webinar highlight:

The federal government uses incomes and family size to calculate your discretionary income. What is discretionary income? It's the difference between your annual income and 150% of the federal poverty guidelines for your family size.

Take a look at following plans, as well as your finances to understand the best repayment option for you.

As you look at student loan repayment plans based on your income, it's important to not only understand what the plans are but the difference between them. Remember, if you don't sign up for an income-based plan, you are automatically placed into the Standard Repayment Plan.

Revised Pay As You Earn (REPAYE)

Under REPAYE, monthly payments are calculated as 10% of your discretionary income. As with many federal student loans, you will have to update your income and family size annually. Another important distinction is that married tax filing status is NOT considered under a REPAYE plan. Also, no PLUS loans (Payments made to parents) can qualify for this option.

Pay As You Earn (PAYE)

Under a PAYE plan, your requirements will also be calculated as 10% of your discretionary income. As with REPAYE, you are required to update your family size and income each year. The difference between a REPAYE and PAYE is that married tax filing status is considered when your payments are calculated. Plus loans do not qualify for this plan either.

Income-based Repayment (IBR)

With an IBR plan, your payment amount will be based on either 10% or 15% of your discretionary income. The lower interest rate typically applies to new borrowers. You can also be considered for the lower rate if your federal student loan debt is high relative to your income and family size. The annual update of your family size and income is required with this option as well and married tax filing status IS considered. PLUS loans do not qualify for this plan.

Income-Contingent Repayment (IBR)

With an ICR, payments are based on 20% of discretionary income. In general, ICR plans are less popular than other income-based options because they often lead to higher monthly payments . Under an ICR, PLUS loans are considered  — the only option for loans from parents.

The best income-driven repayment plan can depend on your particular situation, the type of loans you have, when you borrow the money for your education.

As you look at your loan, financial situation, and other factors specific to you, you can use a tool from the federal government to simulate which income-based plan will offer the lowest monthly payments and the lowest total amount repaid over the life of the loan. Access the federal student aid site to help decide which option works best for you.

For more information on your student loan debt, a trusted nonprofit agency is a good place to start. There are resources available to help you understand loans, debt, and to help you set a path forward to financial health. You can also access valuable counseling.

Brought to you by GreenPath Financial Wellness

Greenpath Financial Wellness

SafeAmerica Offers Private Student Loans for College Students

Details

  • Competitive rates from community leaders
  • 1% interest rate reduction available in repayment period
  • Tax deductible interest payments
  • Cosigner release option available
  • Much more!

Proudly Presented By:

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SafeAmerica Student Loans

• By Kevin Alvarez

Free Webinar March 9 — Starting From Scratch: How To Build Credit

This free, one hour webinar is presented by GreenPath Financial Wellness

What do renting an apartment, getting a job offer, and car insurance rates all have in common? Your credit history could impact every one of these things (and more)! Credit is important for more than just getting a loan, although it impacts that too. If you know you need to build credit and aren’t sure how to do so without going into debt, this webinar will provide guidance and tools to start you down the path to building positive credit history. Whether you have never had any credit history or are looking to rebuild credit after an extended period without, this webinar will cover why it is important to build positive credit history and how to do so responsibly.

Click through each tab below to learn more.

Who Should Attend

  • Anyone with no credit history
  • Anyone with no credit history for 5+ years
  • Parents of teenagers who want to help their children start building good credit

What You Will Learn

  • Why credit is important
  • Tools to start building positive credit history
  • Healthy credit habits for using credit responsibly

Details

Date: Wednesday, March 9, 2022

Time: 10:00 am PST

This webinar will be recorded and a link will be sent out to all registrants after the webinar.

Click the red button below to register.

Register Now

• By Kevin Alvarez

Take These Steps With Your Student Loans

What steps should you take with your student loans – even with the extension of federal student loan payment relief measures? The pause continues on federal student loan debt collection and reduced interest rates on federal student loans to 0% until May 2022.

For those with government-held loans, the relief options provide a record-long “breather.”

It’s not too early to take steps in preparation for the relief programs to end. Borrowers should be ready to make student loan payments, even as policy makers discuss further extensions in the face of an increased number of borrowers becoming delinquent or defaulting on their loans.

Listed here are steps to move forward as protections end.

Take Inventory

How’s your memory in the midst of the longest payment freeze of federal student debt in history? As a first step, take the time to document how much you owe and who to contact about student loan balances.

To get current loan balances, log onto the National Student Loan Data System (NSLDS). The portal will display how much you borrowed, the type of each loan and interest rate, payment history, and the current loan servicer for each loan.

For private student loan information, jog your memory with your credit report, which tracks current and past credit obligations, including student loans. AnnualCreditReport.com provides borrowers with a free report from the three main credit reporting agencies: Equifax, Experian and TransUnion.

These resources are also useful to track current student loan servicers – the organizations that handle payment and administration of your debt.

Track Your Interest Rates

Student loan interest rates vary depending on the loan type and other terms such as the date the funds were first disbursed to you. Again, NSLDS is the go-to resource to discover the interest rates of your federal student loans.

To track interest rates on private student debt, contact each lender for fixed and variable interest rates. SafeAmerica Credit Union offers private student loans through our partner, Lendkey. Click here for current rates and loan programs.

Look at Affordability of Payments

After the lengthy payment pause ends in May 2022, consider overall affordability. Based on your current monthly income and expenses, you might find that resuming payments for federal student loans will stress your budget.

Explore options to lower monthly payments by switching to an income-driven repayment plan.

Private student loan lenders typically don’t offer income-driven plans, but they might offer alternative repayment plans on a case-by-case basis.

Loan forgiveness might be an option. In the last few months, the Department of Education overhauled the Public Service Loan Forgiveness Program. Teachers, nurses, first responders, service members, those working in nonprofit hospitals and other nonprofit and public service workers can potentially have their student loans forgiven

Explore whether you can take advantage of the changes to the public servant loan forgiveness program..

See if Loan Consolidation is Possible

Again, if affordability is an issue, consolidating your student loans sets you up with a single monthly payment.

For most borrowers, consolidation lengthens the repayment period, so your cost of borrowing will actually be higher since you will likely pay more interest over the long run.

This option will depend on your specific financial picture, so be sure to research all the pros and cons of loan consolidation.

Take the Steps that Work for You

It's great to have the added breather for your budget!

Looking ahead to later this year when the payment pause ends, our partners at GreenPath is a useful source of independent information.

Student loan counselors can suggest ways to manage an individual situation if you are feeling overwhelmed as you look to the May 2022 deadline.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit

 

Greenpath Financial Wellness
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