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For many students who want to pay for college, federal student loans are a good option. Federal student loans fall into two categories: subsidized and unsubsidized.
Increasing college costs have driven more students to take out loans to cover their expenses. Even though some students choose loans from private lenders, as of March 2021, approximately 42,9 million students were in possession of Federal Direct Loans.
[Read more…] about Subsidized vs Unsubsidized LoanThe U.S. administration has been persistent in prolonging the student loan payment moratorium ever since the outbreak of the Covid-19 virus back in March 2020. The pause has once again been approved by the Biden administration, setting the new date to January 31st 2022.
By temporarily stopping the loan payments, a new problem arose; two huge student loan servicer companies decided not to continue their business with the U.S. Department of Education.
This has been a serious blow for all the parties involved. Not only is the federal income halted and the proficient companies are opting out, but the chaos of migrating the entire student loan database is yet to begin.
Needless to say, historically, such transfers have always been somewhat disastrous, resulting in data loss and inaccurate payment histories.
The servicers in question, Granite State Management and Resources, and FedLoan, handle over 10 million borrower accounts combined.
[Read more…] about The Overuse of Student Loans and Biden Student Loans ExtensionSlowing saving money in a savings account is not the most exciting thing you can do with your hard-earned cash. In fact, it’s probably one of the most boring things you can do! But, it is effective, and PrizePool is a company that is out to make it fun, too.
The average American household has $8,863 saved in a bank account or at a credit union, according to a 2018 Bankrate Study. However, according to another Bankrate study, $80 billion was spent on the lottery in one year in America! This came out to about $1,000 spent per year on the lotto for millennials, and a whopping $3,800 per year for older generations.
What’s worse is the same study found that households with the lowest income (earning $30,000 or less) spent 13% of their income buying lottery tickets. Saving and investing 13% of your income could set you up perfectly for retirement! Instead, it’s likely going down the drain (unless you get very, very lucky).
There have been quite a number of technological advancements in the finance world. An offshoot industry, called fintech, was even developed to cater to this need.
This progression implies that the market is rapidly moving toward a cashless society. The advent of credit cards, and even cryptocurrency, supplements this phenomenon.
The banking industry has definitely progressed from the ancient practices of bartering or exchanging goods to transactions being completed virtually. Now, digital banks empower consumers to do everything online–from creating an account to depositing and withdrawing money.
Oftentimes, one of the first things you should do to get your personal finances in order is to set up an interest bearing account, like a savings account.
This type of account is way safer than putting your cash under the mattress and earns more interest than a checking account.
If your financial goals include building an emergency, saving for a down payment, or preparing for college, an interest bearing account can likely help you achieve them.
