Archive | August 2017

Practical and Helpful Tips: Loans

Basics of the Obama Student Loan Forgiveness Program

As President Obama modified a portion of the 2010 Direct Loan program upon signing the Health Care and Education Reconciliation Act of 2010, he gave rise to the Obama Student Loan Forgiveness program. It’s important to remember that all the programs only cover federal and not private student loan borrowers.

The following are some of the changes President Obama implemented:

> No more subsidies given to private lending institutions for federally supported loans

> 10% of borrowers’ discretionary income to be paid for loans that began in 2014

> Student loan forgiveness eligibility period reduced from 25 years to 20 years on qualifying payments

> Money to be spent on poor and minority student funding and boost college funding
Repayment Plans

Borrowers are given the following repayment options under the Student Loan Forgiveness Obama program:

1. Standard Repayment

The borrower pays a fixed amount monthly for the entire life of the loan. Payment will be computed based on the amount of money borrowed, the interest rate, and the loan term.

2. Graduated Repayment

The borrower can pay less than the standard repayment plan, but the total loan amount will slowly increase every two years.

3. Income Contingent(ICR)

Payments will be computed based on the borrower’s income and family size, the outstanding loan balance, and interest rate under this Student Loan Forgiveness Obama plan option.

4. Income Based(IBR)

Payment under this Student Loan Forgiveness Obama plan is exclusively based on the borrower’s income and family size, which indicates that interest rate and loan balance will have no effect. Federal income loans will be paid with 15% of the borrower’s discretionary income.

5. Pay As You Earn(PAYE)

This Student Loan Forgiveness Obama plan often has the least monthly payment, and is based as well on income; however 10% of the borrower’s discretionary income will be paid instead of 15% in IBR. The catch is, this repayment plan follows stricter qualifying rules than the rest.

Interest Forgiveness

Under the Student Loan Forgiveness Obama program, interest in the IBR will be totally separate from the direct loan’s subsidized portion. Such rule, however, is only good for the first three years of the borrower’s IBR payment, and only if this payment does not exceed what is normally due as interest. Depending on what type of payment the borrower is qualified for, as well as on the loan balance, this amount can total to up to thousands of dollars.

End-of-Term Student Loan Forgiveness

Under the Income Based, Pay As You Earn and Income Contingent repayment plans, any remaining balance at the end of the term would be forgiven. The term of the loan goes between 20 to 25 years, depending on the original date of the loan and the repayment plan selected. The amount to be forgiven will depend on the original loan amount, the present income of the borrower, and the extent of variations of this income throughout the repayment term.

This entry was posted on August 14, 2017, in financial.

Understanding Services

Managing Your Finances and Getting it in Order Within 48 Hours

Are you among the numerous men and women who have these beliefs that money has the ability in making your world go round? Are you aware of the consequences if you are deficit of cash or you don’t have a single cent? What measures have you taken to prevent these dire situations from happening? Who can you call for help? If you are in such situation, then the best move that you can make is to get the services of a reputable financial advisor like StratFl Financial Advisor. For those who encountered similar predicament, then they should peruse this article so as to get additional information and ideas about financial advisors, the prime reasons for getting their services, and the benefits of having them on board.

You can find lots of individuals who have these belief that money can definitely make their worlds go round simply because we need money in all our activities. Money is needed not just in buying foods but also in traveling, studying, pursuing our hobbies and much more. In this connection, your life would not be as fun, fulfilling, comfortable and cozy when you don’t have money on your pocket. These days, there are growing number of men and women who are in dire financial trouble and rising debt simply because they lived beyond their financial capabilities. Are you one of them? In case you are in the same situation, then you are advised to consider getting the services of a reputable financial advisor like StratFl Financial Advisor to help you.

How Can StratFl Financial Advisor Help Clients?

1. These are the sole financial experts with adequate knowledge, experience and skills to help you fix your finances within 2 days.

2. They can conduct thorough assessment of the present status of your finances. They will check your loans, bank statements, credit card statements, accounts receivables and many more.

3. These financial professionals will thoroughly discuss with you on the reasons why you are in dire financial condition.

4. You can count on these professionals to give quality advice and techniques on how you can mitigate similar situations from happening in your lives.

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Prevent financial difficulties by getting the help of StratFl Financial Advisor.

This entry was posted on August 11, 2017, in financial.