Scholarship News

Student Loan Borrowers See Benefits, Better Credit Scores Amid Pandemic


October 13, 2020 4:01 PM
by Susan Dutca-Lovell
    In the year of COVID-19, student loan borrowers have experienced much-needed and historic college financial relief via the CARES Act, including temporary loan forbearance and significant interest rate reductions, extended through the end of 2020. One of the most beneficial outcomes of the pause of student loan payments has been the improved credit ratings of borrowers.

In the year of COVID-19, student loan borrowers have experienced much-needed and historic college financial relief via the CARES Act, including temporary loan forbearance and significant interest rate reductions, extended through the end of 2020. One of the most beneficial outcomes of the pause of student loan payments has been the improved credit ratings of borrowers.

ADVERTISEMENT

For student loan borrowers ages 18-29, the percentage of individuals with poor credit dropped from 28.4 percent to 25.3 percent; from 29.8 percent to 27.7 percent for borrowers aged 30-49; and from 26.1 percent to 22.4 percent for those 50 years old and older. Despite this, experts claim that the temporary relief won't get student loan borrowers out of financial trouble.

There are many factors to consider when it comes to what you should do with your student loans during COVID-19, such as your current financial situation and what type of loan you have. Here are things some things to explore before deciding what is the best option for you:

    1. What student loans do you currently have? Under President Trump's executive order, only federal student loans are granted interest-free forbearance. Therefore, if your loans are through a private lender or your university, you may be able to put your private loans into forbearance due to economic hardship, but the interest will not stop accruing during the period in which you are not making payments. Instead of pausing payments on your private student loans, you’re better off refinancing them at near record low interest rates, so that you are able to lower interest costs and reduce your monthly payment. Explore the pros and cons in refinancing your student loans to see what works best for your situation, here.

    2. Can you honestly afford to make payments right now? The best way to take advantage of this unique and record college financial relief initiative during the COVID-19 crisis is to keep making - and even increasing - your monthly federal student loan payments! Even if interest is not accruing on your loans while in forbearance, not making any payments will simply extend the amount of time it takes to pay them off because you are not paying down the principal balance. The quicker you pay down the principal balance on your student loans, the sooner you'll be debt-free.

Don't forget to check back frequently for more updated information on student loans, including talks of a student loan forgiveness plan as part of a new $1.8 trillion stimulus proposal with large bipartisan appeal.

Connect with our massive database of millions of college scholarships by conducting a free scholarship search at Scholarships.com. Scholarships.com offers the simplest way to search for, apply to, and win college scholarships. Make your college education affordable or even free, by conducting a free college scholarship search at Scholarships.com.

ADVERTISEMENT

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
When it comes to a student’s overall success, experts have found that a college’s location on the map is equally as important as the quality of the school’s curriculum and social environment. According to Forbes,  these colleges ranked #1 for each of these categories: large city, midsize city, and small city college towns out of 415 U.S. cities. When planning your next campus visit, consider schools in these top-rated college towns.

Best U.S. College Towns 2022

January 21, 2022 11:05 AM
by Liz Montenegro
When it comes to a student’s overall success, experts have found that a college’s location on the map is equally as important as the quality of the school’s curriculum and social environment.
On this year’s 27th anniversary of Dr. Martin Luther King, Jr. (MLK) Day in the United States, the national day of service has transformed into an entire MLK Week on college and university campuses around the country to honor the legacy and to continue the work of Dr. King toward greater equality, diversity, and inclusion of all people through nonviolence.

MLK Week Events Guide 2022

January 19, 2022 1:35 PM
by Liz Montenegro
On this year’s 27th anniversary of Dr. Martin Luther King, Jr. (MLK) Day in the United States, the national day of service has transformed into an entire MLK Week on college and university campuses
There are quite a few myths surrounding scholarships. Perhaps you’ve heard the most common misconception: that scholarships are only meant for graduating high school seniors. Let’s debunk this myth today by connecting you with scholarships created for high school freshmen and up.

Scholarships for All High School Students

January 12, 2022 9:56 AM
by Liz Montenegro
There are quite a few myths surrounding scholarships. Perhaps you’ve heard the most common misconception: that scholarships are only meant for graduating high school seniors. Let’s debunk this myth
Are you recognized across your campus and community for your activism driven by your passion for the environment? Channel your fervor for a greener future into funding for college. If you have a desire to make a lasting impact on our world and the track record to prove it, take a look at these scholarships. You can also find a full list of scholarships for environmental activists here.

January Scholarships for Environmental Activists

January 7, 2022 1:32 PM
by Liz Montenegro
Are you recognized across your campus and community for your activism driven by your passion for the environment? Channel your fervor for a greener future into funding for college. If you have a
The New Year promises a fresh beginning. You get to start off with a clean slate and leave last year’s worries behind. As we kick off a new semester, we all want to improve in some way and make this year better than the last.

Students, Make Your 2022 Resolutions Stick

January 5, 2022 12:14 PM
by Liz Montenegro
The New Year promises a fresh beginning. You get to start off with a clean slate and leave last year’s worries behind. As we kick off a new semester, we all want to improve in some way and make this
You’ve made it to your last year of high school- senior year- and graduation is just a few short months away! You are so close to taking that deep sigh of relief and starting the next chapter of your life, but it’s not quite over yet.

Tips for Curing Senioritis

December 30, 2021 1:44 PM
by Liz Montenegro
You’ve made it to your last year of high school- senior year- and graduation is just a few short months away! You are so close to taking that deep sigh of relief and starting the next chapter of your
If you’re a high school student, it’s never too early to start making your list of colleges. As you narrow down your search, the best way to decide on the best fit for you is to step foot on campus, get a feel for the campus culture, and ask the right questions. Do you see yourself studying in a college town or a more urban area? Does a large student body sound exciting, or would you prefer a smaller, more intimate school setting? Since most of the college’s facts can be found online, you will want to find out the “real deal” that only a living, breathing human being can answer, so that you can see how the school’s information is manifested in students’ daily lives.

5 Questions to Ask at Your Next College Tour

December 29, 2021 10:11 AM
by Liz Montenegro
If you’re a high school student, it’s never too early to start making your list of colleges. As you narrow down your search, the best way to decide on the best fit for you is to step foot on campus,
Choosing which college to attend is a huge decision that involves many factors to consider. For a Christian student who is weighing their options, there are quite a few benefits to attending a Christian college. For starters, campus culture is important no matter where you go, but Christian colleges offer a faith-based environment where you can be surrounded by students and staff who share your core values. Campus activities such as chapel and religious services, Bible studies, and extracurriculars offered on Christian campuses are designed to help you grow in your faith.

Featured Christian Scholarship Programs

December 22, 2021 1:47 PM
by Liz Montenegro
Choosing which college to attend is a huge decision that involves many factors to consider. For a Christian student who is weighing their options, there are quite a few benefits to attending a