9

Since you are over 59 1/2, you can withdraw money from your IRA for whatever purpose you like without the 10% penalty. You'll still need to pay income tax on the amount though, as the withdrawal will count as income. So be careful that you don't take out so much that you can't afford to pay the tax (and/or get a penalty for underpayment) when you file. It ...


7

typically the lender doesn't see any repayment until after graduation (or unenrollment), and doesn't collect any interest during that period, right? Interest payments on subsidized loans are paid by the government. If you have an unsubsidized loan and choose not to pay the interest during school, it accrues - meaning the balance of the loan increases by the ...


5

As someone who's spouse has a very large amount of student debt, I can verify that I am not responsible for my spouse's student debt. That being said, The IBR plan does take my individual income into account, so she owes more per month when I earn money (and, conversely, when I was unemployed for 3 months her payment dropped below where it was when she was ...


5

I am not very familiar with the way student loans work for Department of Education, nor can I be sure that the author of the article used accurate terms. One possibility that the loan is valued at 104 is that the loan is Fixed Interest Rate arrangement at the beginning, and the subsequent market interest went down, causing the market value of the loan going ...


4

Your federal loans have the lowest interest rate even after they start charging you interest again. Therefore, after they start charging you interest again, you'll still be paying them off last. And right now, they're even cheaper than that! They're even cheaper than a level of cheapness that would make you pay them off last! So why wouldn't you pay them off ...


3

If you can earn your diploma in 1 year instead of 3, what do you do the following 2 years? If your answer is, Take a vacation, see the world, lay around the house watching TV and drinking bear, then your two scenarios end up pretty much the same. In both cases you have approximately $30,000 in debt plus accumulating interest. The only difference is what the ...


3

Mathematically, every dollar you pay toward debt is "paying off" interest at the rate of that debt (even if the interest is accruing but is deferred), so you should pay off the highest interest rate debts first, all else being equal. This is all contingent on you paying as much as possible towards the debt. If you were to instead just pay the ...


3

tl;dr; Do the refi and don't worry about your credit score. The refi as you described can save you almost $500 in the first year, and likely thousands over the course of the loan. The slight dip to your credit score due to the hard inquiry is only temporary, and it will likely be just one instead of multiples. Regarding the Average Age of Accounts change, ...


2

In general your student loans and your sibling student loans are two separate things. You knew full well the cost and conditions of your education when you signed on the dotted line. Whether your sibiling got better terms or not, isn't particularly relevant. Example: let's say you buy a car and then two years later your sibling buys the same car two years ...


2

Interest rates are priced according to a couple of principles [I'm ignoring high interest prices charged because a company 'can', like payday lending spots that rely on customer desperation and lack of financial literacy to charge exorbitant rates] What is the cost of 'risk free' lending?, ie: government Treasury bills or similar. If the overall market rate ...


2

There might be a formula with all of the variables needed, but I think you can answer this question easily enough without one, if you have actual loans in mind. It should be pretty straight-forward to run the numbers given the existing loan information, current rates, and how much over you can pay each month given any specific value of T. There are 4 parts ...


2

As far as I can tell (more info here https://www.gov.uk/guidance/how-interest-is-calculated-plan-2 ) interest on Plan 2 student loans is calculated daily and compounded monthly. This means on Day 1 they calculate 1/365 of the annual interest rate on the amount you currently owe. Remember this number, but don't do anything else with it yet. On Day 2 they do ...


1

Does Biden’s proposal include reimbursing students who paid money for their tuition? Since March 20, 2020, federal student loans have been at 0% interest, and payments are not required. This has been extended by executive order through September 30, 2021. (Source: studentaid.gov) Anything other than that is only a proposal and subject to change. Nerdwallet ...


1

Unfortunately, your question is off topic for this stack. The issue itself is problematic for the very reasons you state. And many that you don't. First - How to separate the needy from those who aren't? Does the student from the wealthy family who just graduated business school with loans but with a $100K/yr job get the same debt cancellation? I feel ...


1

I read somewhere that marrying someone does not make you responsible for their student loans, but in the above case seems like you will be responsible, and forced to pay for your spouse's loan. Your spouse is responsible for those loans. But you married the person with (hopefully; if not, shame on you!) open eyes, knowing that the spouse's debts must come ...


1

would consolidating my loans disqualify me from receiving this kind of aid? No one knows any details about what any hypothetical loan forgiveness plan would or would not cover. Would the Government actually pay the lenders the forgiveness amount? Or would it be through some sort of tax credit. No one knows at this point. It's all still just talk until an ...


1

Note: My main goal isn't to pay off the loans 100% before saving for a house, it's to get your loan amounts lower with the same payment amount so that you are paying less in interest in the long run. At no point would I refinance any of the loans. I also know that my math takes into account a future value of the car loan but a present value of student loans. ...


1

The math on questions like this is pretty easy, really. Excess funds goes toward the loans earning the highest interest rates, first. Where the difficulty comes from is psychologically, in my opinion. That is, say you use the windfall to knock off all those 6.55% loans. You need to use the money that was going monthly to pay those to then follow the same ...


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