Jumbo Student Loans Increasing

MoneyTips

“Jumbo shrimp” sounds contradictory but can be quite enjoyable. “Jumbo debt”? Not so much, especially for students.

There’s nothing inherently wrong with large student loans, and historically the default rate has been low on such loans. People who borrow large sums of money usually go for advanced degrees that translate into higher salaries. However, a February 2018 study by the Brookings Institution found that large-balance student loan borrowers have increased dramatically in recent years – and the typical profile for such borrowers has changed.

In 1992, only 2% of student loan borrowers owed over $50,000 upon leaving school. In 2014, that number rose to 17%. Just over half of total student loan debt is held by this small percentage of large-balance borrowers.

Default rates are low in this group (typically around 4%), but the consequences are large. Student loan borrowers with balances over $50,000 account for almost 30% of defaulted student …

Video: How To Get Lower Mortgage Insurance Premiums

MoneyTips

Is your mortgage lender insisting you get mortgage insurance? In our exclusive video above, Mortgage Advisor Casey Fleming explains how your premiums will be calculated and shares tips on how to get the lowest premiums possible. The higher your credit score, the lower your premiums will be.

You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

The Geography Of Student Loan Debt

MoneyTips

America’s outstanding student loan debt reached $1.52 trillion in the first quarter of 2018, according to information from the New York Fed. Have you ever wondered whether a significant amount of that debt is located in your city – or even in your zip code? Wonder no more.

The Mapping Student Debt Project at the Washington Center for Equitable Growth used extensive data from Experian and the annual American Community Survey conducted by the U.S. Census Bureau to create a color-coded interactive student loan debt map. Map filters allow you to display color-coded average student loan balances, delinquency rates, and median incomes for more than 41,000 zip codes in America.

You can hover the cursor over a particular zip code to find information on the average student loan balance and delinquency rate for that zip code, as well as the median income. Racial demographics …

Your Unpaid Student Loan Could Cost You Your Tax Refund

MoneyTips

You anticipated a large refund on your taxes to pay off some bills and put some money away in a rainy-day fund. Unfortunately, the money never showed up. What happened?

Your refund may have gone toward an unpaid bill selected by the government – your unpaid student loan.

Your federal student loan is considered to be in default if you haven’t made a payment in 270 days. When that happens, the federal government has the right to claim your tax refund as payment against the debt, in a process known as an administrative offset. In essence, the government isn’t giving any tax refunds back to you if you aren’t attempting to repay what you already owe the government.

If you’ve lost a tax refund to an offset, you aren’t alone. Student loan default rates are near 11%, giving the government plenty of offset targets. In fiscal 2017, the Treasury Department executed $2.6 billion in tax refund offsets on approximately 1.3 million

Student Loan Interest Rates Rise

MoneyTips

Are you planning to take out student loans soon? Be prepared to pay more for the privilege.

Every year, the federal government sets the annual percentage rates for student loans taken out in the following academic year. The rate is set based on the interest rates for ten-year Treasury notes, plus a fixed margin that varies based on the type of federal loan you’re receiving – undergraduate, graduate, or PLUS loans (for parents of students or graduates that have maxed out their graduate loan capability).

Unfortunately for student borrowers, interest rates on ten-year Treasury notes are rising just as the rates are being set for the 2018-2019 academic year. May’s rates are nearing the 3% mark, which hasn’t been seen since December of 2013.

Rates for undergraduate loans will climb to 5.05% from the current 4.45%. Graduate loans will increase to 6.60% from 6.00%. PLUS loans change to 7.6% from 7%. These changes represent increases of 13.5%, 10%, and…

Current State Of Student Loan Debt

MoneyTips

America has reached a new economic milestone – or maybe a millstone – of $1.52 trillion. Which of the following does this number represent?

1. The latest contract for a professional athlete
2. Your current credit card balance
3. America’s collective student loan debt

While the first choice sounds strangely plausible, and some days you may feel like the second choice is correct, $1.52 trillion represents America’s total outstanding student loan debt as of March 2018 – according to the new consumer credit report from the New York Federal Reserve.

For perspective on how fast student loan debt is rising, consider that in 2013, the total student loan debt was under $1.15 trillion. Over the past five years, total student loan debt has increased by almost 33%. Approximately 45 million Americans – roughly one-quarter of all American adults – owe money on student loans.

According to ValuePenguin, the average student loan deb…

5 Worst Mistakes of Online Borrowing

MoneyTips

Getting a personal loan online has grown into a multi-billion-dollar industry, with lenders ranging from individuals in peer-to-peer programs to big banks. Although countless Americans have been helped by the ability to borrow money without leaving home, others have hurt themselves by being ill prepared for the process.

“Because the loans are being evaluated remotely, the chances of making a mistake are increased,” warns Todd Nelson, Business Development Officer of LightStream.com, which offers personal loans from $5,000 to $100,000. In an exclusive MoneyTips interview, Nelson reveals the 5 worst mistakes you can make when borrowing money online.

  1. Ignoring inaccuracies on a credit report
    Credit bureaus constantly receive information about your credit use and history, contributing to a profile that lenders …

5 Credit Tips For New College Grads

MoneyTips

Congratulations! You made it through college armed with a degree, and hopefully a job. Now it’s time to move on to the next stage of your education: life. The tests are all open book, the deadlines are varied, and some lessons are much harder and carry higher stakes than others do. Worst of all – there is very little grading on the curve.

Sure, you know your GPA, but do you know your credit score? You can see it for free right now using Credit Manager by MoneyTips.

One of your first post-graduate lessons should be on the proper use of credit. Poor early decisions regarding credit can have adverse effects for years. In the words of millennial money expert Stefanie O’Connell, “It’s really important for millennials to understand what a critical role cr…

How We Searched For Our Homes (Infographic)

MoneyTips

Buying a home will probably be the most expensive item you ever purchase… until you buy the next one! MoneyTips is happy to help you get free mortgage and refinance quotes from top lenders.

Finding the right home at the right price is always a challenge. Discover how other American homebuyers searched for – and found – their homes in our infographic above, based on the latest report from the National Association of Realtors. See how this compares to our 2016 infographic on the subject.

Our next installment in the Keys to Homeownership series will look at how homeowners chose the homes they bought.

You can check your credit score and read your credit report for free within minutes using