What Happens If You Miss a Mortgage Payment?
While nobody wants to miss a mortgage payment, it can happen — especially if money is tight one month.
Generally, missed payments can cause your credit score to plunge and lead to late fees. Multiple missed payments can even lead to foreclosure, further damaging your credit and leaving you with no home. But it doesn’t all occur at once.
Here’s what happens if you miss a mortgage payment:
The typical timeline of missed mortgage paymentsCOVID-19 and mortgage foreclosuresHow does a late mortgage payment affect my credit score?How much will a mortgage late fee be?How can I skip a mortgage payment without penalty?
The typical timeline of missed mortgage payments
A mortgage payment that’s overdue by just a few days might not have any impact on your credit. That’s because most loan servicers offer a grace period where you can make a payment within 15 days after the due date without penalties. After the grace period, it may charge you a late fee, which should be explained in your loan documents.
But failing to make a payment altogether can negatively affect your credit and the home loan.
One missed mortgage payment
Your servicer will likely report the missed payment to the credit bureaus once it’s 30 days late. This can hurt your credit score. Generally, a late payment can cause more damage for people with higher credit scores.
If you haven’t made a payment for 36 days, your loan servicer is required to contact you — though it may reach out sooner.
Good to know: The servicer can’t start foreclosure proceedings right away, but the late payment is a serious matter nonetheless.
Two missed mortgage payments
Once you’re 45 days past due, your loan servicer may assign someone to your account. They’ll contact you and let you know about your options.
After 60 days — or two missed mortgage payments — you’ll incur a second late fee. The late payment will also be reported to the credit bureaus.
Don’t Miss: What to Do If You Fall Behind on Mortgage Payments
Three missed mortgage payments
After three missed payments, your loan servicer will likely send another letter known as a demand letter or notice to accelerate. The letter acts as a notice to bring your mortgage current or face foreclosure proceedings.
Additionally, your loan servicer will report the late payment to the credit bureaus, which may cause your credit score to drop even more.
Four missed payments
Once you’re 120 days past due, if you haven’t arranged to make repayments with your bank, your loan servicer can start the legal foreclosure process. It can also add attorney fees to your balance.
The loan servicer’s attorney will schedule a home sale and notify you of the foreclosure date. This date varies with each state, but it may be as soon as two or three months after receiving your demand letter.
Good to know: If you make arrangements with your lender or pay the total amount due before the date of sale, you may be able to keep your home.
The loan servicer will also report the newest late payment to the credit bureaus, and your credit score may drop once again. Each late payment can stay on your credit history for up to seven years.
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COVID-19 and mortgage foreclosures
Since early 2020, more than 7 million homeowners have taken advantage of mortgage forbearance programs to keep their accounts in good standing. Additionally, the U.S. government put a moratorium on foreclosures through the first half of 2021.
Although both measures helped foreclosure activity reach historic lows in 2020, homeowners may need to find another form of assistance. The foreclosure ban expired July 31, 2021, and about 1.75 million homeowners were still in some sort of forbearance program.
You might be able to extend your forbearance protection or get your account current by calling your mortgage lender and setting up a plan.
This can keep your account and credit in good standing. But if you can’t restart payments, your loan servicer will need to take extra steps — such as evaluating you for assistance programs — before starting the foreclosure process.
Mortgage forbearance
With mortgage forbearance, your loan servicer agrees to temporarily pause your monthly mortgage payments for a certain period of time. It also won’t start the foreclosure process.
During the coronavirus pandemic, lenders can report that your mortgage account is in forbearance. But, per the CARES Act, your account must be marked as “current” if it was in good standing before entering forbearance.
If your loan is federally backed, you can call your loan servicer and request pandemic-related mortgage forbearance until Sept. 30, 2021. Extensions may apply, too:
Fannie Mae and Freddie Mac loans: Conventional loan borrowers may request an extension for a maximum of 18 months of forbearance. You may be eligible for the extension if you entered forbearance before Feb. 28, 2021.Government-backed loans: Borrowers with a loan backed by the FHA, VA, or USDA may request an extension as long as they enrolled in forbearance on or before June 30, 2020.
Loan repayment options
If you’re 120 days or more past due on your mortgage payments or you’re about to exit a mortgage forbearance program, your loan servicer must reach out to discuss options.
Here’s how you may be able to rehabilitate your account and avoid foreclosure:
Defer payments: You can resume regular mortgage payments and move any missed or suspended payments to the end of the loan term. This option is usually available for Fannie- and Freddie-backed loans, VA loans, FHA loans, and USDA loans.Modify the loan terms: The servicer may agree to a loan modification, where you change the loan’s length or interest rate to make the payments more affordable. On federally backed loans, your servicer may be able to lower your mortgage payment by 25% or more.Enter a repayment plan: You can also create a repayment plan with your loan servicer if you have a conventional mortgage, FHA loan, USDA loan, or VA loan. You’ll spread your unpaid balance over a certain period of time — such as 12 months — on top of your regular mortgage payments. This will temporarily result in higher monthly payments.Reinstate the loan: This option lets you pay back the outstanding balance all at once. Under all federally backed mortgage programs, loan servicers can’t require you to pay off your forbearance balance with a lump sum. But you can choose to do this if you have the funds.
Foreclosure safeguards
The loan payment options mentioned above may work for borrowers who are financially sound. But the loan servicer may be able to start the foreclosure process if a borrower still can’t make payments after forbearance ends or after missing four payments.
However, homeowners are protected by three new safeguards established by the Consumer Financial Protection Bureau. Before starting foreclosure, the loan servicer must:
Ask the borrower to complete a loss mitigation application. The loan servicer must give you the opportunity to pursue loss mitigation, which may prevent foreclosure. Loss mitigation options include some of the repayment options we’ve already discussed (such as loan modification and repayment plans) as well as a short sale.Confirm the property is abandoned. If loss mitigation doesn’t work, the loan servicer may start foreclosure proceedings after confirming a property is abandoned under local and state laws.Reach out to the borrower. The loan servicer will also need to make a reasonable effort to reach the borrower.
These new safeguards apply on top of existing rules that bar loan servicers from starting the foreclosure process until a homeowner is at least 120 days past due on a home loan. They’ll be in effect from Aug. 31, 2021, to Dec. 31, 2021.
How does a late mortgage payment affect my credit score?
When you’re at least 30 days behind on mortgage payments, your loan servicer reports the information to the credit bureaus. The late payment can remain on your credit reports for up to seven years, and it may affect your credit score during this time.
Missing several payments in a row can damage your credit score more than missing only one payment. And multiple missed payments could result in foreclosure, which is one of the most damaging negative marks you can have on your credit.
How much will a mortgage late fee be?
Homeowners usually have a grace period of 15 days after the due date to make their mortgage payment. After that point, you may pay a late fee for each month that you miss a payment.
The late fee is set by state law, but it usually equals 3% to 6% of your monthly payment. So, if your mortgage payment is usually $1,000 and your late fee is 5%, then you may be on the hook for an extra $50 for each month you go without paying.
How can I skip a mortgage payment without penalty?
If you stop making mortgage payments but you’re in a foreclosure-prevention program — such as forbearance, loan modification, or a short sale — then you might be able to avoid foreclosure and the credit hit. Perform some research and request one of these options when you’re having financial problems.
The post What Happens If You Miss a Mortgage Payment? appeared first on Credible.
Student Loan Rehabilitation vs. Consolidation: Getting Out of Default
If you miss a payment on a federal student loan, your loan will be considered delinquent. After missing payments for a certain amount of time (270 days for most federal loans), your loan will enter default.
While getting back on track after ending up in default might feel impossible, the good news is that there are a few ways to recover — including rehabilitation and consolidation. Refinancing your loans could also be an option in some cases.
If you’re considering student loan rehabilitation vs. consolidation, here’s what you should know:
Rehabilitation vs. consolidation: What’s the difference?Student loan rehabilitationStudent loan consolidationStudent loan refinancing with a cosignerConsequences of ignoring student loan defaultRecovering from student loan default: How is my credit affected?
Rehabilitation vs. consolidation: What’s the difference?
Student loan rehabilitation and consolidation are the two of the most common ways to recover from federal student loan default. Which one is right for you will depend on your individual circumstances and financial goals.
Keep in mind: You also have the option to pay off your loans in full to get out of default. However, this is unrealistic for most borrowers struggling with defaulted loans.
Here’s how rehabilitation and consolidation work:
Rehabilitation: With this option, you’ll need to make on-time payments for nine to 10 consecutive months, depending on the type of loans you have. If you successfully complete the terms of your rehabilitation agreement, the default status will be removed from your loan as well as your credit report.Consolidation: You could also choose to consolidate your federal loans into a Direct Consolidation Loan, which could extend your repayment term up to 30 years. Keep in mind that before you can consolidate, you’ll have to agree to either repay the loan under an income-driven repayment (IDR) plan or make three consecutive, on-time, full payments first. Also note, that while this will remove the default status from your loan, it will remain on your credit report.RehabilitationConsolidationHow it worksRemoves default status from existing loansCombines old loans into new Direct Consolidation LoanProcessDirect or FFEL Loans:
Must agree to make 9 voluntary, reasonable, and affordable payments over the span of 10 consecutive monthsPayments will typically be 15% of your annual discretionary income divided by 12 (lender might calculate lower payment if you can’t afford this)
Perkins Loans:
Must make full monthly payments within 20 days of your due date for 9 consecutive monthsMust agree to:
Repay consolidated loan on an IDR plan; ORMake 3 consecutive, on-time, full monthly payments before consolidatingHow long to complete9 to 10 months
(depending on loan type)30 to 45 days
(might take longer if you decide to make 3 payments before consolidating)Can use for multiple loans?No, must be done separately for each loanYes, can consolidate multiple loans at onceAllowed if wages are being garnished?Yes, but wages might continue to be garnished during the rehab processNo, you can’t consolidate unless the order is lifted or judgment is vacatedImpact on credit reportIf you successfully make the required payments:
Default status will be removed from loan and from credit reportLate payments could stay on your credit reports for up to 7 yearsAfter consolidation:
Default status will be removed from loan but not from credit reportLate payments could stay on your credit reports for up to 7 yearsCan do more than once?No, can only be done once for each loan No, can consolidate to get out of default only onceProsMight lower your paymentsWill restore eligibility for other federal benefits, such as access to IDR plans and student loan forgiveness programsHaving default removed from credit report could help your credit scoreFaster process than rehabilitationCan consolidate multiple loansCan extend your repayment term up to 30 years, which could lower your paymentsConsLonger process than consolidationIf you want to rehabilitate multiple loans, must enter separate agreements for each of themWon’t stop wages being garnishedDoesn’t remove default status from credit reportAny interest or collection costs from your old loans will be added to your new loan balanceCan’t consolidate if wages are being garnished
Student loan rehabilitation
Best for: Borrowers who want to start rebuilding their credit
To rehabilitate defaulted federal loans, you’ll have to make consecutive, on-time payments for nine to 10 months, depending on the kind of loans you have.
If you successfully complete rehabilitation, the default status will be removed from both your loans and your credit report — this could make rehabilitation a good choice if you want to begin rebuilding your credit.
Keep in mind, though, that any late payments could stay on your credit report for up to seven years.
Tip: Due to the COVID-19 pandemic, payments and interest accrual on federal student loans have been paused by the CARES Act through Jan. 31, 2022.
If you decide to enter a rehabilitation agreement during this administrative forbearance period, your suspended monthly payments will qualify as on-time payments — meaning you could get credit for rehabilitation without actually paying anything.
However, if you haven’t made each of the required rehabilitation payments before the forbearance ends, you’ll still need to make the remaining payments.
Learn More: Federal Student Loans and COVID-19: What You Need to Know
Pros of rehabilitation
Default status removed from credit report: After making each of the required payments, the default will be cleared from your loans and from your credit report.Might lower your payments: If you have Direct Loans or loans made under the Federal Family Education Loan (FFEL) Program, your rehabilitation payments will generally be limited to 15% of your discretionary income. If you can’t afford this, your servicer might calculate a lower alternative after you provide documentation of your income and expenses. If you have Perkins Loans, your payments will stay the same.Restores eligibility for other federal benefits: Having defaulted loans makes you ineligible for federal protections, such as access to IDR plans and student loan forgiveness programs. But if you rehabilitate your loans, you’ll regain these benefits.
Cons of rehabilitation
Long process: You’ll have to make consecutive, on-time payments for nine or 10 months to complete rehabilitation — a much longer process compared to consolidation.Only applies to one loan: A rehabilitation agreement only applies to one loan. If you have multiple loans you want to rehabilitate, you’ll have to set up an agreement for each one.Won’t stop wage garnishment: If your wages are being garnished, agreeing to rehabilitation won’t necessarily stop these involuntary payments.
Check Out: How to Find Your Student Loan Balance
How to rehabilitate a defaulted student loan
If your federal loans are held by the Department of Education, follow these three steps to apply for rehabilitation:
Mail or fax a copy of your latest tax return or transcript. The Department of Education will use this information to calculate your monthly payment. Keep in mind that if you are married, live with your spouse, and file taxes separately, you’ll also need to submit your spouse’s tax returns. Additionally, if your tax returns don’t accurately represent your income, you can fill out the Loan Rehabilitation Income and Expense Form.Sign and return the agreement. You’ll be mailed a loan rehabilitation agreement to review within 10 business days of the Department of Education receiving your income information. This will include your payment amount, payment options, and agreement terms. You’ll need to sign and return this form to officially begin rehabilitation.Make the required payments. After the rehabilitation agreement is in place, you’ll need to make the agreed-upon monthly payments. For Direct or FFEL Loans, this means you’ll have to make nine consecutive, on-time payments. Perkins Loans, on the other hand, require 10 full payments. If you successfully make each of these payments, the default status will be removed from your loans and credit report.Tip: If your federal student loans aren’t owned by the Department of Education, you’ll need to reach out to your loan holder to see what steps are required to apply for rehabilitation.
Learn More: Federal Student Loan Repayment Calculator
Student loan consolidation
Best for: Borrowers who want to get out of default quickly
Another option for getting out of student loan default is consolidating your federal loans into a Direct Consolidation Loan. A request to consolidate your loans could be processed within as little as 30 to 45 days, which makes it a faster option than rehabilitation.
Additionally, while consolidation won’t change your interest rate, you can extend your repayment term up to 30 years. This could greatly reduce your monthly payments — though keep in mind that it also means you’ll pay more in interest over time.
Check Out: How to Consolidate Your Student Loans
Pros of consolidation
Faster process: Consolidating your federal student loans could take as little as 30 to 45 days — a much shorter process compared to the nine to 10 months of payments required by rehabilitation.Can combine multiple loans: Federal consolidation lets you combine multiple federal loans — leaving you with just one loan and payment to manage.Could reduce your payments: Through consolidation, you can extend your repayment term up to 30 years. This could greatly reduce your monthly payments — though remember that it also means you’ll pay more in interest over the life of the loan.
Cons of consolidation
Default won’t be removed from credit report: Unlike rehabilitation, consolidation won’t remove your default status from your credit report.Capitalization of interest and collection costs: After you consolidate your loans, any interest or collection costs from your old loans will capitalize — meaning they’ll be added to your new loan balance.Can’t consolidate if wages are being garnished: If you’re subject to wage garnishment, you won’t be able to consolidate until the wage garnishment order is lifted or judgment is vacated.
Learn More: Pros and Cons of Consolidating Student Loans
How to consolidate defaulted student loans
If you want to consolidate your federal loans, follow these three steps:
Contact your loan holder. Before you can consolidate defaulted federal loans, you must contact your loan holder and agree to either repay your consolidated loan under an IDR plan or make three consecutive, on-time, full monthly payments first. If you choose to make the three payments, the payment amount will be calculated by your loan holder based on what you can reasonably afford according to your total financial circumstances.Apply for consolidation. You can fill out an online application at StudentAid.gov or a paper application from your servicer. When completing the application, you’ll need to provide your personal information, list the loans you want to consolidate, and choose your repayment plan. Afterward, you’ll need to sign and submit the application.Manage your payments. A consolidation request generally takes 30 to 45 days to process. Once your loans have been consolidated, you can begin making your new monthly payments.Keep in mind: If you have a defaulted Direct Consolidation Loan that you want to reconsolidate, you must have at least one other eligible federal loan to include in the consolidation.
However, if you have a defaulted FFEL Consolidation Loan, you don’t need to include any additional loans in the new consolidation as long as you agree to repay the loan on an IDR plan.
Check Out: Private Student Loan Consolidation
Student loan refinancing with a cosigner
Best for: Borrowers who know someone with good credit who is willing to act as a cosigner
Refinancing your student loans could also help you get out of default. With this process, your federal loans will be paid off with a new private student loan. You’ll typically need good to excellent credit to qualify for refinancing, which could be difficult if your loans are in default.
To increase your chances of approval, consider applying with a creditworthy cosigner. A cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to share responsibility for the loan. Having a cosigner might also get you a lower interest rate than you’d get on your own.
Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as IDR plans and student loan forgiveness programs.
You’ll also no longer be eligible for the suspension of federal student loan payments and interest accrual under the CARES Act.
Learn More: Defaulted Student Loans: Can You Refinance?
Pros of refinancing
Might get a lower interest rate: Depending on your credit and if you apply with a cosigner, you might qualify for a lower interest rate. This could save you money on interest and even help you potentially pay off your loan faster.Could reduce your payments: If you choose to extend your repayment term, you could reduce your monthly payments. Just remember that this means you’ll pay more interest overall.Can combine multiple loans: Through private refinancing, you can consolidate multiple federal as well as private loans.
Cons of refinancing
Could be hard to qualify: Defaulting on student loans can severely damage your credit, which could make it difficult to qualify for refinancing.Loss of federal benefits: If you refinance your federal loans into a private loan, you’ll no longer have access to federal benefits and protections.Lack of repayment options: Private loans don’t offer federal student loan repayment options. For example, you generally won’t be able to sign up for an IDR plan after you refinance.
Check Out: Student Loan Consolidation vs. Student Loan Refinancing
How to refinance a defaulted student loan
If you decide to refinance a defaulted student loan, follow these steps:
Check your credit. When you apply for refinancing, the lender will review your credit to determine your creditworthiness — so it’s a good idea to check your credit beforehand so you know where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.Compare lenders and pick a loan option. Be sure to compare as many lenders as possible to find the right loan for your situation. Consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements. After comparing lenders, choose the loan option that works best for your needs.Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs. Also be prepared to provide information regarding each of the loans you want to refinance.Manage your payments. If you’re approved, continue making payments on your old loans while the refinance is processed. Afterward, you might consider signing up for autopay so you won’t miss any payments in the future — several lenders offer a rate discount to borrowers who opt for automatic payments.
Before your refinance, remember to consider as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.
LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amountsMin. credit score
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Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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4.54%+N/A10, 15, 20$7,500 up to $200,000
(larger balances require special approval)Does not discloseFixed APR:
4.54%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$7,500 up to $500,000Loan terms (years):
10, 15, 20Max. undergraduate loan balance:
$250,000 – $500,000Time to fund:
4 monthsRepayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a resident of KentuckyCustomer service:
PhoneSoft credit check:
NoCosigner release:
After 36 monthsLoan servicer:
Kentucky Higher Education Student Loan CorporationMax. graduate loan balance:
$250,000 – $500,000Credible Review:
Advantage Education Loan reviewOffers Parent PLUS Refinancing :
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.15%+
1.87%+5, 7, 10, 15, 20$10,000 up to $250,000
(depending on degree)690Fixed APR:
2.15%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$10,000 to $400,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 – $149,000Max. Graduate Loan Balance:
$200,000 – $400,000Offers Parent PLUS Refinancing:
Does not disclose
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Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.44%+1
2.24%+15, 7, 10, 15, 20$10,000 to $500,000
(depending on degree and loan type)Does not discloseFixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score:
Does not discloseLoan amount:
$10,000 to $750,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.99%+2
2.94%+25, 7, 10, 12, 15, 20$5,000 to $300,000
(depending on degree type)Does not discloseFixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
All states except for MECustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
College Ave Servicing LLCMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $300,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.16%+
2.11%+5, 7, 10, 15, 20$5,000 to $500,000
680
Fixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score:
680Loan amount:
$5,000 to $500,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all states, except MS and NVCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
FirstMarkMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000Offers Parent PLUS refinancing:
YesMin. income:
$65,000 (for 15- and 20-year products)
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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1.8%+5
1.8%+55, 10, 15, 20$1,000 to $250,000700Fixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score:
700Loan amount:
$7,500 to $200,000Loan terms (years):
5, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance:
$150,000 to $249,000Max. Graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing :
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.47%+3
2.39%+35, 7, 10, 12, 15, 20Minimum of $15,000680Fixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score:
680Loan amount:
No maximumLoan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
ForbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
MohelaMax. Undergraduate Loan Balance:
No maximumMax. Graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.47%+4
2.44%+45, 10, 15, 20$5,000 to $250,000670Fixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score:
670Loan amount:
$5,000 to $250,000Loan terms (years):
5, 10, 15, 20Repayment options:
Academic deferment, military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must be U.S. citizen or permanent residentCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax undergraduate loan balance:
$250,000Max graduate loan balance:
$250,000Offers Parent PLUS refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.24%+7N/A5, 7, 10, 12, 15, 20Up to $300,000670Fixed APR:
2.24%+7Variable APR:
N/AMin. credit score:
670Loan amount:
Up to $300,000Loan terms (years):
5, 7, 10, 15, 20Time to fund:
Usually one business dayRepayment options:
Academic deferral, military deferral, forbearance, death/disability dischargeFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsMax. undergraduate loan balance:
$300,000Max. graduate balance:
$300,000Offers Parent PLUS loans:
YesMin. income:
None
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.05%+
3.05%+7, 10, 15$10,000 up to the total amount of qualified education debt670Fixed APR:
3.05%+Variable APR:
3.05%+Min. credit score:
670Loan amount:
$10,000 up to the total amountLoan terms (years):
7, 10, 15Repayment options:
Military deferment, loans discharged upon death or disabilityFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
AESMax. Undergraduate Loan Balance:
No maximumMax. Gradaute Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.89%+N/A5, 8, 12, 15$7,500 to $300,000670Fixed APR:
2.89%+Variable APR:
N/AMin. credit score:
670Loan amount:
$7,500 to $300,000Loan terms (years):
5, 8, 12, 15Repayment options:
Does not discloseFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 12 monthsLoan servicer:
PenFedMax. Undergraduate Loan Balance:
$300,000Max. Graduate Loan Balance:
$300,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.29%+N/A5, 10, 15$7,500 up to $250,000
(depending on highest degree earned)680Fixed APR:
3.29%+Variable APR:
N/AMin. credit score:
680Loan amount:
$7,500 to $250,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance:
$150,000 – $249,000Max. Graduate Loan Balance:
$200,000 – $249,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.49%+6
2.25%+65, 7, 10, 15, 20$5,000 up to the full balance of your qualified education loansDoes not discloseFixed APR:
2.49%+6Variable APR:
2.25%+6Min. credit score:
Does not discloseLoan amount:
$5,000 up to the full balanceLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, military defermentFees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
NoMax undergraduate loan balance:
No maximumMax graduate loan balance:
No maximumOffers Parent PLUS refinancing:
YesAll APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 6SoFi Disclosures
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Consequences of ignoring student loan default
If you’ve defaulted on federal student loans, it’s important to address the default instead of ignoring it. This way, you have a better chance of avoiding or resolving some of the potential consequences of default, which include:
Damaged credit: Missing payments and defaulting on a student loan can severely damage your credit. The longer you continue to miss payments on your loan, the more harm will come to your credit. Keep in mind that having bad credit could make it hard to access more credit in the future.Loan acceleration: If you default on a loan, your entire balance could become due.Loss of hardship benefits: Loans in default no longer have access to federal hardship benefits, such as deferment and forbearance. You also won’t be able to access more federal financial aid.Wage garnishment: In some cases, your wages could be garnished, or your tax returns could be withheld.Collection costs: Your defaulted loan might be sent to a collections agency that will try to obtain payments from you. If this happens, you’ll be held responsible for covering the collection costs incurred by your loan holder.
Learn More: 6 Ways Student Loans Can Impact Your Credit Score
Recovering from student loan default: How is my credit affected?
How your credit is affected will depend on the method you choose to get out of default. Here’s what you can generally expect:
Rehabilitation: If you successfully rehabilitate your loan, the default status will be removed from your loan and your credit report, which could have a positive impact on your credit. Any late payments you made on your loan will remain on your credit report for up to seven years — but the more time that passes, the less effect these will likely have on your credit.Consolidation: Unfortunately, consolidating your federal loans doesn’t remove the default from your credit report — like late payments, a default can stay on your credit report for up to seven years. But if you’re careful to make on-time payments on your consolidated loan, you might see an improvement in your credit score over time.Refinancing: When you apply for refinancing, the lender will perform a hard credit check to determine your creditworthiness. This could cause a slight drop in your credit score — though this is usually only temporary, and your score will likely bounce back within a few months. Additionally, refinancing might actually help your credit in the long run. For example, consistently making on-time payments on your refinanced loan could help you build a positive payment history and raise your credit score.
If you decide to refinance your student loans, remember to consider as many lenders as possible to find the right loan for your needs.
This is easy with Credible: You can compare your prequalified rates from multiple lenders in two minutes — without affecting your credit.
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The post Student Loan Rehabilitation vs. Consolidation: Getting Out of Default appeared first on Credible.
Is Going to College Worth It? How to Decide
With education costs steadily rising, you might wonder if going to college is still worth it. Ultimately, there’s no clear answer to this question — it depends on your individual circumstances as well as the degree you choose and your job prospects after graduation.
Here’s how to decide if college is worth it:
Benefits and disadvantages of going to collegeWhy college could be worth itWhy college may not be worth itHow to cover the cost of collegeAlternatives to getting a college degree
Benefits and disadvantages of going to college
If you’re trying to decide whether college is worth it for you, here are a few pros and cons to keep in mind:
ProsConsCould help you prepare for certain professional fields where education is required (such as teaching or medicine)Will likely earn more money with a college degree compared to a high school diploma or GEDCollege graduates are less likely to be unemployed compared to people with less educationCan be expensive and leave you with student loan debtGetting a well-paid job after college isn’t guaranteedYou might not end up liking the degree and career path you choose
Why college could be worth it
Here are four potential benefits that could make college worth it:
Might need a degree for your career field
While some career paths don’t have specific education requirements, others do. For example, you’ll generally need a degree to work in medicine, engineering, physical therapy, or other regimented fields.
If you plan to work in a profession that has these requirements, then attending college will likely be a necessity.
Will likely earn more money
College graduates generally earn more compared to people who don’t have a degree. For example, in 2020, workers with a bachelor’s degree had median weekly earnings of $1,305 while workers with a high school diploma earned just $781, according to the Bureau of Labor Statistics.
If you want to earn a higher salary, then going to college could be worth it.
Less likely to be unemployed
In addition to earning higher wages, college graduates are also less likely to be unemployed compared to people with less education. For example, in March 2021, the unemployment rate for workers with a bachelor’s degree or higher was 3.7% compared to 6.7% for high school graduates with no college, according to the Bureau of Labor Statistics.
Tip: The connections that you make in college with peers, mentors, and professors could also help you find job opportunities once you enter the workforce.
If you hope to have steady employment, then attending college might be a good idea.
Learn More: College ROI: 6 Tools to Gauge the Return on Your Degree
Why college may not be worth it
There are also a few reasons why college might not be worth it, including:
Can be expensive and might require student loans
The cost of attending college has steadily risen over time, making it harder to pay for without taking out student loans. The average student loan debt for college students in 2021 was $39,351.
Keep in mind that this debt can end up being much higher for more expensive programs, such as law or medicine.
good job isn’t guaranteed
While earning a college degree can help you find employment, getting a good job after you graduate isn’t guaranteed.
Additionally, some professions don’t require a traditional four-year degree. If you’re interested in one of these jobs, then going to college likely isn’t worth the time or money.
Here are several jobs that might not require a bachelor’s degree:
Dental assistantElectricianPlumberProgrammerWebsite designer
You might not like your school or degree
Even if you attend school tours and learn as much as you can about a program before enrolling, there’s always a chance that the school or degree might not be a good fit for you. If this happens, you might end up dropping out of school.
Keep in mind: The dropout rate for undergraduate students is 40%, and 30% of them drop out before reaching their sophomore year, according to EducationData.org.
Additionally, 57% of student loan borrowers don’t end up graduating, according to OneClass — so if you drop out, you could still have student loan debt to pay off, which could be difficult if you don’t have the education to qualify for higher-paying jobs.
Check Out: Ranking: Return on Investment by University
How to cover the cost of college
If you decide that earning a degree is right for you but aren’t sure how to pay for college, follow these five steps:
1. Fill out the FAFSA
Your first step in paying for college should be completing the Free Application for Federal Student Aid (FAFSA). Your school will use your FAFSA results to determine what federal student loans and other federal aid you qualify for.
Tip: Even if you think you might not be eligible for federal aid, be sure to fill out the FAFSA anyway. You might be surprised to find out you qualify after all.
Learn More: How to Apply to College and When You Should Apply
2. Apply for scholarships and grants
Unlike student loans, college scholarships and grants don’t have to be repaid — which makes them a great way to pay for college. There’s no limit to how many scholarships and grants you can get, so it’s a good idea to apply for as many as you can.
Some organizations that might offer these awards include:
Nonprofit organizationsLocal and national businessesProfessional associations in your field
You might also be eligible for school-based scholarships depending on your FAFSA information.
Tip: You can use sites like Fastweb and Scholarships.com to easily search for scholarships that you might qualify for.
Check Out: 5 Steps to Take If You Can’t Afford College
3. Get a job or apply for a work-study program
You could also consider getting a job while you’re in school to help cover your expenses. Or you might participate in the federal work-study program, which provides part-time employment to undergraduate and graduate students with financial need.
Tip: If you decide to work while going to school, be sure to leave yourself enough time to study, too.
Learn More: When You Should Apply for a Student Loan
4. Take out federal student loans
If you need to borrow for school, it’s usually best to start with federal student loans. This is mainly because these loans come with federal benefits and protections — such as access to income-driven repayment plans and student loan forgiveness programs.
After you fill out the FAFSA, your school will send you a financial aid award letter detailing the federal loans and financial aid you qualify for. You can then choose which aid and loans to accept.
Tip: There are several student loan forgiveness programs available to federal student loan borrowers, which can help reduce the amount you’ll have to repay. To qualify for one of these programs, you’ll typically need to work in a certain field and make qualifying payments for a specific amount of time.
For example, if you’re employed at a nonprofit or government agency and make qualifying payments for 10 years, you could be eligible for Public Service Loan Forgiveness. Or if you’re a teacher, you might be able to have up to $17,500 of your federal loans forgiven through the Teacher Loan Forgiveness Program if you work in a low-income school full-time for five consecutive years.
Check Out: Subsidized vs. Unsubsidized Student Loans: Know the Difference
5. Use private student loans to fill any gaps
After you’ve exhausted your scholarship, grant, and federal student loan options, private student loans could help fill any financial gaps left over. These loans are offered by private lenders, such as online lenders as well as traditional banks and credit unions.
If you’re considering federal vs. private student loans, keep in mind that private loans don’t come with federal protections. However, they do offer some benefits of their own. For example, you can apply at any time, and you might be able to borrow more than you would with a federal loan.
Tip: You’ll typically need good to excellent credit to get approved for a private student loan — a good credit score is usually considered to be 700 or higher. There are also some lenders that offer student loans for bad credit, but these loans usually come with higher interest rates compared to good credit loans.
If you’re struggling to get approved, consider applying with a creditworthy cosigner to improve your chances. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
Rates and terms can vary by lender — so if you decide to take out a private loan, be sure to shop around and consider as many lenders as possible. This way, you can find the right loan for your needs.
Credible makes this easy: You can compare your prequalified rates from our partner lenders in the table below in just two minutes.
LenderFixed rates from (APR)Variable rates from (APR)Loan amountsLoan terms (years)Cosigners allowed
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.09%+
1.48%+$2,001 to $200,0007 to 15 years
(depending on loan type)YesFixed APR:
3.09%+Variable APR:
1.48%+Min. credit score:
540Loan amount:
$2,001 to $200,000 Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
0.25% to 1.00% automatic payment discount, 1% cash back graduation rewardEligibility:
Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking programCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsLoan servicer:
Launch Servicing, LLC
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.23%+1
1.03%+1$1,000 to $350,000
(depending on degree)5, 10, 15YesFixed APR:
3.23%+1Variable APR:
1.03%+1Min. credit score:
720Loan amount:
$1,000 to $350,000Loan terms (years):
5, 10, 15Loan types:
Any private or federal student loanRepayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner)Customer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Firstmark Services
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.94%+2,3
0.99%+2,3$1,000 up to 100% of the school-certified cost of attendance5, 8, 10, 15YesFixed APR:
2.94%+2,3Variable APR:
0.99%+2,3Min. credit score:
Does not discloseLoan amount:
$1,000 up to cost of attendanceLoan terms (years):
5, 8, 10, 15Repayment options:
Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.Customer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsLoan servicer:
College Ave Servicing LLC
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>3.75%+1.08%+$1,000 to $99,999 annually
($180,000 aggregate limit)7, 10, 15YesFixed APR:
3.75%+Variable APR:
1.08%+Min. credit score:
Does not discloseLoan amount:
$1,000 to $99,999 annually>($180,000 aggregate limit)Loan terms (years):
7, 10, 15Repayment options:
Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Not available to residents of AZ, IA, or WICustomer service:
Phone, emailSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
American Education ServicesMin. income:
Does not disclose
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.0%+7
2.17%+7$1,000 to $200,0007, 10, 15YesFixed APR:
3.0%+7Variable APR:
2.17%+7Min. credit score:
750Loan amount:
$1,000 to $200,000Loan terms (years):
7, 10, 15Repayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and have a minimum income of $30,000.Customer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.83%+8
1.69%+8$1,001 up to 100% of school certified cost of attendance5, 10, 15YesFixed APR:
3.83%+8Variable APR:
1.69%+8Min. credit score:
670Loan amount:
$1,001 up to cost of attendanceLoan terms (years):
5, 10, 15Repayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearanceFees:
Late feeDiscounts:
Autopay, reward for on-time graduationEligibility:
Must be an Indiana resident or a U.S. citizen attending an eligible Indiana schoolCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 48 monthsLoan servicer:
American Education Services
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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3.75%+N/A$1,500 or $2,000 up to school’s certified cost of attendance
(depending on school type and minus other aid received)15YesFixed APR:
3.75%+Variable APR:
N/AMin. credit score:
670Loan amount:
$1,500 up to cost of attendance less aidLoan terms (years):
10, 15Repayment options:
Full deferral, interest only, immediate repayment, academic deferral, forbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.Customer service:
Email, phoneSoft credit check:
YesCosigner release:
After 48 monthsLoan servicer:
American Education Services (AES)
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
3.5% – 12.6% APR9
1.13% – 11.23% APR9Up to 100% of the school-certified cost of attendance10, 15YesFixed APR:
3.5% – 12.6% APR9Variable APR:
1.13% – 11.23% APR9Min. credit score:
Does not discloseLoan amount:
$1,000 up to cost of attendanceLoan terms (years):
10 to 15Repayment options:
Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner.Customer service:
Phone, chatSoft credit check:
YesCosigner release:
After 12 consecutive on-time paymentsLoan servicer:
Sallie MaeCompare rates without affecting
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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures
lternatives to getting a college degree
If you’re unsure whether getting a traditional four-year college degree is right for you (or if you aren’t quite ready for it), here are a few alternatives to consider:
Community collegeTaking classes at a community college can be much less expensive compared to what you’d pay at a four-year university. This could make it easier to explore various interests at a much lower cost. You could also think about completing your general education courses at a community college before transferring to a four-year school to reduce your overall expenses.Trade schoolThis type of school offers career-oriented programs in a shorter time frame than a traditional four-year degree — often at a lower cost, too. Some popular career programs provided by trade schools include auto body and maintenance, plumbing, welding, and more.Coding bootcampIf you’re interested in becoming a software developer or programmer, attending a coding bootcamp might be a good option. Coding bootcamps are intensive programs that generally take three to four months to complete. While these programs aren’t cheap, they’re typically less expensive than a four-year degree.Gap yearIf you’re not sure what you want to do career-wise, taking a gap year could be a good idea. You can use this time to explore your interests and enrich yourself before attending college.
If you decide that college is worth it for you and want to take out a private student loan, remember to consider as many lenders as you can to find the right loan for your needs. This is easy with Credible — you can compare your prequalified rates from multiple lenders in two minutes.
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The post Is Going to College Worth It? How to Decide appeared first on Credible.
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