This week in student loan news, we see a guide to refinancing and consolidating student loans, recent graduates have slightly better job prospects, and one lucky USC student finds the key to paying off his student loans: winning the $150k Powerball.
A guide to refinancing or consolidating your student loans
Don’t take our word for it, USNews wrote a guide to refinancing and consolidating your student loans and highlighted the key benefit of refinancing – a lower rate. Partnering with other experts in the field, this guide focuses on the difference between refinancing and consolidation and which borrowers benefit from refinancing the most. Here’s a preview: “For borrowers with private student loans at high interest rates, refinancing is basically a no-brainer.” We couldn’t agree more. The author also cautions against refinancing federal loans if you need federal benefits such as income-based repayment. We agree but just remember, the only way to lower your interest rate on a federal loan is through refinancing. The federal consolidation program is just that – taking all your federal loans and putting them on one monthly payment.
One thing that is not made clear in this guide is that refinancing does offer you the opportunity to get your rates on a more favorable term, longer or shorter depending on your loan. We never charge prepayment penalties so if you are able to pay more towards your loan, it can help you accelerate getting out of debt faster without actually shortening your term.
Read the full guide here.
Employers are (sort of) hiring
Job prospects are looking up for recent college grads –there are more job openings and higher demand for college grads than in recent years. In a survey conducted by CareerBuilder, close to 75 percent of companies surveyed plan on hiring recent graduates – the highest that figure has been in nearly a decade. Most companies are favoring students who have completed internships with a 63 percent offer rate, compared to a 35 percent offer rate to those without internships.
Still, the unemployment rate for college graduates has hit 5.6 percent, with nearly 13 percent of graduates underemployed. Wages as a whole are predicted to be lower for recent grads, with more periods of unemployment in the next 10 to 15 years, compared to those who graduated before the recession.
Read the full story here.
USC student wins the Powerball, pays off student loans
Many of us dream about what we’d do if we won the lottery, but that dream has become a reality for one lucky USC student. The student bought a Powerball ticket from a Publix in Lexington County, and won $150,000 when the winning numbers were announced. In addition to paying off his student loans, the lucky winner also has plans to take his family on vacation and buy a new lawn mower.
Read the full story here.