This week in Fintech

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This week in Fintech
Every day we bring you fresh insights about Fintech from an elite group of Authors who are just like you – senior executives, entrepreneurs and investors on the frontlines of the global Fintech & Crypto revolution. Once a week Daily Fintech’s Editor summarises these posts so that busy people can get a peek at what […] The post This week in Fintech appeared first on Daily Fintech. [...]
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Got Perkins Loans? Here’s How 5 Years in Public Service Could Wipe Them Out

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Got Perkins Loans? Here’s How 5 Years in Public Service Could Wipe Them Out
The Perkins loan program may be history, but that doesn’t stop it from haunting your present. Perkins loans were student loans designed for undergraduate and graduate students who showed exceptional financial need — the loans charged 5% interest, and you had 10 years to pay them off.  The program ended on Sept. 30, 2017, but you’re still on the hook for paying off any of the Perkins loans you took out.  But if you’re working in public service, you could potentially have your Perkins loans canceled.  Like other student loan forgiveness programs, obtaining Perkins loan forgiveness is not an easy or quick process. But if it could mean the difference between paying back thousands of dollars in student debt, it could be worth your effort. How to Find Out If You’re Eligible for Perkins Loan Forgiveness To be eligible for Perkins loan cancellation, you must be working full time in a qualifying public service role (we’ll explain the discharge option a little later) and your loans cannot be in default. To default on federal loan repayment means you’ve failed to make your monthly payment for 270 days (nine months). Additionally, if you refinance or consolidate your Perkins loans, you are not eligible for this forgiveness program. We’ve broken down the options into categories based on how much of your loan can be forgiven and type of service. 1. Up to 100% Forgiveness The most comprehensive in terms of job options is for up to 100% loan cancellation for five years of service. The amount forgiven is granted in increments: 15% for the first and second years. 20% for the third and fourth years. 30% for the fifth year. This category includes the following professions: Teacher. To qualify for the Perkins Loan Teacher Cancellation, you must either teach at a low-income school or teach one of the following subjects: mathematics, science, foreign languages, bilingual, special education or another subject area that is facing a shortage of qualified teachers in your state. Employee at a child or family services agency. Faculty member at a tribal college or university (for service that began on or after Aug. 14, 2008). Firefighter (for service that began on or after Aug. 14, 2008). Law enforcement or corrections officer. Librarian with a master’s degree working at a Title I-eligible elementary or secondary school or at a public library that serves Title I-eligible schools (for service that began on or after Aug. 14, 2008). Nurse or medical technician. Professional provider of early intervention disability services. Public defender (for service that began on or after Aug. 14, 2008). Speech pathologist with master’s degree working at a Title I-eligible elementary or secondary school (for service that began on or after Aug. 14, 2008). If you’re an educator at a pre-K or licensed childcare program (for service that began on or after Aug. 14, 2008) or a Head Start program, it will take seven years to forgive the loan, which is granted in the following increments: 15% for the first six years. 10% for the seventh year. 2. Up to 70% Forgiveness AmeriCorps VISTA or Peace Corps volunteers can get up to 70% of their loans forgiven for four years of service. Cancelation is also granted in increments: 15% for the first and second years. 20% for the third and fourth years. 3. Forgiveness for Military Service Those who serve in the U.S. armed forces in a hostile fire or imminent danger pay area qualify for Perkins loan cancellation according to the following classifications: Up to 50% for four years for borrowers whose active duty service ended before Aug. 14, 2008. Up to 100% for five years for borrowers whose active duty service includes or began on or after Aug. 14, 2008. 4. 100% Discharge Discharge and forgiveness essentially mean the same thing — they wipe out your student loan — but a discharge is due to circumstances, while forgiveness is dependent upon your line of work. The following conditions are eligible: The school closed before the borrower could complete the program of study (applies to loans received on or after Jan. 1, 1986). The borrower is totally and permanently disabled. The borrower died. (Read more about a student loan death discharge here.) The borrower filed for bankruptcy — but only if the bankruptcy court rules that repayment would cause undue hardship. (That’s rare.) FROM THE DEBT FORUM Credit card debt 7/29/19 @ 5:18 PM F How to pay off medical bills? 8/29/19 @ 2:39 PM N Student loans!! 8/9/19 @ 1:07 PM J Payday loans - essential or evil? 2/27/19 @ 4:52 PM F See more in Debt or ask a money question How Do I Apply? To qualify for a Perkins loan cancellation or discharge, you’ll need at least one year of professional experience before applying (or one academic year for teachers).  Because your school is considered the lender (the federal government subsidizes the loan), you should contact your school (or its loan servicer) to obtain the forms and instructions for your Perkins loan forgiveness. Pro Tip Schools must automatically defer loans during periods when you are performing service that will qualify for loan cancelation — you do not need to apply for concurrent deferment.  Every school has its own application, but in general, you’ll need to fill out your personal information, your type and length of service, and certification from your employer. What Happens if I Receive Forgiveness? If you’re approved for Perkins loan forgiveness, the principal amount of your loan will be canceled incrementally according to the schedule associated with your forgiveness classification. Any interest that the loan accrued during that year will also be forgiven. What Happens if I Don’t Receive Forgiveness? If you’re denied Perkins loan forgiveness, all is not lost, particularly if you have other federal loans to consolidate. Consolidation disqualifies your loans for the Perkins loan forgiveness program, but by consolidating your Perkins loans, they then qualify for Public Service Loan Forgiveness. However, keep in mind that your Perkins loans must be paid in 10 years, so there’s a good chance you’d have your loans paid off before you reached the 10 years of service the Public Service Loan Forgiveness program requires.  Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder. Read her bio and other work here, then catch her on Twitter @TiffanyWendeln. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. [...]
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The 60/20/20 Budget Puts Needs Before Wants. Here’s How to Try It

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The 60/20/20 Budget Puts Needs Before Wants. Here’s How to Try It
I always thought the right budget breakdown was the tried-and-true 50/30/20 method, where 50% of my monthly take-home pay goes toward living expenses, 20% toward savings and 30% toward whatever I want.  But when I finally got a financial advisor, I was surprised to hear that his recommendation wasn’t 50/30/20 after all — it was the 60/20/20 budget.  During our first meeting, we discussed all of my finances. I explained to him that I own a home in a costly state (hello, New Jersey), commute to work in New York City, aim to save a large amount every month and have little debt.  With all of this and more in mind, his recommendation of the 60/20/20 budget made perfect sense. I immediately became a huge fan of how the money I save and spend on whatever I want is equal — each 20%.  Plus, knowing I was allowed 60% of my monthly budget for my living expenses, I had a little more flexibility over my fluctuating bills like groceries and electricity.  How Does the 60/20/20 Budget Work? Let’s say your monthly take-home pay is $4,000. According to the 60/20/20 budget, you should allot 60% (or $2,400) to your monthly living expenses, 20% (or $800) to savings and then 20% (another $800) to your personal wants.  It’s not much different than the 50/-30/-20 budget, but it puts more of a focus on fixed expenses and savings than personal wants and spending. My financial advisor, Northwestern Mutual insurance agent Nicholas Verard Zanoni, said this method can help you build structure into your budget and learn how to save.  “This is a rule-of-thumb guideline to start out with and visualize,” Zanoni said. “Whether it’s 50/30 or 60/20, it’s really just splitting hairs in a lot of ways. Ultimately, my goal is to help coach my clients at first to spend 80% and save 20%.” When you take a step back and look at how much of your take-home pay goes into each of these three buckets, you can better analyze your spending in order to make smarter savings decisions. How to Get Started With the 60/20/20 Budget If you’re ready to use the 60/20/20 budget, start by taking inventory of your finances. Write down every monthly expense you can think of and keep track of them in a spreadsheet. Then look at how much you’re spending through the lens of the 60/20/20 budget.  From there, consider using a financial app to help you find ways to cut back and save even more. “People should focus on treating their savings like a bill, an obligation and not so much of an option,” Zanoni said. “Focusing on fixed expenses and saving helps identify the money that might be being spent unnecessarily or without much recognition. More often than not, most individuals are not aware of all of the things they spend money on.” FROM THE BUDGETING FORUM Have you tried the Zero Based budgeting method? 6/7/19 @ 1:58 PM How do you distribute your income? 8/5/19 @ 1:38 PM T TRIM Services 8/5/19 @ 1:32 PM L Hi 8/2/19 @ 3:42 AM J See more in Budgeting or ask a money question How the 60/20/20 Budget Helps You Be Aware of Your Spending  This budget could help you be more aware of your spending habits, especially when you’re doling out the dough for things you don’t really need (hi, super cute sweater from H&M) or that you’re not using (hello, monthly streaming subscriptions). Instead of equally spending $800 on savings and $800 on your personal wants, perhaps you’d want to put $1,000 toward your savings and only spend $600 on your personal wants. That would shift the 60/20/20 budget to 60/25/15, and you’d be saving more.  “In order to reach the goals we have for ourselves, we very typically find that we need to increase savings to 25 or 30% over time to reach those goals,” Zanoni said. “People may not be able to start out at 20%, but that’s what we want to help them achieve and work toward at first. Over time, we will need to be saving more as we continue to progress in life every single year.”  Lastly, Zanoni said to keep your goals in mind and consider working with a financial advisor who can help you stay on track. “Focusing on that budget and making sure that they work with someone to help optimize that budget for all of their goals is really the most important part,” Zanoni said. Budgeting is all about finding ways to set yourself up for financial freedom. Starting now can really make a difference in the future. Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries. Nicholas Verard Zanoni is an insurance agent of NM. Hilarey Wojtowicz is the senior career and finance editor at Swirled, a lifestyle newsletter and website that helps millennials learn everything they need to know in order to truly start adulting. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. [...]
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Afternoon Deals: Tuesday, July 30

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Afternoon Deals: Tuesday, July 30
Every morning and afternoon we publish a list of the latest and best deals from our partner, DealNews. To learn more about the discounts and details, click on any of the deals for more information. To have this list, along with our latest news and stories, delivered daily to your inbox, sign up for our free newsletter. For links to deals as they’re published, follow @mtndeals on Twitter. [...]
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