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Income Protection Allowance for Students

It’s summer job time! If your student is a rising high school junior or above, they should be aware of the FAFSA’s Income Protection Allowance for dependent students. For the 2017-2018 FAFSA, it’s $6,420. That means that the first $6,420 they earn in 2016 does not increase their EFC, but any earnings above that do, to the tune of 50…

Interest Capitalization

One way student debt gets really big is through interest capitalization. When payments are deferred, interest still accrues on the loan balance. At some point in the future, that interest is “capitalized” or added to the outstanding principal balance. Then the borrower

Federal vs Private Loans

If you have a student who is off to college this fall, you are probably being inundated with offers for private student loans. As a general rule, I recommend federal loans over private, primarily because the federal loans offer so many protections like forbearance and income-based repayment. However,

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