EDUCATION
SPECIAL SECTION:
Department of Education manages all college loans available by
state and requires students to be in-state residents or enrolled in
a college in that state. Private loans are an option for borrowers
but come with terms and conditions that may not be as favorable
as federal loans. Private loans also require a cosigner who is
responsible for repaying the money if the student fails to do so.
MANAGING DEBT POST-COLLEGE
Student loan debt continues to increase and has become a
burden on both graduates and the U.S. economy. There are a
variety of loan repayment options for students. Here are some tips
on how to approach repayment.
• Figure out what you’ll owe and start to save early – Creating
a budget early will allow you to build a solid foundation for
repayment after graduation. Setting aside money each month
toward future savings for repayment will set you up for success
come graduation day.
• Understand your repayment options – There are several
different options available to start paying off student loans
based on the type of loan you received. Common federal loan
plans include standard, graduated, extended, or income-based.
Standard plans are payments in fixed amounts that ensure loans
are paid off in 10-30 years (these payments are often very high
for new graduates). Graduated plans are payments that start
out lower and increase every two years, also ensuring loans are
paid off within 10-30 years (based on loan). This plan assumes
you’ll continue to make more money as you continue your
career path, so additional money is allotted to repayment as
you go. Extended plans may be made in a fixed amount or a
graduated amount and ensure payment in full within 25 years.
Income-based plans take 10-15 percent of your discretionary
income and are recalculated each year. Once you are married,
your spouse’s income will also be considered, if filing jointly on
tax returns. Any outstanding balance on the loan will be forgiven
after 20-25 years.
• Consolidate for ease – If you have multiple federal loans,
consolidating them into one can make repayment easier.
But there may be fees or other conditions associated with
consolidating, so be sure to do your research.
• Is forgiveness an option? Some programs offer loan
forgiveness if you meet certain criteria or work in a particular
field. People in government, nonprofit, and other public service
jobs may have the remainder of their loans forgiven after 10
years of service. Additional forgiveness options are available for
nurses, teachers, AmeriCorps and Peace Corps volunteers, and
some state and private programs.
PRE-K – HIGH SCHOOL
The first public school opened in the United States in 1635, and
the Boston Latin School remains the nation’s oldest public school.
Early education didn’t focus on math or science, but on the virtues
of family, religion and community. Nearly 400 years later, schools
are harnessing the fundamental principles of community, and
although it may look very different in this day and age, a strong
Continued on next page >
MCKEESPORT AREA
❘
FALL 2019
21