Monthly Archives: July 2020
Student loan forgiveness: separating fact from fiction
There is a lot of information out there on student loan forgiveness—but determining which material is the real deal takes a little bit of work. Luckily, there is plenty of accurate information available, and there are even steps you can take to determine what is legit. And once you are armed with that knowledge, you can move forward on the path of settling your student loans.
Consider the source
You don’t need us to tell you that celebrity magazines, while excellent for comparing who wore which clothing best, are not a good source of information for things like student loan forgiveness. The same goes for Facebook, Instagram, Twitter, and any app that allows you to turn yourself into a cartoon animal in a selfie.
Instead, look for reputable news sites and sites focused on helping people understand financial situations—consider resources like Forbes and Clark Howard, which can help you determine what kinds of resources are the best options.
Look it up
Now that you know which websites and resources are the best for gathering information, it’s time to get to work. Get on your favorite search engine and start reading. Don’t just take the word of the first article you read—look for different sources and the consistencies they each report. You can also consult with your student loan officer to see what they can tell you. But we know you have a lot going on, so we did some research for you:
Watch for scams
Even resources that pass your initial test for legitimacy may still need a second glance to ensure they are a reputable business. It’s not uncommon for scammers to create websites or other marketing materials that look like an agency that can help you, but the truth is that they may wind up costing you a lot of money.
If a company asks for sensitive information, promises that your student loans will be immediately forgiven, or wants payments made upfront before they provide you with services, run, do not walk, to the nearest state attorney general’s office and report the company for the scam.
Find the right people
There is a bright spot in the student loan forgiveness world, and that is those resources that can guide you to actual, real aid when it comes to your loans, whether that means reducing your loan amount or working with you to repay your loan on a schedule that works with your income.
Head to the Federal Student Aid website to submit a request for an income-driven payment plan for your student loans. And while you’re on the website, check out the sections on how federal aid works and the aid estimation calculator to get a better sense of how the process works.
What about possible political changes?
You have probably heard that one of Bernie Sanders’ campaign platforms centers around total student loan forgiveness. His plan is to cancel all current student loans, regardless of how large or old the debt is. Everyone would be eligible, and he has not mentioned any type of limit to the loan amount.
While Bernie may out of contention for 2020, the idea continues to gain momentum in certain political circles. There are still questions remaining in regards to how exactly the $1.6 trillion of student debt could be canceled, such as the timeline and whether it’s feasible for universities to give up those funds.
Moving forward
It’s important to note that cancelling student loans would not mean they would be canceled forever—what people are talking about is current student loan cancellation, which means only those loans that have been currently taken out by students, parents, etc.
If a student needed a loan to continue their education, or decided to go back to school at a future date, they would still be responsible for procuring and paying the funds. There is also no repayment for those who have already paid off their loans.
Anything else?
Yes—just like your budget, you have to have a plan for your student loans. They will not go away because you ignore them. In fact, you are more like to end up in collections and will then have to deal with potential legal repercussions.
None of these steps will help you with your loans if you are not an active participant in making it happen. Start by opening up all that mail your student loan company sends you – they can probably answer a lot of your questions right off the bat.
Student loans aren’t anyone favorite topic to think about, but there are ways you can take control. Look for reputable resources that can guide you through paying off your student loan dent on a schedule that makes financial sense for you.
6 things to do if you’re preparing to sell your house
Selling a house is stressful. There just isn’t any way to sugarcoat it. But there are steps you can take to make the process a little easier – and a little more successful. Here are six things you need to do if you are about to put your house on the market.
1. Fix it up
That loose stair that you’re used to skipping every day or those holes in the wall behind the couch that resulted from an ill-fated indoor skateboarding incident are great examples of things you will want to address before you take any further steps to sell your home.
Even things that don’t pose a physical danger, like the peeling paint on your front door, still need to be worked on if you want your home to sell. Speaking of paint, now is the time to turn your neons into grays – if you have a lot of brightly painted rooms, consider painting them a more neutral color. Yes, people should look past things like paint color, but they often don’t, and it could make or break your success story with selling your house.
2. Disappear
Okay, don’t literally try to become invisible – what we mean is that you and the personal touches in your home should not be the most obvious thing a potential buyer sees. It may sound a little harsh, but the goal is to help the buyer feel as though they can make their own home in your house, which is hard to do if you have monogrammed throw pillows covering every inch of the couch.
You don’t have to go through your hallways and take down every single photo, but, at least when you know there will be a showing, try to make your home more neutral all around.
3. Keep it Clean
If you have kids and/or pets, you know how difficult it can be to clean your home in a moment’s notice after a realtor contacts you about a showing. If possible, try to schedule showings in advance, rather than having people stop by anytime. However, since you don’t want to miss an opportunity to show off your house to a potential buyer, you should also try to keep your house “showing-worthy” as much as possible.
You can even practice with your family – assign everyone a specific job, and then give them a signal to start cleaning. See how quickly you can get it done, and soon you will all be pros.
4. Take a Walk on the Wild Side
And by “wild side,” we mean your yard. You may be so used to the out-of-control hedges by your mailbox that you don’t even notice them anymore. But a buyer will definitely notice. Ask a friend or neighbor to walk around your yard and point out some areas that may need a little TLC before you put your house on the market.
Addressing the details outside of your home is just as important as addressing the details inside of your home. Keep the yard mowed, pull the weeds, and give your house the royal treatment to help others see its full potential.
5. Practice Some Feng Shui
Your house is set up to perfectly suit you and your family, which makes sense. However, one size does not fit all when it comes to furniture preferences. Take a look at your current living room arrangement, for example – are there any “bottleneck” areas that disrupt the flow of movement through your home? What about the couch and chairs – do they allow for conversation and group gatherings?
Even if you don’t use your home for these things, interested buyers might, so showing them how they can make this house work for them as well as it has worked for you is important.
6. Be Flexible
Everyone has their own opinion about what looks good, right? So you may spend three hours painting a room a neutral color, only to be told the house looks too plain. You may pull up weeds all weekend and learn that someone thinks your yard is too bare. The truth is, you can’t please everyone, so don’t take every piece of feedback from potential buyers to heart.
If you receive the same feedback over and over again, it would be wise to give it serious consideration. But if one person thinks your kitchen is too small, too dated, too blue, or not blue enough, remember that sometimes your house just won’t be a fit for everyone.
The right buyer is out there – if you put the work in on the front end, you and your family can reap the rewards down the line. Give your house its best chance to be seen for all its beauty, and consult your realtor for any other ideas they have seen work for their clients.
If you’re in the market for a new home, consider Georgia’s Own for all your mortgage needs. With low rates and fees, plus a variety of mortgage products, we’re here to help you in your home buying process. Click here to learn more about how Georgia’s Own can help get you into the home of your dreams.
What should you be doing with your investments?
Uncertain times bring, well, uncertainty, and that extends to your finances. The market is unpredictable, tensions are high, and financial advice seems to be flying everywhere, sometimes contradicting itself.
If you’re not sure what to do with your investments right now, or if you should be doing anything at all, we have you covered with some tips and ideas for helping your investments stretch as far as they can.
Take stock (no pun intended)
Before you decide to even look into making changes with your investments, you need to ask yourself why you are doing it. Is it because you’re worried about your employment status? Are you afraid that you won’t be able to make changes later as a result of the coronavirus? Taking the time to understand why you want to make these decisions is important, because you don’t want to let fear drive your financial choices. Make sure your reasons are sound before taking any further steps.
Make a goal
You might be new to the world of investments, and you followed the advice of your accountant to the letter without taking a lot of time to consider your options. It’s always a good idea to consult with an expert, but you also need to make sure you have a goal in mind for every financial aspect of your life, including your investments. Creating a “financial road map” will allow you to make informed decisions that are designed to benefit you in the long run.
Keep it diverse
Whether you are in the middle of a pandemic or it’s just another Taco Tuesday, financial experts agree that keeping your investments spread out over different categories can be beneficial in protecting your funds from changes in the market.
If you feel your investments are not diversified enough, contact your accountant to talk about your options. Again, this is not a message to panic and change everything because you think your portfolio is not diverse enough. Review your current plans and other options before making any changes.
Don’t panic sell
There are a lot of scary predictions out there right now for financial futures – everyone keeps hearing about the current financial crisis and how dire it is. While we would never advise you to ignore those warnings, it’s also imperative that you keep the big picture in mind when making decisions. Yes, times are currently rough for the economy – but that won’t always be the case. Don’t make rash decisions now that will affect you negatively in the future.
Leave your 401(k) out of it
It is very tempting to borrow money from your 401(k), especially if finances are tight. There are certain situations where the benefit outweighs the risk in this scenario, but they are few and far between.
Consider all of your options carefully before taking any steps in this direction. In the meantime, experts also suggest continuing your contributions toward your 401(k) – at the very least, contribute as much as your company will match. Remember, this current financial crisis will end, and your retirement will be waiting for you when it does.
Consult the experts
Don’t have an accountant? That’s okay. Odds are high that you know someone who does and can connect you for some basic questions. If that doesn’t work for you, do what the rest of us do and consult the all-knowing internet. Be mindful of your sources – you want to make sure that any blogs or websites you find are the real deal. But once you discover the right advice from the right expert, it will be easy to apply it to your own investments. Time Magazine compiled a list to get you started. Happy reading!
Don’t make choices based on the future
While it’s true that experts can make educated guesses when it comes to the financial health of the country, at the end of the day, there are many factors that could change your personal situation. We don’t say that to scare or discourage you; rather, it is vital that you not place all of your eggs in one basket, so to speak, when it comes to making financial decisions based on the future.
One expert may say the economy will recover in six months; another may say it will take ten years. Take your time, do your research, and make educated decisions based on facts and figures.
No one likes to make hard financial decisions during an economic downturn, but you can protect yourself from doing more harm than good with just a little research and understanding. Set aside some time to review your investments, adjust only where needed, and ride out the financial storm to where your smart planning is waiting on the other side.