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Student loan relief: what you need to know

Ah, student loans. Everyone’s favorite topic, right? But even if the idea of addressing our student loans makes us want to run away and hide, we do have to deal with them eventually. However, the best news is that we don’t have to deal with them alone. We have the latest info on student loan relief, how it affects you, and what you need to do next. Just read on for more information:

Know your loan

Before we get started with the current events of student loans, let’s take a minute to address those who are considering their first or newest student loans. It’s critical that you know what your loan means for you. You need to know the terms—like when you’re expected to pay it back—the interest, and how often payments need to be made, and all sorts of other details that will make a financial difference to you later in life. Be familiar with your loans so you don’t have any surprises down the line.

Research the differences

There are two different types of student loans—federal and private. This may seem like an elementary concept, but too many students don’t realize which type of loan they have until they are already locked in. Like we said above, you need to know your loan, which means you need to know which type of loan you have and who you are paying back. If you’re not sure, it’s okay—find someone at your school or a trusted colleague who can help you walk through the process. “Better late than never” definitely applies when it comes to learning about your loan—even though we think knowing the information ahead of time is even better than being late.

Think of your future

Students are always encouraged to think about the next several years of their lives while in school, mostly because they are choosing the academic path that will take them to their desired destination. But you also need to consider your job prospects when taking out a loan. Underwater basket weavers, while talented, may not have as many financial opportunities as a traditional job, so if that’s your goal, you need to take your loans into account. We’re not saying you have to change your entire career trajectory, but having a realistic expectation of what type of salary you will make is key to making smart loan choices.

Now that you have the prep work down pat, we can start learning about loan relief and how it affects you.

What is loan relief?

Past and current administrations have made decisions to incorporate and extend student loan relief. While it’s not guaranteed to everyone, many of those in student loan debt may find their budget loosening as a result of these programs. Essentially, loan relief is hitting the “pause” button on your loan. You don’t have to make payments, you aren’t collecting interest, and you can’t be penalized for late or no payments. While different circumstances can prompt these relief programs to become more necessary, the COVID19 pandemic has played a large part in necessitating loan relief and forgiveness, as many found themselves unexpectedly without a job at some point over the last two years.

Is my loan canceled?

No. Well, not necessarily. Loan relief means just what we said—you have a respite from payments with no penalties, but you will still owe the money eventually. President Biden has been rolling out a program that does totally forgive or cancel your loans, but not everyone is eligible. This link is a great resource if you’re wondering how to apply for loan forgiveness—just go through the steps and submit the info requested.

Does everyone get loan relief?

Unfortunately, student loan relief is only for federal loans. Those with private loans will have to continue making regular payments or risk significant financial penalties. However, this does not mean that all hope is lost. If you are struggling to make your private student loan payments, reach out to the company who provided your loan. Many of them have programs or options that can give you some financial slack for a little while. Don’t get yourself into even more debt, though—be sure to verify the terms of your private loan options just like you would for the loan itself.

How long does loan relief last?

As of right now, student loan relief has been extended to August 31, 2022. The previous relief deadline was May 1, 2022, until it was extended by the Biden administration. This means that the deadline could be extended again, but it’s not wise to count on that happening. You have a few months to work things out, so take a look at your budget and determine how you can make those payments again as soon as the relief period ends. It may be extended, it may not; either way, you don’t have to worry about being caught off guard if your payments are expected again after August 31.

Student loans can be a tricky subject to navigate, and we always recommend reaching out to a professional. Learn what you will owe, when you will owe it, how often you will owe it, and how much interest will be added before making any decisions. Look at your budget, look at your choices, and go with the loan that’s right for you.

Congratulations to our 2021 What’s Ne[x]t Scholarship winners

The 2021 What’s Ne[x]t Scholarship winners are in, and narrowing down three winners from an amazing pool of applicants was more difficult than ever. In addition to our Jump Start Scholarship, we awarded a total of $8,500 to three deserving students. Congratulations to Janae, Jeffrey, and Hannah. Each of these students demonstrated an exceptional commitment to others, a strong academic background, and a bright vision for their future. We are beyond proud to have them in the Georgia’s Own community.

$5,000 Scholarship Winner

Janae Hindsman (Union City) – School Psychology, Georgia State University

$2,500 Scholarship Winner

Jeffrey Lowe (Covington) – Music Management, Georgia State University

$1,000 Scholarship Winner

Hannah Gaston (Covington) – Biochemistry, Georgia Institute of Technology

Congratulations to our 2021 Jump Start Scholarship winners

Winners (pictured clockwise): Adrianna Huckaby, Zuri Hightower, Mary Walton, Madison Blackmon, Leah Jackson, Kennedy Williams, Kendall Rosenberger, Kaimet Haile, Jazmyn Dydell, Emma Barrett, Drew Reich, Chelsea Beauford, Austin Reid, Ari Patterson, Ansley Reich, Andrew Davis, Elijah John Cho, Alicia Lewis
Not pictured: Jayden Mauney, Mary Taylor

Congratulations to our 2021 Jump Start Scholarship winners. In addition to our annual What’s Ne[x]t Scholarship, we awarded $1,000 to 20 students selected by a panel of judges who considered academic record, school and community service, and an essay telling us their goals for the future. Meet this year’s winners:

Adriana Huckaby | Kennesaw State University

Alicia Lewis | Xavier University of Louisiana

Andrew Davis | University of Georgia

Ansley Reich | Georgia Tech

Ari Patterson | Florida A&M University

Austin Reid | Auburn University

Chelsea Beauford | Howard University

Drew Reich | Georgia Tech

Elijah John Cho | University of Georgia

Emma Barrett | Georgia State University

Jayden Mauney | Berry College

Jazmyn Dydell | Alabama State University

Kaimet Haile | University of Georgia

Kendall Rosenberger | University of South Carolina

Kennedy Williams | Georgia Southern University

Leah Jackson | University of West Georgia

Madison Blackmon | Kennesaw State University

Mary Taylor | Florida A&M University

Mary Walton | University of Alabama at Birmingham

Zuri Hightower | Howard University

Congratulations to our 2020 Southwest Georgia scholarship winners

Congratulations to our Southwest Georgia scholarship winners! We awarded $1,000 to 23 students selected by a panel of judges who considered: academic record, financial need, school/community service, and an essay. Including the $23,000 committed to this year’s recipients, Georgia’s Own has awarded nearly $140,000 in scholarships to Albany students over the last 16 years. Meet this year’s winners:

Alexis Crimes | University of West Georgia

Alexis Danforth | Georgia Gwinnett College

Amiel Johnson | Wesleyan College

Amiraica Johnson | Albany State University

Annlyn Royal | Berry College

Ariana Drake | North Carolina A&T State University

Ashlynn Wright | Fort Valley State University

Ayanla Dudley | Florida A&M University

Ayanna Newberry | Valdosta State University

Bethany Phillips | Valdosta State University

Elijah Humphries | University of Georgia

Emily McClure | Georgia Southwestern State University

Gavin Baker | Kennesaw State University

Hayley Newberry | Georgia Southwestern State University

Jamia Lofton | Georgia Southern University

Katherine Smith | Truett McConnell University

Kirby Perry | Valdosta State University

Makayla Gay | Shorter College

Michael Harris | Middle Tennessee State University

Lindsey Creech | Georgia Southwestern State University

Rhiannon Belcher | Kennesaw State University

Sarah Mullins | University of Georgia

Tyler Coker | Valdosta State University

Student loans 101: how to set yourself up for success

Student loan debt is a pressing issue that has skyrocketed throughout the last several years, and it’s currently at an all-time high. Over 45 million borrowers collectively owe around $1.4 trillion—a figure that has increased by 33% since 2014.

The soaring cost of college certainly doesn’t help. According to Experian, average out-of-state tuition at a four-year public university is $26,290. Around 54% of college attendees secure student loans to pay for their education, and borrowers who don’t complete their degrees generally face more difficulty paying off their debt.

Taking out student loans is intimidating—after all, borrowing thousands of dollars without understanding precisely what you’re getting into is rather scary. It’s imperative to educate yourself on acquiring student loans, the variety of loans available, as well as the next steps after you graduate. We’re here to help make that process smoother for you.

How to obtain a loan

Acquiring student loans is easier than one may think. However, there are significant things to consider before applying. First, you need to decide whether you want a federal or private student loan. It’s best to seek federal loans first and use private loans as a last resort. The two are somewhat related, but there are some differences.

Federal student loans are more accessible because credit checks aren’t required, and the application process is simple. Just fill out the Free Application for Federal Student Aid (FAFSA), and it informs you of loans you’re suited for. FAFSA also notifies you of grants or scholarships, so you potentially avoid borrowing money altogether. 

Private student loans consist of a more complex application that frequently requires a credit check or a co-signer. Private loans should usually be considered a final option in the event you need a little more coverage that isn’t provided by scholarships, grants, or federal loans. Private lenders also expect you to begin payments while you’re in school, and they usually have higher interest rates.

What loans are you eligible for?

Borrowers are granted subsidized or  unsubsidized loans. What does that mean?

Subsidized loans are ordinarily offered to students who show strong financial need. With subsidized loans, the government pays the interest while the borrower is in school and six months after graduation. The loan limit is also lower. However, with unsubsidized loans, interest accumulates while the borrower is in school and added to the balance of the loan. There are several variations of available student loans, but these two are the most popular.

You’ve graduated. Now what?

There is normally a six-month grace period following your graduation date. This is the best time to decide your repayment plan, see if you need to refinance or consolidate your loans, or determine if you qualify for student loan forgiveness.

It’s crucial to prioritize your budget based on repaying student loans. Avoid default, which indicates you didn’t make payments as outlined in your loan’s contract. When you default, your credit score is critically damaged, you could owe even more money, or your loan holder could collect additional money from you, like your tax refund. It’s helpful to set up automatic payments to avoid missing installments or attaining late fees. 

Most borrowers are automatically registered for a standard 10-year repayment plan. But, if you have difficulty making payments, you could be eligible for income-driven repayment plans. They decrease your monthly payment requirements and increase the period over which you pay off your loan, but don’t reduce your interest rate or overall payment. It’s free but only applies to federal student loans.

Likewise, you can refinance or consolidate your loans through a private lender. They’ll assess your credit score, income, and employment to determine if you’re capable of repaying your loans. There are numerous benefits to refinancing—it enables you to combine loans and lower your interest rate, which results in cheaper monthly payments. According to Zack Friedman, author of The Lemonade Life and contributor to Forbes, refinancing can save you more than $20,000 throughout your student loan. However, if you decide to refinance, there are some benefits of federal loans that you could potentially lose, like loan forgiveness programs.

A critical thing to remember: never pay a fee to refinance or consolidate. It’s free, and anyone who charges you most likely doesn’t have your best interest in mind.

Lastly, if you’re employed by a government or not-for-profit organization, or if you teach full-time in a low-income school, you may qualify for Public Service Loan Forgiveness or Teacher Loan Forgiveness. There are underlying stipulations, but these are viable options for anyone who is considering a profession in those industries.

Borrowing student loans can seem nerve-wracking with the mounting student debt crisis—but it doesn’t have to be. You can set yourself up for success by choosing the best loan for you, as well as selecting an ideal repayment plan. Now is the time to make repaying student loans the least of your worries. 

2020 What’s Ne[x]t Scholarship Winners

The 2020 What’s Ne[x]t Scholarship winners are in, and we were truly blown away by all of the applicants this year! We awarded a total of $15,000 to three deserving students. Congratulations to Sydney, Massiel, and Hanna! Each of these women demonstrated an exceptional commitment to others, a strong academic background, and a bright vision for their future. We are beyond proud to have them in the Georgia’s Own community.

$8,000 Scholarship Winner
Sydney Laws (Atlanta) – Cultural Anthropology, University of Southern California

$5,000 Scholarship Winner
Massiel Nunez (Lawrenceville) – Journalism & Emerging Media, Kennesaw State University

$2,000 Scholarship Winner
Hanna Paz (Roswell) – Finance Risk Management/Mathematics, University of Georgia