4 Things You Need to do if Your Student Loans Were Forgiven
The federal government recently announced plans to eliminate $10,000 to $20,000 worth of federal student loans for millions of Americans. If this applies to you, that’s enough money to have a significant impact on your finances.
If your student loans were forgiven, here’s what to do to get further ahead now, and avoid staying stuck in the financial struggles of the last few years.
1. Get a Refund if You Paid Loans During the Pandemic
That’s right. If you kept paying your student loans despite all the pandemic pauses, and if you qualify for forgiveness, you can get that money back.
If forgiveness won’t wipe out all of your student loans, it’s your call whether you want to put your pandemic payments toward the principle of your remaining loans or cash out.
For now, the best guidance on how to get your payments refunded is to contact your loan servicer, according to a bulletin from the U.S. Department of Education.
2. Add up to 300 Points to Your Credit Score
Your total debt is about to go down, and that’s the second most important factor in your credit score. If you haven’t been paying attention to your credit score, now’s a good time to check. After all, it’ll play an essential role in any big purchase you want to make — whether that’s a home or a car.
So if you’re looking to get your credit score back on track, try using a free website called Credit Sesame.
Within two minutes, you’ll get access to your credit score, any debt-carrying accounts and a handful of personalized tips to improve your score. You’ll even be able to spot any errors holding you back (one in five reports have one).
James Cooper, of Atlanta, used Credit Sesame to raise his credit score nearly 300 points in six months.*** “They showed me the ins and outs — how to dot the I’s and cross the T’s,” he said.
Want to check for yourself? It’s free and only takes about 90 seconds to sign up.
3. Spend $1 to Own a Piece of Amazon, Google or Other Companies
For a lot of us, student loan forgiveness will free up hundreds of dollars a month in our budgets. If you’ve been putting off investing, this could be a good time to get started.
An app called Stash lets you be a part of something that’s normally exclusive to the richest of the rich — owning a piece of another company. Stash lets you do that for as little as $1.
That’s right — you can invest in pieces of well-known companies, such as Amazon, Google, Apple and more for as little as $1. The best part? If these companies profit, so can you. Some companies even send you a check every quarter for your share of the profits, called dividends.1
It takes two minutes to sign up, and it’s totally secure. With Stash, all your investments are protected by the Securities Investor Protection Corporation (SIPC) — that’s industry talk for, “Your money’s safe.”2
Plus, when you use the link above, Stash will give you a $5 sign-up bonus once you deposit $5 into your account.*
4. Stop Paying Your Credit Card Company
If you have credit card debt, you know. The anxiety, the interest rates, the fear you’re never going to escape…
And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates — some up to 36%. But a website called AmOne wants to help.
If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.
The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 2.49% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month.
You don’t need a perfect credit score to get a loan — and comparing your options won’t affect your score at all. Plus, AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau.
It takes less than a minute and just 10 questions to see what loans you qualify for — you don’t even need to enter your Social Security number. You do need to give AmOne a real phone number in order to qualify, but don’t worry — they won’t spam you with phone calls.
***Like Cooper, 60% of Credit Sesame members see an increase in their credit score; 50% see at least a 10-point increase, and 20% see at least a 50-point increase after 180 days.
Credit Sesame does not guarantee any of these results, and some may even see a decrease in their credit score. Any score improvement is the result of many factors, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning and developing better credit habits.
1Not all stocks pay out dividends, and there is no guarantee that dividends will be paid each year.
2To note, SIPC coverage does not insure against the potential loss of market value.
For Securities priced over $1,000, purchase of fractional shares starts at $0.05.
*Offer is subject to Promotion Terms and Conditions. To be eligible to participate in this Promotion and receive the bonus, you must successfully open an individual brokerage account in good standing, link a funding account to your Invest account AND deposit $5.00 into your Invest account.
Paid non-client endorsement. See Apple App Store and Google Play reviews. View important disclosures.
Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.