The Penny Hoarder |
- The 6 Best Places to Order Checks Online in 2022
- Do You Qualify for Any of May’s Class-Action Settlements?
- Subsidized vs Unsubsidized Loans
| The 6 Best Places to Order Checks Online in 2022 Posted: 28 Apr 2022 04:55 AM PDT With the advent of debit cards, money transfer apps and online shopping, checks might seem like relics of the past. But many small businesses still operate with checks, and individuals might need personal checks for rent or utilities (or an easy — if not quaint — birthday present for a niece or nephew). Your bank or credit union will usually give you a free starter pack of checks when you open an account, but what happens when you run out? You can order more checks from your bank, but this is usually the most expensive option. As a more affordable alternative, you can order checks online from a reputable company. These are cheaper than bank checks and often offer more fun customization, like landscapes, animals, sports teams and even cartoon characters. What Is the Best Place to Order Checks Online?Bank checks are expensive, so where do you turn when you run out of the free checks provided upon account creation? We've rounded up six of the best places to order checks online — and included some honorable mentions worthy of consideration too. 1. Best Overall: Walmart ChecksWithout question, Walmart is the best place to order checks. Walmart Checks offers a huge selection of personal and business checks at some of the most affordable prices. Walmart offers free standard shipping for its checks, and you can expect to receive them within 12 business days. The ordering process on Walmart's website is very straightforward. The most affordable selection of checks from Walmart is a box of 150 checks for $7.96, or roughly 5 cents per check. To save money, go with basic check options, but for a pop of personality, you can browse checks with landscapes, nature, animals, dog breeds and even your favorite characters. The movie Encanto is one of the trending options these days. You can choose between single and duplicate checks and find options with multiple security features. Even cooler, you can customize your own checks by uploading a business logo or even your own personal photo, perhaps of your children or pets. 2. Best Price: Super Value ChecksIf you're looking for cheap checks, Super Value Checks is your best bet. According to the website, you can save 50% to 75% compared to bank check prices. And at 3 cents per check (based on a 60-check box at just $1.95), Super Value Checks is certainly the best place to order checks if you're looking to save money. A caveat, however: All the other companies on our list offer an option for free shipping, but Super Value Checks' most basic, standard shipping option still costs $3.25 (and that's for 10 to 14 business days). Even with this added expense, we find Super Value Checks to be the best price. And just because you're going the cheap route doesn't mean you're stuck with basic designs; you can choose from over 200 designs with Super Value Checks, including single and duplicate checks. Just be careful; the more intricate the designs or security features, the higher that price will climb. 3. Best Security: Costco ChecksLet's address the elephant in the room: Costco Checks is for members only. If you aren't a member, keep scrolling. If you are a member, however, you can enjoy great prices on checks thanks to Costco's partnership with Harland Clarke. Because it's Costco, you'll have to buy in bulk; the smallest box comes with 200 checks. Whether for business checks or personal checks, you'll find the best security features through Costco. Costco boasts more than 25 security features on its high-security checks, including heat-sensitive ink, holograms, watermarks and visible and invisible fluorescent fibers. Hoping to keep costs down? The cheapest route is a 200-count box of basic checks for $18.14, or roughly 9 cents per check. (Executive Members get 20% off. Shipping is free (and trackable) and takes 9 to 12 business days. 4. Best for Discounts and Deals: Checks in the MailCleverly named (though perhaps lost on modern society), Checks in the Mail is one of the top companies in the industry, selling more than a billion checks each year throughout the U.S. While Checks in the Mail isn't the most affordable (you can get a box of 100 single checks for $23.25, or 24 cents a check), you can almost always find a discount on the site. At time of publishing, we stumbled upon a 20% discount on business checks, a "just because" 20% discount on personal checks and a new customer discount: $6.49 per pack plus free shipping. Checks in the Mail has more than 200 check styles, including Disney and Peanuts characters, patriotic and religious, dogs and other animals and high security options. As with all the options on this list, you can choose between single and duplicate checks. Standard shipping is free and takes 14 business days. 5. Best Quality: Bradford Exchange ChecksYou get what you pay for. Bradford Exchange may have some of the most expensive checks on this list ($19.95 for a box of 100, or 20 cents per check), the company is also known for outstanding customer service. For many, the high quality of Bradford Exchange checks makes them the best place to buy checks online. The artwork, whether characters or landscapes, far outshines what you'll find on the cheap checks at Super Value Checks. Free shipping through Bradford Exchange takes 12 to 15 business days. 6. Best Selection: Check AdvantageIf you thought choosing from 200+ check designs was overwhelming, stay far away from Check Advantage, which offers more than 2,500 check designs. Check Advantage pricing falls squarely in the middle at roughly 10 cents per check for the most affordable option (a box of 150 single checks at $15.38), but it's the on-time guarantee (printed and shipped within three business days) and super wide selection that make Check Advantage a standout. Shipping is free and takes 11 to 15 business days. Honorable MentionsAlthough these four check companies did not make the final cut, we thought they were worth a shout-out, as they might make sense for select buyers:
Cost of Ordering Checks OnlineIn the table below, we've analyzed our top six check printers, along with our honorable mentions, to see which is the cheapest. For each, we looked at the most basic, single checks in the smallest quantities offered. Shipping costs are not included. Super Value Checks is the only option without free standard shipping. Online Check Costs at a Glance
Ordering Checks Online: The BasicsWhen ordering checks online, you'll be presented with an overwhelming amount of options. Make sure you understand these basics before browsing online: Single Checks vs. Duplicate ChecksDuplicate checks make it easier to track all the checks you write. When you write a check using a duplicate checkbook, you'll tear out the actual check, leaving behind a carbon copy with all the relevant information: payee, amount and date. With duplicate checks, you can go back and reference this information if there is a discrepancy in your recordkeeping. Single checks do not contain the carbon copy. Checkbooks with only single checks are more affordable, but you'll have to be more diligent about balancing your checkbook and ensuring checks you write are cashed or deposited by the recipient. Basic Checks vs. High Security ChecksAll checks come with some level of security, including the magnetic ink character recognition (MICR) font. Look at your routing number and account number on a blank check; it'll be in the bottom left hand corner. The font allows machines to read and process checks, but it also works as an anti-counterfeit measure. Pro Tip At a minimum, ensure the online check printer is certified with the Check Payment Systems Association (CPSA), which ensures checks meet standard requirements for security. However, you can pay extra for high security checks. Enhanced safety features actively discourage fraud attempts and give users more protection than a basic check. Some of those security features include high-resolution borders, chemically sensitive paper, visible and invisible fluorescent fibers, complex color patterns, foil holograms, heat-sensitive ink and anti-copy technology. Some checks may come standard with EZShield Check Fraud Protection, but more often than not, this is an add-on service at checkout. EZShield specifically protects customers against identity theft related to check writing.  How to Order Checks OnlineIf you've run out of the free checks your bank offered at account creation — and they don't offer more when you run out — you'll want to order checks from a third party to reduce costs. Here's how: 1. Pick a Check PrinterWhat you consider to be the best place to buy checks may be different for others. Use a comparison resource (like this one!) to narrow down your choices and pick the option that best meets your needs. In addition to making sure a check company is certified by the CPSA, check their Better Business Bureau accreditation. Avoid companies with poor ratings. Pro Tip Did you know this? It is totally legal to print your own checks at home. You just need to purchase the right kind of software, printer and paper 2. Choose a Check Type and DesignChoose between single and duplicate checks, and decide what level of security features you would like. For the best prices, you can go the most basic route, but if you'd like to express a bit of personality with your checks, browse options for your favorite cartoon characters, animals, sports teams or landmarks. 3. Choose Any AccessoriesWhen you're online ordering checks, you can typically add accessories to your order. Determine if you will need deposit tickets, extra check registers or a new checkbook cover. These are not required for purchase; checkbook covers, for example, can just be reused each time you start a new pack of checks. 4. Enter Your Bank InfoTo order checks online, you will need to know your checking account number and bank routing number. You will also need to add personal contact info, like name, address and phone number, to your check when personalizing. Your checks should also include bank info (name, address and phone number as well). Don't forget to set the check number. For example, if your first checkbook ended at check number 40, it's wise to have your next box of checks begin at 41. This makes record-keeping much easier on your end. 5. Choose a Shipping MethodUnless you need your checks as soon as possible, find the free shipping option. In general, expect checks to take two to three weeks to deliver. If the company allows you to opt in to free tracking, select this option. 6. Review Your ChecksWhen your checks arrive, review them carefully. Make sure that your name and contact info are correct, as well as the bank account number and bank routing number. Here is a step-by-step guide plus video help that shows you how to write a check. Frequently Asked Questions (FAQs) About Where to Buy ChecksWe've rounded up the answers to the most common questions about where to buy checks online. How Can I Get Free Checks? When you open a new bank account, most banks will provide you with free checks. When they run out, however, you will likely have to pay for a new set. You can purchase these directly from your bank, but for lower prices, you buy checks online. How Much Does It Cost to Order Checks? The cost of checks varies. The cost goes up, for example, if you opt for duplicate checks, extensive security features or special designs. In general, it costs from 3 to 25 cents per check. Shipping is typically free. Where is the Cheapest Place to Buy Checks? Overall, Walmart Checks is the best place to order checks online for their combination of low prices, great selection and fast (and free) shipping. If you're a member and don't mind buying in bulk, Sam's Club Checks are among the cheapest. But if you're ordering a more modest amount, you'll get the cheapest checks at Super Value Checks, though be prepared to pay shipping. Contributor Timothy Moore is a writer and editor in Cincinnati, Ohio. He focuses on banks, loans and insurance for The Penny Hoarder. His work has been featured on Debt.com, The Ladders, Glassdoor, WDW Magazine, Angi and The News Wheel. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Do You Qualify for Any of May’s Class-Action Settlements? Posted: 28 Apr 2022 02:26 AM PDT Consumers have the opportunity in May to claim compensation in several class action settlements. Brands such as Apple, Allstate, Nautilus, Old Navy and more have agreed to settlements benefiting consumers throughout the U.S. The May deadlines for filing claims in these settlements are fast approaching, so read on to find out if you qualify. Nautilus, Bowflex, Schwinn Treadmills False Ad $7M Class Action SettlementNautilus will pay $7 million as part of a settlement resolving class action claims it inflated the horsepower ratings of Bowflex treadmills. The settlement benefits anyone who purchased certain Bowflex, Nautilus or Schwinn treadmills between July 7, 2016, and Nov. 16, 2021. In a 2020 class action lawsuit against Nautilus, one purchaser claimed the company inflated the horsepower ratings of its treadmills in order to raise prices and deceive consumers. Claims forms must be submitted by May 2, 2022. Old Navy Misleading Sale Prices Class Action SettlementOld Navy has agreed to a settlement resolving allegations it used misleading sale advertisements. The settlement benefits consumers who made in-store or online purchases from Old Navy or Old Navy outlet stores between Nov. 12, 2015, and Dec. 2, 2021. The Class includes all states except Missouri. No proof of purchase is needed to file a claim. Plaintiffs claimed Old Navy intentionally misrepresented its sales in order to mislead consumers, advertising some products as being "on sale" with a referenced "regular" price. However, the "sale" items were allegedly never sold at that false reference price. Claim forms must be submitted no later than May 31, 2022. Apple iCloud Third-Party Servers $14.8M Class Action SettlementApple has agreed to a $14.8 million settlement to resolve claims it wrongfully stored iCloud subscribers' data on third-party servers. The settlement benefits those who paid for an iCloud subscription at any point between Sept. 16, 2015, and Jan. 31, 2016. Class Members must have had a U.S. mailing address associated with their account to be eligible. Plaintiffs in the class action lawsuit contend Apple did not actually store customer data in 2015 and 2016, but instead distributed the data among third-party cloud servers. Class Members have until May 23, 2022, to select a payment method. No claim form is required. West Shore Home Pre-Recorded Calls $1.3M Class Action Lawsuit SettlementWest Shore Home will pay over $1.3 million to resolve claims it violated the Telephone Consumer Protection Act (TCPA) with unsolicited pre-recorded phone calls. The settlement benefits individuals whose phone numbers were obtained by West Shore Home as part of a Facebook ad campaign and who received one or more pre-recorded calls two or more times in a 12-month period between Nov. 15, 2016, and Feb. 15, 2022. Consumers' numbers must have been registered with the National Do Not Call Registry for over 30 days before receiving these calls in order for them to be eligible. The company allegedly collected customer phone numbers through an online advertising campaign and then, without consent, called customers and left pre-recorded messages advertising its $5,000 sweepstakes drawing. The last day to file a claim is May 16, 2022. Herff Jones Data Breach $4.35M Class Action SettlementHerff Jones will pay $4.35 million as part of a settlement to resolve claims it failed to protect its customers during a 2021 data breach. The settlement benefits those whose payment card information was exposed during the data breach. Included consumers may have been notified of the breach by Herff Jones between May 12 and June 18, 2021. According to a class action lawsuit, graduates started to report fraudulent charges on their payment cards in May 2021. The company also allegedly failed to take reasonable steps to protect customer information. File your claim by May 12, 2022. Molekule Air Purifiers False Ad $1.3M Class Action SettlementConsumers nationwide who purchased specific Molekule air purifiers may be eligible to collect a cash payment and coupon thanks to a recent settlement. The Class is made up of consumers who purchased the Molekule Air, Molekule Air Pro, Molekule Air Mini, the Molekule Air Mini+, or the Molekule Air Pro Rx on or before Oct. 12, 2021, in the United States and who have not yet agreed to the arbitration provision in Molekule's terms and conditions. Plaintiffs in a class action lawsuit allege the company's air purifiers were advertised as outperforming high-efficiency particulate air (HEPA) filters, eradicating indoor pollutants, providing allergy and asthma relief, destroying airborne pollutants, and passing independent testing. However, the plaintiffs argue, the claims were not true. The claim deadline is May 31, 2022.  JP Morgan, Wells Fargo, BofA Out-Of-Network ATM Fees $66M Class Action SettlementJP Morgan, Wells Fargo, and Bank of America have agreed to settlements totaling more than $66 million to resolve claims they charge unfair out-of-network ATM fees. The settlement benefits consumers who paid an unreimbursed ATM access fee directly to the defendants (JP Morgan, Wells Fargo, or Bank of America) or others (any bank that is a member of the Visa or MasterCard networks) for an out-of-network ATM transaction between Oct. 1, 2007, and Nov. 12, 2021. According to a class action lawsuit, consumers incurred unfair ATM surcharges when using out-of-network ATMs. The defendants allegedly worked together to raise the cost of these surcharges, resulting in artificially high costs for their customers. Claim forms must be submitted no later than May 11, 2022. Bactolac All Day Energy Greens Ingredients $1.7M Class Action SettlementBactolac will pay more than $1.725 million as part of a settlement to resolve claims it distributed All Day Energy Greens products with undisclosed ingredients. The settlement benefits consumers who purchased one or more recalled canisters of All Day Energy Greens or All Day Energy Greens Fruity in 2014 or 2015. A full list of the 99 recalled lots can be found on the settlement website. According to the class action lawsuit against Bactolac, the company manufactured 99 lots of All Day Energy Greens in 2014 and 2015 that contained undisclosed ingredients — specifically, active bacteria and other contaminants that could result in nausea, vomiting, diarrhea, and other problems. The claim form deadline is May 20, 2022. Apple App Developer Antitrust $100M Class Action SettlementApple will pay $100 million and alter its App Store as part of a class action settlement resolving claims it violated antitrust laws with its app development monopoly. The settlement benefits iOS app developers whose applications or in-app purchases were sold on the Apple App Store between 2015 and 2021 and who earned less than $1 million for every year they had a developer account between 2015 and 2021. App developers filed their class action lawsuit in 2019, claiming Apple maintained an unlawful monopoly on distribution services. The company allegedly used pricing restrictions, a "supracompetitive" 30 percent commission fee, and other tactics to limit what developers can upload to the App Store. As a result, Apple allegedly stifled fair competition, a violation of federal antitrust laws. Claims are due by May 20, 2022. Allstate Insurance Telemarketing Calls Class Action SettlementU.S. consumers who answered an automated telephone call attempting to sell Allstate insurance products may be eligible for a payment thanks to a recent class action settlement. The Class is made up of all U.S. residents who received one or more calls from Allstate between Sep. 23, 2016, and Oct. 1, 2021, that began as an automated attempt to sell goods or services and were then transferred to an Allstate agent. Plaintiffs allege they did not give Allstate prior consent to call them on their provided phone number and argue that many of those calls were made to individuals who had previously put their numbers on the Do Not Call Registry. As a result, the class action alleges, Allstate violated the Telephone Consumer Protection Act (TCPA).The last day Class Members may file a claim is May 20, 2022. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subsidized vs Unsubsidized Loans Posted: 28 Apr 2022 02:20 AM PDT Understanding the difference between subsidized vs. unsubsidized student loans could help you save a bundle in student loan debt. But considering how much they have in common, it's understandable if you have trouble telling them apart (especially since they also go by other names — we'll explain in a bit). Both loans are part of the federal government's financial aid offerings, designed to help students cover the cost of college. To qualify for the federal direct loan program, you must be enrolled at least half-time in school in a program that leads to a degree or a certificate. Although unsubsidized claims a larger portion of outstanding direct loans — $563.5 billion compared to $291.5 billion in subsidized loans as of the fourth quarter of 2021 — there's plenty of overlap among borrowers who take out both types. We'll explain the difference between the two loans and how each can affect your finances long after you finish your final exams. Subsidized vs. Unsubsidized Student LoansA side-by-side comparison of subsidized and unsubsidized loans is probably the easiest way to see the differences — we'll get into the details after. Loan Type Comparison
Based on this chart, the winner is direct subsidized loans. (If you don't understand why, check that last row: Any option that includes someone else paying your bills is a winner). But let's take a closer look at each. Who Qualifies for a Direct Student Loan?You'll need to be an undergraduate student who can prove financial need to qualify for direct subsidized loans. Your college's financial aid office determines your eligibility. Direct unsubsidized loans do not require you to meet a financial need threshold. They are available to undergraduate, graduate and professional-level students. Here are the details about proving financial need. Qualifying for Subsidized LoansThe only way to get direct subsidized loans is if your college's financial aid office determines you can't afford to pay the cost of attending the school. Although the formulas can get a little complicated — and vary by school — here's a basic way for finding out how much you can get in subsidized vs. unsubsidized loans:
The financial aid office at your college decides how much financial aid you are eligible to receive, so if you think there's an error or you would like to appeal, you should contact them. Pro Tip In July 2023, the EFC will be replaced by the Student Aid Index. Although it will affect the formulation slightly, the switch from EFC to SAI is mostly just a name change. What Are the Annual Loan Limits for Direct Federal Loans?Undergraduate students can borrow between $3,500 and $5,000 in subsidized loans each school year, depending on the college, the year in school and the total amount borrowed — aka the aggregate loan limit. Unsubsidized loans have higher limits. We'll break down the limits by loan type provided by the Department of Education. Subsidized Loan Limits for UndergraduatesThe maximum subsidized loan limits are as follows, regardless of whether you're considered a dependent or independent student:
Graduate students and professional degree students are not eligible for direct subsidized loans. Unsubsidized Loan Limits for Undergraduate StudentsDirect unsubsidized loans for undergraduate students are limited by your dependency status and by the amount of subsidized loans you've borrowed. If you've received the maximum amount in subsidized loans, you'll need to subtract that amount from the total unsubsidized limit. For example, if you're a first-year dependent student who's received the maximum subsidized amount of $3,500, you can also borrow up to $2,000 in unsubsidized loans ($5,500 – $3,500). Unsubsidized Loan Limits for Undergrads: Dependent vs. Independent Students
Note: If you are an undergraduate student whose parents are unable to obtain PLUS Loans, you qualify for the independent student loan limits. Unsubsidized Loan Limits for Graduate and Professional StudentsGraduate and professional students are eligible for direct unsubsidized loans, with an annual limit of $20,500 and an aggregate loan limit of $138,500. However, if you still owe money on federal loans you took out as an undergraduate student, that amount is included in the total. No more than $65,500 of the aggregate loan limit may be in subsidized loans that you received as an undergrad. Is There a Time Limit for Direct Federal Loans?If you're applying for the current or upcoming school year, there are no time limits for direct federal subsidized or unsubsidized loans. If you were a first year student between July 2013 and July 2021, you are restricted in subsidized loans by the length of your program. Here's the breakdown for both. Subsidized LoansAs of July 1, 2021, there is no time limit for eligibility to apply for direct subsidized loans. However, if you became a first-time borrower after July 1, 2013, and and before July 1, 2021, there is a time limit. That limit is 150% of the published length of the program you were enrolled in — so if you were in a four-year program, you have six years worth of eligibility, so long as you've been enrolled at least half-time. Pro Tip If you lose eligibility for subsidized student loans but stay enrolled in your current program, you'll become responsible for paying the interest on any subsidized loans you previously took out. Unsubsidized LoansThere is no eligibility time limit for unsubsidized federal loans.  How Does Interest Accrue on Federal Student Loans? The U.S. Department of Education suspended all interest and payments for eligible federal subsidized and unsubsidized student loans through Aug. 31, 2022, due to the pandemic. Subsidized loansIf you have a subsidized loan, the federal government pays the interest on loans when you're in school at least half-time, during the six-month grace period after you leave school and during deferments. Unsubsidized loansIf you have an unsubsidized loan, interest accrues each year of college and during your grace period. After the grace period ends the interest capitalizes. Confused? Let's look at an (admittedly simplified) example: Sara and John each apply for federal student loans to cover expenses during their junior and senior years of college. Both years, they each receive $5,000 loans with a 3% interest rate. Sara qualifies for a subsidized loan while John gets an unsubsidized loan. Let's see where each ends up. Subsidized vs. Unsubsidized Interest Comparison
What Are the Interest Rates for Direct Federal Loans?For direct subsidized and unsubsidized loans disbursed between July 1, 2021, and July 1, 2022, the undergraduate interest rate is 3.73%. For graduate students, the unsubsidized loan interest rate is 5.28%. Those rates are currently suspended during administrative forbearance, which end Aug. 31, 2022. Each year, the federal government sets the interest rates for all student loans. Do Federal Loans Charge Fees?For subsidized or unsubsidized loans disbursed on or after Oct. 1, 2020, and before Oct. 1, 2022, the loan fee is 1.057%. On a $3,000 loan, the fee would be $31.71, so you'd receive $2,968.29. The fee changes from year to year and is calculated as a percentage based on when you took out your loan. How Will I Receive My Subsidized or Unsubsidized Loan?Whether it's subsidized or unsubsidized, your student loan money is sent directly to the school to cover your tuition, fees and room and board every semester, trimester or quarter. If there is any money left over (or if you're living off campus), the school will send you a check for the remaining amount within 14 days. For textbooks and other learning materials, the school must provide a way for you to access the funds within seven days of the start of the term. If you can find your textbooks and class materials for less than the campus bookstore sells them, you can request a check for the remaining amount. Your school is required to publish the International Standard Book Number (ISBN) for all required texts in the online course schedule. Use this number if you decide to shop for better prices. If this is the first time you've received a direct subsidized or unsubsidized student loan, you should be aware of the following additional restrictions:
What's the Difference Between Stafford and Direct Subsidized Loans?Congress renamed the federal direct loan program in 1988 to honor U.S. Senator Robert Stafford for his work on higher education; now direct loans also go by the names Stafford loans or direct Stafford loans. Consider this your cheat sheet:
The federal student loans for undergraduate students are called direct subsidized and direct unsubsidized loans, which are different from Parent or Graduate Plus loans, consolidated loans and the now-defunct Perkins loans. Another name you might hear: Federal Family Education Loans (FFEL). This program ended in 2010 — all subsidized and unsubsidized student loans are now made under the direct loan program. FAQ: Subsidized vs. Unsubsidized Federal Student LoansHow do I apply for direct federal loans? Whether you're applying for a direct subsidized or unsubsidized loan, you need to first submit the Free Application for Federal Student Aid. The colleges that you apply to will use your FAFSA form to decide your financial aid eligibility. Here's our step-by-step guide to filling out the FAFSA. Should I take out federal or private student loans? When possible, stick with direct federal loans, which are eligible for income-based repayment and forgiveness programs, unlike private loans. Private student loans also aren't eligible for the federal government's pause in payments and interest currently in effect. How can I tell the difference between my subsidized and unsubsidized loans? If your loan is for the current or upcoming academic year, contact your school's financial aid office directly to ask about the loan details. If it's an older loan, you can contact your loan servicer or use your FAFSA login and password to sign onto studentloans.gov.
Each entry on the government site will indicate the company hired by the federal government to service the loan — look for names like Nelnet, Great Lakes or FedLoan, three commonly used loan servicers. Any further interaction in regards to your loan should go through your loan servicer. Are unsubsidized loans bad? No, they aren't bad. But unsubsidized loans do accrue interest while you're in school. Subsidized loans, on the other hand, don't accrue interest while you're in school or during grace periods, but to get a subsidized loan you have to prove financial need. Unsubsidized loans have no financial need requirement and their limits are higher than subsidized loans. So if you don't get enough subsidized loans to cover college costs, you can get additional money from unsubsidized loans. Do you have to pay back subsidized and unsubsidized loans? Yes. The government has put a pause on payments and interest for all qualified student loans through Aug. 31, 2022, but you shouldn't expect that forbearance period to last forever. When it does end, lenders will resume collecting payments and charging interest. When you initially receive direct loans, you'll hear from your loan servicer, who will be your contact if you have questions about your payments or the loan. If you're in college and hold both subsidized and unsubsidized loans, try to start paying back unsubsidized loan interest first to avoid as much interest capitalization as possible when you graduate. Can my loans ever be forgiven or discharged? Student loan forgiveness typically takes years to qualify for — sometimes as much as 25 years. Many forgiveness options depend on your job being in sectors like public service. Otherwise, loan discharge is typically limited to income-driven options or extreme circumstances, like permanent disability or a school closing. What if I change my mind? If you realize that you don't need your subsidized or unsubsidized loans after all, you may cancel all or part of your loan within 120 days of receiving it without accruing interest or incurring fees. And if you turned down money but have reconsidered, contact your financial aid office. Most colleges and universities will reinstate an offer for federal student loans included in your original financial aid package. Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder. Read her bio and other work here, then catch her on Twitter @TiffanyWendeln. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now |
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