Chase Credit Journey: Check Your Credit Score For Free

Chase Credit Journey is one of the many credit monitoring services that gives you a credit score for free. Launched by Chase, Credit Journey also monitors your score and gives you advice on to improve it.

One of the best ways to get approved for a loan or a credit card is to have a good credit score. Think of this 3-digit number as a representation of your credit worthiness and credibility.

In fact, lenders use your credit score to see how risky it is for them to let you borrow.  The higher your score, the better.

So,  it is very important to use a free tool like Chase Credit Journey, to know your credit score before applying for a loan, a credit card, or an apartment.

Doing so will give you an idea whether or not you will be approved or denied.

One way to get a credit score for free and monitor it is through Chase Credit Journey. If your credit score is excellent, then you are all good.

All you have to do is maintaining it. If it’s bad, then you can take steps to raise your credit score.

In this article, we will address what Chase Credit Journey is, why you should use it, and some of its limitations.

What is Chase Credit Journey?

Chase Credit Journey is a free online service offered by Chase that gives consumers a credit score and credit report for free. You don’t have to be a Chase customer to use the service.

You’ll need to register by entering personal information, including your credit cards information, existing loans, etc.

Checking your credit on Chase Credit Journey does not hurt your credit score, because it counts as a soft credit inquiry. Soft inquiries, as opposed to hard inquiries, leave your credit score untouched.

In addition to getting a credit score from Chase Credit Journey, you can get one from the following credit monitoring services all for free:

  • Credit Karma
  • Credit Sesame
  • Credit.com
  • Lendingtree
  • NerdWallet
  • WalletHub
  • Creditcards.com

How Does Credit Journey Work?

Chase Credit Journey uses Experian, one of the three credit bureaus, to give you a credit score and report.

Chase Credit Journey uses the VantageScore 3.0 model, which is a collaboration from the three credit bureaus.

Your score is updated weekly but you can access it as much as you can and anytime you want.

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Also, you can sign up for credit alerts through Credit Journey which can notify you if your score changes or if something suspicious is happening on your credit file.

If there are errors, Chase Credit Journey will guide you on how to file a dispute with the credit bureaus. You can’t get your FICO score via Chase Credit Journey.

In addition to getting a free credit score, you also get an analysis of your score and advice on how to raise it and other free resources. This way you can take steps to improve your credit score. 

If you’re ready to give Chase Credit Journey a shot, go online to the homepage to see how Credit Journey works.

You can also access the Chase Credit Journey through the Chase mobile app as well.  If you’re not convinced yet, keep reading.

Chase Credit Journey helps you understand the 6 factors to come up with your VantageScore credit score. They are:

1) Payment history (or late payments): payment history accounts for 35% of your total credit score. In fact, it is the most important factor in your total credit score. Late or missed payments can negatively affect your credit score.

2) Credit utilization ratio (or credit usage): Credit utilization is how much of your credit limit you’re using versus your balance. Credit card utilization accounts for 30% of your total credit score. So keeping it low is ideal. Keeping your credit card balance under 30% is the way to go. For example, let’s suppose your credit card has a credit limit of $5000. You have used $2500 of that credit. Then your credit utilization is 50%. To keep it below 30%, you should only use $1500 of that credit.

3) Credit age: The third most important factor of your total credit score is your credit age. That means how long you have had credit. Lenders like to see a longer credit age. In your credit report, you’ll be able to see your average credit age.

4) Hard Inquiry: The higher your credit inquiries, the lower your credit score can become. Anytime you apply for a loan or a credit card or when a landlord checks your credit, it can cause a small dip in your credit score. So multiple credit inquiries can hurt your credit score rather than improving it.

5) Total Balances: total balances refer to the amount owed over all of your credits, including your mortgage, student loans, credit cards, personal loans, etc.

6) Available credit: This factor represents the current amount of unused credit you have over your accounts.

Chase Credit Journey best feature: the score simulator

In addition to providing you a free credit score and report, a credit alert, and credit resources, Chase Credit Journey has an invaluable feature called the score simulator.

The score simulator gives you an estimate of how certain changes in your credit behavior can affect your credit score. Those changes include missing a payment, card balance transfer, and closing an old account, etc.

The importance of checking your score via a free credit service like Chase Credit Journey

Your credit score is perhaps the first thing lenders look at to decide whether to approve you for a loan or credit card. The better your score, the higher is your chance of getting that loan.

On the other hand, if you have a bad credit score, getting a loan or a credit card not only can prove very difficult, but applying for it puts a hard inquiry that can actually lower your already bad credit score.

So knowing your score before you actually apply will give you an idea whether lenders will approve you. It will also allows you to apply for credit with confidence. That’s why is important to use a free credit service.

Additionally, checking your credit score and credit report on a regular basis will help you identify what is on your credit report. Outstanding debts and a history of late payments can directly impact your credit score.

You can get your credit report for free by logging on AnnualCreditReport.com from each of the three credit bureaus. But these credit reports do not give you a credit score. Moreover, you get these reports only once every year.

While there are several options, Chase Credit Journey is just another option. It’s never a bad idea to have several options to choose from.

In other words, it’s better to get your score from more than one source. However, there are some limitations to using Chase Credit Journey.

Chase Credit Journey Limitations

One of the limitations Chase Credit Journey has is that it only uses one of the three major credit bureaus, which is Experian. When you get your score from only one credit bureau, you might not see the whole picture.

So, your credit score might not be entirely accurate.

For example, let’s say you transfer a credit card balance to a new credit card. If Transunion and Equifax are the only credit bureaus that recorded the card was closed during the transfer, you credit score might drop, because Experian recorded you opened a new card.

Another disadvantage of Chase Credit Journey is that the VantageScore’s scoring model is not the industry standard. Most companies use FICO scores to decide whether to approve or decline you for a loan or credit.

And while VantageScore and FICO scores range from 300 to 850, the two models use different criteria in coming up with your credit score. In other words, each model weighs the factors differently in calculating your credit score.

So your Chase Credit Journey credit score might be different than a FICO score. So, if you are ready to apply for a loan, find out which actual credit score your lender will use to improve your chance of approval.

The Bottom Line

Chase Credit Journey provides free credit scores and reports from Experian. The scores are updated weekly. The free credit score is based on the VantageScore 3.0 model.

However, while VantageScore’s system is accurate, it is not what most companies use. But one important thing about Chase Credit Journey is that it one other free tool that allows you stay proactive and monitor your credit on a regular basis. In turn, it allows you to know your score before applying for credit.

Speak with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post Chase Credit Journey: Check Your Credit Score For Free appeared first on GrowthRapidly.

Source: growthrapidly.com

Tips to Help You Fund (and Keep) Your Emergency Fund

Everyone who’s ever had an emergency will tell you money is key to making good decisions. We make bad financial decisions when we’re broke and desperate. That’s why having an emergency fund is vital to starting any personal finance journey.…

The post Tips to Help You Fund (and Keep) Your Emergency Fund appeared first on Modern Frugality.

Source: modernfrugality.com

Options for Teacher Student Loan Forgiveness

Loan forgiveness is a trade-off. It’s about incentivizing graduates to work in low paying or otherwise undesirable positions in exchange for erasing or significantly reducing their student loan balance. Without these programs, important community institutions would be severely understaffed.

If you’re a teacher or education student reading this, those criteria probably sound familiar.

Many school districts struggle to fully staff their schools, especially when it comes to certain positions. Loan forgiveness programs are one of the best ways for them to attract job candidates and retain them for long enough to make an impact.

Teachers have several options when it comes to loan forgiveness. Here’s what you should know about each one.

Teacher Loan Forgiveness

The Teacher Loan Forgiveness Program is the only federal loan forgiveness program specifically designed for teachers. Math or science teachers who teach in secondary schools or special education teachers can have up to $17,500 worth of loans forgiven. Any other kind of teacher can only receive up to $5,000 worth of loan forgiveness.

The program has strict requirements. Teachers must hold a license or certification in their state and teach for five consecutive years in a school that primarily serves low-income students. A list of eligible schools is available here.

Teachers qualify even if they work at different schools for each of the five years, but each of those schools must be eligible.

Teacher Loan Forgiveness is only available for Direct Subsidized and Unsubsidized Loans, as well as Subsidized and Unsubsidized Federal Stafford Loans. Perkins loans are not eligible.

If you have a Direct Consolidation Loan or a Federal Consolidation Loan that includes a Perkins loan, that portion won’t be eligible for Teacher Loan Forgiveness. PLUS or graduate school loans are also not eligible for Teacher Loan Forgiveness.

Public Service Loan Forgiveness

The Public Service Loan Forgiveness Program (PSLF) is arguably the best forgiveness option for teachers. Unlike the Teacher Loan Forgiveness program, borrowers don’t have to work consecutive years to qualify. This is especially helpful for teachers who take a year or two off.

Teachers can work for an elementary or secondary school, in either a public or private school setting. They must work at least 30 hours a week to qualify. After 120 qualifying payments, they can apply to have their remaining loan balance forgiven. There is no limit on how much will be discharged, and teachers won’t owe taxes on the forgiven amount.

Only Direct Loans are eligible for PSLF. If you have FFEL or Perkins Loans, you’ll have to consolidate them into a Direct Consolidation Loan to qualify.

Teachers should submit the PSLF employer certification form every year, which will verify the employer and calculate how many qualifying payments have been made.

PSLF can be used with Teacher Loan Forgiveness, but borrowers will only receive credit for one program at a time. If $5,000 of your loans is forgiven after five years through Teacher Loan Forgiveness, those five years’ worth of payments will not count toward PSLF.

While working toward PSLF, teachers will have to choose from one of the income-driven repayment plans. These options will lower your monthly payment.

Perkins Loan Teacher Cancellation

Teachers with Perkins loans can have their loan balance entirely discharged. To be eligible, they must work full-time in a school with low-income children or as a special education teacher. Teachers can also become eligible by teaching a subject that has a shortage of teachers in their state.

Private school teachers and those who have two part-time teaching jobs also qualify. Preschool and kindergarten teachers may only be eligible if their state considers those grades to be part of elementary education.

Unlike PSLF or the Teacher Loan Forgiveness program, teachers can earn partial loan forgiveness. They’ll get 100% forgiveness after five years of service.

Here’s how much will be forgiven each year:

  • 15% forgiven after one year of work
  • 15% forgiven after two years of work
  • 20% forgiven after three years of work
  • 20% forgiven after four years of work
  • 30% forgiven after five years of work

State Forgiveness Programs

Your state may have its own teacher forgiveness program. Go here to see what options are available. You can also try Googling your state and “teacher forgiveness program” and see what comes up. You may have to teach in an underserved area or teach a specific subject to qualify.

Options for Private Student Loans

Teachers with private loans rarely have access to loan forgiveness. Here are some options available to them:

Refinance private loans

If you want to save money on private loans, your best option is to refinance to a lower interest rate.

Private lenders often require a credit score of 650 or higher to qualify for a refinance. Some lenders may also have an income requirement, but this depends on the specific lender. For example, LendKey accepts borrowers with low salaries.

When you refinance private loans, make sure you understand the term you’re signing up for. For example, if you have five years left on your private loans and refinance to a 10-year term, you may end up paying more interest over the life of the loan because the term is doubled.

If you can afford it, keep making the same payments as you were before. Assuming you haven’t significantly changed your budget or lost your source of income, this should be doable. Keeping the same payment rate will let you repay the loan faster and save on interest.

Take out a home equity loan

If you’re a homeowner, you can withdraw extra equity from your house and use it to repay your student loans. Generally, you’ll need to have 80% or more equity in the home to qualify.

Home equity loans may have lower interest rates and longer terms than private student loans. It may also be easier to qualify for a home equity loan because the bank has collateral behind it.

The downside to this strategy is that if you default on a home equity loan, the bank may repossess your house. Comparatively, refinancing your private student loans has much lower stakes.

The post Options for Teacher Student Loan Forgiveness appeared first on MintLife Blog.

Source: mint.intuit.com

What Is a Stafford Loan and How Do You Qualify?

How do you qualify for a stafford loan?

If you’re in search of financial help for higher education, you may have explored different scholarships and grants to pay the way. Gifted money is a great way to pay for school without having to worry about paying it back after graduation. However, if you don’t have all your expenses covered through scholarships and grants, you might need to consider student loans to fill in the gaps. If you’re exploring federal aid, Stafford loans might be an option. Here’s what they are, how much they cost and how to know if you qualify.

What Is a Stafford Loan?

A Stafford loan is a federal student loan provided by the government to help pay for your education while you’re attending a university, community college, trade or technical school. 

Stafford loans are now referred to as direct subsidized loans or direct unsubsidized loans. The difference between subsidized and unsubsidized loans is who pays for the accrued interest of the loan while you’re in school and how much you may be able to borrow.

A subsidized loan is only available to undergraduate students in financial need. The U.S. Department of Education pays the interest that adds up on your behalf while you’re in school at least half-time, as well as during the six-month grace period after graduation and during deferment or forbearance periods. The limit on how much you can borrow is $3,500 for the first year, $4,500 for the second and $5,500 for the third and fourth years. The aggregate loan amount is capped at $23,000, which is lower than unsubsidized loans.

An unsubsidized loan is available for both graduate and undergraduate students and isn’t based on financial need. The student is responsible for the interest that builds up while in school. Payments could be more costly than those for a subsidized loan because of that accrued interest.

If a subsidized loan doesn’t cover all your college costs, you can take out an unsubsidized loan, too. The aggregate loan amount for unsubsidized loans is capped at $31,000 for undergraduate students considered dependents and whose parents don’t qualify for direct PLUS loans. Undergraduate independent students may be allowed to borrow up to $57,500, while graduate students may be allowed to borrow up to $138,500.

These types loans have fixed interest rates determined by the government, come with a fee and allow the student to borrow for up to 150% of the length of the program they’re enrolled in. For example, if you’re attending a four-year college, you would be able to borrow these loans for up to six years.

How to Qualify for a Stafford Loan How do you qualify for a stafford loan?

What you need to get a Stafford loan depends on your financial standing.

Students or parents of the student must first complete the Free Application for Federal Student Aid (FAFSA). Next, you’ll receive an award letter that details if you qualify for a Stafford loan. Your financial need determines if you’ll get a direct subsidized loan. If you don’t qualify, then you may receive a direct unsubsidized loan.

If you do qualify for one of these loans and you’re ready to accept the federal aid, you’ll need to submit a Mastery Promissory Note (MPN). This is a legal document which states that you promise to pay back your loans in full, including any fees and accrued interest, to the U.S. Department of Education. The school of your choice will determine how much money you’re eligible to receive and the funds go straight to your school – not to you. Since you can receive money based on your need or school enrollment – not your credit score – only your application is required.

Stafford Loan Alternatives

If you’ve exhausted all of your financial aid options, it might be time to explore other means to pay for school.

Direct PLUS Loans

Direct Plus loans are federal loans that are available to graduate or professional students, or parents of undergraduate students. They require a credit check and you might be required to make payments while you or your child is in school. However, you could request deferment and make payments after you or your child graduates or drops below half-time.

Private Student Loans

If you can’t get any further federal aid, you may consider private student loans. Instead of coming from the U.S. Department of Education, these types of loans are issued from private issuers, such as banks, credit unions or online lenders.

If you’re not sure where else to look, contact your school’s financial aid office. It may have scholarships, grants or other small loans available that you might qualify for.

The Bottom Line

How do you qualify for a stafford loan?

College is expensive and not everyone can afford to pay for it out of pocket. Tapping into financial resources, including Stafford loans like subsidized and unsubsidized loans, as well as direct Plus loans and private student loans, may help. Don’t be afraid to contact your school’s financial aid office for even more resources to pay for school.

Tips for Student Loan Borrowers

  • If you’re not sure of the best strategy for securing student loans, consider working with a financial advisor. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • Interest rates for private student loans are often higher than those for federal loans. If you or your child is struggling to pay private student loans, consider student loan refinance rates available now.

Photo credit: ©iStock.com/William_Potter, ©iStock.com/utah778, ©iStock.com/BrianAJackson

The post What Is a Stafford Loan and How Do You Qualify? appeared first on SmartAsset Blog.

Source: smartasset.com

Best States for Veterans – 2020 Edition

Image shows an advisor sitting across from a member of military personnel; there are official papers and a computer on the desk between them. In this study, SmartAsset analyzed various data points to find the best states for veterans.

How easily veterans adjust to their lives after service depends on many factors, not the least of which is their ability to maintain adequate finances to cover their home payments and daily needs. There’s good news for vets on that front, though: While about 37,000 veterans still experienced homelessness in January 2019, the homelessness rate among veterans declined more than 2% in 2019 and had decreased 50% since 2010, according to a 2019 report from the Department of Housing and Urban Development (HUD). Despite that marked improvement, not all places are equally suited to help veterans thrive. That’s why SmartAsset crunched the numbers in all 50 states and the District of Columbia to find the best places for veterans.

To do so, we looked at data across nine metrics: veterans as a percentage of population, veteran unemployment rate, overall unemployment rate, percentage of veterans living below the poverty line, housing costs as a percentage of median income for veterans, percentage of a state’s businesses owned by veterans, number of VA health centers per 100,000 veterans, number of VA benefits administration facilities per 100,000 residents and taxes on military pensions. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

Key Findings

  • Veterans are less likely than the general population to live below the poverty line. Nationally, 11.1% of the U.S. population is living in poverty, according to 2019 figures from the Census Bureau. The average for this metric across this study is 6.7%, possibly because military benefits help keep some veterans afloat when they might otherwise face financial challenges.
  • More populous states may not be as suitable to veterans. The bottom three states in the study are California, New York and Illinois, which have the largest, fourth-largest and sixth-largest state populations, respectively. These states struggle in two metrics: the unemployment rate for veterans and housing costs as a percentage of median income for veterans. This may be due, in part, to their high populations, which increase both competition for available jobs and demand for housing.
  • Pension taxes vary. Each state chooses how to tax military pensions. All in all, 30 states don’t tax military pensions at all, including eight out of the top 10 states (Nebraska and Montana are the exceptions). Military pensions are partially taxed in 13 states, along with the District of Columbia, and they are fully taxed in seven states.

1. South Dakota

South Dakota, home of the Black Hills and Mount Rushmore, is the best state in the U.S. for veterans. South Dakota has 21.04 Veterans Administration health facilities per 100,000 veterans, which is the second-highest rate for this metric overall, meaning veterans in South Dakota should have relatively good access to health services. There are also 3.51 VA benefits administration facilities per 100,000 residents, ranking 10th. In addition, South Dakota does not tax military pensions.

2. Wyoming

Wyoming takes the runner-up spot. Wyoming has the highest number of VA health facilities in the country, at 28.99 per 100,000 veterans. It also does not tax military pensions. Wyoming finishes in the bottom half of the study in terms of the percentage of veterans who are living below the poverty line (coming in at 38th, with a percentage of 7.1%). However, the veteran unemployment rate in the state is 1.0% – second-lowest in the study – so veterans looking for work could do worse than thinking about the Cowboy State.

3. North Dakota

North Dakota is one of the least populous states in the nation, but it does well by its veterans. The Rough Rider State has the lowest unemployment rate for veterans in the nation, at 0.9%. Its overall September 2020 unemployment rate is also low, coming in at 4.4% – fourth-lowest in the nation. Housing costs make up 19.90% of the median income for a veteran, the second-best rate for this metric in the study.

4. West Virginia

West Virginia has housing costs that make up just 18.95% of the median veteran income, the best rate for this metric in the study. The Mountain State has the sixth-highest concentration of VA health facilities in the study, at 12.39 per 100,000 veterans, and the third-highest number of VA benefits administration facilities, at 5.78 per 100,000 residents. Military pensions are not taxed in this state. See more about retirement tax friendliness in West Virginia here.

5. Maine

Maine is one of two Northeastern states to be ranked in the top 10, and it gets there partially on the strength of its 1.3% veteran unemployment rate, ranking fourth-lowest in the country. Maine’s population is made up of 8.89% veterans, the eighth-highest percentage for this metric. Maine also has 5.13 VA benefits administration centers per 100,000 residents, ranking sixth-best. There are no taxes on military pensions in the Pine Tree State.

6. Alaska

Also known as The Last Frontier State, Alaska has a relatively small population, but one that is 10.74% veterans, the highest percentage for this metric across all 50 states and the District of Columbia. Alaska also comes in first for the metric measuring the percentage of businesses owned by veterans, at 11.60%. The state doesn’t do nearly as well, though, when it comes to employing veterans, as the unemployment rate among veterans is 6.3%, near the very bottom of the study. On the plus side, the state does not tax military retirement pay.

7. Nebraska

Nebraska had an overall unemployment rate of just 3.5% in September 2020, the lowest in the country, and that rate is particularly impressive amid the COVID-19 pandemic. Nebraska also has the fifth-best unemployment rate for veterans, at just 1.4%. Nebraska taxes some portion of military pensions, making it one of two states in the top 10 of the study where military pensions are not completely tax-free.

8. New Hampshire

Veterans in New Hampshire own 9.42% of the state’s businesses, placing the Granite State at 12th overall for this metric. The entire population of the state is 8.52% veterans, the 14th-highest rate for this metric across all 50 states and the District of Columbia. New Hampshire performs relatively poorly in terms of housing affordability: The average housing cost represents 36.25% of the median veteran income, sixth-highest in the study. However, Military pensions are tax-free in the state. Those who are seeking assistance with balancing all of these financial factors may wish to consult our roundup of the top 10 financial advisors in New Hampshire.

9. Montana

Veterans will find a built-in community in Big Sky Country, where the population is 10.28% veterans, second-highest in the study. That said, Montana taxes military pensions fully – the only state in our top 10 to do so and one of just seven to do so nationwide. Still, Montana ranks ninth for both of the unemployment metrics we measured, with a veteran unemployment rate of 2.3% and an overall September 2020 unemployment rate of 5.3%.

10. Hawaii

Hawaii places first in this study in terms of number of VA benefits administration facilities, at 6.64 per 100,000 veterans. It is important to note, though, that the Aloha State had an unemployment rate of 15.1% in September 2020, ranking last for this metric in the study. Furthermore, housing costs make up 39.41% of median veteran income, second-worst overall. However, only 5.8% of veterans are living below the poverty line, good for 12th overall. The state also has top-20 rankings for veterans as a percentage of the population, veteran-owned businesses as a percentage of all businesses and VA health facilities per 100,000 veterans.

Data and Methodology

To conduct the 2020 version of our study on the best states for veterans, we compared all 50 states and the District of Columbia across the following metrics:

  • Veterans as a percentage of the population. Data comes from the Census Bureau’s 2019 1-Year American Community Survey.
  • Veteran unemployment rate. Data comes from the Census Bureau’s 2019 1-Year American Community Survey.
  • Unemployment rate. Data comes from the Bureau of Labor Statistics and is for September 2020.
  • Percentage of veterans living below the poverty line. Data comes from the Census Bureau’s 2019 1-Year American Community Survey.
  • Housing costs as a percentage of median income for veterans. This is annual median housing costs divided by median income for veterans. Data comes from the Census Bureau’s 2019 1-Year American Community Survey.
  • Share of veteran-owned businesses. This is the percentage of all businesses in a state that are owned by veterans. Data comes from the Census Bureau’s 2018 Annual Business Survey.
  • VA health facilities per 100,000 veterans. Data come from the U.S. Department of Veterans Affairs and the Census Bureau’s 2019 1-year American Community Survey.
  • VA benefits administration facilities per 100,000 veterans. Data come from the U.S. Department of Veterans Affairs and the Census Bureau’s 2019 1-year American Community Survey.
  • Taxes on military pension. States were assigned a 1 if the state does not tax military retirement pay, a 2 if there are special provisions or other considerations for military pension taxes and a 3 if the state fully taxes military retirement pay. Data comes from militarybenefits.info.

First we ranked each state in each metric. From there, we found the average ranking for each state, giving all metrics a full weight except for the two metrics measuring unemployment, which each received a half weight. We used this average ranking to create our final score. The state with the best average ranking received a score of 100, and the state with the worst average ranking received score of 0.

Money Tips for Veterans

  • Financial help from someone who’s always got your six. Veterans, like everybody else, sometimes need help with financial matters. A financial advisor can provide that help and bring in reinforcements to set you on the right path. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool connects you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors, get started now.
  • Don’t sacrifice continuing education because of costs. If you want to go to college after you serve, the GI Bill will help — but you may still end up with student loans. To discover how much you’ll need to pay, use SmartAsset’s student loan calculator.
  • Create a strong strategy for your budget. Use SmartAsset’s budget calculator to figure out how much you should be spending on different areas and you’ll make sure you have enough money for everything.

Questions about our study? Contact press@smartasset.com.

Photo credit: ©iStock.com/SDI Productions

The post Best States for Veterans – 2020 Edition appeared first on SmartAsset Blog.

Source: smartasset.com

I Dropped Out of College: My Student Loan Repayment Options

No one intends to drop out of college. If you show up to campus for your freshman year, chances are you plan to graduate in four years and use your degree to land a job. Maybe you even have the whole thing mapped out, step-by-step.

But then life happens. Whether it’s a family emergency, deteriorating health, stress burnout, or just the realization that college isn’t the right choice, plenty of people choose to drop out of their university every year. The problem is, your student loans don’t go away just because you never ended up with a degree.

So how should someone in this position approach student loan repayment? Are there any unique considerations to take into account? Here’s what you need to know.

Choose an Income-Based Repayment Plan

If you have federal student loans, you’re eligible for the same repayment options available to borrowers with a degree.

You may currently be on the standard 10-year repayment plan, which will have the highest monthly payments and the lowest total interest. You have the option of switching to a less expensive option if you’re struggling with those payments. Use the official repayment calculator to see which plan lets you pay the least.

When you choose an extended, income-based, or graduated repayment plan, you’ll pay more interest overall than if you stuck with the standard plan. If you’re not working toward a specific forgiveness program, then it’s best to switch back to the standard plan as soon as you can afford it to minimize the interest.

Refinance Private Loans

Private student loans have fewer income-based repayment options than federal loans, and they rarely offer deferment or forbearance options. But you can refinance private loans for a lower interest rate, even if you dropped out.

There are a few lenders that service borrowers with uncompleted degrees.

These may include:

  • MEF
  • RISLA Student Loan Refinance
  • EDvestinU
  • PNC
  • Wells Fargo
  • Purefy
  • Discover Bank
  • Advance Education Loan
  • Citizens Bank

To be a good candidate for a student loan refinance, you must have a high credit score and no recent bankruptcies or defaults on your credit report. You also need a low debt-to-income ratio, and some lenders may have income requirements.

Financial aid expert Mark Kantrowitz of SavingforCollege.com said borrowers are unlikely to be good refinance candidates immediately after college because lenders usually require a minimum amount of full-time employment.

If you dropped out recently, you may want to wait a year before trying to refinance private loans. During that time, check your credit score through Mint, pay all your bills on time, avoid opening new loans or lines of credit, and pay your credit card bill in full every month.

Explore Deferment and Forbearance

Once you leave school, you’re eligible for a six-month grace period where federal student loan payments are put on hold. You won’t accrue interest during this time if you have subsidized loans, but you will if you have unsubsidized loans.

If you still need more time after the grace period has expired, you can apply for deferment or forbearance. Borrowers have to apply for deferment and forbearance manually and wait to be approved.

Deferment and forbearance are both federal programs that let borrowers avoid paying their student loans while still remaining current. The main difference between the two options is that interest will not accrue on your loan balance during deferment, but it will accrue during forbearance. For that reason, it’s harder to qualify for deferment.

Be careful about putting your loans in deferment or forbearance for a long time. The interest that accrues will capitalize, meaning it will be added to your loan’s principal. This will increase your total monthly payments and could delay your debt payoff timeline.

Apply for Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is a program that encourages borrowers to choose a non-profit or government job. In exchange, your remaining loan balance will be forgiven after 10 year’s worth of payments, which do not have to be consecutive. It’s even available to borrowers who dropped out and never finished a degree.

“PSLF is always an option because it’s employer-dependent,” said student loan lawyer Joshua R. I. Cohen.

PSLF is only available for federal loans, and only those loans that are part of the Direct Loan Program. If you have FFEL or Perkins loans, you’ll have to consolidate them as part of the Direct Consolidation Program. This process will render them eligible for PSLF.

Be sure not to consolidate loans that are already part of the Direct Loan Program. If you’ve already been making payments, consolidating loans will restart the clock on PSLF, and you could lose credit for eligible payments you’ve already made.

The employer you work for must also be an eligible non-profit or government entity. Only full-time employees qualify for PSLF, which excludes part-time workers and independent contractors.

To be eligible for PSLF, you should fill out the employment certification form every year. This form asks for your employer’s contact information, your employment status, and more.

Once you submit the form, you should receive a notice verifying your employer and how many eligible payments you’ve made. Doing this every year will make it easier when you apply for forgiveness after your 120 payments have been made.

“It also gives borrowers an opportunity to dispute any errors or undercounts well before they reach eligibility for loan forgiveness, giving them plenty of time to address disputes,” said student loan lawyer Adam S. Minsky.

Borrowers can save money while working toward PSLF by choosing an income-based repayment plan instead of the standard 10-year plan. They also won’t owe taxes on the forgiven amount, so it’s best to choose the least expensive monthly option.

Try to Discharge Your Loans

If you couldn’t complete college because the department you were studying in closed, or your school committed fraud, you may be a good candidate for discharging your student loans completely. If this happened to you, contact a student loan lawyer who can help you file a case.

 

The post I Dropped Out of College: My Student Loan Repayment Options appeared first on MintLife Blog.

Source: mint.intuit.com

What Is a Parent PLUS Loan?

Parent PLUS Loans

Paying for college is a challenge, and rising tuition costs certainly don’t help. According to College Board, the average cost of a four-year private college has increased by more than $3,000 over the last five years. Scholarships, grants and work-study programs can help bridge the gap, but it’s best to have a robust savings to back you up. Since some parents don’t want their child to take on too many loans themselves, the federal government created Parent PLUS loans. They stand out from other programs thanks to a fixed interest rate and flexible repayment options. Here we discuss what exactly a Parent PLUS loan is, how it works and whether you should get one.

Parent PLUS Loans Defined

Let’s start with the basics. A Parent PLUS loan is a federal student loan offered by the U.S. Department of Education Direct Loan program. Unlike other Direct Loans and most student loans in general, Parent PLUS loans are issued to parents rather than students. Also eligible for issue are stepparents, dependent graduate students and other relatives.

Whoever takes out the loan holds the sole legal responsibility for repayments, regardless of personal arrangements. This is very different than a parent cosigning his or her child’s student loan. The maximum PLUS loan amount is the cost of attendance minus any other financial aid received, which could equal tens of thousands of dollars per year. For PLUS loans distributed between July 2018 and July 2019, the interest rate is 7.60%. As such, the decision to get a Parent PLUS loan should not be taken lightly.

Who Should Get a Parent PLUS Loan?

Parent PLUS Loans

According to the Office of Federal Student Aid, about 3.5 million parents and students have borrowed a collective $83.9 billion using Parent PLUS Loans from the federal government. To qualify for a Parent PLUS loan, you must be the parent of a dependent undergraduate student, dependent graduate student or professional student enrolled at least half-time in a participating college or university.

You and your child must also meet the general eligibility rules for federal student aid, such as proving U.S. citizenship and demonstrating need. Male students must be registered with the Selective Service. As with other Direct PLUS loans, you usually can’t secure a Parent PLUS loan if you have an adverse credit history. The Department of Education won’t approve a borrower with charged-off accounts, accounts in collections or a 90-day delinquent account with a balance of $2,085 or more.

You shouldn’t apply for a Parent PLUS loan just because you qualify. In fact, it’s usually best if a student gets all of the Direct Loans he or she is eligible for first. These loans tend to have lower interest rates and fees. A parent could always help his or her child with student loan repayments, anyway.

You should really only apply for a Parent PLUS loan if your child needs more financial aid than he or she has received from other sources. It’s also important that both students and parents are on the same page about expectations and repayment plans.

Pros of Parent PLUS Loans

Flexible Loan Limits

Identified generally as “cost of attendance minus any other financial aid received,” Parent PLUS loans can be used toward tuition and fees, room and board, books, supplies, equipment, transportation and miscellaneous personal expenses. They do not have the same limits imposed on them as other federal student loans do. This makes Parent PLUS loans a great supplement if you have a mediocre financial aid package. Of course, you should still be cautious not to take on debt you won’t be able to pay back. Our student loan calculator can help you decide how much you should borrow.

Fixed Interest Rate

As with other federal student loans, the interest rate on a Parent PLUS loan stays the same throughout the life of the loan. It won’t alter based on national interest rates, the prime rate or other factors. Every July, the Department of Education sets the Parent PLUS loan interest rate based on that year’s 10-year treasury note. The fixed interest rate makes it easy for borrowers to predict expenses, make both short- and long-term financial goals and set a budget.

Multiple Repayment Options

Parent PLUS loans are eligible for several different repayment plans, one of which should work for you. This flexibility makes them one of the most accommodating programs for funding a college education. Check out your choices below:

  • Standard Repayment Plan: The most common option, which allows for fixed monthly payments for 10 years.
  • Graduated Repayment Plan: This starts with small payments that gradually increase over 10 years. In theory, this should coincide with growing income levels.
  • Extended Repayment Plan: This provides fixed or graduated payments over 25 years, as opposed to 10.
  • Income-Contingent Repayment: Borrowers pay 20% of their discretionary income or what they’d pay on a 12-year plan, whichever is lower. They also qualify for student loan forgiveness if they still have a balance after 25 years.

Cons of Parent PLUS Loans

Parent PLUS Loans

Loan Origination Fee

Interest isn’t the only expense you’ll encounter with Parent PLUS loans. There’s also a loan origination fee. The fee amount is a percentage of the loan, and it varies depending on the disbursement date of the loan. For loans after October 1, 2018 but before October 1, 2019, the fee is 4.248% of the loan amount. That means that if you borrow $30,000 using a Parent PLUS loan, you’d pay a fee of $1,274.40.

This fee is proportionately deducted from each loan disbursement, which essentially reduces the amount of money borrowers have to cover education-related costs. Since many private student loans don’t have a fee, it’s worth looking into private options to determine which loan has the lowest borrowing costs.

Relatively High Interest Rate

Currently set at 7.60%, Parent PLUS loans certainly don’t have the lowest rate out there. If you have strong credit and qualify for a better rate, you might consider a different loan that will cost less in the long run. Direct Subsidized Loans currently carry a 5.05% interest rate, while Direct Unsubsidized Loans are at 6.60%. On the other hand, some private lenders have interest rates as low as 2.795%.

Limited Grace Period

Parent PLUS loan repayment normally begins within 60 days of loan disbursement, but borrowers have the option to defer repayment. This will last while their child is still in school and for six months after he or she graduates or if the student drops below a half-time enrollment status. Not only is this much less time than borrowers of other loan programs receive, but interest will also continue to accrue during the deferment period.

How to Apply for a Parent PLUS Loan

If a Parent PLUS loan seems right for you, file the Free Application for Federal Student Aid (FAFSA) at FASFA.ed.gov. Depending on the school’s application process, you will request the loan from StudentLoans.gov or the school’s financial aid office.

If you receive approval for a Parent PLUS loan, you will get a Direct PLUS Loan Master Promissory Note (MPN). You’ll have to review and sign the MPN before sending back. Funds are typically sent straight to the school, but you or your child may receive a check. All of the money must be used for educational and college-related purposes.

Tips for Your College Finances

  • Every state in the country offers one of more higher education tuition assistance programs called 529 plans. For many prospective college students and their families, this may be one of the best ways to overcome the incredibly high costs of a university degree. What’s better yet is that you can get a plan from any state, not just the one you reside in.
  • It’s extremely common for financial advisors to have some level of background knowledge in funding for higher education. The SmartAsset financial advisor matching tool can pair you up with as many as three such advisors in your area.

Photocredit: Â©iStock.com/monkeybusinessimages, Â©iStock.com/zimmytws, Â©iStock.com/thodonal

The post What Is a Parent PLUS Loan? appeared first on SmartAsset Blog.

Source: smartasset.com

75 Personal Finance Rules of Thumb

A “rule of thumb” is a mental shortcut. It’s a heuristic. It’s not always true, but it’s usually true. It saves you time and brainpower. Rather than re-inventing the wheel for every money problem you face, personal finance rules of thumb let you apply wisdom from the past to reach quick solutions.

I’m going to do my best Buzzfeed impression today and give you a list of 75 personal finance rules of thumb. Some are efficient packets of advice while others are mathematical shortcuts to save brain space. Either way, I bet you’ll learn a thing or two—quickly—from this list.

The Basics

These basic personal finance rules of thumb apply to everybody. They’re simple and universal.

1. The Order of Operations (since this is one of the bedrocks of personal finance, I wrote a PDF explaining all the details. Since you’re a reader here, it’s free.)

2. Insurance protects wealth. It doesn’t build wealth.

3. Cash is good for current expenses and emergencies, but nothing more. Holding too much cash means you’re losing long-term value.

4. Time is money. Wealth is a measure of how much time your money can buy.

5. Set specific financial goals. Specific numbers, specific dates. Don’t put off for tomorrow what you can do today.

6. Keep an eye on your credit score. Check-in at least once a year.

7. Converting wages to salary: $1/per hour = $2000 per year.

8. Don’t mess with City Hall. Don’t cheat on your taxes.

9. You can afford anything. You can’t afford everything.

10. Money saved is money earned. When you look at your bottom line, saving a dollar has the equivalent effect as earning a dollar. Saving and earning are equally important.

Budgeting

I love budgeting, but not everyone is as zealous as me. Still, if you’re looking to budget (or even if you’re not), I think these budgeting rules of thumb are worth following.

11. You need a budget. The key to getting your financial life under control is making a budget and sticking to it. That is the first step for every financial decision.

12. The 50-30-20 rule of budgeting. After taxes, 50% of your money should cover needs, 30% should cover wants, and 20% should repay debts or invest.

13. Use “sinking funds” to save for rainy days. You know it’ll rain eventually.

14. Don’t mix savings and checking. One saves, the other spends.

15. Children cost about $10,000 per kid, per year. Family planning = financial planning.

16. Spend less than you earn. You might say, “Duh!” But if you’re not measuring your spending (e.g. with a budget), are you sure you meet this rule?

Investing & Retirement

Basic investing, in my opinion, is a ‘must know’ for future financial success. The following rules of thumb will help you dip your toe in those waters.

17. Don’t handpick stocks. Choose index funds instead. Very simple, very effective.

18. People who invest full-time are smarter than you. You can’t beat them.

19. The Rule of 72 (it’s doctor-approved). An investment annual growth rate multiplied by its doubling time equals (roughly) 72. A 4% investment will double in 18 years (4*18 = 72). A 12% investment will double in 6 years (12*6 = 72).

20. “Don’t do something, just sit there.” -Jack Bogle, on how bad it is to worry about your investments and act on those emotions.

21. Get the employer match. If your employer has a retirement program (e.g. 401k, pension), make sure you get all the free money you can.

22. Balance pre-tax and post-tax investments. It’s hard to know what tax rates will be like when you retire, so balancing between pre-tax and post-tax investing now will also keep your tax bill balanced later.

23. Keep costs low. Investing fees and expense ratios can eat up your profits. So keep those fees as low as possible.

24. Don’t touch your retirement money. It can be tempting to dip into long-term savings for an important current need. But fight that urge. You’ll thank yourself later.

25. Rebalancing should be part of your investing plan. Portfolios that start diversified can become concentrated some one asset does well and others do poorly. Rebalancing helps you rest your diversification and low er your risk.

26. The 4% Rule for retirement. Save enough money for retirement so that your first year of expenses equals 4% (or less) of your total nest egg.

27. Save for your retirement first, your kids’ college second. Retirees don’t get scholarships.

28. $1 invested in stocks today = $10 in 30 years.

29. Inflation is about 3% per year. If you want to be conservative, use 3.5% in your money math.

30. Stocks earn 7% per year, after adjusting for inflation.

31. Own your age in bonds. Or, own 120 minus your age in bonds. The heuristic used to be that a 30-year old should have a portfolio that’s 30% bonds, 40-year old 40% bonds, etc. More recently, the “120 minus your age” rule has become more prevalent. 30-year old should own 10% bonds, 40-year old 20% bonds, etc.

32. Don’t invest in the unknown. Or as Warren Buffett suggests, “Invest in what you know.”

Home & Auto

For many of you, home and car ownership contribute to your everyday finances. The following personal finance rules of thumb will be especially helpful for you.

33. Your house’s sticker price should be less than 3x your family’s combined income. Being “house poor”—or having too expensive of a house compared to your income—is one of the most common financial pitfalls. Avoid it if you can.

34. Broken appliance? Replace it if 1) the appliance is 8+ years old or 2) the repair would cost more than half of a new appliance.

35. Used car or new car? The cost difference isn’t what it used to be. The choice is even.

36. A car’s total lifetime cost is about 3x its sticker price. Choose wisely!

37. 20-4-10 rule of buying a vehicle. Put 20% of the vehicle down in cash, with a loan of 4 years or less, with a monthly payment that is less than 10% of your monthly income.

38. Re-financing a mortgage makes sense once interest rates drop by 1% (or more) from your current rate.

39. Don’t pre-pay your mortgage (unless your other bases are fully covered). Mortgages interest is deductible, and current interest rates are low. While pre-paying your mortgage saves you that little bit of interest, there’s likely a better use for you extra cash.

40. Set aside 1% of your home’s value each year for future maintenance and repairs.

41. The average car costs about 50 cents per mile over the course of its life.

42. Paying interest on a depreciating asset (e.g. a car) is losing twice.

43. Your main home isn’t an investment. You shouldn’t plan on both living in your house forever and selling it for profit. The logic doesn’t work.

44. Pay cash for cars, if you can. Paying interest on a car is a losing move.

45. If you’re buying a fixer-upper, consider the 70% rule to sort out worthy properties.

46. If you’re buying a rental property, the 1% rule easily evaluates if you’ll get a positive cash flow.

Spending & Debt

Do you spend money? (“What kind of question is that?”) Then these personal finance rules of thumb will apply to you.

47. Pay off your credit card every month.

48. In debt? Use psychology to help yourself. Consider the debt snowball or debt avalanche.

49. When making a purchase, consider cost-per-use.

50. Make your spending tangible with a ‘cash diet.’

51. Never pay full price. Shop around and do your research to get the best deals. You can earn cash back when you shop online, score a discount with a coupon code, or a voucher for free shipping.

52. Buying experiences makes you happier than buying things.

53. Shop by yourself. Peer pressure increases spending.

54. Shop with a list, and stick to it. Stores are designed to pull you into purchases you weren’t expecting.

55. Spend on the person you are, not the person you want to be. I love cooking, but I can’t justify $1000 of professional-grade kitchenware.

56. The bigger the purchase, the more time it deserves. Organic vs. normal peanut butter? Don’t spend 10 minutes thinking about it. $100K on a timeshare? Don’t pull the trigger when you’re three margaritas deep.

57. Use less than 30% of your available credit. Credit usage plays a major role in your credit score. Consistently maxing out your credit hurts your credit score. Aim to keep your usage low (paying off every month, preferably).

58. Unexpected windfall? Use 5% or less to treat yourself, but use the rest wisely (e.g. invest for later).

59. Aim to keep your student loans less than one year’s salary in your field.

The Mental Side of Personal Finance

At the end of the day, you are what you do. Psychology and behavior play an essential role in personal finance. That’s why these behavioral rules of thumb are vital.

60. Consider peace of mind. Paying off your mortgage isn’t always the optimum use of extra money. But the peace of mind that comes with eliminating debt—it’s huge.

61. Small habits build up to big impacts. It feels like a baby step now, but give yourself time.

62. Give your brain some time. Humans might rule the animal kingdom, but it doesn’t mean we aren’t impulsive. Give your brain some time to think before making big financial decisions.

63. The 30 Day Rule. Wait 30 days before you make a purchase of a “want” above a certain dollar amount. If you still want it after waiting and you can afford it, then buy it.  

64. Pay yourself first. Put money away (into savings or investment accounts) before you ever have a chance to spend it.

65. As a family, don’t fall into the two-income trap. If you can, try to support your lifestyle off of only one income. Should one spouse lose their job, the family finances will still be stable.

66. Every dollar counts. Money is fungible. There are plenty of ways to supplement your income stream.

67. Savor what you have before buying new stuff. Consider the fulfillment curve.

68. Negotiating your salary can be one of the most important financial moves you make. Increasing your income might be more important than anything else on this list.

69. Direct deposit is the nudge you need. If you don’t see your paycheck, you’re less likely to spend it.

70. Don’t let comparison steal your joy. Instead, use comparisons to set goals. (net worth).

71. Learning is earning. Education is 5x more impactful to work-life earnings than other demographics.

72. If you wouldn’t pay in cash, then don’t pay in credit. Swiping a credit card feels so easy compared to handing over a stack of cash. Don’t let your brain fool itself.

73. Envision a leaky bucket. Water leaking from the bottom is just as consequential as water entering the top. We often ignore financial leaks (e.g. fees), since they’re not as glamorous—but we shouldn’t.

74. Forget the Joneses. Use comparisons to motivate healthier habits, not useless spending.

75. Talk about money! I know it’s sometimes frowned upon (like politics or religion), but you can learn a ton from talking to your peers about money. Unsure where to start? You can talk to me!

The Last Personal Finance Rule of Thumb

Last but not least, an investment in knowledge pays the best interest.

Boom! Got ’em again! Ben Franklin streaks in for another meta appearance. Thanks Ben!

If you enjoyed this article and want to read more, I’d suggest checking out my Archive or Subscribing to get future articles emailed to your inbox.

This article—just like every other—is supported by readers like you.

Source: bestinterest.blog

The Cost of Off-Campus Rent at Top Colleges

Which university costs more: Harvard, Yale or MIT? It’s relatively easy to compare tuition and even dorm fees — but off-campus housing costs are harder to pin down. They also can make a big difference in the tab for a higher education.

In fact, 80 percent of the towns where elite colleges are located, based on U.S News & World Report’s newly released Best Colleges of 2017, have median rents above the national median of $1,408 a month, according to a new Zillow analysis.

The median rent in Cambridge, MA, where Harvard University and MIT students gravitate for off-campus housing, is $2,594 a month, while Yale University students who live off campus in New Haven, CT, pay just over half that: $1,428 a month.

Those figures don’t account for the size of the rental unit or for roommate situations, but they do reflect the starkly different real estate markets in Cambridge and New Haven.

Although off-campus housing costs might not come into play until sophomore or junior year, they’re worth weighing into the college-cost equation.

InfographicBlogBody

“As students and their parents are filling out applications this fall and are crunching the numbers on financial aid and student loans, they should also factor in cost of housing,” said Jeremy Wacksman, Zillow’s chief marketing officer. “Looking at both on- and off-campus housing prices, and thinking through whether they’ll likely live with roommates or alone, will help them gauge an accurate picture of the student loans and financial aid they will need in order to obtain their degree.”

Beating the Bay Area blues

Housing around Stanford University was the highest among top-ranked colleges. Reflecting the Bay Area’s astronomical housing costs, the median rent in Palo Alto is a whopping $6,139 a month.

However, Stanford houses almost all of its undergraduates in university housing, where they pay about $14,600 for room and board for the school year. Some 60 percent of Stanford’s graduate students live on campus and pay $12,300 for rent plus $5,800 for food.

The university provides a subsidy for the other grad students, so that their cost of living approximates that of students living on campus, according to Lisa Lapin, associate vice president for university communications at Stanford.

Chicago sings a sweeter tune

Most college towns are not as pricey as Palo Alto — and they’re great places to live, according to Peter Cassel. He’s in Hyde Park, the neighborhood adjacent to the University of Chicago, and is director of community development for Mac Properties, the biggest landlord in that neighborhood.

Hyde Park is that rare South Side Chicago neighborhood that’s known for being safe — in part because the university has its own police force.

It also offers a tremendous quality-of-life boost, whether you’re a student or not. “From my perspective, to choose to live in a neighborhood that doesn’t have a large university in it seems crazy,” Cassel said.

He enjoys the people who are attracted to the university. “They create a level of diversity and enthusiasm that is very positive.” And he relishes the amenities that pop up around it. “There’s some sort of music program going on every night of the week. There’s a local neighborhood symphony, a radio station, multiple local theater groups – all of which in some way are supported by the university.”

Mac Properties offers one-bedroom apartments in Hyde Park that start at about $1,200 a month. That’s better than the Chicago median of $1,687 a month — but still higher than South Bend, IN, where the University of Notre Dame is located, and Winston-Salem, NC, which Wake Forest University calls home. Median rents there are $723 and $994, respectively.

Bargains aren’t out of the question

Medians are by definition in the middle, though, which means some students will find deals.

Jessica Dougherty beat the $1,286 median rent in Durham, NC, when she was a graduate student at Duke, No. 8 on the U.S. News and World Report list. She paid just $900 a month for a one-bedroom apartment. It didn’t include Internet or cable, but she did have an in-unit washer and dryer, and was a three-minute bus ride to the building where most of her classes were.

Dougherty graduated last year and moved to a place that costs $1,370 a month. It’s a little farther from work, but the complex has both saltwater and chlorinated pools, plus trash “valets” who pick up garbage at her door at 8 p.m. every night.

Friends are jealous, Dougherty reports, and Durham’s best restaurants and other offerings are just down the street.

Related:

  • Quiz: Can You Match the State With Its Popular Rental Features?
  • Ms. Independent: Top 10 Cities Where Millennials Are Living Alone
  • Leaving the Nest: College Students and Renters Insurance

Source: zillow.com