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The article provides a clear distinction between the <keyword id="2054234" type="General" weightage="20" keywordseo="CIBIL-score" source="Orion">CIBIL score</keyword> and the <keyword id="2405124" type="General" weightage="20" keywordseo="CIBIL-report" source="Orion">CIBIL report</keyword>, which are important factors in assessing an individual's creditworthiness in India. Here's a summary of the key differences. CIBIL Score: <ul><li>Nature of Information: A numerical representation (ranging from 300 to 900) that reflects your creditworthiness.</li><li>Usage by Lenders: Used by lenders or lending institutions for swift credit risk evaluation.</li><li>Purpose: Serves as a quick reference point for lenders to assess an applicant's credit risk.</li><li>Impact on Lending Decisions: The CIBIL Score affects interest rates, credit limits, and the approval or decline of loan applications and credit card requests.</li></ul> CIBIL Report: <ul><li>Nature of Information: A detailed record of your credit history and overall financial behavior.</li><li>Usage by Lenders: Offers comprehensive insights for a meticulous credit assessment.</li><li>Purpose: Provides a thorough background for lenders, enabling a meticulous evaluation of an applicant's creditworthiness and financial responsibility.</li><li>Impact on Lending Decisions: The CIBIL Report paints a detailed picture, offering insights into an individual's financial behavior and credit management skills, guiding lenders to make well-informed decisions when extending credit.</li></ul> <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:bottom;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aspect </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:bottom;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CIBIL Score </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:bottom;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CIBIL Report </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nature of Information </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">A numerical representation (300-900) </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">A detailed record of credit history and financial behavior </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Usage by Lenders </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Used for quick credit risk assessment </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Offers comprehensive insights for meticulous credit assessment </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Purpose </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quick reference point for lenders </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Provides a thorough background for lenders, enabling meticulous evaluation </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Impact on Lending Decisions </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Affects interest rates, credit limits, and approval/denial of loan and credit card applications </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Provides detailed insights into financial behavior and credit management skills, guiding informed lending decisions </td></tr></tbody><tbody></tbody></table>In summary, the CIBIL score is a concise numerical representation of creditworthiness, while the CIBIL report offers a comprehensive view of an individual's credit history and financial behavior. Both are essential for maintaining a healthy financial profile and making informed decisions about credit management. Regularly checking your CIBIL report can help identify errors, monitor credit behavior, and take steps to improve your credit score, ultimately enhancing your financial well-being.

CIBIL Score vs CIBIL Report - check out the differences

Our experts answer readers' home-buying questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/how-we-evaluate-mortgage-lenders" class="not-content-link" target="_blank">here's how we assess mortgages</a>). In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank">our partners</a>; however, our opinions are our own.<ul class="summary-list"><li>Homebuying assistance specific to teachers includes the Teacher Next Door, Good Neighbor Next Door, and Homes for Heroes programs.</li><li>But educators may find similar or even better assistance using programs available to all buyers.</li></ul>Getting a mortgage as a teacher can be tough, particularly if you still have student loan debt to pay off. Fortunately, there are programs to help make buying a home possible.Whether you're looking for down payment assistance, lender discounts, or more lenient credit requirements, there are plenty of options available to help teachers achieve their homeownership goals. Here's what to know about the Teacher Next Door program and other programs or home loans for teachers.<h2>Are there home loans for teachers?</h2>Teachers who are looking to become homeowners have a wide array of options available to help them, including both teacher-specific programs and more general <a href="https://www.businessinsider.com/personal-finance/best-first-time-homebuyer-loans">first-time homebuyer loans</a>. Some teacher-specific homebuyer assistance includes Teacher Next Door, Good Neighbor Next Door, Home for Heroes, or benefits through your teachers union. Your state or city may also have homebuyer programs specifically geared toward teachers. Check your local housing authority's website to see what's available to you.But you may have better luck looking at <a href="https://www.businessinsider.com/personal-finance/mortgages">mortgages</a> available to all borrowers, regardless of profession. There are more of these programs available, and many of them come with bigger benefits than what you'll find with some profession-specific programs.<h2>How does the Teacher Next Door program work?</h2><a href="https://www.teachernextdoor.us/Home" target="_blank" rel="noopener">Teacher Next Door</a> is a program for homebuyers that's available to teachers as well as other school personnel, including administrators, office staff, lunchroom workers, custodians, and paraprofessionals."Affordable housing is a major concern for everyone, including teachers," says Stephen Parks, the national director of the <a href="https://www.nextdoorprograms.us/" target="_blank" rel="noopener nofollow">Next Door programs</a>, which includes Teacher Next Door. "Many times, the grants and other assistance we provide is the difference maker in a purchasing new home for their family."Through this program, eligible professionals can get a grant of up to $8,000, which doesn't have to be repaid. Teacher Next Door will also help connect you to local down payment assistance programs and says participants can get as much as $10,681 in down payment assistance.Teacher Next Door is sometimes confused with the Good Neighbor Next Door program, which is overseen by the US Department of Housing and Urban Development. But these are two completely separate programs."The Teacher Next Door Program is much more inclusive and flexible than the Good Neighbor Next Door Program, since you may purchase any home on the market, not just in revitalization areas, and there are no minimum residency restrictions," says Parks.To get a grant and down payment assistance through Teacher Next Door, you'll need to work with a real estate agent who's affiliated with the program and one of the program's preferred <a href="https://www.businessinsider.com/personal-finance/best-mortgage-lenders">mortgage lenders</a>.If you're considering buying a home through the Teacher Next Door program, it's a good idea to also get your own <a href="https://www.businessinsider.com/personal-finance/average-mortgage-interest-rate">mortgage rate</a> quotes from other lenders to be sure you're getting a good deal. <h3>Teacher Next Door program income limits</h3>The Teacher Next Door program doesn't have any income limits. However, if you have a higher income, you might not qualify for some of the local down payment assistance programs that Teacher Next Door connects you with. <h2>Good Neighbor Next Door program for teachers</h2>The <a href="https://www.businessinsider.com/personal-finance/good-neighbor-next-door-program">Good Neighbor Next Door program</a> offered through HUD lets public servants buy a home at a 50% discount in certain areas. Teachers are eligible for the Good Neighbor Next Door program.The catch is that the inventory for this program is extremely limited. Not all homes are eligible — it has to be a HUD-owned <a href="https://www.businessinsider.com/personal-finance/how-to-buy-a-foreclosed-home">foreclosed home</a> in a designated "revitalization area," which are areas that are lower income and have low homeownership rates. As of December 2023, there were only four homes in the entire country that were eligible for the GNND program, according to <a href="https://www.hudhomestore.gov/" target="_blank" rel="noopener">HUD's website</a>.<h2>Homes for Heroes program for teachers</h2>Homes for Heroes offers homebuying discounts to teachers and other public service professionals. According to its website, program participants save an average of $3,000 with Homes for Heroes.To save money with the Homes for Heroes program, you'll work with homebuying professionals who are affiliated with the program. For example, working with a Homes for Heroes-affiliated <a href="https://www.businessinsider.com/personal-finance/how-to-find-real-estate-agent">real estate agent</a> could save you $700 for every $100,000 of your home's purchase price. You'll get your discounts in the form of a check after closing.<h2>Teachers union mortgage benefits</h2>If you belong to a union, you may want to see if it offers discounts with any mortgage lenders or other types of homebuyer assistance.For example, the American Federation of Teachers has a mortgage program through Amalgamated Bank that includes a discount on your <a href="https://www.businessinsider.com/personal-finance/what-is-an-origination-fee">origination fee</a>. AFT members can also get discounts on professional movers or truck rentals.<h2>Low-down-payment home loans for teachers</h2>There are a variety of low- or <a href="https://www.businessinsider.com/personal-finance/how-to-buy-a-house-with-no-money-down-home-loans">no-down-payment home loans</a> available to borrowers, including both conventional and government-backed options.<h3>Conventional loan</h3>When you get a mortgage that isn't backed by a government agency, it's called a <a href="https://www.businessinsider.com/personal-finance/conventional-mortgage">conventional mortgage</a>. Borrowers can get a conventional loan with a down payment as low as 3%.However, this might not be the best option for you if your credit isn't great, since lenders typically have stricter standards for conventional loans. You'll need at least a 620 <a href="https://www.businessinsider.com/personal-finance/what-credit-score-is-needed-to-buy-a-house">credit score</a> to qualify for one of these mortgages.If you have a lower score, you might want to consider your <a href="https://www.businessinsider.com/personal-finance/government-home-loans">government-backed mortgage</a> options.<h3>FHA loan </h3><a href="https://www.businessinsider.com/personal-finance/fha-loan">FHA loans</a> are backed by the Federal Housing Administration, and they're geared toward first-time and low-income homebuyers. FHA loans have less stringent credit requirements; you can get one of these mortgages with a score as low as 580 with a 3.5% <a href="https://www.businessinsider.com/personal-finance/how-much-down-payment-for-a-house">down payment</a>, or 500 if you can put 10% down.<h3>VA loan</h3>To be eligible for a <a href="https://www.businessinsider.com/personal-finance/va-loans">VA loan</a>, you'll need to be a veteran or current servicemember who meets minimum service requirements. You'll also generally need at least a 620 credit score, though it varies depending on your lender.If you qualify for a VA loan, you'll be able to get a mortgage with 0% down.<h3>USDA loan</h3>Mortgages backed by the US Department of Agriculture are geared toward borrowers buying in rural areas, though some suburban areas also meet the USDA's requirements. These mortgages also require no down payment.To qualify for a <a href="https://www.businessinsider.com/personal-finance/usda-loan">USDA loan</a>, you'll typically need at least a 640 credit score.<h2>First-time homebuyer loans and down payment assistance for teachers</h2>Many of the <a href="https://www.businessinsider.com/personal-finance/best-mortgage-lenders-first-time-buyers">best mortgage lenders for first-time buyers</a> have their own unique programs that come with features and benefits that make homeownership more accessible to borrowers. This includes things like low down payments, down payment or closing cost grants, or flexible credit requirements.These products aren't unique to teachers, though they often do come with income or geographical limits.As you search for a lender, ask about any affordable loan options they offer.For example, <a href="https://www.businessinsider.com/personal-finance/chase-mortgage-review">Chase Mortgage</a> has a loan called the DreaMaker Mortgage. It allows 3% down payments, reduced private mortgage insurance costs, and flexible credit requirements. This mortgage can also be combined with the bank's Homebuyer Grant, which offers up to $5,000 in down payment or closing cost assistance. Many other major mortgage lenders have similar programs.<h2>Home loans for teachers FAQs</h2><h3 class="faq-question">Is the Teacher Next Door program legit?</h3>The Teacher Next Door program is a legitimate homebuyer program that can help teachers and other school personnel who are buying a home get grants and down payment assistance. <h3 class="faq-question">Is the Teacher Next Door program good?</h3>Teacher Next Door could be a good option to help you become a homeowner — but there are a wide array of homebuyer assistance programs out there, so it's a good idea to explore your options first. With the Teacher Next Door program, you'll be limited to working with a lender affiliated with the program, which might not be ideal if you can get a lower rate from a different mortgage lender.<h3 class="faq-question">Do teachers get a better mortgage rate?</h3>You might be able to get a discount on your mortgage through your teachers union or a credit union that offers special rates to educators. Check with local lenders in your area to see what's available to you.

Teacher Next Door program and other home loans for teachers

<ul class="summary-list"><li>Ayriel Von Schert, 30, wanted to buy a home and didn't want to wait until she was married.</li><li>In February, she purchased a $365,000 townhouse in Mesa, Arizona — all on her own.</li></ul>This as-told-to essay is based on a conversation with Ayriel Von Schert, a 30-year-old real-estate agent who purchased a home without a cosigner or spouse.According to new data from the National Association of Realtors (NAR), single female buyers significantly outnumbered single male buyers between July 2023 and June 2024, accounting for 20% of all homebuyers. Single men made up just 8% of all homebuyers.The interview has been edited for length and clarity.Before I became a real-estate agent, I thought buying a home was almost impossible, especially as a millennial.Though I've been paying down my student loan debt, I still owe about $10,000. I also thought home prices were too expensive, and I didn't know if I had enough for a down payment.Still, I knew I wanted to build equity and create long-term wealth, and homeownership is one of the best ways to achieve that. On average, you can <a target="_blank" class="" href="https://myhome.freddiemac.com/owning/equity-and-appreciation">gain at least 3% equity each year</a> just by owning a home. Year after year, you're building value, whereas renting doesn't contribute to your wealth at all.This year, I bought my first home in Mesa, Arizona — about 15 minutes outside Phoenix — alone.Recently, I've helped a couple of other single women buy their own homes. I guess it's becoming more of a trend.I think a lot of women think similarly to me: 'Why wait for someone else to help you achieve your goals?'<h2 id="ffb5cdb4-0769-4024-b653-5886faf12a9c">You don't need a partner to buy a home</h2>Though I have a longtime boyfriend, we're not married, and buying a house with someone I wasn't married to felt a bit scary. I was in a financial position to buy my own home, and I didn't want to wait.I also knew I didn't need anyone else's help to make it happen.My salary ranges between $50,000 and $80,000 each year.I was also saving up as much as I could for a home purchase. On top of my hourly pay, if I received a good commission check — like, if I earned $3,000 from a sale — I would put that straight into savings.Co-signing with a partner can open up more homebuying options, like affording a bigger house or more properties based on your combined income. However, there are risks — if your partner has a lower credit score, it can hurt you.I also don't think it's a good idea to commit to anything permanent with someone you're not in a permanent relationship with. It's better to have things in your own name, just for the sake of security.<h2 id="235add87-e2df-45a7-943b-c279737d791b">Higher mortgage rates didn't stop me from buying a home</h2>In February, I moved out of the home I was renting with my boyfriend and another roommate.I purchased my 2,280-square-foot townhouse for $365,000. When I first bought it, it had three bedrooms, three and a half baths, and two living room areas. My boyfriend and I converted the downstairs living room into a bedroom, so now it's a four-bedroom, three and a half-bath home.I was originally going to use an FHA loan to buy my home, but at the time, the conventional loan had a better rate, and I only had to put down 3% for a conventional loan.I ended up with a 6.125% interest rate. It's not terrible, but it's definitely not great. As soon as rates drop, I'll refinance.I may be paying a higher rate now — maybe for a year or two — but in the grand scheme of a 30-year mortgage, it's nothing compared to paying $10,000 or more over the asking price.It might sound crazy with interest rates high, but right now is one of the best times to buy a home in the Phoenix area. I got great value for the house since the real-estate market here isn't really competitive right now.I negotiated with the seller to cover the closing costs and make repairs to the home. They also provided a $3,000 credit for repairs and installed a brand-new AC unit.Also, by representing myself in the home sale, I applied the $10,950 the seller paid me in commission directly toward my down payment and closing costs. It felt like getting a bit of a "discount" since I was handling everything myself.<div type="image" title="An aerial view of Mesa, Arizona." height="2810" width="4300" msid="115384348" hostid="261" sizebytes="1248060"></div>With the Homeowners Association, or HOA, fee, home insurance, and mortgage combined, I pay about $2,800 each month for my home.The HOA fee is a bit high because it's a townhouse community. We pay about $330 a month, which covers everything — like exterior maintenance — except for trash service.I'm not worried about managing bills for the home because my boyfriend lives with me, and we split the costs, including the mortgage.I don't think he minds, because we no longer have a landlord telling us what we can or can't do.If the expenses ever become too much for us, I have multiple rooms and could always bring in a roommate.<h2 id="010215f6-f050-41e4-8f70-05d7568fad84">I'm building equity and long-term wealth</h2>I don't plan to live in a townhouse forever, but for now, it was a great deal in an area I wanted to be in.I bought my home in February, and another unit in my complex is already for sale at $410,000. If it sells for that price, my home will have appreciated by about $35,000 in one year.In a few years, I might sell this place, or I could keep it and rent it out while buying another property.My long-term goal is to build up a real-estate portfolio and earn residual income, and I feel like I'm definitely on a path toward that.As a real-estate agent, I've learned that many people initially fear buying a home — until they work in the industry or gain a better understanding of how it all works.I always encourage people who are thinking of buying a home to talk to a lender. A lender will break everything down for you, create a game plan, and tell you exactly what you need to do to make buying a home possible, whether by yourself or with a partner.Going through the same process myself has helped me better relate to my first-time buyer clients.Now I can honestly say, "I've been there, too." I promise it all works out once you're on the other side.

I'm 30 and bought my first home for $375,000 this year. I have a partner but wanted to buy it on my own.

<ul class="summary-list"><li>Biden has implemented targeted student-loan forgiveness efforts over the past few years.</li><li>BI spoke to some millennials who received relief through different programs.</li></ul>Scott M. Smith, 40, wasn't expecting <a target="_blank" href="https://www.businessinsider.com/new-student-loan-forgiveness-borrowers-save-plan-pslf-debt-cancellation-2024-4">student-loan forgiveness</a>.After receiving his master's in education administration in 2015 — preceded by his undergraduate education degree in 2008 — Smith held a student-loan balance of about $30,000 from both degrees. Since his work has been in public service, currently as a teacher, Smith decided to apply for the <a target="_blank" href="https://www.businessinsider.com/student-loan-forgiveness-who-qualifies-for-latest-debt-relief-idr-2023-12">Public Service Loan Forgiveness program</a>, which forgives student debt for government and nonprofit workers after 10 years of qualifying payments.But despite working full time for a qualifying employer, Smith said, he wasn't hopeful for forgiveness because his student-loan servicer told him in 2022 he hadn't met his qualifying payments.That all changed with a letter from his servicer — reviewed by Business Insider — on February 15, 2023, stating: "We determined you have successfully met the requirements of the PSLF Progam and your loans listed below have been forgiven. Thank you for your public service!"With that letter, Smith's remaining $23,086 student-debt balance was officially gone."I was shouting it from the rooftops and walking around my school like, 'Hey, everybody who's been out of school for 10 years or so,' advertising that," Smith told BI. "So then I was helping a lot of my colleagues to get that information, as well."<div type="image" title="Scott M. Smith" height="315" width="420" msid="112523207" hostid="261" sizebytes="11892"></div>Since the Supreme Court <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-forgiveness-blocked-supreme-court-strikes-down-debt-cancellation-2023-5">blocked President Joe Biden's broad student-loan forgiveness plan</a> last summer, the Education Department has erased debt piecemeal by focusing on existing programs like PSLF. Many of these previously did not work as intended due to administrative hurdles and paperwork errors that left borrowers paying off more than they might've owed.Such <a target="_blank" href="https://www.businessinsider.com/student-loan-debt-cancellation-payment-pause-borrowers-disabilities-defrauded-2021-6">programs have provided relief to millions of borrowers over the past few years, including </a>borrowers <a target="_blank" href="https://www.businessinsider.com/biden-education-department-cancels-student-debt-borrowers-disabilities-paperwork-cardona-2021-3">with a total and permanent disability</a>, those <a target="_blank" href="https://www.businessinsider.com/biden-wiped-out-student-debt-education-department-corinthian-college-2022-6">defrauded by the schools they attended</a>, and those who had <a target="_blank" href="https://www.businessinsider.com/student-loan-forgiveness-debt-cancellation-save-income-driven-payment-plan-2024-2">made at least 20 years of qualifying payments</a> on income-driven repayment plans but had yet to receive the relief they were eligible for.The relief is a particular bright spot for people of Smith's age.Millennials who've gotten their loans wiped out told BI that they're now able to celebrate by investing in their futures and pursuing other life goals, such as buying a home, that their generation has famously lagged in pursuing.In the $1.7 trillion student-debt crisis, which affects over 40 million Americans, <a target="_blank" href="https://www.businessinsider.com/typical-student-loan-borrower-balance-millennial-woman-debt-relief-biden-2023-11">millennials, who are roughly 28 to 43, today </a>hold a significant portion of the load. According to recent Federal Student Aid <a target="_blank" href="https://studentaid.gov/data-center/student/portfolio">data</a> for the third quarter of 2023, 14.8 million student-loan borrowers ages 25 to 34 — older Gen Zers and younger millennials — hold $483 billion outstanding in student debt. That same data shows that 12.2 million borrowers ages 35 to 49 — older millennials and younger Gen Xers — hold $534 billion outstanding in student debt.<a target="_blank" href="https://www.federalreserve.gov/publications/files/2023-report-economic-well-being-us-households-202405.pdf">According</a> to the Federal Reserve, the median amount of student debt borrowers held in 2023 was between $20,000 and $24,999, and borrowers with higher levels of education were more likely to carry larger student debt loads.This relief could not have come at a better time for Smith. He said that he and his wife were hoping to grow their family with a second child but that his nearly $600 student-loan payments being deducted from his bank account each month strained their budget, making it difficult to plan for baby No. 2. The loan forgiveness has freed up their budgets to buy a larger car for their family — and he and his wife are now expecting."We have another thousand dollars every two months that we could put into something else," Smith said.Knowing how many borrowers have student debt, Smith said he's grateful for this relief, which allows him to move forward in life and grow his family without that financial burden weighing him down."It was huge. It really started things to be as great as they are right now," Smith said. "I'm the happiest that I've ever been, and that was a definitive point. February of 2023 was when things started to get better again."<h2 id="10129122-48c9-4ef3-a0e4-36323175654d">The freedom to go back to school</h2>For Paul Smylie, 39, student-loan forgiveness means something else.After graduating with an undergraduate degree in geography in 2007, Smylie had a student-debt balance of just over $36,000. He began repaying those loans on an <a target="_blank" href="https://www.businessinsider.com/how-to-get-idr-student-debt-relief-account-adjustment-biden-2023-7">income-driven repayment plan</a>, which promises debt relief after at least 20 years of qualifying payments. As of 2024, Smylie was able to get his balance down to $9,811 — but that was after paying about $46,000 because of interest.Given that Smylie had not yet completed his 20 years of payments, he didn't qualify for relief through his income-driven repayment plan. However, <a target="_blank" href="https://www.businessinsider.com/save-plan-student-loan-borrowers-new-debt-relief-save-income-driven-plan-2024-2">Biden's new SAVE income-driven repayment plan</a> offered a glimpse of hope — a provision within the plan allowed for student-loan forgiveness on loans with an original balance of $12,000 or less after as few as 10 years of payments.After SAVE was implemented in July 2023, Smylie enrolled in the plan and had four loans remaining to pay off — each of which was under $12,000. On February 21, the Education Department announced it would be implementing the new forgiveness provision ahead of schedule, announcing <a target="_blank" href="https://www.businessinsider.com/student-loan-forgiveness-debt-cancellation-save-income-driven-payment-plan-2024-2">$1.2 billion in relief for 153,000 borrowers</a>. To Smylie's surprise, he was one of them.As of August 9, the 8th Circuit Court of Appeals has <a target="_blank" class="" href="https://www.businessinsider.com/save-plan-blocked-cheaper-student-loan-payments-relief-new-ruling-2024-8">blocked SAVE</a>. Students with loans enrolled in the program have been placed into forbearance pending the results of continued legal battles over whether the lower payments and forgiveness measures in the payment plan can continue.While some experts have suggested a complete reversal of the SAVE plan could result in forgiveness being rolled back and loans being reinstated, the <a target="_blank" class="" href="https://apnews.com/article/student-loan-cancellation-debt-college-forgiveness-c3ec59d4c1d89e77bc1afc6c8ded1615">Associated Press</a> reported that reinstating loans on such a large scale would be unreasonably costly and politically fraught, making such an outcome unlikely. However, it will be up to the courts to determine what to do with previously forgiven loans if the SAVE plan is ended entirely.For Smylie, the forgiveness granted by SAVE has been a godsend."It was a total shock," Smylie told BI."I teach yoga, and so it was 20 minutes before I was supposed to start to teach a class and I see this email, and I'm like, 'Wait a minute, is this serious?' And I just couldn't process it," he said. "I remember having a hard time teaching. I was just in this fun little cloud of joy. But it's one of those moments you just never think would ever come true, and then it did."<div type="image" title="Paul Smylie" height="2069" width="2758" msid="112523208" hostid="261" sizebytes="330684"></div>This relief is allowing Smylie the freedom to "have real true financial goals" with his retirement — and it's even opening the door for him to consider furthering his education. The idea of returning to school or seeking higher education in the first place has brought diverging views across generations.As BI has previously reported, many <a target="_blank" href="https://www.businessinsider.com/gen-z-value-of-college-higher-education-student-debt-tuition-2023-12">Gen Zers have chosen to forego college</a> due to high student debt loads and the availability of jobs that don't require college degrees. But for some millennials, Gen Xers, and even boomers, <a target="_blank" href="https://www.businessinsider.com/gen-xer-why-going-back-school-50s-was-worth-it-2024-5">going back to school</a> is an opportunity to advance their careers, earn more money, and give themselves a chance at trying something new — an opportunity they might not have had when they were younger. For example, a <a target="_blank" href="https://www.gallup.com/analytics/644939/state-of-higher-education.aspx">report</a> from Gallup and the Lumina Foundation found that "adults' interest in pursuing some form of higher education is at the highest level" the organizations ever recorded.Smylie's student-loan forgiveness is giving him the financial freedom to consider doing just that."It's taken a weight off of me, but it also inspired me to go back to a master's program that I had my eye on for a bit," he said.BI spoke with five financial advisors who primarily work with millennials. Each indicated that student debt remains among the top financial concerns their clients report having."There's not a lot of wiggle room in some cases as they're paying off student loans, to prioritize other short-term things or really save aggressively outside that debt," Chloe Moore, a certified financial planner who founded Financial Staples, told BI. "So having those student loans paid off really makes a difference."The advisors said most of their clients who have student loans carry between $20,000 to $100,000 in student debt, with those who pursued master's degrees and other advanced education tending to hold more than $50,000. Regardless of the degree, the advisors said their clients with student loans tend to put off other major investments — like buying a house, saving for retirement, or starting a family — until their education debt feels more manageable, which they described as a subjective measure that varies by person."The hardest thing, I think, for millennials that have any range of debt is making those tough choices between saving, paying down debt, and investing because the loans can be pretty burdening on cash flow," said Keenan Casey, a certified financial planner for Facet Wealth. "It can mean that you're making some really, really tough choices with the other aspects of your life."CiCora Leigh, 34, is all too familiar with the tough choices her student debt presented her. Leigh's educational path was unconventional — after graduating from high school in 2008, she fully funded her community-college education in Mississippi through scholarships and federal grants. However, after the death of a family member, she took a break from her education and decided to enlist in the Army with the hope that it would pay for her to eventually earn her law degree. Things didn't work out as she intended, though, and she ended up taking out about $70,000 in student loans to complete her degree at the University of Mississippi in business administration.As a single mom, Leigh felt significantly weighed down by the debt. "It was really making things tight for me and my son," she said, adding that the debt was sinking her credit score.<div type="image" title="Cicora Leigh" height="867" width="694" msid="112523206" hostid="261" sizebytes="31614"></div>All of that changed when she received a <a target="_blank" href="https://www.businessinsider.com/what-disabilities-qualify-for-student-loan-forgiveness-from-department-education-2021-3">total and permanent disability determination</a> from Veterans Affairs. In a rule first established under President Barack Obama, any student-loan borrower who can prove they are totally and permanently disabled is eligible for student-loan forgiveness. This determination can be made by the VA or a physician and includes any physical or mental impairment that inhibits employment.The VA informed Leigh of her disability status in February 2023, and just five months later, the Education Department had wiped out her $72,000 student-loan balance."It was truly a relief," Leigh said. "I was able to use those funds to start putting toward my son's college fund, and then I was able to publish my second book. That was such a relief to receive the letter. I was so happy."<h2 id="c131ac21-94ee-48b1-b9f0-49d058417940">Saving for retirement</h2>The monthly student-loan payments of nearly $500 that Beverley, 38, has been making since 2014 took a heavy toll on her finances.Beverley — who requested her last name be withheld for privacy — told BI that when she first started her career in the nonprofit sector, she was paid a very low wage and struggled to afford her monthly student-loan payments from both her undergraduate and graduate degrees on top of her other basic expenses. This led her to go into forbearance for a year to allow her to afford her everyday needs."It was really hard," Beverley said. "Paying rent, paying for monthly bills and food and everything, that basically left $100 in my bank account for anything else. It was impossible to save money."Beverley now works in the government and has been in the public sector her whole career, making her eligible for PSLF. But since she didn't start making payments until 2014, she thought she wouldn't see any student-loan forgiveness until 2024 at the earliest, assuming everything went perfectly with her paperwork.<a target="_blank" href="https://www.businessinsider.com/public-service-loan-forgiveness-program-major-overhaul-student-debt-biden-2021-10">A limited-time</a> change implemented by the Education Department in October 2021 changed that. Using a waiver that expired in October 2022, the department allowed borrowers to count payments that were previously deemed ineligible for PSLF toward forgiveness progress, including some periods in which borrowers' loans were in deferment or forbearance. That was great news for Beverley — her loans were on forbearance for a year after she graduated while she was working at the nonprofit, meaning the waiver brought her to the payment threshold for forgiveness a year ahead of schedule.On December 13 of last year, she finally received confirmation that her nearly $54,000 student-loan balance was wiped out. "Congratulations!" the letter from her servicer, reviewed by BI, said. "You have successfully met the requirements of the Public Service Loan Forgiveness (PSLF) Program and all or a portion of your loans listed below have been forgiven. Thank you for your public service."This relief not only opened up hundreds more dollars each month to make payments toward her mortgage — it finally allowed her the freedom <a target="_blank" href="https://www.businessinsider.com/student-loans-retirement-savings-employers-match-debt-payment-contributions-401k-2024-1">to put money toward retirement</a> for the first time."The thing that I'm most excited about is saving for retirement," Beverley said. "I have a lot of money that I was putting towards loans that can now go towards my future. I feel like I'm starting really late for retirement stuff, but it's better than having to pay for however many more years if I didn't get the forgiveness."Grayson Hofferber, a financial advisor and president of Millennial Wealth Management, says the cash-flow burden created by student-loan debt means many of the clients he counsels have to play catch-up for years to get on track for retirement or set up an education fund for their own children."I would say the vast amount of folks will focus on maximizing their retirement savings, whether through their 401(k) or their IRA, after paying off their student debt," Hofferber said. "For the majority of our clients, they generally will take that same kind of repayment dollar amount that they're putting toward student loans, and they'll reinvest that for their future. So they'll put that into an investment account, whether that's to buy a home or to pursue an early retirement."Though some financial advisors noted that once borrowers unlock the money earmarked to pay down debt, they also often want to celebrate."Whether it be student loans, credit-card debt, auto-loan debt, any form of debt that someone's paid off that has felt like a burden for a prolonged period of time, there is the propensity to feel like they have been sacrificing and that they want and deserve to spend the money after that point," Casey said.The financial advisors who talked to BI said that while their clients tended to be financially savvy and prone to prioritizing long-term investments, the post-student-loan splurge is a common phenomenon they see among millennials. And the splurge can take many forms — whether music festival tickets, or buying a Tesla, or taking an international vacation.While retirement is still a ways away for Beverley, she said she's grateful for Biden's changes to PSLF — and the freedom it opened up for her to make larger investments down the road."The limited waiver opportunity basically saved me a year of payments that I would still be making now," Beverley said. "So, for me, it's like keeping a promise that was made a long time ago that if we work in public service, we can have this opportunity."

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Meet the millennials who got student-loan forgiveness and now have the freedom to save for retirement, grow their families, and consider going back to school

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