Also, I am currently back in school and now have federal loans that are deferred while I’m enrolled, but I want to understand what the best thing to do is once I graduate and have to start paying those back as well. I have felt a little lost in this process and don’t know where to turn/who to ask for advice, especially with the private loans and the balance that won’t go down. I appreciate any advice.
Great information, but I have a question. I had to consolidate my loans since they were not with a federal loan servicer. I am starting to repay my loans, ($200K). I have been working the last 17 years for local governments in my area. Is it true I have to be making payments at the same time I am working for the loan governments or it does not count for loan forgiveness under Public Service Forgiveness program? I am nearing retirement and this could be a problem.
In the early 1990’s I was an “adult learner” (25 yrs old), a single parent, living on my own, having zero child support and receiving some forms of welfare assistance while I was employed and attended school full-time. I did not qualify for scholarships and had to take out school loans to supplement my schooling cost and used the loan “refund” to pay my living bills (utilities) for 6-8 months ahead in the event I couldn’t or didn’t have the money to make my bills at that given time. I attended an accredited school 4 years, graduated with 2 associate degrees and began working almost immediately. However, due to HMO’s and my chosen field’s national organization, Occupational Therapy, not really pushing the benefits of OT/COTA nor explaining to the public what it was exactly, the facility where I was employed fazed all COTA’s out. After a short period of time I went back to school, a trade school (Cosmetology), had to apply for loans again and again, did not qualify for scholarships.
I have a question. My fiancé owes about 42000 with dept of education fed loan servicing, just got a notice that the new revised income driven is now $260 a month that we can not afford (for 28 years!?) that’s 87000 we will be paying off by the end of it! Is there any way to get out of that!? How can someone buy a 50000 truck and pay $700 a month for five years and that’s done but 42000 in loans is over 28 years and turns into 87000! We need help. We can’t lay $260 a month but also don’t want to end up paying almost 90k
FFEL Consolidation Loan to use the no accrual of interest benefit for active duty service members, which states that you’re not required to pay the interest that accrues during periods of qualifying active duty military service (for up to 60 months) on the portion of a Direct Consolidation Loan that repaid a Direct Loan Program or FFEL Program loan first disbursed on or after Oct. 1, 2008.
Given your debt load and income, my guess is you’re a lawyer or doctor. Remember, the goal of such a high degree of education is to boost your income. Do you think you’ll be at $100k forever, or do you expect that to climb? I would expect it to climb, which also means your payments will rise under IBR, and you could also make extra payments to lower your debt.
My 25 year old daughter’s student loan from 2011 is in collections. The original loan amount was approximately $7,800.00 and the balance due now is ~ $12,000.00. She is a single mom of one child and earned $13,000.00 last year. They took her 2016 tax refund of $5,000.00 to put towards her loan balance. When she called, they indicated they would accept $5,260.00 to settle and close the loan or she could try to have the loan returned to the Dept. of Education and then determine the best repayment options.
I graduated back in 1991. In 92 or 93 I consolidated about $23,000 dollars in student debt with Sallie Mae. Over the next several years I had to do Forbearance a few times but by 2008 I had made about $51,000 in payments and had a balance of around $27,000. The economy crashed and the non-profit I worked for had to drop my income – a lot. We had to short-sell our house. I picked up some side work and eventually left the non-profit (501c3) in 2010. I took another job and essentially started over from a career standpoint.
All plans just look at your income from your tax return – so it also depends on how you file (married filing jointly versus married filing separately). That discretionary income is calculated on your AGI from your return, and it’s the same metric used for IBR, ICR, and PAYE. The difference is that IBR is 15% of discretionary income, while ICR is 20%. ICR also does not include forgiveness at the end, so IBR is always better.
All loans must be in grace or repayment status and cannot be in default.  Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment.  Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
Fixed rate options consist of a range from 3.75% per year to 5.80% per year for a 5-year term, 4.25% per year to 6.25% per year for a 7-year term, 4.55% per year to 6.65% per year for a 10-year term, 4.85% per year to 7.05% per year for a 15-year term, or 5.30% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan). The monthly payment for a sample $10,000 loan at a range of 3.75% per year to 5.80% per year for a 5-year term would be from $183.04 to $192.40. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.25% per year for a 7-year term would be from $137.84 to $147.29. The monthly payment for a sample $10,000 loan at a range of 4.55% per year to 6.65% per year for a 10-year term would be from $103.88 to $114.31. The monthly payment for a sample $10,000 loan at a range of 4.85% per year to 7.05% per year for a 15-year term would be from $78.30 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.27% per year for a 20-year term would be from $67.66 to $79.16.
Hello Robert, so i have set up a income based repayment plan. The lowest payment for me to make is 600 a month and with my other debts and private student loans i can not afford this amount. I want to make payments but this is just way to much. They said this is based on income and that it is my only option. How can i pay a lesser amount with out being penalized? I am a school counselor.
The money I was making wasn’t very much and I put the student loans under an IBR with a payment of $0 per month. My original loans were all subsidized but because I consolidated them around 1993 (there was some law that came into effect right afterward to protect borrowers who had subsidized loans) they still accrue interest. My current balance is over $53,000.
In the year of 1999-2003 i went to school for my A.S.degree in Nursing, after finishing the pre-requisites you have to apply for the program, i applied and i was not accepted. I then realized that i was stuck with student loans. In 2011 i was accepted into another University and finally got in the Nursing Program. In the 3rd semester of being in the program i was released because of Academic issues. I had 3 family deaths in one year and broke my finger within the same time frame. The school believes that if you get more than 2 C’s you are automatically released from the program. I am now further in debt with student loans and of course no degree. I am truly devastated and really need some help, what do i need to do, anyone please.
I was called this morning from a loan company that calls me everyday but today I decided to answer. They told me they were from Allied Navient and wanted to take my loans from 35,428.06 to 2394.08. Is this a scam? The first person that I talked to when I answered seemed like he was paid to just break through the wall that I put up! The second person had my info and when I seemed interested in her offer she got me to a manager! He got on the phone and immediately took the offer to 1597.00 to put me in good standing? I have resources (friend) available to help but I don’t want to put him in that situation! He also wouldn’t give me the money until I researched to find out if I was getting scammed as he had never heard of that kind of offer!
I have student loan for about $25000. I wanted to become a teacher. Online college assured me that once i finish my teaching degree and work in the field for 5 years my loan will be completely waived off. I have about year and a 1/2 left over to finish this degree but I had a medical emergency. While the Dentist was examining my mouth his hand slipped and the sharp needle went under my tongue. I filed a lawsuit but he claims that never happened since then my nerve that was connected to my head from my mouth was pressed in. I had plenty of medical bill which I paid off and now I’m left with sharp shooting pain from my mouth to my head because of which I have difficulty continuing my education and becoming a teacher. What should I do?
I am happy that I found your site and thank you for all of the information that you have provided. So, I went to Heald College in Stockton, CA, and graduated with my Associates Degree in Accounting, well at least I thought I did. I walked the stage and never received my diploma in the mail when they said they were. I requested it many time and never got anywhere. I started working at restaurants because I could not find work in Stockton, CA, and Heald College was not a big help when they said they would have job placements. I then moved to Maryland on the East Coast and went back to school. While I was going to school I landed a job at a Law Office as a paralegal. My boss closed down her law practice and I went to apply for schools in the area. The school that I applied to asked me for a copy of my transcript from Heald College. I requested it from a third party because as you already know it closed down. When I received my transcript in the mail, I discovered that I only had 8 credits. I called the third party and said that this is a mistake and that I graduated in 2008. She checked and said no, that is the correct transcript. I then applied for one of the programs to get it discharged and it was denied. I’ve tried calling the lawyers in California that worked on the case and never received a response back. If I go back to school I have to start all over again and still have this debt as well as the new student loans that I would have to take out. I hope you will have some pointers for me!
I am planning on consolidating my parent plus loans into a direct loan and using PSLF to pay since my income is $45,000 and i work for the state government. Under a possible change to student loan repayment, if i start the ICR plan, and the budget takes it away, am i grandfathered into that plan? Since that is the only one that accepts PLUS consolidation loans i am worried about making 2 or 3 years payments towards PSLF and then having it all thrown away when they change the repayment plans and i dont qualify for the new ones because its a PLUS consolidation loan.
I have a question. My fiancé owes about 42000 with dept of education fed loan servicing, just got a notice that the new revised income driven is now $260 a month that we can not afford (for 28 years!?) that’s 87000 we will be paying off by the end of it! Is there any way to get out of that!? How can someone buy a 50000 truck and pay $700 a month for five years and that’s done but 42000 in loans is over 28 years and turns into 87000! We need help. We can’t lay $260 a month but also don’t want to end up paying almost 90k

First let me say thank you for this article and all the helpful advice. Originally I owed a little over 40k when I graduated back in 1998. I got some deferments and then I went into default. Govt takes my tax return and applies it to my loan repayment. Twice I tried to make arrangements to pay…first time I was told to “wait it out until I get a good offer to pay pennies on the dollar” the second time I was told that I needed to make a payment that I just couldn’t afford… I offered $100 a month until i had better cashflow and the guy laughed at me and told me that would be worthless.

The Teacher Loan Forgiveness program (TLF) is a form of student loan forgiveness that is separate from the Direct Loan or Obama Student Loan Forgiveness program. This program awards educators with a principal reduction of their federal loans. It was designed to encourage students to enter the education field and to incentivize teachers to continue teaching.
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