Good day! My husband and I are currently in a dental residency program that we’ll finish summer of 2018. At the end, we’ll both be in debt of around $400k together. DO you suggest for us to start paying it off a little as we can? Does it make sense to consolidate/refinance now? Our loans are all direct unsubsidized federal loans which have interest rates from 6- 7.5%.
Forgiveness isn’t an option for defaulted loans. You’ll need to use consolidation or rehabilitation to get defaulted federal student loans in good standing before they’re eligible for forgiveness programs. If your loans won’t qualify for forgiveness, student loan settlement or bankruptcy may reduce your debt in severe cases. Defaulted federal loans are eligible for discharge programs.
I am conflicted bc after reading your articles I feel like it will still make more sense for me to switch plans (in order to pay 10% of income as opposed to 15% monthly and bc I have not paid much off my debt thus far in a few years). However, my family has advised me that I need to see real numbers to know how much I will owe when my loans are forgiven in 25 years when my taxes are due. In my head adding an extra $35k to my $206k balance will be just the same when those taxes are due-seemingly impossible. But it is true that I do not know how to calculate the actual numbers to have a better idea of what kind of added interest the added $35k will make to my total that will be forgiven in 25yrs which I will then owe in taxes.
Perkins loan cancellation. Borrowers with federal Perkins loans can have up to 100% of their loans canceled if they work in a public service job for five years. In many cases, approved borrowers will see a percentage of their loans discharged incrementally for each year worked. The Perkins loan teacher benefit is for teachers who work full time in a low-income public school or who teach qualifying subjects, such as special education, math, science or a foreign language.

If you have Federal loans, an income-based repayment plan can really help make your loans affordable. But yes, it does take a long time to pay them off. The other option is to work/earn more. $14,000 really isn’t much student loan debt (even though it might feel like it). You could pay that off in about 5 years if you can find an extra $200 per month to pay towards it.
i had a student loan that i got before i got married , my husband has been filing me on his taxes for almost nine years now and just so happen the us department of education took part of his taxes last year. we were told that if i didnt earn an income that they could not take his taxes because that would b against the law because i didnt earn it. is that true? and if so how can i get his money back cause they sed they can not give it back
I just wanted to comment on how dedicated you are to helping people Robert. You have provided prompt clear responses, with impressive information to every single person who commented on your article. I will share this with friends. I was fortunate to be in healthcare/non-profit & have a Perkins loan that was forgiven after 5 years. Thank you for your dedication to your field & being such an amazing person to give your time to answer all these questions. Kudos to you!
Whether the terms of your student loans aren’t working for you or you want to look into securing a lower interest rate, refinancing could be just what you need. It doesn’t take much time to check out top student loan lenders for your refinancing options. If you decide you want to apply, you could start saving money on your loans in less than a month.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
Savings calculations are based on refinancing $121,825 in student loans at an existing loan servicer’s interest rate of 7.5% fixed APR with 10 years, 6 months remaining on the loan term. The other lender’s savings and APR (light green line) represent what would happen if those loans were refinanced at the other lender’s best fixed APRs. The Earnest savings and APR (white line) represent refinancing those loans at Earnest’s best fixed APRs.
Good Morning Robert, I did an (Obama) forgivness loan agreement with NationalStudentCenter.com 1(866)359-3821. Currently unemployed and said I qualified for my loans to be consolidated and reduced all the way to $0 for the next 20-30 month with the first 3months being $197.33. Paid thru my checking and already one month in. The wierd thing is I had to Esign the App so they can move forward with the process. I received an email from NelNet saying that they received my App. But I never Esigned the App because I started to become skeptical about the loan. With the info that I just provided you, can your expertise tell me if this is a scam? If so how do I get out of it.

For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.
Peace Corps volunteers are eligible to apply for Stafford, Perkins and Consolidation loans deferment, as well as partial cancellations of Perkins Loans (at 15% for each year of service, up to a maximum of 70% in total loan Perkins Loans forgiveness for service). For more information, contact the Peace Corps at 1-800-424-8580, or visit the Peace Corps website here.
Automatically withdrawn payment discount (“ACH”) — You may qualify for a 0.25% interest rate discount during repayment if you set up automatically withdrawn payments (ACH), directly with Wells Fargo Education Financial Services (EFS), from a designated deposit account. This discount does not apply to bill pay or automatic transfers not set up directly with Wells Fargo EFS. If the automatic payment is canceled at any time after repayment begins, the discount will be lost until automatic payment is reinstated. The 0.25% interest rate reduction is effective the day after the first payment is made using automatic withdrawal during the repayment period. The discount reduces the amount of interest you pay over the life of the loan. The automatic payment discount may not change your monthly payment amount depending on the type of loan you receive, but may reduce the number of payments or the amount of your final payment. ACH payments and discount will discontinue upon entering deferment or forbearance periods.

In short, refinancing student loans generally does not hurt your credit. When getting your initial rate estimate, all that’s required is a ’soft credit inquiry,’ which doesn’t affect your credit score at all. Once you determine which lender has the best offer (Earnest, we hope), you’ll complete a full application. This application does require a ‘hard credit inquiry,’ which can have a minor credit impact (typically a few points). However, in the months and years after refinancing, your credit score should see steady improvement as you make on-time payments and pay down your debt.
To ask questions after you have submitted your Federal Direct Consolidation Loan Application and Promissory Note, contact the servicer for your new Direct Consolidation Loan. If you submitted your application online, your consolidation servicer’s contact information was provided at the end of the online process. If you submitted a paper application by U.S. mail, your consolidation servicer’s contact information was available when you downloaded or printed the paper application.
Yes. You can choose to consolidate while you are still in school, during your grace period or after your grace period expires. If you choose to consolidate while you are still in school or during your grace period, you will lose any remaining grace period on the loans that you are consolidating, and you will begin making payments approximately 30-45 days after your loan is disbursed.
My 120 qualifying payments could take me 20+ years to eventually make if I let it. With the NHSC program, the requirements are much more specific, rural area, two year commitment, etc. I am interested in potentially applying for the NHSC program as well. I know that the two programs work differently and I am wondering if you know whether or not they could be used simultaneously? Are you aware of whether or not this has this been done before?
Designed to help you understand how consolidation will affect each of your loans, our detailed loan review process will provide you with the in-depth information you need in order to make an informed decision about which loans you want to consolidate and which loans you may want to leave out. You can reach out to your Student Loan Consultant at any point during the process.
From 2000-2005, I took out Sallie Mae Parent Plus Loans, to put my son through college. A few years back Navient took over the loan. I have been paying a fixed amount for over 10 years. Did I qualify for any kind of loan forgiveness program? I’m a public school administrator and my son works for the City will leave in. Looks like I have 9 more years to go on this loan. Any advise you can give I would appreciate. Thank you.

To ask questions after you have submitted your Federal Direct Consolidation Loan Application and Promissory Note, contact the servicer for your new Direct Consolidation Loan. If you submitted your application online, your consolidation servicer’s contact information was provided at the end of the online process. If you submitted a paper application by U.S. mail, your consolidation servicer’s contact information was available when you downloaded or printed the paper application.
However, even if your payments are $0 per month, they WILL count toward your required 120 or 240 monthly payments to receive forgiveness. It sounds like you are probably going to have to make the entire 220 monthly payments, because I don’t think you could be qualifying for the Public Service Loan Forgiveness Program while you’re not working, but if you were injured on the job while working at a qualifying position… maybe?

My granddaughter went to school locally for part of a qtr. (2015) She was actually pregnant before she started and then she couldn’t finish. She was a minority (ethnically) and received alot of bullying and couldn’t take it. She owes about $7,000. The school turned it over to a collection agency. She can’t afford to pay that back. She is single and now has another child. Can you give me any ideas to help on what she can do?


Variable rate, based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of October 1, 2019, the one-month LIBOR rate is 2.05%. Variable interest rates range from 2.25%- 9.24% (2.25%-9.24% APR) and will fluctuate over the term of the borrower's loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.45%-9.49% (3.45% - 9.49% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens One is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.

For example: if you elect to have the National Service Trust send $1,000 of your education award towards payment on a Direct Loan, and under your repayment plan you are expected to pay $100 each month, your education award payment would count as 10 payments towards PSLF, and you would not owe another payment for 10 months from the date the lump sum payment was applied.
I will start repaying my 75,000 loan (undergrad/grad). I’m a military spouse and currently don’t have a job. How I can tackle my student loan with only 1 income. I’m planning to join the Navy reserve, will that help forgive some of my loan? What is the best way to pay off my loan considering our current income situation? I can pay at least 200 a month but can I do that or the FedLoan servicing will set the amount that I need to pay? You’re feedback will be very helpful. Thank you.

You can refinance both your federal student loans and your private student loans through a private lender, such as a bank or one of the lenders offered by LendingTree. Refinancing your loans will combine all of them into one loan with one monthly payment. Your interest rate will be based off of your credit score, so if it’s higher than when you first applied, you should score an incredibly low rate.
my loans are 72k and 3.5%. I am currently enrolled for the last two years under public service loan forgiveness. I do not qualify for IBR and am in the process of applying for PAYE. I have been paying my loans since 2007 but only under the PSLF since 2014. My question is..Is it worth it to stay under PSLF for another 8 years or switch back to a graduated payment plan for another 10 years that will give me lower payments. Which plan will result in the most loan forgiveness.
I believe this is misleading, You mentioned having $50k forgiven at the end of an income-based repayment term, that the tax owed is cheaper than the loan + interest. But the $50K you would owe at that point *is* the remaining loan + interest. If your IBR amount was covering the interest and some of the principle you’d likely have paid a ton more interest than you would have if you stayed on a 10-year term, but if your payments did not cover the interest, then your loan balance would have been increasing over time. That $50k could have represented a $12k original loan… If you qualified to pay nothing — then with a 6.5% interest loan over 25 years you’d end-up paying tax on 5x the original balance… You’d likely be pushed into a much higher tax bracket. I believe this is a dangerous recommendation for you to make. If the tax law change, then great, but there’s no guarantee of that. Can you explain your logic in the light that unpaid interest in accruing in your loan balance?
I have about 200,000 in student loans. I am just starting to pay them off. I work for an Intermediate unit, so I was told I would qualify for PSLF after ten years of making payments on time. I was also told I can consolidate to decrease payment amounts. I am not sure which plan to choose to remain in the PSLF program. Do I have to do IBR? Or can I select Graduated which gives me a lower payment? I would love to have the smaller monthly payment and extended loan amount. Any suggestions?
Peace Corps volunteers are eligible to apply for Stafford, Perkins and Consolidation loans deferment, as well as partial cancellations of Perkins Loans (at 15% for each year of service, up to a maximum of 70% in total loan Perkins Loans forgiveness for service). For more information, contact the Peace Corps at 1-800-424-8580, or visit the Peace Corps website here.

Refinancing student loans makes sense for many people if they are eligible. For starters, student loan consolidation (which is included in the student loan refinancing process) simplifies the management of your monthly payments. Refinancing allows you to consolidate both your federal and private loans, select a repayment term that makes sense for you, and often lower your interest rate. Here at Earnest, the entire application process is online, and you could have your new low interest rate loan in less than a week. Borrowers who refinance federal student loans should be aware of the repayment options that they are giving up. For example, Earnest does not offer income-based repayment plans or Public Service Loan Forgiveness. It’s possible to consolidate federal student loans (Federal Perkins, Direct subsidized, Direct unsubsidized, and Direct PLUS loans) with a Direct Consolidation Loan from the Department of Education, but this will not allow you to lower your interest rate and private student loans are not eligible.

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