Note: Servicing for this program is managed by another federal student loan servicer. If you enroll in Public Service Loan Forgiveness, your eligible loans will be transferred from Great Lakes to that servicer. Also note, you may not receive a benefit for the same qualifying payments or period of service for Teacher Loan Forgiveness and Public Service Loan Forgiveness.
On the one hand, I can see that I have agreed to work in public service for at least 10 years, making no less than 120 qualifying payments, and my loan payments are adjusted according to my income. So, I can see that this might be seen as a service obligation. On the other hand, I am not limited by FedLoan to work in a specific geographic location (major metropolitan area or rural area), for a specific company (state government, non-profit mental health agency, etc.), or for a specific time frame.
I have a question about Public Service Loan Forgiveness. I started with 160k in student loans in 2012. After graduation, I enrolled in a standard 25 year repayment plan but paid extra each month to get to an amount that I thought would repay the loan 10 years. From 2013 until January of 2016 I paid $1,750 per month. The entire time I was working in the Public Service field. Finally, in 2016, I gave up on leaving the public sector and decided to enroll in the PSLF plan and stick it out in the public sector for the remaining 7 years to get the loan paid off. However, for the previous payments to qualify they would have had to have been $1,766. Because my calculations were off, my payments were $16 short each month; and I didn’t get credit for the 3 years of payments. Is there any way to appeal this decision?
I went to Everest College for Court Reporting in 2007-2008. I did not graduate, but chose to leave after I slowly realizing I was in real danger of being scammed by the school. How the entire program operated just didn’t seem right, and I didn’t feel that I had been told the truth about the success rate upon graduation, or that my education with them was up to par. However, I had already racked up several federal loans because we were called into student aid every 3-4 weeks in-between classes to renew our loans in order to continue to even the next class that day! After about 10 months I knew I had to leave, but these loan amounts due from that time have persisted. The school was closed in 2015 or 2016 I believe, after I was long gone. Do I qualify for loan dismissal/forgiveness?
I graduated in 2003, joined military (national guard) in 2005 in order to get student loan payments paid off. In between that time they tacked on an extra 10k. After all this time of making 300.00 payments a month I am no closer to paying off these loans. I consolidated them in 2004, and that 3rd party company added the money wrongfully. I served two tours overseas. Do I have any options?
Could you clarify the difference between the 10 year and 25 year loan forgiveness? I’m interested only in the 10 year as I may not be able to work for 25 years being in my mid forties. My loan amount is $40K, I expect to earn gross $65-70K per year, I am married but separated, and my husband’s income is very variable but on the low side (gross $45K/year) and he files business income as he works from home part time. Will the PSLF allow me to work for 10 years and forgive my loan and must I file married separately or jointly. I just graduated and am about to end my grace period so my monthly payment will be due soon. I will also be starting work in the next month.
SoFi: Fixed rates from 3.46% APR to 5.98% APR (with AutoPay). Variable rates from 2.05% APR to 5.98% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.05% APR assumes current 1 month LIBOR rate of 2.05% minus 0.15% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
Variable rate options consist of a range from 2.68% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 4.25% per year to 6.40% per year for a 10-year term, 4.50% per year to 6.65% per year for a 15-year term, or 4.75% per year to 6.90% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.54% to 4.16% for the 5-year term loan, 1.86% to 4.21% for the 7-year term loan, 2.11% to 4.26% for the 10-year term loan, 2.36% to 4.51% for the 15-year term loan, and 2.61% to 4.76% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 2.68% per year to 6.30% per year for a 5-year term would be from $178.27 to $194.73. The monthly payment for a sample $10,000 loan at a range of 4.00% per year to 6.35% per year for a 7-year term would be from $136.69 to $147.77. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.40% per year for a 10-year term would be from $102.44 to $113.04. The monthly payment for a sample $10,000 loan at a range of 4.50% per year to 6.65% per year for a 15-year term would be from $76.50 to $87.94. The monthly payment for a sample $10,000 loan at a range of 4.75% per year to 6.90% per year for a 20-year term would be from $64.62 to $76.93.
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?
Thank you. The article you referenced states that the AGI is minus personal exemptions and itemized deductions…which is wrong. “Adjusted Gross Income is calculated before the itemized or standard deductions” from a tax website. I WISH it was after exemptions and itemized deductions as that is a huge, huge difference in the AGI…but it’s not. My payment is supposed to be $400 based on my husbands income alone and their is no way we can do that now…none. If find SOME job to make that $400, the payment will just go UP…which is crazy. It’s like you cannot win. It seems to make no sense for me to work at all….which is wrong. Filing separately seems to be a choice, but we have a daughter in college and would lose the education deductions, etc. This whole thing is crazy if it makes more financial sense for me to not work at all! Or I guess he could file injured spouse year after year, but I just don’t understand why they won’t just consider MY income. Sorry for venting, just frustrated.

To answer your specific question about loan forgiveness and retroactive qualification though, no, you would begin making qualifying payments as soon as you enrolled in the right repayment plan. The payments you’ve made up to that point do not count toward your 20 years’ worth of full, scheduled, on-time payments, at least how the law is currently written.

CommonBond: Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.19% effective August 10, 2019.
For example, if you have both Direct Loans and other types of federal student loans, and you have been making payments toward PSLF on your Direct Loans, you should not consolidate your Direct Loans along with your other loans. Similarly, if you have Federal Perkins Loans and you are employed in an occupation that would qualify you for Perkins Loan cancellation benefits, you should not include your Perkins Loans when you consolidate. Leaving out your Direct Loans or Perkins Loans will preserve the benefits on those loans.

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.

Through my current employer, many of the other therapists have applied for and have been awarded loan forgiveness monies through the National Health Services Corps (NHSC) Loan Repayment Program. As I understand it, these two programs work differently and I am trying to figure out whether or not they can be used simultaneously. The NHSC information says that I can’t have another “service obligation” or that service obligation needs to be finished, terminated, completed by the application deadline.

“Obama Student Loan Forgiveness” is a nickname for the William D. Ford Direct Loan program. The name came about when President Obama reformed part of the Direct Loan program in 2010 by signing the Health Care and Education Reconciliation Act of 2010.  As a result of expanded funding for federal student loans, more borrowers gained access to more options with loan repayment.
Like other forms of debt, you can refinance a student loan (both private student loans and federal student loans are eligible for refinancing). With most lenders, you start with a rate estimate, which doesn’t require a hard credit inquiry. When comparing rates from different lenders, be sure to pay attention to additional key differences, such as fees, before making a final decision (Earnest has no fees, for what it’s worth). The next step is to submit an application, and provide any additional required verification, such as IDs or pay stubs. Once you’re approved, you sign a few documents and indicate the loans you’d like to refinance. Your new lender will pay off these old loans, and voila, you have a shiny new refinanced student loan.
Moving your loans to a private lender or grouping your government debt with a new federal loan servicer could be the turning point of your repayment. If you’re unsure which route to take, consider scenarios when refinancing makes sense or whether consolidation would be wise in your case. In the end, the best decision is the one that’s best for you.
Thank you. The article you referenced states that the AGI is minus personal exemptions and itemized deductions…which is wrong. “Adjusted Gross Income is calculated before the itemized or standard deductions” from a tax website. I WISH it was after exemptions and itemized deductions as that is a huge, huge difference in the AGI…but it’s not. My payment is supposed to be $400 based on my husbands income alone and their is no way we can do that now…none. If find SOME job to make that $400, the payment will just go UP…which is crazy. It’s like you cannot win. It seems to make no sense for me to work at all….which is wrong. Filing separately seems to be a choice, but we have a daughter in college and would lose the education deductions, etc. This whole thing is crazy if it makes more financial sense for me to not work at all! Or I guess he could file injured spouse year after year, but I just don’t understand why they won’t just consider MY income. Sorry for venting, just frustrated.
Military personnel continue to have access to some of the best Federal student loan forgiveness benefits, with options for using programs like the incredible Public Service Loan Forgiveness Program (which they qualify for as Military Personnel, or Government Employees), or the amazing College Loan Repayment Programs, which offer up to $65,000 in forgiveness to eligible service members.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico.  All loans are provided by KeyBank National Association, a nationally chartered bank.  Member FDIC.  For more information, visit www.laurelroad.com.

“Obama Student Loan Forgiveness” is a nickname for the William D. Ford Direct Loan program. The name came about when President Obama reformed part of the Direct Loan program in 2010 by signing the Health Care and Education Reconciliation Act of 2010.  As a result of expanded funding for federal student loans, more borrowers gained access to more options with loan repayment.

×