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.
Unfortunately, student loan forgiveness programs tend to leave the parents out in the cold. In fact, there are very few options for any sort of recompense for parents and grandparents (or other cosigners) who helped kids pay for college. I think the Government has taken the viewpoint that the kids are being scammed by shady lenders, but that the adults should have known better.
I am in the same situation as Stephanie, I have made 5 years of consistent payments on a graduated repayment plan. I was counting on PSLF after 10 years, but was told by my FedLoan that none of my graduated payments would count because it is not a “qualifying repayment plan”. I did a lot of research when I first started paying my loans to ensure that I would qualify, and I could have sworn that graduated was listed as a qualifying repayment plan. Everywhere I read now, it says that it is not a qualifying plan. I did fill out a certification form recently, but they said it would take 90 days to process. Please help!
When you’re in garnishment, the companies servicing your loan refuse any attempt at refinancing. Can you do some in-depth research on ways to finally pay this off? I am considering borrowing against my meager 403b to pay off the loans, just so they don’t garnish for another decade and then start on my Social Security. The balance hasn’t moved in more than 10 years, because it all goes toward “fees” they add every month. I’m in indentured servitude to these people. Also, will you consider writing about how to be assured you won’t be re-billed for loans that are paid?
The quoted Annual Percentage Rate (APR) with discount includes a customer interest rate discount of 0.25% for having a prior student loan with Wells Fargo or a qualified Wells Fargo consumer checking account and requires a 5-year term. APRs may vary based on terms selected. Repayment term options may include 5, 7, 10, 15 and 20 years based on credit qualifications. (A 20-year repayment term is available when the consolidation loan amount is $50,000 or more). Variable interest rates are based on an Index, plus a margin. The Index is equal to the Prime rate published in the Wall Street Journal. The APR for a variable rate loan may increase during the life of the loan if the index increases. This may result in higher monthly payments. Rates are current as of 10/01/2019 and subject to change without notice. Wells Fargo reserves the right to change rates, terms, and fees at any time. Your actual APR will depend upon your credit transaction, credit history, and loan term selected and will be determined when a credit decision is made. For questions, please contact us at 1-877-315-7723.
This student loan forgiveness program cancels a percentage of a borrower’s Federal Perkins Loan if they work full-time in an eligible field. You will have a portion of your loans forgiven for each year of service. The specific cancellation terms depend on your line of work, but this program awards up to 100% forgiveness. For the majority of Perkins Loan cancellations, the cancellation terms are as follows:
I have had a student loan since 1990 when I was 17years old. It started out as a $3500 and today (27 years later) I owe $4500 – how is this possible? I remember 2 years ago i was scheduled to receive $2600 back in federal taxes and they took it all….I have attended college 3 times and I know that had to have been in good standing as well as in deferment so how can i owe more now than I did when I got the loan? I am currently in a rehabilitation program paying $5 a month but the interest continues to grow I will never get out from underneath this gray cloud. Believe me if I had the money I would pay it. I owe peanuts compared to some. Why are they allowed to have the interest accrue on a school loan. Just seems wrong.
FIXED APR Fixed rate options consist of a range from 3.50% per year to 5.55% per year for a 5-year term, 4.00% per year to 6.00% per year for a 7-year term, 4.30% per year to 6.40% per year for a 10-year term, 4.60% per year to 6.80% per year for a 15-year term, or 5.05% per year to 7.02% 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 5.14% per year to 6.25% per year for a 7-year term would be from $142.00 to $147.29. The monthly payment for a sample $10,000 loan at a range of 5.24% per year to 6.65% per year for a 10-year term would be from $107.24 to $114.31. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.05% per year for a 15-year term would be from $80.65 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.61% per year to 7.27% per year for a 20-year term would be from $69.41 to $79.16. However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account. VARIABLE APR Variable rate options consist of a range from 2.50% per year to 6.05% per year for a 5-year term, 3.75% per year to 6.10% per year for a 7-year term, 4.00% per year to 6.15% per year for a 10-year term, 4.25% per year to 6.40% per year for a 15-year term, or 4.50% per year to 6.65% 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 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% 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 3.49% per year to 6.31% per year for a 5-year term would be from $181.87 to $194.77. The monthly payment for a sample $10,000 loan at a range of 4.86% per year to 6.36% per year for a 7-year term would be from $140.68 to $147.82. The monthly payment for a sample $10,000 loan at a range of 4.91% per year to 6.41% per year for a 10-year term would be from $105.63 to $113.09. The monthly payment for a sample $10,000 loan at a range of 5.16% per year to 6.66% per year for a 15-year term would be from $79.92 to $87.99. The monthly payment for a sample $10,000 loan at a range of 5.41% per year to 6.91% per year for a 20-year term would be from $68.28 to $76.99. However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
GREAT Article and it gave me hope. I’m a Graphic Designer and many programs do not offer assistance to Creatives. It’s tough! My Federal Loans are $50,000 + I have Private loans as well. The payments continue, but my balance has barely moved in 10yrs. Question, I checked out Ameritech Financial, the company you suggest, but they DO NOT service Colorado. I’ve exhausted my efforts and need HELP! Does Anyone have suggestions for Companies/Institution that assist with Federal Student Loan Evaluation in Colorado? Do want to get scammed!!
If you want to get approved for a Borrower’s Defense Discharge, then you should call the Student Loan Relief Helpline’s Borrower’s Defense Against Repayment Hotline and pay them to review your situation, help you put together the legal arguments required for your application, and increase the odds that you’ll actually receive an approval after it’s been submitted.
Here I am 24 years later, have been paying on my loan(s) for 10 years, every month, and I still owe $65,000. I DO NOT want something for nothing but I want to pay what I owe. I have tried negotiating a lower APR, currently paying 21%, but Nelnet says that isn’t possible, basically they refuse. I have also asked to negotiate a lower amount owed, again was told no.
Robert I really appreciate what you are doing here. This student loan thing is so complicated. I am the parent of a grad-student who graduated in May with a degree in film (screenwriting) we co-signed on his private loans ($130k) and he still doesn’t have permanent/full time work. We have spoken to the loan provider and they want us to repay the loans since our son can’t yet. I don’t know how many of these options are available for private loans. Right now they want $1100 per month, which we can’t pay and neither can our son. We should never have co-signed because now its going to affect our credit and his. What are out options? Thanks
Perkins loans would have been a better idea because the benefits are better, but it sounds like you should still absolutely qualify for the BEST Federal Student Loan Forgiveness Program available – the Public Service Loan Forgiveness Program, which offers complete loan forgiveness after 120 monthly payments have been made (that’s 10 years worth of payments).
Should she be eligable for a possible $0 monthly payment with no income even though we file jointly, or does the fact that we are married mean my income has to contribute to her ability to pay? This is where it has been unclear to me. Can she report her income on the IBR paperwork as $0 even though she’s filed on my tax return as joint? If that is the case completely agree that with no income she should qualify for a $0 payment but I was under the impression that I had to use our tax return AGI for both our IBR forms.
I had to file to drop my classes because I was in bed rest for four months. I was told that since it was a medical emergency that I wouldn’t be expected to pay back any student aid that I received and I could continue once I was off bed rest. When I tried to go back I was told that I had to pay off my loan first. So I did. Then I was told that another loan had been taken out in my name. The address that they claimed the check was delivered to has never been my address, nor have I ever lived there. It was the address of an estranged sibling that I have had no contact with. I explained this, but I was told that I still have to pay the loan or my transcripts would be held hostage so that I could never go back to college anywhere. The advisor that they appointed me when I first enrolled had been fired, so I found a new one who worked for the state. He tried to help me sort things out. On one conference call they told him that a loan had been sent to the fore mentioned address, on another they claimed that I had outstanding fines from aid money that I needed to repay. We called the office that handles all student aid info and they said that I do not owe them money and if I did then it would be between me and the state, not the school. So we called them again and again they claimed that I had taken out a second loan. The new advisor said he’d never seen anything like it and he said that I still qualify for a full scholarship if I can get my transcripts released. I don’t have the money to pay the loan back twice. It took me years to pay it back the first time. Any ideas? I’ve tried just about everything, including reporting it on the FBI’s identity theft site.
Additional student loan repayment assistance programs (LRAPs): There may be other national or organizational student loan repayment assistance programs offered for public service professions. The National Institutes of Health, for example, offers up to $35,000 in debt assistance annually to health professionals who are appointed by the institutes to conduct research. The American Bar Association has a list of state LRAPs for lawyers.