I have around $190k in loans consolidated. I make $86k a year and my husband brings in about $50k. I put the loans in IBR 2 years ago and they want my payments to be over $1800/month. There is no way possible we can pay that!! So at the time I put them in forbearance. Now I need to do something and want to pay on them but honestly can’t do it at that payment amount. What other options do I have?
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?
2. If you believe that ITT lied to you or misled you into getting student loans because of false or fake statistics on job placement and salary, you could potentially qualify for a Borrower Defense to Repayment discharge. This is a very new form of discharge, and you have to prove that you received some type of documented misleading statements from the school or their financial aid office. This is the way that some borrowers from Corinthian Colleges were able to get their loans forgiven, but realize that the CFPB also settled a lawsuit and some students simply received refunds to offset their loans as well (so it wasn’t a true forgiveness).
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.
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.
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
The sooner you refinance, the more you could save. The longer you hold your loan at a higher rate, the more interest you are accruing—even if you are in a grace period. That being said, you must be employed or possess a job offer to be eligible to refinance with Earnest. The more your financial situation has improved since you took out the loans originally, the better your refinancing offer will be.
Hi Robert, this is very helpful information you are posting here. My question is this. I am married with a single income (my income, spouse does not work). Both her and I have student loans. I have two that are in good standing – One federal loan that is currently on REPAYE, and another small private ALPLN type loan. My wife, has two loans of her own both federal which are sizeable. We’ve had those in and out of deferement/forebareance on and off for 3-4 years now based on her unemployment and time is up. We file married/joint. I’d like to get everything under control and get her loans on IBR with mine – my questions are do I have an option to do a consolidation and consolidate hers and mine together? Would it beneficial to file separate returns and keep her in deferment/forebarance because of the unemployment and/or lack of income? My income is not substantial and as it is we struggle to sustain our family but I’d be willing to pay all of the loans if the total payment were affordable.
Forgiven loans may be taxable. Generally, forgiven, canceled or discharged student debt is taxed as income unless you were required to work for a certain type of employer or in a certain profession to qualify for the forgiveness. For instance, loans discharged through Public Service Loan Forgiveness are not taxable, but debt forgiven through income-driven repayment plans is taxable. Loans discharged upon a borrower’s death or permanent disability were previously taxed as income, but the latest tax code changed that. Loans discharged for this reason after Dec. 31, 2017, are not taxable.
I Would LOVE for somebody to help me figure out my student loans….. I have a company garnishing my wages from one company to another company I’m paying money too…. and then then I got another letter from a lawyer saying I owe more money..WHAT is going on? ???? I started out with maybe 35 To 40 thousand debt which is up to 70or 80thousand now…. and I don’t know what’s going on and I need somebody to help me…
I currently have done 1 year in the Army Reserve after doing 5 years in the Air National Guard. I haven’t received a bonus from the Army because I was not eligible for any. Is there a program like the PSLF for people in the Guard/Reserve since we’re technically federal/DoD employees?? I was in school to be a pilot which ran me up to about $90,000 total…I enlisted to the Air National Guard where they did blood work to find out I have a Sickle Cell Trait and cannot fly unpressurized aircraft(hence cannot go through flight training). I pretty much wasted my time with school. I cannot file bankruptcy either or I’ll be discharged from the Army Reserve. Please Help!!!!
You’re mixing up two different things. Graduated Repayment is a repayment plan that DOESN’T have forgiveness, but you can qualify for Public Service Loan Forgiveness (PSLF) anyway. As long as you can certify your last 4 years of employment (might take you tracking down some HR people), you can qualify. Simply fill out the certification form here: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
I received my master’s degree in 1998 and have been paying towards my federal loans since (aside from a short period of forebearance). I entered the IBR plan about two years ago. In terms of the loan forgiveness component, do my seventeen years of payments prior to entering IBR count towards the 25-year forgiveness mark, or did that 25-year period only commence with my entrance in the IBR program itself (in which case I would conceivably be paying off my loan over 42 years)?
Military student loan forgiveness and assistance. Military personnel in the Army, Navy, Air Force, National Guard and Coast Guard may qualify for their own loan forgiveness programs. In the National Guard, for example, qualifying soldiers and officers could receive up to $50,000 to pay off federal student loans through the Student Loan Repayment Program.