Splash Financial: Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 3.50% APR to 7.03% APR and Variable Rates range from 2.43% APR to 7.76% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. Fixed rate options without an autopay discount consist of a range from 3.75% per year to 6.49% per year for a 5-year term, 4.25% per year to 6.25% per year for a 7-year term, 4.59% to 6.54% for a 8-year term, 4.55% per year to 6.65% per year for a 10-year term, 4.79% per year to 6.59% per year for a 12-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). Variable rate options without an autopay discount 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, 3.69% per year to 5.72% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 4.47% per year to 6.36% per year for a 12-year term, 4.50% per year to 7.76% 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. Variable interest rates 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. The maximum variable rate on the student refinance loan is 9.00% for 5-year, 7-year, 8-year and 10-year terms, and 10.00% for 12-year, 15-year and 20-year terms. The floor rate is 2.00%. These rates are 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.
Great info here. Hoping you can help me a bit. I have about $92,000 left in FFEL standard consolidation loan (consolidated 8/04) plus another roughly $120,000 in private student loans (college and medical school) and $50,000 of wife’s school loans. Interest rates aren’t bad, but if there is a path toward loan forgiveness it would make life much easier.
I was on PAYE program for couple of years after grace period ended. Each year I submitted copies of my paystubs. This year, however, instead of paystubs I was only allowed to submit tax returns. Since we filed jointly with my domestic partner (not married, live and have a child together), my “income” has drastically increased. Hence, I was not qualified for PAYE. Although, we live together and file taxes jointly, I think it’s wrong to dismiss my actual income. I work part-time and dont make too much at all, so I’m barely able to meet the standard monthly payments. Is there any way around submitting your taxes to qualify for PAYE?
You’ll need to figure out if the loan is Private or Federal, and then determine if you have any sort of qualifying conditions, like working for the right kind of employer, in the Non-Profit space, Federal Government, as a Nurse, etc., to see if your wife matches any of the available Forgiveness programs currently on offer. It’s not a simple question!
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.
Do student loans ever “expire”? I have about $ 11,000 in student loans from 1984-1988 from before we were married. They were consolidated around 1998. I have been a stay at home mom since 1993. We now have 8 kids, Our budget has always been tight, & although we will have my husbands student loans paid off in 2 years, there never has been enough extra to make consistent payments on mine. My loans have have been in & out of forbearance, deferment, rehabilitation, etc. They have been in default (again) for some time. Last year they took our income tax return. Now the collection compay is suggesting another rehabilitation – but I am a stay at home mom and don’t expect to ever have my “own” income. Is my husband obligated to pay my loans from his salary? Can they put a lien on our home? Should I be even considering signing these rehab forms? They want to set us up on a year of monthly payments I am not even sure we can meet. And after the loan is rehabilitated & some other company buys it I am sure our payments will increase. I feel like I am lying by agreeing to make these payments, as I am not sure we can. What should I do? – Thank you!
Your best option would be to find a way to qualify for the Public Service Loan Forgiveness Program, which offers total forgiveness after just TEN years of payments (instead of the typical 20). To qualify for PSLF, you’ll need to work for the Government, a Non-Profit, or some other position that is included on the eligibility guidelines. See my page on the Public Service Loan Forgiveness Program (linked above) for a breakdown of the details.
If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.
Right now, you aren’t eligible for the reduced loan forgiveness benefit (forgiveness after 20 years), since your loans are older than October 1st, 2007. You should be eligible for forgiveness after 25 years of payments in 2022 though, and if they remove the qualification regarding age of the loan, then you may end up qualifying for complete forgiveness earlier.
Second, typically any changes made to repayment plans will keep you grandfathered in. Congress can’t phase out PSLF simply by de-funding it. They actually have to pass legislation to change it, and any retroactive changes will likely fail (both to pass, and if it does pass, will likely die in court). We can’t guarantee that, but it’s what will likely happen in our opinion.
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.
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.
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’ve read as many of the above comments as I could in order to avoid a repeat question, but couldn’t find any that directly addressed my situation. I’m scared to contact Direct Loans (all of my considerable undergrad and grad student loans are Federal loans), because I’ve been in default for so long. Just before I completed my Ph.D., two things happened. One: I became a mother with very bad post-partum depression, and Two: I had a nervous breakdown because my graduate advisor stole my work and sabotaged my ethnographic field study due to sheer incompetence. I didn’t fight any of it (see above references to total physical and emotional breakdowns), but instead focused on keeping myself and my children alive and in gradually improving health. It really was a survival situation. My husband has been our sole provider since I left graduate school (ABD), and I have not been employed outside the home since then. I have, however, homeschooled both of our children diligently and well, as well as run a small organic farm on one income. His income is barely enough for us to do this. It is certainly not enough for us to pay 15% of our income to loans, and so I am also exploring ways to use my education for income so that I can pay off loans. Like…write a bestseller. Yeah. (It’s actually not a total pipe dream. I do have one 600 page novel nearly finished, and it’s pretty damned good.) So my question is this: since none of my debt was incurred while married, and since I have not been employed since 2003, and since I DO very much want to repay my debt, but it pretty much seems completely hopeless, what can I do? What’s the best way to go forward here?
I’m a little confused. According to Navient, I qualify for an Income-Based Repayment Plan, Income-Sensitive Repayment Plan, or Graduated Repayment Plan (either 2, 3, 4, or maybe 5 years) for my Federal Loans only. I don’t quite understand how the loan forgiveness that you’ve mentioned works for the Income-Based Repayment plan and Income-Sensitive Repayment Plan. For example: If I do the IBR, my monthly payments will be $0. Of course, they can potentially increase since I have to give my AGI each year. Are you saying that my loan is automatically forgiven after 10 years or after my repayment term? Isn’t it better to be paying something on the principal rather than nothing?
I make about 35k (my wife also makes about 38k — my wife and I file married but separate taxes — we have 3 kids.) I feel lost. I don’t know how I got so deep or how this got so out of control. Any help is appreciated. Do you think I qualify for these repayment programs? Which would be best for such an old defaulted loan? Is there a place (other than the collection agency) that can help guide me? Again I sincerely appreciate your article and advice.
I am currently on IBR repayment plan and have been now for 2 years. I am in my 5 year of teaching. When do I apply for Public Loan Forgiveness? Is it after I have taught 10 years? What if I take a year off due to having a child, will that affect my 10 years of working for the Public loan forgiveness? Also when would my loans be forgiven? I have tried speaking with rep from fed loan however I feel that I am even more confused than before. What exactly do I need to do to have loans forgiven?
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.
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.
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.
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.