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.

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?


Tim, thanks for doing what you do here. Any word on changes to the PSLF program, in lieu of the proposed $57K cap? I’m in the IBR program, working for a 501(c)3 nonprofit, and have been making qualifying payments for approximately six years – and I’m terrified that changes to the PSLF program will affect me. All my loans are federal. Also, I’ve been told by my loan servicer in the past that I don’t do anything “now” for PSLF, that I wait until closer to the end of the 10 years. Any insight into that?
I’m concerned about changes in loan information and the status of civil service enrollment. It appears purported loan was sold to Navient but the balances don’t match and there is no original balance, lender or name of school. When I went to get job training I was denied because the government had no record of my civil service registration from the 80’s. In order to get student loans this was necessary. I paid off loans from my BA but loans from private technical college have the issues. Can I have Navient verify the debt and address civil service and training issues?
Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
1Laurel Road: Laurel Road Bank is a Connecticut banking corporation offering products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Laurel Road has helped thousands of professionals with graduate and undergraduate degrees across the country to refinance and consolidate over $3 billion in federal and private school loans, saving these borrowers thousands of dollars each. Lending services provided by Laurel Road Bank, Member FDIC. APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 4/05/2019. Rates subject to change. 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 4.25% per year to 6.25% per year for a 7-year term would be from $137.84 to $147.29. The monthly payment for a sample $10,000 loan at a range of 4.55% per year to 6.65% per year for a 10-year term would be from $103.88 to $114.31. The monthly payment for a sample $10,000 loan at a range of 4.85% per year to 7.05% per year for a 15-year term would be from $78.30 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.27% per year for a 20-year term would be from $67.66 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 rate options consist of a range from 2.25% 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 0.25% to 3.80% for the 5-year term loan, 1.50% to 3.85% for the 7-year term loan, 1.75% to 3.90% for the 10-year term loan, 2.00% to 4.15% for the 15-year term loan, and 2.25% 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 2.75% per year to 6.30% per year for a 5-year term would be from $178.58 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. 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. 
I would just like to acknowledge your continued support and communication to the people who come to this site in search of answers – sometimes desperate, usually in despair, or incredibly stressed how to unearth the mountain of debt they’re under (including myself). I see this long thread of messages and I am astounded by your commitment to help nearly everyone that shares their story. So, short story long, THANK YOU for your work in bringing people direction, comfort, and help when they have no where else to turn. Even if you don’t receive much thanks, you are very much appreciated.
1Laurel Road: Laurel Road Bank is a Connecticut banking corporation offering products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Laurel Road has helped thousands of professionals with graduate and undergraduate degrees across the country to refinance and consolidate over $3 billion in federal and private school loans, saving these borrowers thousands of dollars each. Lending services provided by Laurel Road Bank, Member FDIC. APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 4/05/2019. Rates subject to change. 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 4.25% per year to 6.25% per year for a 7-year term would be from $137.84 to $147.29. The monthly payment for a sample $10,000 loan at a range of 4.55% per year to 6.65% per year for a 10-year term would be from $103.88 to $114.31. The monthly payment for a sample $10,000 loan at a range of 4.85% per year to 7.05% per year for a 15-year term would be from $78.30 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.27% per year for a 20-year term would be from $67.66 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 rate options consist of a range from 2.25% 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 0.25% to 3.80% for the 5-year term loan, 1.50% to 3.85% for the 7-year term loan, 1.75% to 3.90% for the 10-year term loan, 2.00% to 4.15% for the 15-year term loan, and 2.25% 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 2.75% per year to 6.30% per year for a 5-year term would be from $178.58 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. 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. 

Given your debt load and income, my guess is you’re a lawyer or doctor. Remember, the goal of such a high degree of education is to boost your income. Do you think you’ll be at $100k forever, or do you expect that to climb? I would expect it to climb, which also means your payments will rise under IBR, and you could also make extra payments to lower your debt.

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.

Along with your credit score and annual income, some lenders also look at your savings and debt-to-income ratio. Finally, some lenders require proof of graduation, as they’ll only approve borrowers who have obtained their degree. If you left school before graduating, there are relatively few student loan refinance providers that will work with you.
There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.
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.
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.
I currently owe 385,000 in student loans. My loans are a combination of undergraduate, law school and and LL.M degree. All of these loans are also at varying interest rates, from 5.8-8.5 and dating back to 2003. They are all federal and are direct, ffel, etc. One of the things I don’t understand is interest. I am currently on IBR which makes my payments affordable. But unfortunately I don’t make enough money to put a dent in the principal. Although my goal is to make more money, I just had the interest on my loan capitalized to the current amount because I did not recertify my IBR on time (this is my first year on IBR). I applied for reinstatement of IBR so I am waiting on approval. My question is, hypothetically if I am not able to increase my salary significantly enough to put a dent in the principal, will I owe BOTH the principal and the unpaid interest at the end of the 25 year term? And what happens to the unpaid interest while I am in repayment?
I was called this morning from a loan company that calls me everyday but today I decided to answer. They told me they were from Allied Navient and wanted to take my loans from 35,428.06 to 2394.08. Is this a scam? The first person that I talked to when I answered seemed like he was paid to just break through the wall that I put up! The second person had my info and when I seemed interested in her offer she got me to a manager! He got on the phone and immediately took the offer to 1597.00 to put me in good standing? I have resources (friend) available to help but I don’t want to put him in that situation! He also wouldn’t give me the money until I researched to find out if I was getting scammed as he had never heard of that kind of offer!

I strongly encourage you to do the same. At $100k, you likely take home about $6k-7k per month (this is after taxes, insurance, 401k, etc). If you switched to the standard repayment plan for your loans, your monthly payment would be around $3k per month. You’d be debt free in 10 years. At the same time, that gives you $3k to $4k in discretionary income to live off of – still very reasonable. Maybe you need a roommate, maybe you need a used car? I don’t know the answers on your personal “sacrifices”, but I am telling you your student loan debt will catch up with you one way or another.
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.
I just read that the government is investigating ITT Tech just like they did last year to another for-profit college crackdown which caused Corinthian Colleges to close. In the event that these investigations would end in the school closing their campuses, does that mean my student loans get discharged as well? I graduated in 2005. Or that only applies to recent graduates and current students?
Obama student loan forgiveness. There’s no such thing as “Obama student loan forgiveness.” However, some student “debt relief” companies use it as a catch-all term for free federal programs — which they charge to enroll borrowers in. If you encounter a company offering “Obama student loan forgiveness,” consider it a red flag. Enrolling in federal programs like income-based repayment and federal student loan consolidation is free to do on your own through the Department of Education.
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