Transcript WHEN WILL PAYMENTS START COMING DUE? Student are expected to start making payments 6 months after graduation. Tips for making payments on.

WHEN WILL PAYMENTS START COMING DUE?
Student are expected to start making payments 6 months after graduation.
Tips for making payments on time:
Schedule out when first payment is due
Find out what the payment amount will be
Start putting money away for payments before payment becomes due
Incorporate student loan payments into monthly budget
HOW MUCH MONEY DO YOU OWE?
Know who is providing your student loans
-
Creditkarma provides total loan amounts owed
Realize more will be paid than amount owed because of interest
It is possible for student loan debt to be forgiven
Make sure the correct amount is being reported
WHAT ARE YOUR PAYMENT OPTIONS?
Repayment Plan
Standard Repayment
Plan
Graduated
Repayment Plan
Extended Repayment
Plan
Eligible Loans
Monthly Payment and
Time Frame
Quick Comparison
•Direct Subsidized and Unsubsidized Loans
•Subsidized and Unsubsidized Federal Stafford
Loans
•all PLUS loans
Payments are a fixed amount of at least $50
per month.
Up to 10 years
•Direct Subsidized and Unsubsidized Loans
•Subsidized and Unsubsidized Federal Stafford
Loans
•all PLUS loans
Payments are lower at first and then increase, You'll pay more for your loan over time than under the 10-year standard plan.
usually every two years.
Up to 10 years
•Direct Subsidized and Unsubsidized Loans
•Subsidized and Unsubsidized Federal Stafford
Loans
•all PLUS loans
Payments may be fixed or graduated.
Up to 25 years
•Direct Subsidized and Unsubsidized Loans
Income-Based
•Subsidized and Unsubsidized Federal Stafford
Repayment Plan (IBR) Loans
•all PLUS loans made to students
You'll pay less interest for your loan over time under this plan than you would under
other plans.
•Your monthly payments would be lower than the 10-year standard plan.
•If you are a
•
Direct Loan borrower, you must have more than $30,000 in
outstanding Direct Loans.
•
FFEL borrower, you must have more than $30,000 in outstanding
FFEL Program loans.
For example, if you have $35,000 in outstanding FFEL Program loans, and $10,000
in Direct Loans, you can use the extended repayment plan for your FFEL Program
loans, but not for your Direct Loans.
•For both programs, you must also be a "new borrower" as of Oct. 7, 1998.
•You'll pay more for your loan over time than under the 10-year standard plan.
•Your maximum monthly payments will be 15
percent of discretionary income, the
difference between your adjusted gross
income and 150 percent of the poverty
•ConsolidationLoans (Direct or FFEL) that do not guideline for your family size and state of
include Direct or FFEL PLUS loans made to
residence (other conditions apply).
parents
•Your payments change as your income
changes.
Up to 25 years
•You must have a partial financial hardship.
•Your monthly payments will be lower than payments under the 10-year standard
plan.
•You'll pay more for your loan over time than you would under the 10-year standard
plan.
•If you have not repaid your loan in full after making the equivalent of 25 years of
qualifying monthly payments, any outstanding balance on your loan will be forgiven.
•You may have to pay income tax on any amount that is forgiven.
Pay As You Earn
Repayment Plan
•Direct Subsidized and Unsubsidized Loans
•Direct PLUS loans made to students
•Direct Consolidation Loans that do not include
(Direct or FFEL) PLUS loans made to parents
•Your maximum monthly payments will be 10
percent of discretionary income, the difference
between your adjusted gross income and 150
percent of the poverty guideline for your family
size and state of residence (other conditions
apply).
•Your payments change as your income
changes.
Up to 20 years
• You must be a new borrower on or after Oct. 1, 2007, and must have received
a disbursement of a Direct Loan on or after Oct. 1, 2011.
•You must have a partial financial hardship.
•Your monthly payments will be lower than payments under the 10-year standard
plan.
•You'll pay more for your loan over time than you would under the 10-year standard
plan.
•If you have not repaid your loan in full after you made the equivalent of 20 years of
qualifying monthly payments, any outstanding balance on your loan will be forgiven.
•You may have to pay income tax on any amount that is forgiven.
Income-Contingent
Repayment Plan
•Direct Subsidized and Unsubsidized Loans
•Direct PLUS Loans made to students
•Direct Consolidation Loans
•Payments are calculated each year and are
based on your adjusted gross income, family
size, and the total amount of your Direct
Loans.
•Your payments change as your income
changes.
Up to 25 years
•You'll pay more for your loan over time than under the 10-year standard plan.
•If you do not repay your loan after making the equivalent of 25 years of qualifying
monthly payments, the unpaid portion will be forgiven.
•You may have to pay income tax on the amount that is forgiven.
Income-Sensitive
Repayment Plan
•Subsidized and Unsubsidized Federal Stafford
Loans
•FFEL PLUS Loans
•FFEL Consolidation Loans
•Your monthly payment is based on annual
income.
•Your payments change as your income
changes.
Up to 10 years
•You'll pay more for your loan over time than you would under the 10-year standard
plan.
•Each lender's formula for determining the monthly payment amount under this plan
can vary.
HOW MUCH WILL YOU PAY IN INTEREST?
Do you currently have federal or private student loans?
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Federal loans can be forgiven
Are your loans subsidized or unsubsidized?
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Subsidized loans interest is paid by the government while in school
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Unsubsidized loans will cost a lot more in interest
What is the interest rate on your loan?
-
Fixed or variable rate
-
If variable, What will make the rate increase or decrease
What effect does paying off your loans early have on your total interest paid?
- Student loan interest calculator
HOW TO HAVE STUDENT DEBT BE FORGIVEN?
Borrowers who seek to have their student loan forgiven must have made 25 years worth of
qualified monthly payments, unless they qualify for public service loan forgiveness which is
120 months. The only exception now are those borrowers using Pay As You Go; they may
qualify for loan forgiveness after 20 years.
Under both options, the remaining amount will be discharged, although the amount may still
be considered taxable income for that year.
Under Rubio/Warner, outstanding loan amounts less than $57,000 would be forgiven after
only 20 years of qualified payments. Outstanding loan amounts exceeding that would be
forgiven after 30 years of payments.
The Teacher Loan Forgiveness program is probably the most beneficial of all the loan
forgiveness plans available as teachers not only qualify for early forgiveness, but principal
reduction as well. Teachers can be eligible for $5,000 to $17,500 in principal reduction on
their loans under certain circumstances in the Teacher Loan Forgiveness program. The idea
behind this principal reduction was to encourage young graduates to enter into a career of
teaching, and also to continue that career. Teachers also qualify for complete loan
forgiveness after 10 years of repaying their loans. For more information go to the Teacher
Loan Forgiveness page.
Call and find out if you qualify!
(561) 424-6053
HOW TO HAVE STUDENT DEBT BE FORGIVEN?
Total and Permanent Disability Discharge is available to federal student loan borrowers who are disabled an
unable to engage in any substantial gainful activity(employment) because of a physical or mental
impairment. The discharge would provide you with relief on your student loans by removing the debt completely
that is under your name. You must be able to prove to the Department of Education(DoE) that you are in fact
permanently disabled.
You have a few options to prove that you are permanent disabled and eligible to have your federal student loans
discharged
1.
If you have received a notice of award for SSDI or SSA you can submit this to the DoE to review. The notice
must state that you are permanently disabled, as well as having your next review between 5-7 years. If your
next review is less than 5 years, you will not qualify for disability discharge.
2.
Your physician can submit a certified form stating that you are totally and permanently disabled. The
physician would need to state what is your disability, how long its expected to last, and whether he or she
believes you are unable to engage in gainful activity due to your disability.
3.
If you are a veteran, the Veterans Affairs office can provide documentation to you that you are unemployable
due to a service related injury.
Your disability must have lasted, or is expected to last at least 60 months, or is expected to result in death.
Call and find out if you qualify!
(561) 424-6053