Tag Archives: StudentDebt

What to Know About Recertifying Your Income-Driven Repayment Program

The Department of Education offers four income-driven repayment (IDR programs) programs for federal student loan borrowers (IBR, ICR, REPAYE and PAYE). These programs limit your monthly payments to a percentage of your discretionary income. However, there is a universal rule that applies to these four programs—you must recertify your income each year to stay enrolled. Whatever you do, do not forget to recertify by the deadline! Here is a  hypothetical example which demonstrates some of the consequences of forgetting to recertify your student loans. What Could Happen If You Do Not Recertify Let’s say for example that you are enrolled in the IBR program, which limits your monthly payments to $117 per month. Your monthly payments under the standard 10-year repayment option would be $480 per month. You are also enrolled in automatic payments through your loan servicer, meaning your checking account is auto-debited each month. Then, for whatever reason,…
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Five Apps That Can Help You Pay Off Your Student Loans

Fifth Third Bank –a group of banks with branches located in the eastern half of the United States– created a mobile app designed to help its customers pay off their student loans. So far, the app has helped customers dispose of $1 million dollars’ worth of student debt. The app works by rounding customer debit purchases up to the nearest dollar, then applies that extra money to the customer’s education loans. The bad news, of course, is it’s only for Fifth Third customers. If you’re not one of the fortunate, here are five similar apps designed to help conquer your student debt. 1.      ChangeED Much like the Fifth Third Bank app, ChangED helps borrowers pay off debt by rounding purchases up to the nearest dollar. “Round-up” apps help borrowers utilize “spare change” to save money–or lower debts. ChangeED works specifically to help speed student loan payoffs. If you choose this…
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What Happened to Navient and How Could It Affect Your Student Loans?

Navient is one of the largest servicers of federal student loans in the country. An offshoot of Sallie Mae, it is estimated that Navient services $300 billion of government and private student loans. So, it’s a big deal for borrowers all over the country if something happens to the company. That’s why a new lawsuit from California is making big waves, but will that lawsuit affect your student loan? How a Lawsuit Against Navient Could Affect How Your Student Loans Work Xavier Becerra, the Attorney General of California, has announced a lawsuit against Navient for unlawful business practices. These practices are being blamed for over payments and several permanent disability discharges that were not completed. For now, the state’s accusations are focused solely on federal student loans backed by the federal government, but it’s not alone. Illinois, Pennsylvania and Washington have also sued Navient for the same reasons. Plus, the…
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