Tag Archives: StudentDebt

If You Have Student Loans, You Could be Eligible for Income-Based Repayment Options

Americans owe more than $1.4 trillion in student loans. Federal loans account for a majority of the student loan debt in the US. However, there are multiple types of federal student loans that are or were available to borrowers. Many people who borrowed after July 2010 have federal student loans that originated from the Department of Education’s Direct Loan Program. Borrowers with Direct Loans may be able to access most of the helpful income-driven repayment programs offered by the Department of Education. Borrowers may also have Federal Family Education Loans (FFEL Loans), Parent PLUS Loans and Perkins Loans. The options for income-driven repayment programs are different for these borrowers. Income-Driven Options for Borrowers with FFEL Loans If you have FFEL loans, then your only income-driven repayment plan option is the Income-Based Repayment Program (also called IBR). With this program, your monthly payments are capped to 15 percent of your discretionary…
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Will the Trump Administration Forgive Student Loans for Disabled Veterans?

The Department of Education is partnering with the Department of Veterans Affairs to contact disabled veterans who are eligible for student loan forgiveness. Last month, the Education Department announced it will send eligible veterans applications for a total and permanent disability discharge (TPD discharge) in the mail. The TPD discharge has existed for many years. Many borrowers who are eligible for this option, including tens of thousands of veterans, are unaware this option for student loan forgiveness exists. This is why the Education Department and Veterans Affairs Department are teaming up to notify thousands of disabled veterans who are eligible. The Education Department will cross reference data in the National Student Loan Data System with information from the Veterans Affairs Department to identify eligible borrowers. There is more good news for veterans who are eligible for this student loan forgiveness option. For many years, disabled borrowers who received a disability…
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Do Student Loans Affect My Credit Scores?

Credit scores are calculated from the information contained in your credit reports. Payment history and credit utilization are examples of factors that affect your scores. Like other types of debts, your student loans also have an impact on your creditworthiness. The following facts about student loans may help you understand how higher education debt can affect your credit scores. Student loans can improve your credit scores if you pay on time. Out of all the factors that affect your credit scores, payment history is the most important. Your student loan payment history accounts for 35 percent of your FICO scores. Paying your student loans in full on time each month can improve your scores. Late payments could hurt your scores, but not always. It would depend on whether your servicer reports your late payments to the credit bureaus. Student loans can tank your credit scores if you default. Your credit…
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