Tag Archives: StudentLoans

How to Stay Enrolled in the Department of Education’s PSLF Program

Last month’s blog discussed why many people are unable to receive loan forgiveness through the Department of Education’s Public Service Loan Forgiveness program (PSLF). The Department of Education allows some federal student loan borrowers working at certain public service jobs to receive tax-free loan forgiveness. However, the PSLF program has numerous requirements. You should ensure that you stay qualified if you are enrolled in this program. Please note that information in this blog post is subject to change, and that any recommendations in this post are not to be construed as legal advice. Make your payments on time You will need to make 120 timely payments to qualify for PSLF forgiveness. Your student loan servicer offers an automatic payment option. By enrolling in this option, your bank account will be automatically debited each month to pay down your balance. If you’re financially organized and aware of the timing of these…
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Do You Meet the Six Requirements for Public Service Loan Forgiveness?

George W. Bush signed the College Cost Reduction and Access Act (CCRAA) into law in 2007. The CCRAA created the Public Service Loan Forgiveness Program (PSLF), which allows some federal student loan borrowers working at qualifying public service jobs to receive tax-free loan forgiveness. Student loan borrowers qualify for forgiveness under PSLF if they meet the requirements—for which there are many. Unfortunately, student loan servicers and the Department of Education failed to effectively communicate these requirements to borrowers. Many borrowers who believed they were eligible for PSLF forgiveness are finding out their loans or jobs never qualified. As a result, some borrowers have made the required ten years of payments only to find out their loans were never eligible for forgiveness. You can only receive PSLF forgiveness if you meet the following requirements: Requirement #1: You have federal loans. Private loans do not qualify for PSLF. If you are thinking…
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How to Stay on Top of Your Federal Student Loans

Federal student loans are held by millions of people in the United States. However, the default rates on these loans continue to increase. In fact, the Brookings Institution argues that nearly 40 percent of federal loan borrowers could default by 2023. What many borrowers may not realize is that federal student loans have multiple repayment programs and tools that can prevent default. There are also loan forgiveness options for federal student loans. When attorneys Neil Sader and Michael Wambolt penned an article for Primerus Paradigm on federal loans, they emphasized that “what you owe is less important than what you know.” You must know which types of federal loans you carry to take advantage of these programs. Using the National Student Loan Data System The Department of Education’s Federal Student Aid Office (FSA) maintains the National Student Loan Data System (NSLDS). You can access your federal student loan data by…
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