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How To Get Student Loans With Bad Credit

November 18, 2011

Student Loans With Bad Credit

student loans with bad credit

Students loans are essential to the funding for a large percentage of students tuition fees, but some aren’t sure if they can get a loan because their credit scores are low, or just out of high school and haven’t had time to build up a good credit history. If you fit into this category, no worries, millions do, but don’t let this fact deter you from getting your degree, as you can still get student loans with bad credit. Below are these bad credit student loan methods that you can utilize, that when used can equate to you getting the funds you need to graduate and get your career started.

Federal Loans With Bad Credit

You can easily get federal student loans with bad credit scores, as many programs do not base acceptance off what your credit score is, some of them include the Federal Perkins Loan as well as the Federal Stafford Loan. The way to see if you qualify as well as how much you qualify for is done by filling out a Free Application for Federal Student Aid. By filling out a FAFSA, you will not only find out what federal loan programs you qualify for, but will also see if you qualify for federal grant programs, which will offer you money that you can use towards tuition and other schooling costs, that you never have to pay back, like the Pell Grant. The loans that you will find that are not credit based will be ones that are referred to as Subsidized Loans, meaning they are based entirely off the financial need of the applicant. They assess your financial need by looking at your income as well as the contribution that is given to you by your family or Expected Family Contribution (EFC).

When it comes time for repayment, federal loans have much more flexible repayment terms, and even have an option called Income Based Repayment where you pay 15 percent of your income each month towards you debt and no more. If you use this bad credit student loan method, you will also be getting fixed interest rates on your loans, which means they never change throughout the life of your repayment, or are not variable, which the Stafford Loan currently has interest rates as low as 3.4 percent, and the Perkins Loan interest rates can be found as low as 5 percent,

Private Loans With Bad Credit

Applying for private loans without a good credit score is a little more tricky. These loans are basically there when you need extra money to cover what federal student aid didn’t. Private loans come with higher interest rates and less flexible repayment options, but still serve their purpose when one needs money for school. Non based private student loans are non existent, so the only way to get private loans with bad credit is to find a cosigner, a parent or guardian, family member, or friend who has a good credit score. What is a good credit score? Well private loan lenders like scores that are above 700, and the higher the score is, the lower the interest rate you will get on you loan, which means you paying less in interest over the life of the repayment.

This method is excellent for those who want to build their credit score in the process of paying back their loans, as lenders will actually transfer the loan to your name after 2 or 3 years of repayment, leaving you with a chance to better your credit score with every on time payment, being that 35 percent of your credit score is actually based off of on time payments. It is also suggested that you enroll in an auto debit program if and when you attain a private loan with bad credit, as doing so lowers your interest rate percentage.

 

Repayment Of Student Loans

November 16, 2011

Repayment of Student Loans

Repayment Of Student Loans

Before we get into the details or repaying student loans, if you happen to land on this page searching for methods on paying off your debt fast, or just want to check out debt elimination methods after you are done reading the article, you can check out this link: Repayment Of Student Loans.

Repayment of student loans usually begins with most lenders, after the grace period that they grant you, which can be anywhere from 3 to 9 months after either the student graduates, or after dropping out. There are various student loan repayment methods that you can use, depending on several factors, and consist of:

  • Standard Repayment Plan – Repayment of student loans through the standard plan is for those who are looking to get out of debt fast, with the repayment timeframe usually being 10 to 12 years, where at the end you are completely out of debt with that particular lender.
  • Graduated Repayment Plan – This student loan repayment methods allows one to start out with low payment, payments which can be as low as 5 dollars a month, and as time goes by the payment gradually increases. Increases in repayment amounts happen ever year or two, which can be a great option for those who are searching for a job and need small payments but will be able to afford to pay larger payments later on in their career.
  • Extended Repayment – Repayment of student loan debt through the extended repayment plan allows one 25 years to pay off their loan, and can be combined with the graduated repayment plan, which is used for the sole purpose of lowering your monthly payment but coming with the price of staying in debt longer.
  • Income Based Repayment – Also known as “income sensitive repayment”, this method is where the individuals monthly payment is based of of how much their earn each month, the payment being around 10 to 15 percent of what their monthly earnings are. If in the event that the individual hasn’t paid the debt off completely after the 25 year term has concluded, then whatever is left on the total amount owed will be considered as taxible income.
  • Income Contigent Repayment – With this plan, if income is below a certain level, payments can actually be $0. The amount individuals pay through this repayment of student loans method is up to “20 percent of their discretional income”.

Repayment Of Student Loans Through Forgiveness

Repayment of student loans can also be done through the likes of student loan forgiveness. Student loan forgiveness can be found through different methods, but the most popular forms of forgiveness are found through:

  • Federal Student Loan Forgiveness – This is where one will work a public service job that at the end of 10 years, the rest of their loan debt will be forgiven. This requires the individual to repay 120 on time payments over the course of the 10 years in order to qualify. There are also designated programs for; teachers, lawyers, nurses and other professions with similar rules.
  • Community Service – Repayment of student loans through community service work forgiveness can be found through organizations like VISTA, Peace Corps and Americorps, where they offer either a lump sum after each year of service which is to be used to pay off student loan debt, or will pay off a percentage of your loan for each year of service, usually 15 to 30 percent each year.

Deduct Student Loan Interest Overview

November 16, 2011

Deduct Student Loan Interest

Deduct Student Loan Interest

If you are looking to deduct student loan interest, the first thing that you want to note is that you must fill out either a 1040 or 1040A From, where the student loan interst deduction section is the section called “adjustments to income”, or line 18 on the 1040A and line 33 on the 1040 Form.  To figure out how much interest that you paid on your student loans throughout the year, you will need a Form-1098 E which you can get by requesting one from the lender of your school loans, in which you will fill out Box 1 if in fact they did not send it to you, which is the case most of the time.

This form allow an individual to claim up to $2,500 in interest paid on student loans as you tax deduction. This student loan interest deduction rule currently applies to every person that is paying student loan debt to lenders, but as of the beginning of 2013, individuals with student loan debt will only be able to use student loan interested deduction during the first 5 years of repayment, which after this 60 month timeframe is over, one cannot file for student loan interest rate deduction anymore.

Deduct Student Loan Interest Rule

The above is a general overview of how to deduct student loan interest as well as what it can do for those who have compiled student loan debt. There are other certain rules and restrictions that apply, depending on what you annual income is. Below are the following rules for incomes:

  • If you are earning above 75,000 dollars per year, you can not use student loan interested deduction.
  • For those earning anywhere between $60,000 to $75,000 per year, then the interested that you have on your student loans will be what is called “prorated” which is where you will be partially eligbile to deduct student loan interest.
  • If you earn any amount less that $60,000 per year, than you are eligible to deduct interest amounts as high as $2,500. It is important to not file for any amount higher than $2,500.

If you happen to be a couple that is filing for student loan interest deduction, the same rules apply above where you will just add up the amount of income that the each one earns. For example say the couples income totals up to 130,000 per year, then they will be able to use the second option above. It should also be noted that you do not have to be the user of the loan funds to file, as you can file to deduct student loan interest for a spouse in the case that you are doing a joint deduction, or a dependent and of course yourself.

NOTE: You can also deduct student loan interest if you have either other itemized deductions or have not used any itemized deductions at all. If you are not sure what an itemized deduction is, they are essentially expenses that a US taxpayer can report when filling out their tax returns which allow a decrease in the persons taxible income.

 

National Student Loan Data System

November 9, 2011

National Student Loan Data System Overview

The National Student Loan Data System (NSLDS) is a federal database that consists of all student aid records an is run by the US Department of Education. The NSLDS enables individuals to access information pertaining to federal loans like the status of loans applied for, any outstanding balances as well as information on the disbursement of student loans, which have to deal with both Federal Perkins Loans and Federal Stafford Loans. They also make it career that other grant programs are kept on file through the National Student Loan Data System like Pell Grants, FFELP loans, Perkins Loans, PLUS Loans, Supplemental Loans, the Direct Loan Program as well as other all encompassing US Department of Education student loan programs.

National Student Loan Data System

Other National Student Loan Data System Services

Review of Financial Aid

In order to review information pertaining to financial aid provided by federal sources, students need to submit different personal information as well as other specifications which afterwards, you will be granted with a Personal Identification Number (PIN, which will be what you enter each time you want to access your National Student Loan Data System account. Once you create an account you will be able to monitor all the information on your loan(s) or grant(s) from the day you first start receiving funds, to the day you pay it off. In order to receive a gain access you will need to provide:

  • Your Social Security Number.
  • The first 2 letters in your last name.
  • Your birthdate.
  • Your PIN number.
The information you will be able to view after you become a member of the NSLDS site will include; the amount of your loans, which school the loan is for, the name of your loan holder and guarantor, as well as Pell Grant information like the amount awarded and schools that offer students the opportunity to receive Pell Grant funds.

“Loan Exit Counseling”

  • Their loan exit counseling program offers loan holders a tool that aids them in the completion of the “loan exit counseling requirements”.  This is offered through their main site where students can either use the tool by clicking “start” or learn more about the programs by clicking “tour”.
“Teach Grant Exit Counseling”
  • According to the NSLDS there are federal laws that state that those who have obtained a Teacher Education for College and higher Education Grant, also known as the TEACH Grant, must participate in a session for exit counseling either when the with draw or finish school. Same rules apply with either “start” or “tour” for the TEACH Grant exit program.
Correcting Incorrect Information
If in fact students find any information that is incorrect about their loans or grants, they are able to change it by following the steps below, which include changing information on various programs:
  • For corrections on FFELP loans, contact your loan guarantor.
  • For Perkins Loans as well as Pell Grant corrections, contact your school.
  • For all Direct Loans, inquire through the direct loan servicer.
All changes made to your account will show up in 30 days or less.

Apply For Student Loans – Tips To Follow

November 2, 2011

Apply For Student Loans

Apply For Student Loans

If you going to apply for student loans anytime soon, you may be wondering where to start as well as the best way to go about this search, as this funding will be vital for obtaining a college degree. Considering this, we have some great tips for you to follow that will allow you get on the right track when it comes to applying for student loans.

Apply For Student Loans That Are Federal

There are two types of loans, federal and private, both of which serve their place on the quest for college money. Federal loans, those lended either directly or indirectly from the governement should always be applied for first as:

  • Interest percentages are much lower.
  • They have more flexible repayment plans, like the Income Based Repayment (IBR), which allows the borrower to have a monthly payment which equates to around 10 to 15 percent of their monthly income.

These federal student loans come in the form of three different types which are; Stafford Loans, Perkins Loans and PLUS loans, which some of them have the subsidized option, which is where your eligibility is based soley off financial need, as well as unsubsidized, which eligiblity is not based of financial need.

In order to apply for student loans that are federal, all applicants must fill out a Free Application for Federal Student Aid also known as a FAFSA, which will determine, through the Ecpected Family Contribution (EFC) section, how much money the student will be eligible for in the form of federal loans. Besides being able to find out how much money is going to be made available in the form of federal student loans through FAFSA, the applicant will also be able to find out information on other forms of financial aid like;

  • Federal grants, like the Pell Grant which offers students up to 5,550 dollars per year, which doesnt have to be paid back, among others.
  • Work study programs

Apply For Student Loans That Are Private

Private student loans should be your last resort when you set out to apply for student loans. These loans are made availabe through private lenders like banks and institutions among others, which are there to provide you with the ammount of money that federal loans as well as any other financial aid you are receiving, didn’t cover. In order to get the best private student loans, a couple tips that are good to follow are;

  • Either have good credit, or find a co-signer who does, which a co-signer can be anyone from a parent to a friend. To make your chances of eligiblity the best for private student loans, do your best to get a credit score that is higher than 700. This will avoid rejection of your application as well as come with lower interest rates and other fees.
  • Applying for student loans that are private come with two different types of interest, both LIBOR and PRIME. The best private student loans come with rates that are; LIBOR 2.0% and PRIME .50%.
  • Find loans that come with no “activation” or “origination” fees, both meaning the same, which is the fee for taking out a loan.

If you are looking for great providers for private student loans, we have 5 great ones that you can check out at: Apply For Student Loans

Private Student Loans Bad Credit

November 1, 2011

Private Student Loans Bad Credit

IF you are looking for information on private student loans bad credit, we have you covered! Every private student loan is fully credit based, but do not let this get you down and out as there are loopholes in the system! The fact alone can be discouraging right off the bat, but do not let it deter you from attaing your dream of graduating college, you can consider the following options to solve your problem.

Private Student Loans Bad Credit

Private Student Loans Bad Credit Options

First off, you can still get a private student loan with bad credit, but your loan will come with higher interest rates as well as higher origination fees, also known as activation fees that require you have to pay when you first take out the loan. These negative aspects will take place in the event that the loan is actually approved, which in many cases it is not. In order to fix this problem, it is imperative that you:

  • Seek out a cosigner that has a great credit score. Do make your chances of loan acceptance as best as possible, try to get a cosigner that has a credit score that is higher than 700 as scores higher than this show the best rate of success

Now this cosigner doesn’t need to be a parent or gaurdian, or even blood related, but must be willing to stick their neck out as far as monthly payments go being that they assume the responsiblity of paying and loan debt that the student is not able to pay, which if they cannot cover this then it will both affect their credit score as well as pose the possiblity of losing the loan. The great thing about this private studetn loans for bad credit tool is that there is an option to tranfer the loan to the students name later on down the line, usually being around 4 years after the conclusion of college, where the student can now build their own credit score.

Good Private Student Loans Bad Credit Lenders

Now that you know the main overview about the private student loans bad credit topic, you may want to know about good private lenders to use. The list below can give you a start into weighing your options about which lender you ultimately want to use. It also should be known that in order to get the greatest private student loans, there are three things, although these aspects are usually only attained by an applicant with a very high credit score. The rules that you should try to follow which are:

  • Loans that come with no fees.
  • Have a LIBOR (London Inter-Bank Offered Rate) or 2.0 percent or PRIME rate of .50 percent

Sallie Mae Education Trust – First option to consider for private student loans for bad credit is Sallie Mae Education Trust. This option provides its eligible applicants with benefits such as; rates as low as 2.5 percent, up to 30 years for repayment, a 6 month grace period before you have to start paying back debt as well as the benefit of 5000 dollars in coverage due to expenses paid on medical bills.

Citibank – This national bank provides another great resource when it comes to finding a solution for private student loans with bad credit. Benefits of private loans through Citibank include; no origination fees, variable rates that are as low as 2.96 percent, interest dicounts for auto debit, and no payments until school in completed.

Wachovia Education Loans – Offered at interest rates starting as low as 3.4 percent, offers up to 25,000 dollars in yearly borrowing limits, certain discounts for like auto debit among others, and you do not have to pay back the loan until you graduate.

FAFSA Student Loans

November 1, 2011

FAFSA Student Loans

FAFSA Student Loans

First off, to clear the air on any possible confusion, the term “FAFSA student loan” is actually a contradiction as the two pretty much go hand in hand, as you apply for student loans through FAFSA. Applying for FAFSA student loans can be done by filling out a Free Application for Federal Student Aid, which must be done each year in order to continue to get federal student aid. By applying for FAFSA student loans, you will not only find out if your qualify for student loans, but you will also be informed if you are eligible for any other federal financial aid like grants as well as information on work study programs where students can work part time jobs and have the government reimburse 75 percent of their earnings.

FAFSA Student Loans Options

As far as the choices go when it comes to FAFSA student loans, there are 3 federally funded loan programs that can enable applicants to afford college. These loans are set up to provide assistantce in paying for all college fees minus for attending college, minus any other financial aid the student is receiving. Below are the types of loans that you can recieve by filling out a FAFSA.

Direct Stafford Loans

These FAFSA student loans are disbursed in two forms, which are through the Federal Family Education Loan Program (FFELP) where loans are given out by different leners, as well as the Federal Direct Student Loan Program (FDSLP) which loans are given by the US government directly and are also known as “Direct Loans”.

  • Direct Subsidized Student Loans – These Stafford Loans are fully based off financial need, being that you need to prove your needs in order to qualify. The amount you qualify for will determine how much money per year you will recieve to use towards tuition costs.
  • Direct Unsubsidized Student Loans – These FAFSA student loans are not based off financial need, therefore are easier to qualify for compared to subsidized Stafford Loans.

Other Stafford Loans Details

  • Stafford Loans have a fixed interest rate at 6.8 percent meaning it will stay at the rate no matter what, or non variable.
  • They have a six month grace period where students start paying back loan debt 6 months after graduation.
  • From 10 to 25 years is offered for repayment.
  • No interest on loans for up to 5 years.

Federal Perkins Loans

  • This FAFSA student loan is notorious for providing very low interest, and is based of the applicants financial need.
  • Interest is paid by the government during the time students are in school, and do not have to repay it.
  • The students financial need is determined by the personal information filled out on the FAFSA form
  • Borrowing limits are; undergraduates – 8,000 each year, postgraduates – a cumulative total of 27,500 for all schooling, postgraduates- up to 60,000 cumulative the includes postgraduate loans.
  • Interest rates start as low as 5 percent.

PLUS Loans

These FAFSA student loans are designated for parents of students, who are looking to take on the financial responsibility or their childs loan total. These loans are also in the provided directly from the US government

Parent PLUS Loans -

  • Must be applied for by a person who is the biological parent or an adoptive parent, with the possibility of a step parent in which the student must be considered their dependent.
  • Students must be enrolled in a school schedule the is at least “half time”.
  • PLUS Loans have interest that is charged as soon as the applicant takes out the loan.
  • Interest rates are at a fixed 7.9 percent.

Loan Amount Through FAFSA Student Loans

For the most part, the ammount of money students receive towards their school out of these FAFSA student loans is determined by their EFC or Expected Family Contribution, which is a section that applicants will fill out during the time the fill out the FAFSA. The EFC is determined by the sum total of the following factors:

  • A designated percentage of the amount of net income.
  • A certain percentage of the applicants net assets, which the total percentage is formed after the subtraction of the “asset prtection allowance”.

 

Alternative Student Loans – Companies & Overview

October 13, 2011

Alternative Student Loans

alternative student loans

Alternative student loans, also referred to as private student loans, are there to cover the cost of college minus federal loans and/or any other financial aid they are receiving. They are can be used for all different types of students like undergraduates and graduates along with residency students and those studying for the bar and many more, and can be used for schooling and other school related tuitions like transportation, a computer, supplies, cost of living, To get you familiar with alternative student loans, here is a bullet point overview and following the overview is a list private student loan providers.

Alternative Student Loans Overview

  • Loans are generally based of your credit score or the score of your cosigner.
  • You must be enrolled in a half time class schedule as well as provide proof that you are either a resident of the US or qualifying non resident.
  • They have what is called “cosigner release” which is where you provide a cosigner with a worth credit score, and later on into your contract the loan is tranferred under the students name enabling them to build their own credit score.
  • Interest rates are generally higher than that of a federal student loan, so it is suggested that students apply for all the federal aid that they can before considering an alternative student loan.
  • Alternative student loans consolidation must be done seperately from federal student loans.
  • There are three major repayment options; full deferral, which is no payments on the loan or interest payments, immediate repayment, which is where you begin paying 30 to 60 days after you receive your loan, interest only, where you either pay our interest while you are in school or let it build up and pay it when you are finished with your education.
  • Unlike federal student loans, alternative student loans are not eligible for student loan foriveness (currently).
  • Private student loans tend to demand stricter repayment terms compared to federal loans.
  • Interest rates on alternative student loans are offered in LIBOR rates(London Inter-Bank Offered Rate).

Alternative Student Loans Providers

  • Salie Mae Education Trust – Available for undergraduate, graduate and professional students, offering a fairly flexible repayment term of 15 to 30 years, LIBOR interest rates of 2.5 – 10.05 percent, 6 month grace period until you have to start paying your monthly dues and rewards for on time payments. Salie Mae alternative student loans also come with the benefit of up to 5,000 dollars coverage due to the the potential lost to medical payments.
  • Wachovia Alternative Student Loans – Now part of West Fargo and offer interest rates that are variable and start as low as 3.40, rate discounts that go as high as 1 percent, you can borrow up to 25,000 per year and you do not have to pay while your are in school.

Getting The Best Alternative Student Loans

It is a good idea to shop around for alternative student loan providers and not jump on the first ad you see. To get the best provider, remeber to ask some of the following questions:

  • Are there any fees, like for forbearance, and what are they?
  • Is the interest rate fixed or variable? (Try for fixed at all costs)
  • Is the margin subject to change, and if so what is the determinating factor of the margin number.
  • Are there penalties for paying a loan off earlier than scheduled?
  • What is the interest rate cap if there is one?
  • Is there a rate offered that you can get a fixed interest rate?
  • Are the discounts offered permanent or do they change after a limited time?
  • If by chance it is variable, what index amount is it tied to, or what is the highest amount they can go up to.

Like it was said earlier, it is best to apply for federal student loans and grants before you entertain the option of alternative student loans. If you haven’t done so alread, you should fill out a FAFSA ,which stands for Free Application of Federal Student Aid, which will determine all the grants and student loans that you are eligible for, based on their EFC or Expect Family Contribute sheet that is given to you after you fill out the FAFSA.

 

 

Private Student Loan Consolidation Providers & Overview

October 12, 2011

Private Student Loan Consolidation

private student loan consolidation

Major Overview:

  • By utilzing the act of private student loan consolidation, you are basically partnering with a company who will pay off all of your private loan providers, to provide the convenience of you only having to pay one payment, and that is to you consolidation provider. This is done by providing a consolidation loan.
  • Private student loan consolidation should be done sperately from federal student loan consolidation because you will lose the benefits that come with federal consolidation loans which are much better than private.
  • The term of your loan is reset when you use consolidation your private student loans, this often equates to lower monthly payments, but is done by providing a longer repayment period which means more interest paid. Although this can be avoided by finding a consolidation company that doesn’t charge a penalty fee for paying more than the monthly minimum.
  • You can consolidate one loan and still enjoy the benefits of consolidation.
  • Payments need to be made usually within 30 to 60 days after you start your private student loan consolidation contract.
  • Repayment periods usually last around 15 to up to 30 years and are a bit shorter for undergraduate students compared to the graduate student repayment period.
  • Active duty military members many recieve a deferment period of up to 36 months as well as medical and dental residents can be granted up to a 48 month deferment time.

Private Student Loan Consolidation Tips

  • Being that private student loans are credit based, in the event that your credit score is a lot higher since the time that you took out the private loans, you may be able to get a much lower interest rate with a private student loan consolidation company compared to what you are paying to your currrent lender(s).
  • Negotiating with your lenders is another viable option as they want your business and are looking to keep it at all costs, which can open up an opportunity to negotiate lower interest rate terms.
  • If you can find a co-signer with a better credit score than you do, this can be a great way to get a lower APR rate. After a couple years, the consoldiation balance can be tranferred from your co-signers name to your name where, they will submit your payment history to credit bureaus, and you can boost your own credit score.

Private Student Loan Consolidation Providers

If you are still looking to utilize private student loan consolidation, you can use these accredited providers to take advantage of the benefits.

  • Wells Fargo Private Student Loan Consolidataion – Interest rates are either fixed or variable, a 5,000 dollar minimum debt and 40,000 to 100,000 maximum, no activation fee, slight discounts for those who already hold an account at Wells Fargo as well as those who enroll in auto debit, variable interest rates range anywhere from +1.0-5.75+ which are Prime rates and for fixed rates 8.8-13.3 percent
  • NextStudent Private Loan Consolidation – Every quarter their interst rates vary, loan consolidatoin starts at 7,500 in private student loan debt to up to 300,000, offers up to 30 years for repayments and they do not charge any fees for higher repayment amounts.
  • Cedar Education Lending Private Student Loan Consolidation – Amounts range from 7,000 to up 100,000, 1 percent activation fee, after one year the cosigner can be “released” and the debt will be tranferred to the person who originally took out the loan.

 

Public Service Loan Forgiveness

September 12, 2011

Public Service Loan Forgiveness

Public Service Loan Forgiveness

First off, being that only loans under the Direct Loan Program as well as consolidated direc loans can qualify for Public Service Loan Forgiveness, if you have loan that isn’t a direct loan, then click here: Public Service Loan Forgiveness as this link will introduce you to Income Based Repayment (IRR) which can help you out more.

If in fact you do have a loan under the Direct Loan Program, Public Service Loan Forgiveness can be used on your loan debt. Public Service Loan Forgiveness which was established in 2007 under the College Cost Reduction and Access Act is when you work a job in the public service profession and make on time payments for 120 non taxed payments, or 10 years, and at the end of this 10 year term whatever is left on your student loan debt total will be wiped away and you will have a clean slate.

Qualifying loans include; Subsidized and Unsubsidized Stafford Loans, Direct PLUS Loans, as well as federal direct loans that are consolidated. NOTE: If you have a Perkins Loan, they can become eligible by consolidation under the Direct Student Loan Consolidation program, the same also applies to Parent PLUS Loans.

Public Service Loan Forgiveness Payment Options

In order to be able to participate in Public Service Loan Forgiveness, you must make payments through the following repayment methods:

  • Income Based Repayment Plan – This plan allows one to pay according to a percentage of their income, usually 15 percent as well as how big their family size is.
  • Income Contigent Repayment Plan – Very similiar to Income Based Repayment Plan.
  • Standard Repayment (Or any direct loan program equivalent) - This is where you pay payements that are enough to pay your loan off in 10 years.

Public Service Loan Forgiveness Qualifying Jobs

  • Government Organization (federal, private or state)
  • Children service agencies or family service agencies.
  • Certiani non profit jobs which need to be part of the Internal Revenue Code.
  • Tribal colleges as well as universities.
  • Services that include the following: Miltary, saftey of the public, law enforcement, law services of public interest, library jobs both public as well as in schools, education in public schools, health care services as well as emergency management. Jobs that are in low income areas where your services are needed most will most likely but eligible for Public Service Loan Forgiveness.

Publice Service Loan Forgiveness Conclusion

Publice Service Loan Forgiveness is great for people who have just gotten out of college and are looking to get into a job that qualifys for forgiveness. If you have been out of college for some time and have paid off some of your debt, it is probably a good option to not try for Publice Service Loan Forgiveness as you won’t be able to enjoy the maximum benefits of the program, the Income Based Repayment will be a better option for you. If you have high debt and are fresh out of college, then the program can save you thousand of dollars and many years of repayment.

If you are interest in participating in Public Serive Loan Forgiveness, contact your student loan lender directly who will give you infomration on what jobs can apply to you and how you can get started.