Federal Student Loans
Federal student loans come with a variety of options to help people pay them off. However, most people are unaware of the options until it is too late. That’s where I come in. I can assist you with getting out of delinquency, default, stop wage garnishments, help you lower your monthly payments, qualify for forgiveness programs and more.
Federal Student Loan Repayment Plans
There are nine different federal Student Loan Repayment Plans. They all have different payment calculation methods and use different logic to determine how they work. Several plans are based on income such as IDR, New IDR, ICR and IBR. Other plans are balance-based and the last are variations which are often irrelevant. The plans are as follows:.
- Standard Repayments
- Extended Repayments
- Graduated Repayments
- Extended Graduated Repayments
- Income-Based Repayments
- New Income-Based Repayments
- Income Contingent Repayments
Choosing the Right Repayment Plan
There are many variables you should consider when selecting which of the Student Loan Payment Plans you want. These variables include:
- How long have you been out of school?
- What are your current yearly earnings?
- What is your future earning potential?
- Are there major purchases you expect to make such as a house, wedding, etc.?
- What life changing events are planned such as having children?
- What other financial responsibilities do you have?
There are other options for working with your federal student loans which include:
- Forbearance and Deferment
- Defense to Repayment
- Federal Student Loan Consolidation
- Federal Student Loan Rehabilitation
These variables make a difference because some of the repayment plans put you on a gradually increasing payment regardless of the future. Other federal Student Loan repayment Plans allow for a payment that adjusts as your income adjusts. Each year your income is reverified and evaluated. When considering these plans, I can help you to better understand the impact of each plan, its implications and any affects on your goals. Once you decide which plan works best for you, I can complete the necessary documents, file them per procedure and help you maintain your plan if annual re-certification is required.
Not all of these are available to everyone and some can only be used once. They all have an impact on Public Service Loan Forgiveness, Teacher Forgiveness and other administrative discharges.
Schedule a consult with me to review your scenario and get you on a path you can live with.