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This Company Forgives All Your Student Loans

This company says it will forgive all your student loans. Here’s what you need to know.

Student Loan Forgiveness

Want student loan forgiveness?

There are many companies that promise to forgive your student loans. Obama Student Loan Forgiveness. Trump Student Loan Forgiveness. They pop up in Google searches. You’ll find them in internet ads and on billboards too. The promise is simple and works like this: pay them a fee and they will help you get student loan forgiveness. It sounds like a good offer, right? If you owe $100,000 of student loan debt and a company offers to forgive your student loan debt for $1,000, who wouldn’t pay that fee?

The problem is: none of this is real. None of it. No company can magically forgive your student loans.

Today In: Money

If you remember this, you will save so much time and money. Don’t pay an upfront fee, or any fee, for student loan forgiveness. Student loan forgiveness is offered through the federal government for your federal student loans. (State and local governments, for example, also may offer some form of student loan forgiveness too.)

These companies are trying to confuse you. There are several ways to receive student loan forgiveness, but they apply only to federal student loans. Public Service Loan Forgiveness and Teacher Loan Forgiveness are government programs that forgive student loans for public servants and teachers, respectively. Income-driven repayment plans also can offer student loan forgiveness for federal student loans. Importantly, you don’t need to hire a private company to enroll in, or apply to, any of these federal programs. They are all free and are available through the U.S. Department of Education.

Consolidate Student Loans

For a fee, other companies offer student loan consolidation, and promise to lower your monthly payments.

Remember this: Never pay a fee for student loan consolidation. Student loan consolidation is completely free through the federal government. However, student loan consolidation does not lower your interest rate or your monthly payment. With student loan consolidation, your monthly payment is equal to a weighted average of the interest rates on your current federal student loans, rounded up to the nearest 1/8%. Visit Studentloans.gov or call 1-800-557-7394 for more information on student loan consolidation.

Student Loan Refinancing

If your goal is to lower your student loan interest rate and monthly payment, the best strategy is to refinance your student loans. You can refinance federal student loans, private student loans or both. Student loan refinance has no fees and there is no limit how often you can refinance. So, even if you already refinanced your student loans, you can refinance again if you can qualify for a lower interest rate. Since the federal government does not refinance student loans, you can refinance with private lenders. You’ll need a good credit score, stable and recurring monthly income, and a low debt-to-income ratio.

If you don’t qualify on your own, you can apply with a qualified co-signer to help you get approved and even get a lower interest rate. While you’ll no longer have access to forbearance or income-driven repayment, many student loan refinance lenders allow you to pause payments if you lose your job or face economic hardship.

Student loan refinance rates have dropped absurdly low and are now as low as 1.81%. You can check your rate for free with no impact to your credit score is about two minutes. Then, if you like your new interest rate, you can apply online in about 10-15 minutes.

This student loan refinance calculator can show you how you can save.

For example, let’s assume you have $50,000 of student loan debt with an 8% interest rate and 10-year repayment term. If you refinance student loans with a 2% interest rate, you would save $147 each month and $17,588 total.

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Zack Friedman is the bestselling author of the blockbuster book, The Lemonade Life: How To Fuel Success, Create Happiness, and Conquer Anything. Apple named The Lemonade Life one of “Fall’s Biggest Audiobooks” and a “Must-Listen.” Zack is the founder and chief executive officer of Make Lemonade, a leading personal finance company that empowers you to live a better financial life. He is an in-demand speaker and has inspired millions through his powerful insights. Previously, he was chief financial officer of an international energy company, a hedge fund investor, and worked at Blackstone, Morgan Stanley, and the White House. Zack holds degrees from Harvard, Wharton, Columbia, and Johns Hopkins.

Source: This Company Forgives All Your Student Loans

 

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The U.S. has roughly $1.57 trillion in student debt. Some Democrats want to create student loan forgiveness plans that make that, or at least a large portion of it, disappear. Canceling student debt has gained steam with 2020 candidates vying for the votes of young college-educated Americans. On April 23, Sen. Elizabeth Warren, D-Mass. was the first 2020 presidential candidate to unveil a plan to erase large portions of student debt. But what would it actually take to eliminate a big chunk of government-held student debt, and is it really a good idea? » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: http://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC Classic: http://cnb.cx/SubscribeCNBCclassic About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #StudentDebt #StudentLoans Student Loan Forgiveness: Can The US Erase Student Debt?

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How To Get $700 Million Of Student Loan Forgiveness

There’s $700 million of student loan forgiveness up for grabs on a first-come, first-served basis.

Here’s what you need to know and how to apply.

Student Loan Forgiveness

See if you can follow this story. The federal government offers a student loan forgiveness program. Student loan borrowers who think they qualify apply. 99% are rejected. Congress creates an expanded student loan forgiveness program. Student loan borrowers who think they qualify for the expanded program apply. 99% are rejected.

Yes, really.

A new government watchdog report, first obtained by NPR, says a confusing student loan forgiveness program and process resulted in 99% of the 54,184 completed requests for student loan forgiveness being denied. From May 2018 to May 2019, Congress only spent $27 million of the $700 million on 661 requests for this new student loan forgiveness effort, according to the Government Accountability Office.

“The Department has taken steps to help borrowers better understand the complex eligibility requirements, application process, benefits, and other information related to the PSLF and TEPSLF programs,” Angela Morabito, U.S. Education Department press secretary told NPR. The Department agrees with the GAO’s recommendations about how to improve the programs; a number of our efforts are already underway.”

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What happened and what you can do about it?

In May 2018, the U.S. Department of Education announced the details of the Temporary Expanded Public Service Loan Forgiveness program. This program provides for student loan forgiveness for borrowers who previously chose an ineligible repayment plan as part of the Public Service Loan Forgiveness program. The Public Service Loan Forgiveness program is a federal program that forgives federal student loans for borrowers who are employed full-time (more than 30 hours per week) in an eligible federal, state or local public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments over 10 years.

Here’s the important part that many of these applicants – including the 71% who were rejected for this reason – missed. To apply for this expanded student loan forgiveness program, you had to meet all the requirements for the Public Service Loan Forgiveness program, but you mistakenly enrolled in an ineligible repayment plan (such as the graduated or extended repayment plans). You with me?

How To Apply For Temporary Expanded Public Service Loan Forgiveness

Ok, so how do you avoid the fate of the 99% who were rejected from this expanded student loan forgiveness program?

Here’s what you need to know to ensure that you qualify:

1. You must work for a qualifying public service employer in a qualifying public service role

Typically, there are two types of employers: a) state, local and federal government; and b) 501(c)(3) non-profit.

2. You must have direct, federal student loans

The Public Service Loan Forgiveness program does not forgive private student loans – even if you work in public service. If you’re not sure what type of student loans you have, check with your student loan servicer or through Federal Student Aid. If you have FFEL loans, you need to consolidate your student loans into a Direct Consolidation Loan with the federal government to qualify for Public Service Loan Forgiveness.

3. You must be enrolled in a federal repayment plan

You also must be enrolled in an income-driven federal repayment plan, and make the majority of your payments under the plan. You can determine which student loan repayment plan works best for you with these student loan calculators.

4. You must have applied for Public Service Loan Forgiveness

This is critical. Do not skip this step. You must have applied for the Public Service Loan Forgiveness program and made some or all of your payments under a repayment plan that did not qualify. Then, you were rejected solely because you enrolled in an ineligible student loan repayment plan.

How do you apply for Temporary Expanded Public Service Loan Forgiveness?

There are two easy steps:

  1. Email FedLoan Servicing at TEPSLF@myfedloan.org to request that the Education Department reconsider your eligibility for Public Service Loan Forgiveness.
  2. Include the same name under which you submitted your Public Service Loan Forgiveness application and your date of birth in the email.

Sample Email Template

Here is a sample template email that you can use:

To: TEPSLF@myfedloan.org

Subject: TEPSLF request

I request that the U.S. Department of Education respectfully reconsider my eligibility for public service loan forgiveness.

  • Name: [Enter the same name under which you submitted your Public Service Loan Forgiveness application]
  • Date of Birth: [Enter your date of birth in MM/DD/YYYY format]

Thank you for your consideration.

Sincerely,

Your Name

You will receive a response from FedLoan Servicing once your request has been reviewed. Separately, you can contact FedLoan Servicing at 1-855-265-4038 from 8 a.m.– 9 p.m. Eastern time, Monday through Friday.

What if you don’t work in public service?

While you could try for student loan forgiveness through an income-driven repayment plan, it may take 20 to 25 years to receive forgiveness and your student loans may be paid off by then. There’s a more proactive approach.

Student loan refinancing can lower your interest rate, which can save you substantial money in interest payments. With student loan refinance, you can combine your existing private student loans, federal student loans or both into a new, single student loan with a lower interest rate and one monthly payment. This student loan refinancing calculator shows you how much you can save.

You won’t have access to federal repayment plans and benefits, but many private student loan lenders now offer forbearance and deferral programs for economic hardship. The higher your student loan balance, the more you can potentially save.

Follow me on LinkedIn. Check out my website.

Zack Friedman is the bestselling author of the highly-anticipated, blockbuster book, The Lemonade Life: How To Fuel Success, Create Happiness, and Conquer Anything. Zack is the founder and chief executive officer of Make Lemonade, a leading personal finance company that empowers you to live a better financial life. He is an in-demand speaker and has inspired millions through his powerful insights. Previously, he was chief financial officer of an international energy company, a hedge fund investor, and worked at Blackstone, Morgan Stanley, and the White House. Zack holds degrees from Harvard, Wharton, Columbia, and Johns Hopkins.

Source: How To Get $700 Million Of Student Loan Forgiveness

Employers’ New Perk for Millennials: Extra Help Repaying Student Loan Debt

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Like millions of her peers, Nicole Read graduated with thousands of dollars of debt. Unlike most of them, she’s getting direct help from her employer to pay it back.

The 26-year-old’s job at event organizer Live Nation Entertainment in Beverly Hills, California, comes with a benefit that may be starting to catch on at U.S. companies: Contributions to her student loan bills. Offering such an incentive helps businesses lure prospective employees as they grapple with tight labor market conditions marked by a jobless rate near its lowest in almost five decades.

In Read’s case, it’s $100 a month. As a result, “I’m paying like $30 over my minimum payment every month, so it’s gotten me to pay off my interest a little quicker,” she said. “It just kind of gives me a bit of breathing room.”

Such plans are spreading. They were on offer to staff at about 8% of U.S. employers in 2019, more than double the 2015 level, according to an April survey by the Society for Human Resource Management.

Another study by business adviser Willis Towers Watson found that 32% of firms are considering introducing a similar benefit by 2021.

“If you have a young demographic, offering benefits like student loan repayment could be the way to go,” said Alex Alonso, chief knowledge officer for SHRM.

Pronounced competition for talent and the elevated debt burden for a generation of Americans making their way into the workforce are driving the change. Millennials make up more than half of Live Nation’s U.S. labor force.

The balance on outstanding student loans reached $1.6 trillion at the end of the first quarter, and more than a quarter of that is held by people younger than 30. The effects reverberate through their social and economic lives, making it harder to start a family, buy a home or purchase big-ticket items, research shows.

The federal government is considering giving companies a break for helping employees with their debt.

The Employer Participation in Repayment Act, introduced in the House and Senate in February, would provide tax relief to firms that do so. It has bipartisan sponsors, including Democratic presidential candidates Seth Moulton and Amy Klobuchar.

Other Democratic contenders, like Senators Bernie Sanders and Elizabeth Warren, have proposed more sweeping fixes that include writing off loans.

’Win-Win’

“Helping employees get out of debt faster is a win-win, both for the employee and for our productivity,” said Katie Wandtke, director of human resources at Cybrary, a cyber-security firm based in College Park, Maryland.

It’s not just smaller shops adopting the benefit. Larger companies, including professional services powerhouse PricewaterhouseCoopers, are catching on too.

Live Nation began offering the benefit in early 2017 and has helped employees save over $4 million. More than 80 of the company’s workers have been able to completely pay off their loans, according to Live Nation.

The event organizer works with startup Tuition.io, which specializes in helping companies set up such programs and has clients including Estee Lauder Cos. and Staples Inc. There are other platforms in the market too, including Goodly, which works with Cybrary, and Gradifi, used by PwC since 2016.

Paying an extra $30 a month more than the minimum, like Read says she does with her employer’s help, makes a difference.

For example, for a 10-year loan of $50,000 at 5%, it would save close to $1,000 in interest payments over the life of the loan – allowing the borrower to clear the slate eight months early.

“Jobs in the entertainment industry like this one, they’re not high-paying jobs necessarily,” said Read. “So this kind of helps offset that wage difference and it’s really helpful for people like me.”

 

By Alex Tanzi and Shelly Hagan / AP

Source: https://time.com

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