You may have heard radio ads or seen television commercials touting consolidation of student loans as a solution for everyone’s student loan problems. Consolidation is similar to refinancing and it may be a good strategy to get lower monthly payments or to get out of default. But it’s not always a good idea to consolidate your student loans.
A brand new payment option for student loan borrowers went into effect in December 2016. It does not replace or eliminate other plans like ICR, IBR, Payee or Public Service Loan Forgiveness.
While it has been suggested that REPAYE can reduce payment terms by as much as 33% from current income based plans, the capitalization of interest can make this new payment option hard to swallow and not reduce payments! REPAYE may not be right for you and before you rush into this program you should understand the pros and cons.
Yes! Stafford Loan Forgiveness is a student loan forgiveness program for Stafford student loan borrowers who meet certain requirements. To qualify for federal loan forgiveness, you must:
• Perform volunteer work for AmeriCorp, Peace Corp or volunteers in Service to America; or
• Qualify for Public Service Loan Forgiveness; or
• Perform miliary service; or
• Teach or practice medicine in certain types of communities; or
• Meet other criteria specified by each Forgiveness program.
How can I learn if I’m eligible for Stafford Loan Forgiveness?
Contact Stafford Loan Forgiveness attorney Nancy Cavey today to learn more about whether your loans are eligible for forgiveness or whether there are other alternative Income Based Repayment programs that can help you manage your student loan debt at 727-894-3188.
Student loans never go away and the failure to pay back your student loans can destroy your credit rating.
So what’s the answer?
A loan consolidation allows you to roll certain student loans into one new loan with a possible lower interest rate. But remember if your new consolidated loan has a longer repayment term, the total amount you repay may increase because of the added interest over time.
What’s the benefit of loan consolidation?
Loan consolidation generally allows you to get a lower monthly payment by combining several loans into one packaged loan and extending your payment program. Just think of it like you’re refinancing a mortgage loan. However, there are better options!
What are those better options?
Income based repayment plans are the better plan! While you may have to consolidate your loans (and you have to do so carefully), ultimately you want to get into an income based repayment (IBR) or income based repayment program (IBR).
These programs can cap your fair loan payments at a percentage of your income and forgive any remaining debt after 25 years of affordable payment.
Income contingent repayment plans (ICR) are available for direct student loans and the income sensitive repayment plan (ISR) are available for Federal loans.
You can learn more about why income based repayment plans might be better than loan consolidation by contacting Tampa Bay student loan attorney, Nancy Cavey. She can help you with your student loans regardless where you live in the United States. Cal her today at 727-828-9955.
If you’ve taken out a Stafford loan to help pay for your education, all or part of it may be cancelled if:
• The school you attended closed within 90 days of your enrollment and you were unable to finish your program of study; or
• Your school did not properly qualify your status before you began studies; or
• Your signature on loans was forged; or
• The school did not properly evaluate your ability to benefit from the course work before allowing you to begin studies; or
• You become totally and permanently disabled; or
• You or your dependent or the dependent from whom the loan was borrowed dies.
Federal Student Stafford Loan Forgiveness isn’t available if your school did the following:
• Provided you with poor training, had unqualified instructors or inadequate equipment; or
• Did not provide job placement or other services as promised; or
• Engaged in fraudulent activities other than falsely certifying your loan.
Solutions to your Stafford Loan debt
It is difficult to discharge a federal Stafford loan! Generally, you just can’t make your student loan go away. However, there are exciting student loan repayment solutions based on your income including Income Based Repayment Plans and PAYE.
How do I learn more about the repayment options for the Stafford loan?
Your can contact Stafford Federal Student Loan attorney Nancy Cavey who can help determine whether your Stafford loan can be discharged or, alternatively, you can be placed in an affordable student repayment loan program based on your income who serves all over the Tampa Bay area serving stafford loan debt.
You can learn how you can provide yourself and your family with a fresh financial start by having reasonable and affordable student loan payments.
Student Loan attorney Nancy Cavey located in Tampa St. Petersburg can help you with your student loan issues no matter where you live in the United States.
Are my loans eligible for IBR?
IBR is only available if you have federal loans like Federal Direct and Federally Guaranteed (FFEL) loans, such as Subsidized and Unsubsidized Stafford Loans, Grad PLUS Loans and Federal Consolidation loans.
Parent PLUS Loans and loans that have been consolidated that repay Parent PLUS Loans are not eligible for Income-Based Repayment plans. Private student loans and state loans are not eligible
Many student loan holders have a mix of student loans and you can learn more about whether IBR is right for you and whether your loans qualify by contacting student loan attorney Nancy Cavey, at 727-828-9955. Don’t delay!
We understand IBR or Income Based Repayment plans that may be able to help your situation.
Consolidation of your student loans may be the answer to your student loan debt. However, consolidating the wrong type of loan with other student loans can eliminate certain income adjustment repayment plans.
What loans shouldn’t be consolidated?
You should never consolidate private loans with Federal loans or you can lose the rights associated with your Federal loans. It’s also not a good idea to consolidate Perkins loans and Parent PLUS loans with other Federal loans because the Parent PLUS loans will taint the entire consolidation loan process.
A wrong move can limit your options and cost you thousands of dollars over the life of your loan.
Before you decide to consolidate your student loans, contact Tampa Bay area student loan attorney, Nancy Cavey, who can help you make the right decision regardless of where you live in the United States. Call today for a free consultation at 727-828-9955.