Category: Student Loan Debt By Occupation

Retirement student loan debt

Is Your College Loan Debt Delaying Your Retirement?

Are you over 50 and still paying student loans? I’m sure when you graduated from college you never thought that you would still paying for your loans in your 50’s. According to a June 2002 report by Barclays, 15.5% of the outstanding student loan balances are held by borrowers age 50 to 59 and 16.9% of that is past due.

What is the solution?

Don’t let your student loan debt delay or destroy your dreams of retirement. There are income based and income contingent repayment plans that will help you get a handle on your student loan debt. If you are disabled and unable to work, you may qualify for student loan discharge wiping away all of your outstanding student loan debt.

Knowledge is power

You can learn more about student loan solutions that can make your retirement a reality. Contact student loan attorney Nancy Cavey and order your free guide today from us by clicking here.

Medical Residency Student Loans

Medical Residency And Your Student Loan

If you’re one of the 412 medical school graduates who are unable to find a residency program because of problems with supply and demand, you may be thinking about putting your medical student loans in deferment or forbearance. I’m sure it was a crushing disappointment not to be placed in a residency program and now you’re faced with the prospect of dealing with your student loans. You have options and choosing the wrong one canMedical Residency Student Loans impact your finances for years.

You can choose to postpone the payments or begin repayment with an Income-Based Repayment Plan. Let’s look at each option.

Deferment

Deferment is a temporary period for which you’re not required to make payments. It’s often a better option for borrowers than forbearance. While you’re in medical school, your loans were probably in deferment and most residents continue with deferment.

However, interest on a subsidized loan does not accrue during deferment, while interest does accrue during an unsubsidized loan.

Forbearance

Like deferment, forbearance temporarily suspends the requirements to make the payment. However, interest on both subsidized and unsubsidized loans continues to accrue. It might be the only viable option should you wish to avoid making payments all together, but a far smarter choice is an Income-Based Repayment Plan.

Repayment Plans

There are several choices of repayment plans designed to give you flexibility and you can change the repayment plan as your financial situation changes. Because you aren’t in a residency program, you may be unemployed or working in the medical field earning significantly less than you could otherwise.

There are three possible income repayment plans that might be right for you. These include:

Income-Contingent Repayment (ICR)-

This does not require a partial financial hardship and payments are set at a percentage of your total gross monthly income. We generally don’t recommend this and think that Income-Based and PAYE are the better solutions for those medical school students who have been unable to get a residency.

Income-Based Repayment (IBR)-

An Income-Based Repayment Plan will cap your payment at 15% of your discretionary income for borrowers who qualify for a partial financial hardship.

Pay-As-You-Earn (PAYE)-

PAYE caps the monthly payments at 10% of the discretionary income for borrowers who did not have any balance on a federal loan as of October 1, 2007 and who qualify for a partial financial hardship.

Depending on when you entered into medical school, you may only be eligible for an Income-Based Repayment Plan. Since IBR is based on your discretionary income, you may even have qualified payments as low as zero.

Of course, once you get your residency program, your payments will change based on your income but, the beauty is that the repayment plan will meet your specific financial situation while you’re waiting to get into a residency program.

How should you choose a student loan repayment plan?

Contact Student Loan Resolution Center today for personalized consultation. Unless you have unique circumstances, we believe that your best option during this period of time when you’re without a residency, would be to select an Income-Based Repayment Plan. While you can apply for these programs on your own, we think you’re better served by getting advice from an experienced student loan attorney who can help you. Don’t be a victim of the residency shortage and call us today for help!

Some sources credited to Article in Tampa Bay Times, Sunday, June 15, 2014 MED GRADS BEING LEFT OUT

Veterinarian student loans debt attorney

What Veterinarian Hayley Schaefer Needs To Know About Her $312,000 In Student Loans

Dr. Schaefer has over $312,000 in student loan debt the last time she looked at her Sallie Mae account that tracks every increase. She’s under tremendous stress but what Dr. Schaefer doesn’t know is that there are great Income-Based Repayment plans that will help her pay off her federal student loans. These include repayment plans such as Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay-As-You-Earn (PAYE).

Income-Based Repayment Plans

There are three exciting ways for teachers hurt by recession to pay off their student loans.

Most student loan borrowers are in a 10-year time-based repayment plan with a fixed monthly payment based on the total amount of the loan. Unfortunately, it may be impossible to make those payments.Veterinarian student loans debt attorney

The Department of Education allows student loan borrowers who qualify for Income-Based Repayment plans to switch from a time-based standard repayment plan to programs such as IBR, ICR or PAYE.

Income-Based Repayment plans calculate your monthly payments on the basis of your adjusted gross income, family size and the total amount of your direct loans. If you are married and filing your taxes jointly, your spouse’s income will be included in these calculations.

Income-Based Repayment plans can lower your student loan payments and help you afford things that you want to provide for yourself and your family. But, better yet, the government will forgive any remaining loan balance after you pay your federal student loans through an Income-Based Repayment plan for a period not to exceed 25 years!

Income-Contingent Repayment Plans

There’s no partial financial hardship threshold you have to meet before enrolling in ICR.

Only Federal Direct Loans are eligible for Income-Contingent Repayment which include Direct Subsidized and Unsubsidized Stafford loans, Direct GRAD PLUS loans and Federal Direct Consolidated loans. If you have FFEL loans, you’ll need to convert those to Federal Direct.

Direct Consolidated loans that repaid Parent PLUS loans are eligible for ICR. If you have consolidated a Parent PLUS loan, Income-Contingent Repayment might be the right answer for you.
Your payment will not exceed more than 20% of your discretionary income. Your lender or servicer will calculate the amount of the monthly payment by using your adjusted gross income (including your spouse’s income if you filed your taxes jointly), family size and total outstanding Direct loans.

Pay-As-You-Earn Repayment Plan

If you student loan debt is high relative to your income, you may qualify for the Pay-As-You-Earn (PAYE) Repayment Plan. This plan can help keep your monthly student loan payments affordable.

• Under Pay-As-You-Earn:

If your monthly payment is 10% of your discretionary income and will never be more than the amount you will be required to pay under the 10-year Standard Repayment Plan.

• Interest:

If your monthly Pay-As-You-Earn payment amount doesn’t cover the interest that accumulates on your loan each month, the government pays your unpaid accrued interest on Direct Student Loans for up to three consecutive years from the date you begin repaying your loan under the Pay-As-You-Earn program.

• 20-year Forgiveness:

If you repay under the Pay-As-You-Earn program, and meet certain other requirements, any remaining balance will be forgiven after 20 years of qualifying repayment.

• 10-year Public Service Loan Forgiveness is Available:

If, while you are employed full-time for a public service organization, you make 120 on-time full payments under the Pay-As-You-Earn program.

Don’t let your outstanding student loan destroy your career and happiness as a vet! Give us a call today to start the process of your student loan debt progress.

student loan debt attorney teachers

What Teachers Hurt By The Recession Should Do To Pay Their Student Loans

According to a report by the National Council on Teacher Quality. Teachers’ pay raises dropped from 3.6% in the 2008 – 2009 school year to 1.3% in the 2011 – 2012 year.

In fact, The National Center for Education statistics reveal that the average teachers’ salary gets an increase of less than 1% in inflation adjustment terms over the last 10 years. The average teacher pay of $56,643 is lower than the average pay in many other professions that require college and graduate degrees. So, how do teachers with outstanding student loans go about paying their student loans?student loan debt attorney teachers

Income-Based Repayment Plans for Teachers

There are two exciting ways for teachers hurt by recession to pay off their student loans.

Most student loan borrowers are in a 10-year time-based repayment plan with a fixed monthly payment based on the total amount of the loan. Unfortunately, it may be impossible to make those payments.

The Department of Education allows student loan borrowers who qualify for Income-Based Repayment plans to switch from a time-based standard repayment plan to programs such as IBR, ICR or PAYE.

Income-Based Repayment plans calculate your monthly payments on the basis of your adjusted gross income, family size and the total amount of your direct loans. If you are married and filing your taxes jointly, your spouse’s income will be included in these calculations.

Income-Based Repayment plans can lower your student loan payments and help you afford things that you want to provide for yourself and your family. But, better yet, the government will forgive any remaining loan balance after you pay your federal student loans through an Income Based Repayment plan for a period not to exceed 25 years!

Income-Contingent Repayment Plans for Teachers

There’s no partial financial hardship threshold you have to meet before enrolling in ICR.

Only Federal Direct Loans are eligible for Income-Contingent Repayment which include Direct Subsidized and Unsubsidized Stafford loans, Direct GRAD PLUS loans and Federal Direct Consolidated loans. If you have FFEL loans, you’ll need to convert those to Federal Direct.

Direct Consolidated loans that repaid Parent PLUS loans are eligible for ICR. If you have consolidated a Parent PLUS loan, Income-Contingent Repayment might be the right answer for you.
Your payment will not exceed more than 20% of your discretionary income. Your lender or servicer will calculate the amount of the monthly payment by using your adjusted gross income (including your spouse’s income if you filed your taxes jointly), family size and total outstanding Direct loans.

Pay-As-You-Earn Repayment Plan for Teachers

If you student loan debt is high relative to your income, you may qualify for the Pay-As-You-Earn (PAYE) Repayment Plan. This plan can help keep your monthly student loan payments affordable.

• Under Pay-As-You-Earn:

If your monthly payment is 10% of your discretionary income and will never be more than the amount you will be required to pay under the 10-year Standard Repayment Plan.

• Interest:

If your monthly Pay-As-You-Earn payment amount doesn’t cover the interest that accumulates on your loan each month, the government pays your unpaid accrued interest on Direct Student Loans for up to three consecutive years from the date you begin repaying your loan under the Pay-As-You-Earn program.

• 20-year Forgiveness:

If you repay under the Pay-As-You-Earn program, and meet certain other requirements, any remaining balance will be forgiven after 20 years of qualifying repayment.

• 10-year Public Service Loan Forgiveness is Available:

If, while you are employed full-time for a public service organization, you make 120 on-time full payments under the Pay-As-You-Earn program.

Well, what about Public Service Loan Forgiveness?

Teachers who work in a county school system, state community colleges or universities are eligible to participate in the Public Service Loan Forgiveness Program.

The Public Service Loan Forgiveness (PSLF Program) is a Federal student loan forgiveness program for Federal student borrowers who work in “public service jobs.” PSLF will forgive your remaining student debt after 10 years of eligible employment and qualifying loan payments. Did you know that during that 10 years an Income-Based Repayment (IBR plan) is available to you to keep your loan payments affordable. Call us to see if you qualify!

What should I do next?

You can learn what’s right for you by contacting our Tampa Bay student loan attorney, Nancy Cavey, who can help you with your student loan issues regardless of where you live in the United States. She can meet with you and discuss student loan modification and other debt relief strategies that will make the repayment of your student loan debt and help you regain your financial footing.

Contact us today at 727-828-9955.

perkins loans for teachers student loan debt

Can My Perkins Loan Be Cancelled For Full-Time Service As A Teacher?

Yes! Perkins loans can be cancelled for full-time service as:

• A teacher in a designated elementary or secondary school serving students from low-income families;
• Special education teacher, including teaching children with disabilities at a public or non-profit elementary or secondary school;
• Qualified professional provider of early interventional services for the disabled;
• Teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas;
• Employees of public or non-profit child or family service agencies providing services to high risk children and their families from low-income communities;
• Nurse or medical technician;
• Law enforcement or correctional officer;
• Staff member in the educational component of a head start program;
• Services in AmeriCorp or Peace Corp volunteer, and service in the Armed Forces up to 50% in areas of hostilities or imminent danger.

Are you a teacher that has Perkins student loan problems?

At the Student Loan Law Resolution Center, we handle Perkins student loan problems for teachers and understand the student loan arena. Give us a call today to see if you qualify for a repayment program at 727-828-9955.