Great chart that illustrates the tax bomb of the income driven plans Student Loans |
- Great chart that illustrates the tax bomb of the income driven plans
- Whitehouse bill would fix ‘bug’ in loan forgiveness program for public servants
- A summary of the PROSPER Act and my thoughts as to which parts may shake out
- Recently graudated but need a loan
- Help planning for Canada Student Loans
- Fixed Rate vs Variable Interest Rate.
- Question about PSLF
- Parent-Plus Loan
- Alternate Documentation of Income for IBR
- PSLF and Overpayment - How to get back on track?
- Venting about refinance decline
- PAYE or REPAYE if getting married to a higher-income earner?
- Hello all. Looking for student loans.
- 19k debt with Great Lakes, can / should I transfer to no interest credit card?
| Great chart that illustrates the tax bomb of the income driven plans Posted: 30 Nov 2017 09:03 AM PST This illustrates the potential tax implications of the income driven plans. It also illustrates why we say that the name of the game is to pay the least amount over time - not forgiveness. For some, paying the least amount over time does mean pursuing forgiveness - but for others it does not. https://ticas.org/sites/default/files/pub_files/tax_consequences_of_loan_discharges_for_borrowers_in_idr_plans.pdf [link] [comments]  |
| Whitehouse bill would fix ‘bug’ in loan forgiveness program for public servants Posted: 30 Nov 2017 11:37 AM PST Dunno if anything will come of this, but something definitely needs to be done to fix PSLF and make it clearer. [link] [comments]  |
| A summary of the PROSPER Act and my thoughts as to which parts may shake out Posted: 30 Nov 2017 06:58 AM PST So the full bill text will be released later this week and I'll add to this once i've read the whole thing, but here's what I got from the summary that was released. Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act This bill is coming from the Republican led House Education Committee and mentions proposals that have been batted around for the past few years. Their goal has been simplification and their tagline of one grant, one loan is followed through here. While there are no details in the summary, they discuss limiting borrowing under the graduate plus and parent plus programs. My thought is that this won't end up in the final reauthorization bill because by all accounts, the plus loans are the only ones that actually make the government money. If they are doing it based on an ability to repay component I'm all for it - but I doubt that's what this will be. They also propose paying Pell grant and loan monies on a weekly or monthly basis rather than a semester basis to reduce borrowing and reduce fraud. They also propose pulling back on Pell after three (academic years? semesters?) if the student has not accrued any credits. This is to prevent fraud. The bill, and take a deep breath here folks, would eliminate PSLF. The bill grandfathers in anyone already enrolled in the program Same for the income driven repayment plans. Personally, I don't see them doing this - but if they did I full expect the trigger to be based on new loans, not on borrowers already enrolled. The proposal gets rid of all the repayment plans and leaves one income driven plan with no forgiveness component, and on ten year standard plan. Borrowers currently enrolled in other plans are grandfathered in. Again, if they do this - which they very well could (and should in my opinion) I fully expect the trigger will be new loans made on or after the legislation passes. Gets rid of the 90/10 rule that for profit schools have to follow. This rule says that for profit schools can't get more than 90% of their income from federal aid. I do not think this will pass even with a republican led hill - but it's certainly very telling. Creates risk sharing for schools (I've been pushing this for years) where schools are on the hook for portions of loans not repaid by borrowers. I don't think this will pass as is - but it starts a conversation for sure. So - this summary is based on a summary - the actual bill language comes out later this week - so some of this may change once I see the language. The other thing to note is that this is far from over - most of us don't think reauth will happen until 2019 and a LOT can change between now and then - especially if you consider we have a congressional election coming up which could change who is in charge. [link] [comments]  |
| Recently graudated but need a loan Posted: 30 Nov 2017 07:04 PM PST So I recently graduated from my masters program in august. I took out federal loans to pay for my first 2 semesters but did not for my last 12k of tuition. I was able to get an extension before I had to finish paying until December, however it is now too late to get a federal loan for the 12k. My parent was going to take out a business loan for and have me repay them however, they have now cancelled that at the last minute and I now need to get a private loan. I looked into Sallie Mae and I was told I will need a cosigner. I'm not sure if I will be able to get one, are there any other options I should look in to? Any advice would be good. Currently about 21k in student loan debt and don't have very much credit history/low credit, I recently started a job making 43k a year. [link] [comments]  |
| Help planning for Canada Student Loans Posted: 30 Nov 2017 06:32 PM PST I'm looking for some help in regards to my plan to apply for Canada Federal student loans in June and am wondering if I am on the right track with my current plan. Just a little background, I'm 21 years old and currently work a full time job making roughly $36,000 annually. I have recently payed off my $12,000 car loan in preparation for starting university 1 next year in the fall semester. I take home about $1080 bi-weekly and put approximately half of each paycheck into a separate savings account. The rest is split between bills, gas and personal expenses. I have roughly $4000 in a trust fund for school and should have an additional $4000 of my own saved by the time I apply for my loans. I don't intend on using the $4000 of my own money towards school, but rather to keep it as an emergency fund. I am planning on quitting my full time job to look for part time employment 3 months prior to applying for federal loans, partly because my income for the 17 weeks previous to my application is taken into consideration, and partly because I will need a part time job during the school year. Here is where things get tricky. I have to report my parents income on my application. My mom passed away and my dad is out of the picture (and makes barely any money anyways, close to $12,000 yearly from disability). I am wondering if i will still need to report his income and how i would go about doing that. So my questions are:
Thank you for your time and feedback [link] [comments]  |
| Fixed Rate vs Variable Interest Rate. Posted: 30 Nov 2017 11:05 AM PST I was approved by CommonBond for either a Fixed Rate or Variable Interest Rate for the amount of 23,000$. I have always paid my college tuition by working my ass off. I'm going into my Junior year at UCF. They also give you 4 more options below choosing either Fixed Rate or Variable Interest Rate. Which are, 1.Full Payments while in school 2.Interest Only Payments 3.Flat Payments 4.Fully Deferred Payments I had a car payment for 250$ a month for 60 months on a new 2015 Ford Fusion for about 25,000$ and was able to pay it off within 2 years and I wasn't too hurt about it. But Student Loan debt scares the ever living fuck out of me. I'm looking for my best option here since I'll only be working part time for the next two years of college. [link] [comments]  |
| Posted: 30 Nov 2017 11:46 AM PST I just filled out my first employment certification form and am about to send it in. I was reading through all the back pages and am wondering about the loans being transferred to FedLoan Servicing. The form says, "if you submit this form and your employer qualifies, all of your loans held by the Department will be transferred to FedLoan Servicing." Forgive me, I'm new to the PSLF game. What exactly does this mean? [link] [comments]  |
| Posted: 30 Nov 2017 11:07 AM PST Hello, I'm 21 and live on my own. I pay everything by myself and claim myself as an independent on my taxes or I should say I file independently from my parents. They even moved states. Yet I still can't claim myself with the government to get better grants. I get no grants and have no other options to fund my education but the plus loan. Is there a way to claim myself and stop getting the plus loans? I hope this makes sense. Writing in a hurry [link] [comments]  |
| Alternate Documentation of Income for IBR Posted: 30 Nov 2017 12:36 PM PST Hello, My wife has about 130k in student loans with Fedloans as the servicer. Currently we live in California which is a community property state, so despite a filing status of married filing separate when we file our federal taxes we have to add both of our incomes together and divide by 2, and each of us reports that amount on our respective tax returns. My income is much higher so it skews the reported income on her tax return filing way up. Based on my research the Department of Education stated they didn't want loan payments for IBR to be widely different due to just where people live, so the solution to this is to do an alternate documentation of income, rather than just verifying income through tax return. My wife is on PSLF, so we want to minimize the monthly payments. What is allowed as Alternate Documentation of Income? I've read that W2 is not acceptable, paystubs can be used. I assume if paystubs are used that they would just go by your annual salary not what you have actually been paid for the year. My wife went on unpaid maternity leave this year for several months, so her actual pay for this year is a lot less than her annual salary. Thanks! [link] [comments]  |
| PSLF and Overpayment - How to get back on track? Posted: 30 Nov 2017 05:06 AM PST I managed to double pay my loans due in September somehow which put me in overpayment status going forward. I talked to FedLoan yesterday, who confirmed that payments on overpaid loans DO NOT COUNT as PSLF-qualifying and that I should be making my full scheduled payments in order for them to qualify. However, if I keep making those payments, won't that just continue to keep me overpaid? Should I pay the correct amount but target the excess to my one FFEL loan? [link] [comments]  |
| Venting about refinance decline Posted: 29 Nov 2017 07:02 PM PST After going through SoFi's form and getting a "Pre Approved!" I got denied for "Excessive obligations relative to income". WTF. Can Anyone tell me what this means? all their description tells me is that "Due to your financial obligations compared to your income, we are unable to move forward at this time". THAT'S WHAT I'M GD TRYING TO FIX BY REFINANCING. Maybe if I didn't have to pay 620 dollars a month towards 50k at 9 fucking percent Id have a bit more cash on the side. How the heck am I suppose to pay all this down? I feel like I keep getting screwed every time I try and improve my finances. This all sucks. /Rant [link] [comments]  |
| PAYE or REPAYE if getting married to a higher-income earner? Posted: 29 Nov 2017 04:11 PM PST Here's my situation...I'm still in school, but let's just say I'll have about $150k in debt (mostly grad PLUS loans) when I graduate from my clinical doctorate, and I expect to make 55k starting out (and will be at 75k in 10, 90k in 20). I will be working positions that will apply for PSLF, but I'm worried about the future of the program. I won't be able to pay off the interest with minimum payments, so 50% of interest of what isn't paid is forgiven on REPAYE, is that correct? Let's say if I get married in a few years, and my future spouse makes 80k when we get married, and makes at 120k around 20 years, but has no student loan debt. Would I then be better off on the PAYE plan filing seperately, or REPAYE filing jointly still (when I probably wouldn't have any interest forgiven)? I'm guessing I should go with PAYE, since I have grad loans? Also, if I switch, what happens to that interest forgiven from REPAYE? Is it still counted? Sorry if these are silly questions, but the whole tax bomb thing at the end is eating at me, if PSLF doesn't work out. Thanks! [link] [comments]  |
| Hello all. Looking for student loans. Posted: 29 Nov 2017 12:49 PM PST Hello all. I came here today in seek of guidance and advice from those to wish to share. I am a young (20) student. I go to community college part time. I have a total of 36 credits and a cumulative gpa of about 3.2. I also work a part time job. I make about ~1000 a month. Spend 140 on car insurance every month and 140 on a phone bill. I live with my father and step mom. I have about 580 left over after I pay my bills and fuel my car. My credit score is fair but young (600s). I plan on taking classes all next year. I want to transfer to UNT in Denton in Jan of 2019. The annual cost of attendance is 23780. I can save 500 a month til then and come out with 6500 by then. I have already submitted fafsa and I don't get very many loans because my father makes too much and some of the loans I do get need a co-signer and my father will not co-sign for me. At this point I don't really know what questions to ask. I'm trying to plan out my future and I'm in the dark. Do you know of any loans I can apply for with out a co-signer? Any information and advice is appreciated. At this point I'm writing essays every week for scholarships, wish me luck. Thank you in advance. Please let me know if any additional information is needed. [link] [comments]  |
| 19k debt with Great Lakes, can / should I transfer to no interest credit card? Posted: 29 Nov 2017 10:53 AM PST Pretty much the titles. I have 19k worth of student loans that I am hoping to pay off next year. Can I and would it make sense to transfer the loan to a no interest credit card? [link] [comments]  |
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