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    Home Unlabelled Anyone getting these same voicemails from different numbers about loan forgiveness? Student Loans

    Anyone getting these same voicemails from different numbers about loan forgiveness? Student Loans

    March 05, 2021

    Anyone getting these same voicemails from different numbers about loan forgiveness? Student Loans

    Anyone getting these same voicemails from different numbers about loan forgiveness?

    Posted: 04 Mar 2021 02:48 PM PST

    "Federal student loan balance hi this is Quinn with the student services department I'm just following up in regards to your outstanding federal student loan balances we've been trying to reach you because you're eligible for the federal student loan forgiveness program due to the changes made in 2020 it's imperative that I speak with you as soon as possible since the student loan payment delay is about to come to an end you can reach me

    submitted by /u/Woozyyyy
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    Well this is exciting - new version of Senate Covid bill contains provision that could be the start of getting rid of the tax bomb in the IDR programs

    Posted: 04 Mar 2021 04:25 PM PST

    So - the latest version being passed around the Senate contains a provision that eliminates the forgiven amount under any of the federal forgiveness programs from being treated as income for tax purposes - but only through 2025.

    At first glance it seems almost mean to do this since very very few people are going to qualify for forgiveness under the IDR's by then. Remember "old" IBR didn't start until 2008 and the others around 2012 and 2015 (for repaye). However ICR started in 1994 so there will be a few borrowers who started on ICR and made it the 25 years or switched to one of the other IDR's that will benefit from this.

    But the real reason this is exciting is, if it passes (and we think it will), it makes it MUCH easier for Congress to make the change permanent down the road. So while nothings guaranteed - if this goes through i think the chances of permanent change are pretty good.

    I've seen a draft of the language so i'm confident of the years and what its for - but it's not in the published version yet. Which can be found here H.R. 1319, the American Rescue Plan Act of 2021 https://www.congress.gov/bill/117th-congress/house-bill/1319

    That's also where you'll want to watch for new versions that will contain the language if it sticks. It will be sec 9675 (well that's what section it is now).

    EDIT - as far as timing goes - we expect a vote-o-rama tomorrow for various amendments - then a full Senate vote - then back to the House where it should pass - could be on Biden's desk by the end of next week

    submitted by /u/Betsy514
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    Looks like Congress is might change the student loan discharge tax rules.

    Posted: 04 Mar 2021 03:07 PM PST

    https://www.budget.senate.gov/imo/media/doc/American%20Rescue%20Plan%20Act%20SENATE.pdf

    Sec. 9675 Modification of treatment of student loan forgiveness. (starts on page 474)

    Strikes 108(f)(5) ("Discharges on account of death or disability") and provides for a more general discharge provision (depending on kind of loan, purpose, etc.).

    Seems pretty good, but it's not clear to me why they would do this. Do they expect the Administration to discharge some loans and they don't want folks to pay taxes on that? Is this planning for folks at the end of a long IBR payment plan? Not sure about the why here, why now. Paging u/betsy514

    EDIT: Sorry about the butchered title.

    EDIT: thanks u/girl_of_squirrels for pulling the language out.

    SEC. 9675. MODIFICATION OF TREATMENT OF STUDENT LOAN FORGIVENESS.

    (a) IN GENERAL.—Section 108(f) of the Internal Revenue Code of 1986 is amended by striking paragraph (5) and inserting the following:

    ''(5) SPECIAL RULE FOR DISCHARGES IN 2021 THROUGH 2025.—Gross income does not include any amount which (but for this subsection) would be includible in gross income by reason of the discharge (in whole or in part) after December 31, 2020, and before January 1, 2026, of—

    ''(A) any loan provided expressly for postsecondary educational expenses, regardless of whether provided through the educational institution or directly to the borrower, if such loan was made, insured, or guaranteed by—

    ''(i) the United States, or an instrumentality or agency thereof,

    ''(ii) a State, territory, or possession of the United States, or the District of Columbia, or any political subdivision thereof, or

    ''(iii) an eligible educational institution (as defined in section 25A),

    ''(B) any private education loan (as defined in section 140(a)(7) of the Truth in Lending Act),

    ''(C) any loan made by any educational organization described in section 170(b)(1)(A)(ii) if such loan is made—

    ''(i) pursuant to an agreement with any entity described in subparagraph (A) or any private education lender (as defined in section 140(a) of the Truth in Lending Act) under which the funds from which the loan was made were provided to such educational organization, or

    ''(ii) pursuant to a program of such educational organization which is designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or an organization described in section 501(c)(3) and exempt from tax under section 501(a), or

    ''(D) any loan made by an educational organization described in section 170(b)(1)(A)(ii) or by an organization exempt from tax under section 501(a) to refinance a loan to an individual to assist the individual in attending any such educational organization but only if the refinancing loan is pursuant to a program of the refinancing organization which is designed as described in subparagraph (C)(ii).

    The preceding sentence shall not apply to the discharge of a loan made by an organization described in subparagraph (C) or made by a private education lender (as defined in section 140(a)(7) of the Truth in Lending Act) if the discharge is on account of services performed for either such organization or for such private education lender.''.

    (b) EFFECTIVE DATE.—The amendment made by this section shall apply to discharges of loans after December 31, 2020.

    ​

    submitted by /u/burritolaw
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    Is $110-120k reasonable for law school?

    Posted: 04 Mar 2021 03:52 PM PST

    Recently I was accepted into Rutgers Law in Newark with a $18,000 scholarship, $54,000 in total with renewable. The total cost of attendance, including the scholarship, would be around $140k after three years with out of state tuition. However, after talking with the financial aid office, it turns out that I'll be considered in-state once I move; the cost would then be around $110-120k.

    Some factors to consider are that I have no undergraduate loans, and the only loans I'll have from education expenses would be from law school. I've also gotten some larger scholarship offers from nearby schools that are ranked higher, and I am also considering to submit an appeal to increase the amount awarded to me.

    I really want to work in the New Jersey area, especially northern NJ. Do you guys think it would be a wise decision to attend for around $110-120k?

    submitted by /u/cabinsandwood
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    Is National Recovery legit?

    Posted: 04 Mar 2021 03:40 PM PST

    Hello! I have a friend who went to community college like around 10 years ago or more and she never paid them. She said she remembers she took out sallie Mae loans. But she looked at her credit history and only saw federal loans on there.

    She said she's been paying national recovery for the last couple year but they never sent her statements. She thinks it was a scam bc it's not on her credit history, only the federal loans were. Also, they never were able to tell her account information.

    Has anyone heard of them?

    I'm confused by the situation too.

    submitted by /u/Imaginary_Plum7458
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    Rehab Loan and Credit Report

    Posted: 04 Mar 2021 09:10 PM PST

    My loan defaulted in 2010 but I was able to rehab the loan in 2017. However, the loan still shows up on my credit report. I thought that defaults fell off credit reports seven years after the initial default. Can I appeal this to the credit bureau?

    submitted by /u/SendItOverDude
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    Federal Students Loans, IDR Payments, and Marriage

    Posted: 04 Mar 2021 11:21 AM PST

    Hello everyone my wife and I are currently deciding on how to file our taxes when an issue came up. We are debating on filing Joint or seperately purely based upon our student loan debt.

    Currently she is at $54,000 per year roughly with around $45,000 in debt.

    I make $32,000 a year with $50,000 in debt.

    Where both on IBR plans and concerned with joining our incomes my payments might spike to an unaffordable level and I cannot seem to get a straight answer from a tax prepper or Fedloan Servicing. I do not need exact numbers of our new payments after filing but I do not wanna file jointly and find out our payments are going to spike. We currently pay more than the IDR states but want to avoid the payment becoming more than what we currently have.

    Hopefully someone else married could give us advice on how to proceed. I understand the benefits of filing separately versus joint I need to know realistically how much our payments will be affected when we recertify later this year?

    submitted by /u/No-Nefariousness3323
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    While in School, Is it Better to Use Money to Repay Existing Student Loan Debt or Use the Money to Avoid Taking Out Additional Loans Next Year?

    Posted: 04 Mar 2021 04:07 PM PST

    After working this summer, I will have about $30k which is enough for me to pay tuition and living expenses for my final year of school. I am trying to figure out whether it would make the most sense to pay off existing federal loans (From 2019, I have a PLUS loan for $25,000 with a 7.08% interest rate and an unsubsidized loan of $20,991 with a 6.08% interest rate. I have other loans too, but these higher interest ones are the ones I'm eyeing for repayment).

    This year, the interest rates were lower (5.3% for the PLUS; 4.30% for the unsubsidized) and I expect that next year the interest rates will remain on the lower end. There is also a loan origination fee. The rates this year were 1.057% for unsubsidized loans and 4.236% for PLUS loans. Let's assume for the sake of this analysis that both the interest rates and the loan origination rates will be similar next year to what they were this year.

    I'm having a hard time figuring out the right way to think through this analysis. That 7.08% interest rate is super high so it is tempting to knock out that loan and take out a new loan. But the origination fees would eat at the interest savings and I'm having trouble squaring that up.

    Could anyone help me think this through? Thank you!!

    Note: I know right now interest rates are frozen at 0% but I'm following the politics surrounding student loans very closely and believe that the government will begin collecting interest again this winter. For the purpose of this analysis, let's set aside the prospect that loans will be cancelled (they won't be) and that interest rates will remain at zero (they won't).

    submitted by /u/throwawayact412
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    With Partial Forbearance, Which Loans Should I Pay Extra On?

    Posted: 04 Mar 2021 07:02 AM PST

    I prefer the avalanche method to the snowball method (I don't have a motivation issue and I'll do whatever I can to mathematically spend the least on interest over the life of my loans), but I'm a bit confused as to what my best approach is here to implement that...

    I've just paid off my highest-interest private loan (~5%), and refinanced my last private one to a lower rate (3.07%) and am now taking stock of what I have left.

    I have about $30k in federal loans at various interest rates (thankfully all at the same servicer), and $25k in private loans:

    Federal Loans in Admin Forbearance:
    $15k @ 5.31% - NelNet - GRAD SCHOOL - ($195.01/mo)
    $4.5k @ 4.66% - NelNet ($56.80/mo)
    $4.5k @ 4.29% - NelNet ($56.50/mo)
    $3.7k @ 3.86% - NelNet ($46.19/mo)
    $2.9k @ 3.40% - NelNet ($35.07/mo)

    Refinanced Private Loans and Actively Accruing Interest:
    $25k @ 3.07% - Firstmark Services ($260/mo)

    I've been scraping together an extra $500-750 every month to put towards paying down debt. I haven't been paying towards my federal loans.

    A few assumptions I'm making in trying to figure this out:

    1. Admin forbearance will end on September 30th, 2021 and NOT be extended.
    2. There's a very small chance that congress will pass $10,000 in student loan forgiveness, but if it passes, that forgiveness wouldn't apply to graduate student debt (of which I have a single $15k loan). From what I can tell, Biden's proposal has been purely focused on undergraduate debt.

    My question: mathematically, is there any potential benefit for me to pay extra towards my 5.31% graduate federal loan instead of my private loan, even if it's in forbearance for another 6 months?

    Or should I continue to pay that extra towards my private loan since that interest is actively accruing, even though it's now at a much lower rate? How should I begin to calculate that?

    Thanks so much in advance — long-time lurker in this sub and appreciate seeing everyone's progress! Made a new account to post financial information.

    submitted by /u/IndependentTemp
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    Do PLUS loans show up on the student's FSA dashboard?

    Posted: 04 Mar 2021 11:00 AM PST

    Hi, I graduated recently and estimated that I had about 20k in direct loans, and then another 60k in Parent PLUS loans. I was recently contacted by my loan servicer who is servicing the 20k of debt. However, they don't have anything about PLUS loans on my account there. On my department of education dashboard, I only see the 20k in direct loans. My parents cannot find any documentation on their end with any parent PLUS loans and they have not been contacted by any servicer.

    Where would I be able to see my exact balance of the PLUS loans? Should it be on the studentaid.gov dashboard? Does the fact it's not there mean that there was some sort of mixup and those loans were never disbursed? I think that's pretty unlikely but my parents were the ones who organized it. I wouldn't be that surprised if some mistake was made and they wound up paying out of savings instead of receiving and then paying for them.

    I figure someone will reach out eventually if there's more I have to pay but I would like to know as soon as possible to budget things out.

    submitted by /u/RepresentativeEar340
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    Starting PA school this summer! Need advice on how much loans to take?

    Posted: 04 Mar 2021 10:21 AM PST

    Hey guys! So I am an upcoming student this summer and I need some help with FAFSA and what not.

    I just got my financial aid reward for the 2021-22 year-- do you guys recommend that I just take out the maximum loans (both unsubsidized + grad plus) and then see what I have remaining at the end? This way if I have a lot of money left over I can just take out less aid the following financial year? Or just try to estimate what I will need before accepting anything?

    Any advice is greatly appreciated haha this is all very new to me!!

    submitted by /u/cinnabunx
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    Anybody have experience with ELFI or Splash Financial? I am trying to refinance my student debt and I am wary of institutions I haven’t heard of

    Posted: 04 Mar 2021 09:09 AM PST

    Edit: I'm looking to just refinance my personal loans. I'm leaving my federal loans as is due to suspended payments/interest and the possibility of forgiveness

    submitted by /u/oneskii
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    Sofi Charge for Late Fees Refinance?

    Posted: 04 Mar 2021 08:44 AM PST

    I am looking to refinance and was wondering if anyone knew if Sofi charged late fees for student refinance payments? Also if they let a cosigner be released?

    submitted by /u/hbsterling
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    Loans in default during forbearance

    Posted: 04 Mar 2021 12:00 PM PST

    I had student loans in default before the administrative forbearance. I am looking to purchase a home and need to get my loans out of default. If I consolidate my loans now, will it take me out of default now? Or will I still be in default until the end of the forbearance?

    submitted by /u/KaPowPower
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    Got a call about Borrower Defense

    Posted: 04 Mar 2021 10:59 AM PST

    I just got a call from a NY number. The guy claimed that since my college went out of business (apparently this means my degree is no longer accredited) I can file for Borrower Defense. I told him it sounded like a scam and he gave me a website to enter my info:

    https://nslds.ed.gov/npas/index.htm

    Is this a scam? Can what's left of my student loans be forgiven?

    submitted by /u/xkellekx
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    Should ALL federal loans show 0% int right now?

    Posted: 04 Mar 2021 01:40 PM PST

    Basically title. Some details, I see everyone talking about setting aside payments and wait for gov to come with sweeping forgiveness. Nice to dream, I know. But I was under the impression that a big part of the no payments situation right now was that there was 0% interest as well. If not, then the "plan" to hold off and pay big before payments start up again doesn't make as much sense. Unless I am missing anything. Anyway, I logged into Navient and saw that only 2 out of my 8 loans listed are interest free. 2 are private loans, so I believe that 4 are wrong and should also reflect 0%. Please let me know if I am just misunderstanding anything. I searched for info on the internet, but most coverage focuses on the payments not being due and doesn't really open up to the interest details. Thanks in advance for replies!

    submitted by /u/Spurtikus
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    Question about a second student loan in U.K.

    Posted: 04 Mar 2021 08:32 AM PST

    Hello, I took a gov loan from Student Finance UK about 7 years ago to do a BA. However, I got a health condition that has taken away my ability to do the career I studied my BA degree in. Is there any way to take a second loan for another BA? Or if by some miracle I could pay off the first loan, could I take a second Student Finance UK loan for another degree? I'm 30. Feeling super hopeless and stuck, thanks.

    submitted by /u/Cool_Stop_5553
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    Refinance Loans with Navient

    Posted: 04 Mar 2021 07:24 AM PST

    Hey Guys. I have been battling the student loan shenanigans for a while and got 'invited' to refi with Navient (whom I currently have my loans with as they're the cheapest for me rate wise) and I wanted to possibly start the process but I'm worried that if I do and the decide that of jk you get a higher rate now, if I'm screwed and stuck with it. Not sure if I can start the process and just not sign that I agree to it and keep the rate I have in case it is lower than the new one they're offering me.

    Also see if there's any other companies out there that could be better for rates that I should check out?

    I can give more details if you want to DM me.

    Thanks y'all!

    submitted by /u/ChimericalIdolmon
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