• Welcome to The Student Loan Debt Forum | The College Investor. Please login or sign up.

Show posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.

Messages - TheCollegeInvestor

Student Loan Forgiveness / Re: New balance
May 11, 2020, 09:29:32 am
You can go back to school, you just can't do any of the following (or have it happen):
- Get a grant or new student loan
- Your annual employment income cannot exceed the poverty guideline amount for a family of two in your state, regardless of your family size.
- SSA determines you are no longer totally and permanently disabled, or that your next disability review no longer meets the five-to-seven-year review period.

If any of those happen, your loans will be reactivated. It will be the balance from before you applied, excluding interest.

See our full guide here: Student Loan Disability Discharge.
FAFSA - Free Application for Federal Student Aid. You fill out this form to get scholarships, grants, AND Federal student loans. This is need-based financial aid.

Sallie Mae is a private student loan lender.

Federal student loans are ALWAYS better than private student loans. However, you can't get Federal student loans unless you're attending an accredited American college or University. You didn't say what school, but the living abroad factor could be a problem in this regard.

You might find this helpful about how to think about paying for college: Order of Operations To Pay For College.

As for scholarships, apply early, often, now, and later. You can never apply to enough scholarships - but it takes time and effort to find them, apply, and hope you get them.

Finally, think about ROI - return on investment. College is an investment. Your goal of going to college (or grad school) is only to boost your career earnings after you're done (unless you're going for free due to whatever factors that may involve).

If you borrow too much, and don't earn much after you're done, you're going to struggle financially for life and hate the fact you went to grad school.

Sadly, grad school for a majority of people has zero or negative ROI - so that's why I'm cautioning you in this regard.

See this: College ROI.
We've heard it will take 6 weeks if you're eligible (i.e. your tax return was garnished after March 13).
You're correct - tax offsets (as they're called) - are paused for student loans. Read more about the specifics here: Student Loan COVID-19 Programs.

We have seen some readers who saw the returns garnished, but then get a refund check for it.
Under what forgiveness program? Some are taxable, some are not.

Let's assume it's taxable. The amount is based on the total value of the loan at discharge. Principal, Interest, and any fees or collection costs on the loan.

See this: taxes and loan forgiveness.
You would use your tax return with your AGI. That's always the best approach each year.

If you use the "alternative method" to certify your income, they use your gross pay, not net pay, so you usually end up with a higher monthly payment. The only time the alternative method makes sense is if you lost your job and have no income.
Private Student Loans / Re: Private Loans Drowning!
April 15, 2020, 11:34:14 pm
Sadly, you don't pay for it on your income. You need to:
- Find a way to supplement your income and grow it significantly outside of work
- Look for a lawyer you help you address your total debt (including the loans) and see if something like bankruptcy is an option.

You might find this helpful: Lawyer For Your Student Loans.
Ask a Question / Re: Over our heads
April 15, 2020, 11:31:07 pm
No, you use your income-tax return every year.
Student Loan Forgiveness / Re: IBR qualifications
April 15, 2020, 09:39:38 am
If your income exceeds what you'd pay on the standard 10 year, yes, you switch plans. But for PSLF, both the standard 10 year plan and RePAYE (the other good option) count for PSLF. It doesn't reset your payment clock.

You have to do the math on joint or separate returns.
As long as you're still employed, your 6 month "pause" on your loans will still count towards your 120 PSLF count. No action is required on your part.

See our full guide here: COVID-19 student loan relief programs.
Navigating Repayment / Re: PSLF program
April 04, 2020, 12:31:09 pm
1. No, it doesn't take any time to "kick in". You need to dig in and see why your payments aren't qualifying.

- Have you turned in an Employer certification form for all months/years worked?
- Are you on the correct repayment plan to qualify?
- Do you have the correct loans?

2. If you change repayment plans, there is usually one month of forbearance between the two plans. Recertification has no issues with this. So, once you're on a qualifying plan, you're set.
Random time to ask - right now, all Federal loans are paused until September 30, 2020. Any payments for PSLF that were eligible during this time count anyway.

In general, you just call your loan servicer to get out of forbearance.
We've seen it, but not personally experienced it.
No, you should be able to consolidate FFEL to Direct. Start the process and you'll see it happen.
On your old NSLDS form there was a way to see who owned the loan, but I don't think there is a way currently. I think your best bet is to call your loan servicer and as who the "loan holder" actually is - is it Department of Education (and as such, does it qualify), or is it a private bank or company?