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I graduated in 2004 with an undergraduate and master’s in business. Both are federal loans serviced through NelNet. I have Ben paying on-time since 2004. Still own 48,000. Used the graduated payment program. I’m 64 and income has been drastically reduced. My ears perked up when you said one time forgiveness till December 31 2023. I’m not a vet but would appreciate your input!
Great video. I have been in repayment since 2008 since graduating Medical school and have worked in public service with all my employers being qualified employees since 2008. My loans were FFELP loans and I recently consolidated with MOHELA (after learning about the one time account adjustment and missing the old 10/31 waiver deadline). All loans are now direct. I submitted my entire history 15 year history of qualifying employment via the PSLF help tool which has been accepted by MOHELA. Will the one time adjustment and switching to IBR still fall under the 120 payment count for PSLF count (since I have made more then 120 payments previously) and lead to forgiveness of my remaining (63k). I just heard about the 250-300 payment requirement but am unsure if this will apply to my situation. Any guidance is very much appreciated. Thanks for all that you do.
"Borrowers with original principal balances of $12,000 or less will receive forgiveness of any remaining balance after making 10 years of payments, with the maximum repayment period before forgiveness rising by one year for every additional $1,000 borrowed. For example, if your original principal balance is $14,000, you will see forgiveness after 12 years. Payments made previously (before 2024) and those made going forward will both count toward these maximum forgiveness timeframes." Do you have any clarification on this? What if all my original loans were less than $12,000 but I have old FFEL loans so I consolidated all my loans into 1 direct loan to take advantage of the one-time payment adjustment which would put over me 10 years of payments but less than 20 years of payments. Does the consolidation put me back on the 20 year forgiveness since my consolidated balance will be $72,000 or since all my loans that were consolidated had less $12,000 original balance will that get me forgiveness at the 10 year level?
Is there an easy way to figure out with the one time adjustment how many payments with the other adjustments they are including as well like time in forbearance so you can find an accurate measure of how long you have until forgiveness? I have loans from the early 2000's(FFEL loans). I am trying to figure out how they calculate how close I will be too forgiveness after consolidating to a direct loan. How do I accurately measure everything that would be considered qualifying payments?
@@vinfoundation Based on the title and the content of the video, you are saying that every student should pursue loan forgiveness, which is very bad advice unless the student's debt-to-income ratio is outrageous. Loan forgiveness has very specific requirements, which will determine the life of the debtor and his/her family, including where they can work, how many hours they have to work, or having payments for no less than 10 years. And all of this, assuming that at the end of the 10 years they will get the student loans forgiven, because there have been cases where people did not qualify... To your other arguments: "If you consolidate you will have fewer loans": seems trivial to me, but ok. "You won't save money in interest by paying off your higher-interest loan": wrong, if you end up not pursuing loan forgiveness or you finally do not qualify for loan forgiveness, you will save money by paying off your higher-interest loans. Debt avalanche and debt snowball methods have been proven to work. "You have better things to do with your money than targeting your student loans": Actually, not really. We all know that students or right after graduating is when people make less essential purchases and will spend more towards materialistic stuff that may not really be needed; while later in life you will need money for kids, health care, mortgage/rent, etc... "If you consolidate you lower your interest by 0.25% with autopay". Sure, but I do not understand why you want to lower interest by 0.25% but not pay a higher interest loan (you used 7.5% as an example!!) "Paying interest before it capitalizes is not going to help": also wrong. If you pay interest before it capitalizes you will save on interest, as you will not accrue interest on the interest. So, unless you end up getting forgiveness, you will save some money by paying the interest before it capitalizes. "You accrue the same amount of interest whether you consolidate or not (by ending your grace period)": Wrong. During your grace period you do not accrue interest on the interest, while if you consolidate, you will. Using the example that you used with the 7.5% interest, the effective annual interest if you end your grace period and do not pay your interest will be 7.76%, which increases by more than the 0.25% that you claimed you could save with autopay.
Hi, I am not in the veterinary world but your video is the only information I can find anywhere about this upcoming one-time payment count adjustment. I have asked my loan servicer and the Dept of Ed this question and neither can answer it: I have had a federal student loan since 2002. I spent a considerable amount of time in forbearance, deferment, and being seriously past due in repayment programs so i am nowhere near the 240 payments required for the normal forgiveness. Will the forbearance and deferment, and the time I was technically in "repayment" be included in this one-time payment count adjustment? If so, it would seem that my loan will be forgiven since I have had it for 21+ years. Any input is appreciated.
Thanks for watching and for your comment! It depends on the types of federal student loans you have remaining and whether or not they all have the same amount of forgiveness-eligible time. Any repayment time and certain deferment and forbearance time will counted towards forgiveness under the one-time count adjustment. If you have multiple loan types with various times in repayment, then consolidating your loans can make a lot of sense to maximize your forgiveness count adjustment. If you have all undergrad loans, then 20 years of forgiveness time is all you need to reach forgiveness. With any graduate school loan, you will need 25 years of qualifying time to reach forgiveness. We've been seeing many folks receive loan forgiveness under the one-time count adjustment. If you want to be considered, then make sure you consolidate (if necessary) before the Dec 31, 2023 deadline. Follow the links in the video and description for more information. Good Luck 🙂
What do u do when u have a 25 yrs old loan from a school that was closed down. I have 5 loans now that the department of education sent me a discharge letter. Now edfinancial has put it on my credit wtf. From 1987
I don't understand why my new interest rate is double my current. I have 2 commercially owned and serviced unsubsidized FFEL loans from Navient. They are both at 3.44% (which makes the weighted average still 3.44%). When I go to consolidate and select them from the checkboxes and look at the bottom black box, it says my new interest rate will be 6.875%. I don't understand why it doubled. Isn't it supposed to take the weighted average and round up to the nearest 8th of a percent, not outright double it.
@@MrToppicz i never did figure this out, however, i'm somehow part of some ITT Tech lawsuit and it put all my Navient loans under Administrative Forbearance for 10 years. so they have 10 years to clear it from my account. sorry i'm not much more help to you.
Good stuff... You talked about the importance of the payment plans.. but then didn't describe what each of those are. that woulda been helpful. but you were going over a lot so understandable.
Visit the VIN Foundation COVID-19 Impacts to Student Loans page for up to date information on student loan repayment relief: vinfoundation.org/coronavirus-impact-to-student-loans-covid-19/ If you're graduating veterinary school in 2020, check out the Class of 2020 Student Loan Repayment Playbook page to register of a free webinar: vinfoundation.org/resources/class-2020-veterinary-student-loan-playbook/
Helpful links to navigate student loans during COVID-19 changes: VIN Foundation Student Debt Center: vinfoundation.org/studentdebtcenter VIN Foundation Student Debt Resources:vinfoundation.org/resources/student-debt-center/ VIN Foundation Blog: vinfoundation.org/blog/ Federal Student Aid Website: studentaid.gov/ Department of Education Press Release, 3/20/2020: www.ed.gov/news/press-releases/delivering-president-trumps-promise-secretary-devos-suspends-federal-student-loan-payments-waives-interest-during-national-emergency Navient COVID-19 Information: navient.com/covid-19 Great Lakes COVID-19 Information: mygreatlakes.org/educate/covid-19.html FedLoan Servicing: myfedloan.org/borrowers/covid
Update from the Department of ED: www.ed.gov/news/press-releases/delivering-president-trumps-promise-secretary-devos-suspends-federal-student-loan-payments-waives-interest-during-national-emergency
