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Four Federal’s Student Loan Repayment Plans With Bruce Mesnekoff

October 12, 2016

As per Bruce Mesnekoff from Student Loan Help Center Said US Government’s Federal Loans Provides Four income-driven repayment plans:

  • Revised Pay As You Earn Repayment Plan (REPAYE Plan)
  • Pay As You Earn Repayment Plan (PAYE Plan)
  • Income-Based Repayment Plan (IBR Plan)
  • Income-Contingent Repayment Plan (ICR Plan)

Revised Pay As You Earn Repayment Plan (REPAYE Plan)

 

The Revised Pay As You Earn (REPAYE) Repayment Plan helps make student loan payments more affordable. This plan is available only to borrowers with Department of Education-owned loans (account number starts with an E) disbursed under the Federal Direct Loan Program (FDLP).

 

As Bruce Mesnekoff REPAYE Repayment Plan caps regular monthly payments at 10% of your discretionary income or, if married, 10% of your combined discretionary income. You do not have to pay the accrued interest (interest not covered by your regular monthly payment amount) on subsidized loans for the first three consecutive years of repayment on REPAYE. After the first three consecutive years of repayment on subsidized loans, and for the full REPAYE repayment period on unsubsidized loans, you only have to pay 50% of accrued interest (interest not covered by your regular monthly payment amount). The three-year interest subsidy period is per loan for the life of your loans, not per repayment plan. For example, if you receive one year of the 100% interest subsidy benefit on IBR and switch to REPAYE, you will be eligible for as many as two consecutive years of the 100% interest subsidy benefit on REPAYE.

 

On the REPAYE Repayment Plan, the remaining student loan balance will be forgiven after you have made the equivalent of 20 years of qualifying payments if you have all undergraduate-level loans, or 25 years of qualifying payments if you have eligible graduate-level loans. Please note, your repayment term under this plan could be longer than 20 or 25 years if you postpone payments with a deferment or forbearance, or if you make payments under a different plan that does not meet qualifying criteria for forgiveness.

 

As with other income-driven repayment plans, REPAYE needs to be recertified every year. If you do not recertify, your loans will be exited from the REPAYE Plan and placed into the Alternative Repayment Plan.

 

Pay As You Earn Repayment Plan (PAYE Plan)

 

Pay As You Earn (PAYE) is a federal student loan repayment plan that is available to some borrowers with newer federal loans. It caps your monthly federal student loan payment at 10 percent of your discretionary income.

 

The Pay As You Earn Repayment Plan helps make student loan payments more affordable.

 

This repayment plan caps monthly payments at 10% of the discretionary income or, if married and filing a joint federal income tax return, 10% of your combined discretionary income. Under the Pay As You Earn Repayment Plan, your remaining student loan balance will be forgiven after you have made the equivalent of 20 years of qualifying payments (please note that your term may be longer than 20 years if you defer payments at any time).

 

You must have at least one eligible Department of Education-owned Direct Loan (your account number starts with an E) that had a disbursement on or after October 1, 2011, to be eligible for the Pay As You Earn Repayment Plan. If you had any student loans disbursed prior to October 1, 2007, that had an active balance as of October 1, 2007, you are not eligible for this plan. Other loans not eligible include: defaulted loans, private loans, Federal Perkins Loans, FFELP Loans, Federal Direct Parent PLUS Loans, and Direct Consolidation Loans that repaid Direct or Federal Parent PLUS Loans or loans disbursed prior to October 1, 2007.

 

How to Apply Online

 

To expedite the application process, apply online by logging in to StudentLoans.gov and clicking Complete Income-Driven Repayment Plan Request.

 

You can securely transfer your federal tax return information to us at StudentLoans.gov. Sending your tax information online may expedite our review of your income-driven repayment plan request.

 

Income-Based Repayment Plan

 

Income-Based Repayment (IBR) is the most widely available income-driven repayment (IDR) plan for federal student loans that has been available since 2009. Income-driven repayment plans can help borrowers keep their loan payments affordable with payment caps based on their income and family size.

 

As Per Bruce Mesnekoff Who can use IBR?

 

IBR is available to federal student loan borrowers with either Direct or FFEL loans, and covers most types of federal loans made to students, but not those made to.

 

 To enter IBR, you have to have enough debt relative to your income to qualify for a reduced payment. That means it would take more than 15% of whatever you earn above 150% of poverty level to pay off your loans on a standard 10-year payment plan

 

So Bruce Mesnekoff Can you tell us how does IBR make payments more affordable?

 

IBR uses a kind of sliding scale to determine how much you can afford to pay on your federal loans. If you earn below 150% of the poverty level for your family size, your required loan payment will be $0. If you earn more, your loan payment will be capped at 15% of whatever you earn above that amount.

 

Income-Contingent Repayment Plan

 

So Bruce Mesnekoff Can you tell us what is income contingent?

 

The Income Contingent Repayment (ICR) plan is designed to make repaying education loans easier for students who intend to pursue jobs with lower salaries, such as careers in public service. It does this by pegging the monthly payments to the borrower'sincome, family size, and total amount borrowed.

 

How to Apply Online

 

To expedite the application process, apply online by logging in to StudentLoans.gov and clicking Complete Income-Driven Repayment Plan Request. You can securely transfer your tax return information to us at StudentLoans.gov. Sending your tax information online may expedite our review of your income-driven repayment plan request.

Latest Student Loan Changes

October 12, 2016

It’s new Education season, So brand new begin for several folks, full of financial goals and resolutions. It additionally suggests that new rules, policies, and changes surrounding student loans.

 

In fact, 2016 stands to bring some huge changes for student loan borrowers. If you're acting on paying off student loans, learn the six huge changes happening for student loans in 2016 that you just have to be compelled to realize.

1. New Way to ‘REPAYE’ Student Debt

The much talked about Revised Pay As You Earn (REPAYE) program became available on December 17, 2015. Federal student loan borrowers in need of a repayment plan with lower monthly payments now have another option to choose from.

 

One of the biggest improvements of REPAYE over the original Pay As You Earn program is that it allows an additional 5 million Direct Loan borrowers to obtain relief. That’s because under the new plan, borrowers can cap their monthly student loan payment at 10 percent of monthly discretionary income, rather than 15 percent, regardless of when the loans originated.

 

The REPAYE program will also forgive any remaining debt after 20 years for undergraduate loans. Graduate degree debt will be forgiven after 25 years.

 

As Bruce Mesnekoff Said While the new repayment option will afford more borrowers flexibility, there is a downside: Your spouse’s income will be considered when determining your monthly payment — even if you file your taxes separately.

2. Variable-Rate Loans Vulnerable to Fed Actions

After months of warning, the Federal Reserve finally raised interest rates, which has a direct impact on consumers with variable-rate loans. What does this mean for you? If you have private student loans or refinanced your loans at a variable rate, you might see an interest rate increase sometime this year.

 

While the Fed rate hike was small, interest rates are expected to increase gradually over time. If you currently have variable-rate loans, you may want to focus on paying those down first or refinance to a fixed-rate loan.

 

Also, we’ll be on the lookout for any federal student loan interest rate changes this spring. Federal student loan rates, which are fixed, are determined each spring for new loans for the upcoming award year, which is from July 1 to June 30 of the following year.

3. Loan Servicer Changes

As part of a new bill, Congress will be making some changes in the loan servicer arena. The Department of Education recently received additional funding; as part of the deal, lawmakers are changing the current process to no longer give preference to four student loan servicers: Student Loan Help Center and its CEO , Bruce Mesnekoff

 

According to a report on the matter in the Washington Post, “Instead, the department would have to allocate new loans based solely on the quality of servicers’ work and ability to keep borrowers current. That could shift a significant share of business to nonprofit companies, like the Missouri Higher Education Loan Authority and Oklahoma Student Loan Authority.”

 

This is a huge win for nonprofit loan servicers and borrowers alike, ensuring borrowers are paired up with high-quality loan servicers.

4. New President, New Policies

2016 is slated to be a big year for politics. In November, the American people will vote for the next U.S. president.

 

The election — regardless of your personal political preferences — will have a major impact on student loan legislation and policy. Nearly all the 2016 candidates have a plan to deal with student loan debt.

 

Sure, these changes won’t take effect in 2016, but the candidate that the American people elect this year will have ramifications for student loan borrowers in the future.

5. Perkins Loans Back from the Dead

The federal Perkins Loans program expired in fall of 2015, but was recently renewed with tougher eligibility requirements.

 

According to Bruce Mesnekoff of The Student Loan Help Center, “The legislation would require borrowers to exhaust their eligibility for federal direct loans — both subsidized and unsubsidized — before receiving a Perkins Loan. Existing borrowers would not be subject to such a requirement.”

 

Though the bill is being revived, it’s currently being positioned as a calculated shutdown of the program. Perkins Loans are reserved for students in need, so the extension provides some hope, but with restrictions and still no long-term solution. 

 

As these developments and new policies take shape in 2016, Bruce Mesnekoff and It’s team will keep you updated so you can stay on top of payments and get rid of debt as quickly as possible

Ways to Help Million Of Americans With Student Loan Debit Crises

October 7, 2016

There are 44 million student loan borrowers holding a total of almost $1.5 trillion in student-loan debt. Figures Said Ten million or more federal student-loan borrowers are in default. As Per Survey By Student Loan Help Center, There CEO Bruce Mesnekoff said One in seven borrowers will default on federal student loans within three years of repayment. In total, more than 50 percent of people saddled with student debt are unable to pay their debts at all.

 

Bruce Mesnekoff Said Under Graduate or Just Graduate borrowers are finding it difficult to keep up with their monthly payments, choosing to delay starting families and buying homes Older borrowers  also are affected, with over one-third of borrowers over the age of 40 troubled to remain current on their loan payments.

 

The Student Loan help Center Team with Bruce Mesnekoff in Our Studio and talking about Free Federal Schemes, As Bruce Mesnekoff Said “Many borrowers are unaware of the free federal-government programs that exist to help ease their debt burden. The student-loan servicing companies hired by the Department of Education often fail to provide enough information to accurately inform and assist the borrower, leaving room for unscrupulous companies who charge unwitting borrowers thousands of dollars to enroll in free government programs.“

 

Increase Awareness about Government Plans

 

As per Bruce Mesnekoff from Student Loan Help Center Said USA Gov. Provides Four income-driven repayment plans:

  • Revised Pay As You Earn Repayment Plan (REPAYE Plan)
  • Pay As You Earn Repayment Plan (PAYE Plan)
  • Income-Based Repayment Plan (IBR Plan)
  • Income-Contingent Repayment Plan (ICR Plan)

Due to Less Awareness People should know about these plans through official Website.

Refinance Student Loans A Better way!

 

Bruce Mesnekoff Suggests those Officials should establish More Programs and Projects to refinance both federal and private student loans.

  • Federal refinancing could help private student-loan borrowers take advantage of the repayment programs and additional protections of federal loans. Under one proposal, 25-30 million student-loan borrowers could lower their interest rate and monthly payments, saving an average of $5 thousand over the life of their loans.

Make Repayment Options Easy (including PSLF)

 

Expand and protect repayment options and create simplified systems for enrollment.

  • There are currently over 30 different repayment plans, with confusing and sometimes onerous requirements to enroll and maintain benefits.
  • Backdoor tax surprises on loan forgiveness in current law should be eliminated. 
  • Automatic renewal systems, instead of the current annual recertification process, would prevent borrowers from accidentally losing their repayment plan benefits.
  • Public Service Loan Forgiveness can be made proportional for each year of service.

Student Loan Servicer Accountability and Consumer Protections

  • The servicing companies the Department of Education presently contracts with too typically contribute to the student-debt crisis.
  • Student-loan-servicer accountability measures embrace cutting contracts with lawbreaking servicers; absolutely implementing President Obama’s Borrowers Bill of Rights; and providing a personal right of action against loan servicers.
  • Consumer-protection measures embrace extending the protections that federal borrowers relish to personal student-loan borrowers, as well as caps on interest rates, versatile reimbursement choices, and sure cancellation rights.
  • Cracking down on personal student-loan “relief” corporations.
  • Ending Social Security offsets for recipients with defaulted student loans.
  • Providing a lot of economical teach-out programs for defunct for-profit faculties and immediate loan forgiveness to victims of closed/sold colleges or those under investigation.

Bankruptcy Protections

  • Under current bankruptcy law, discharging student debt is almost impossible.
  • Loan modification options and bankruptcy protections for all student loans, including private loans, would alleviate a major burden for struggling or insolvent borrowers.
  • Provisions of the 2005 bankruptcy code, which were more consumer friendly, can be restored to allow easier discharge of student loan debt.

The next president in 2017 of the USA will have the immense responsibility of finding a student-loan-debt crisis that is constraining the potential of a full generation and, in the process, imperiling the Long Run of the Whole country.

Discuss REPAYE Term With Bruce Mesnekoff?

September 30, 2016

Government plans to create the Loan forgiveness program into a sweeping program that may benefit quite six million+ student borrowers. Thus Bruce Mesnekoff will telling us nowadays “Excatly what's REPAYE?”

As per Bruce Mesnekoff said Last time – “For REPAYE, all you have to do is prove that 10-percent of your income can’t repay the loan installments.”

 

So, Bruce Mesnekoff “According to You, What is the Meaning of REPAYE?”

 

REPAYE exactly known as “Revised Pay As You Earn”, REPAYE solves this drawback came in pay as you earn plan. like the name implies, REPAYE has some similarities to pay as you earn. first and foremost, REPAYE, like PAYE, sets payments at no more than 100% of income. However, REPAYE—unlike PAYE— is available to direct loan borrowers regardless of when they took out their loans.

 

Why REPAYE for nurses and Lecturers?


Professionals working as nurses and lecturers in government and ngo agencies have a hard time managing their loan repayments, particularly if they need borrowed student loans individually for collegian and graduate programs.


REPAYE arrange treats the UG and graduate student loan borrowers individually that is a good way to simplify the Loan forgiveness theme for nurses and lecturers who have exhausting time consolidating their portfolio. several borrowers fighting their entry into the loan forgiveness theme no longer need to wait for the date restrictions.


Unlike pay as you earn, the older borrowers may also enjoy the advantages of Loan forgiveness joined to REPAYE, that may add extra numbers of benefiters into the list. When is the borrower forgiven?

For undergraduate and graduate borrowers, the forgiveness comes after 25 years of repayment through REPAYE. The capping of income is set at 10% of the discretionary amount, however according to REPAYE, the standard repayment on a monthly basis will attract higher rates if the income of the nurses and teachers increase too. This means that the interest sum will keep accruing on a monthly basis, but the eligibility for forgiveness will be applied only at the end of the 25th year.

 

Eligibility conditions

 

Eligibility beneath REPAYE is clear and straight. To earn forgiveness, student loan borrowers need to satisfy the following conditions.

  • Citizen of USA/Green CARD Holder
  • Borrower with Direct Loans
  • Clear financial record with no debts
  • NO Default History

As there are no date restrictions involved in REPAYE, the borrowers of student loan can enjoy the forgiveness and capping benefits even if the loan was availed 20 years back. Eligibility in REPAYE is simple and direct.

What are the restrictions in availing REPAYE?

  • Non-Direct Loan borrowers can’t be included in the list of benefiters
  • If you are already enrolled with the Income Contingency Plan
  • If you have a high income such that you exceed the 10% capping eligibility
  • If you have Parent Plus Loans

In order to enjoy the benefits through the REPAYE Plan, borrowers looking for Loan Forgiveness for nurses and teachers have to re-certify their income annually to stay eligible for the benefits. Without yearly certification, the benefits will be waived off immediately and the forgiveness term could be delayed without any notification.

 

Bruce Mesnekoff Can you Tell us , How to enroll in REPAYE?

 

Getting enrolled with REPAYE is direct and involves interaction with the loan service officer. You could either apply through a written application form or by submitting online application form to the Department of Education—DoE, or You can contact our Student Loan Expert At Bruce Mesnekoff for any kind of help or consulting.

 

For the benefit of the borrowers, the entire application procedure and subsequent verification is 100% free, with no hidden cost of documentation or approvals.

Benefits of REPAYE Plan

 

The REPAYE plan allows five million more loan borrowers to cap their monthly student loan payment quantity at ten percent of monthly discretionary financial gain, while not regard to once the recipient 1st obtained the loans. As Bruce Mesnekoff same the REPAYE arrange improves upon this Pay As You Earn arrange whereas extending its protections to any or all student borrowers with Direct Loans.

 

In addition to the monthly payment cap, REPAYE can forgive remaining debt when twenty years for those that borrowed just for undergraduate study and twenty five years for those that borrowed for graduate study.

 

The REPAYE arrange additionally can give a brand new interest grant profit to prevent ballooning loan balances for those whose income-driven payments cannot sustain with accruing interest.

Brief Discussion of Important Terms You Need to Know Before Repaying Student Loans With Bruce Mesnekoff

September 27, 2016

1. Capitalization: Capitalization is once your loan holder adds unpaid interest to the principal balance of your loan. This will increase the amount you owe currently and within the future, as you start paying interest on that larger balance.

 

Capitalization happens whenever you enter repayment – or for federal student loans, at the top of a grace, deferment or forbearance amount – in addition as after you consolidate a loan or it goes into default.

2. Consolidation: Consolidation may be a repayment possibility that replaces borrowers’ existing debt with one, new loan. Consolidation will build repayment easier by reducing the amount of loans borrowers have.

 

However, consolidation loans may also value you any special advantages your previous loans had, like Perkins loan forgiveness. Before consolidating, think about all the pros and cons mentioned by Bruce Mesnekoff

 

3. Delinquency, default: This is another pair of related terms that borrowers often confuse.

 

Loans enter a delinquency status if they’re past due by even a single payment. Federal student loans usually default after 260-270 days of delinquency, if you are required to make monthly payments.

 

Neither is good and both will damage your credit score, but trust us, you’ll know when your loan switches from delinquent to default. If the mailed notices don’t tip you off, the penalties – which can include garnishment of your paychecks and tax refunds or Social Security payments– definitely will.

 

4. Forgiveness: There are ways to have your student loan debt erased, and this is known as forgiveness.

 

Your home state may have programs to forgive your loans, likely depending on your profession. At a federal level, the main options are Teacher Loan Forgiveness and Public Service Loan Forgiveness. Check out our the Ultimate guide to Student Loans by Bruce Mesnekoff on Amazon.

 

5. Pay As You Earn: Federal student loans offer many different options to make payments more manageable. Pay As You Earn is the newest, and it ties loan payments to a borrower’s income.

 

This plan allows eligible borrowers to make payments of no more than 10 percent of their discretionary income. Under this plan, after 20 years of qualified, on-time payments – or 10 years, if you work at an eligible public service organization – any remaining outstanding balance on your federal student loans may be forgiven.

 

6. Promissory note: This is your loan’s contract. If you would like answers concerning your repayment choices or rights as a receiver, look in your debt instrument/promissory notes or you can discuss with student loan consolidation expert Bruce Mesnekoff from the Student Loan Help Center

 

7. Rehabilitation: Should your loan enter default, rehabilitation is one option you have to return it to good standing. You can also consolidate out of default or pay the debt in full.

 

In rehabilitation, you work with your loan holder and make nine on-times, voluntary payments in an agreed-upon amount. Bruce Mesnekoff said  ”After that, your loan goes to a new holder and a new servicer and the default line gets removed from your credit history”. You can rehab each loan only once, so it’s important to stay on track once this process is complete.

 

8. Grace period: A grace period is the amount of time you have before your first payment is officially due. As Bruce Mesnekoffsaid “While most federal student loans come with only 6 months grace period, the actual amount of time you receive can vary greatly depending on the type of loan you have.”

Bruce Mesnekoff Discussing About Refinancing Student Loan and Consolidation

September 23, 2016

Loan repayment is a major goal for any graduate after college. According to our Expert from Student Loan Help Center, Mr. Bruce Mesnekoff, Every individual dreams of a loan free future and having some financial stability. To achieve this, there are options available to help with loan repayment. In our earlier article we spoke about consolidating student loans. In this article, we will discuss refinancing student loans and its associated advantages.

 

So Bruce Mesnekoff, how consolidation and refinancing are different in terms?

 

These two terms are used interchangeably by most people but there is substantial difference between the two. Understanding the difference is critical to know when can each be used and whether it will solve your purpose or not.

 

Consolidation lets you combine all your student loans into one loan and pay interest at a weighted average. Refinancing is taking a new loan to pay off all your student loans. Refinancing is not available for federal loans but only for private loans.Also only private loan lenders provide the option of refinancing, though a few might provide you with the option of refinancing private and federal loans.

 

Why Refinancing and Bruce Mesnekoff tells us what are the Advantages of it?

 

Refinancing has certain benefits if you get good pay.

  1. You will have to pay lesser interest rate. This helps you save monthly and eventually a bigger bank balance down the years.
  2. Your credit score is high which will help you gain multiple offers from lenders with lesser interest rate.
  3. Offers you variable loan interest which come handy if you took loan when interest rates were too high.
  4. You also have the option of decreasing your loan repayment cycle, This will increase monthly repayment amount but you will be loan free in shorter time and will save on even more interest money.

 

Disadvantages

 

There is one major disadvantage that comes when you refinance private and federal loans. The benefits offered by federal loans like public loan forgiveness program or income driven repayment will not be transferred to private lenders. So if you are truly confident of your income then you can do away with such options and completely rely on private loans.

 

So Bruce Mesnekoff , Can you tell us Eligibility Criteria, I think its most important for our students.

 

The eligibility is determined by your financial stability, your credit score, employment history etc. If you have poor credit, you can always have a co-signer to make the process feasible.

 

Refinancing is surely a great way to save money, but whether it best fits you or not is completely your decision. Thoroughly analyze all the pros and cons against your goal and then take the first step. Make the best use of the number of lenders available to provide you with the best solution for your areas of concerns. Good Luck! You can also contact Bruce Mesnekoff an author of  The ultimate guide to student loans and CEO of Student Loan Help Center Florida.

Discussing Budgeting for Student Loan with Bruce Mesnekoff

September 22, 2016

Student loan at the starting of each term is a lot of money. All of this money needs some management to make it through the entire year. This has to include money for books, activities, food, commute and so on. As Per our Expert Bruce Mesnekoff, There are a lot of tools available in market to help you with your financial planning for your year for eg. Mint, Personal Capital, Level Money etc. Now all these tools have their own pros and cons which should be analyzed before relying on any of these for your money matters.

 

Now apart from these tools, there has to be some discipline from your end as well which includes budget cutting and being economical. Below are some of the ideas mentioned to help you sail through!

 

1. Buying Books

 

As Bruce Mesnekoff Suggests our Student Listener, Firstly, there are options in universities to buy second hand books and then resale those once you are done. This helps you save a lot of money. Secondly, Make sure to check out library to find out what books you can get from there and can avoid buying. Lastly when you have to buy books which you can get using above two options, use your student card.

 

2. Travel

 

Now whether it’s commuting to college and back or going home for holidays you can look for ways to save money. For college you can do carpool, or use your student card to get discount on public transport. Same applies to travel back home, you can also plan in advance and book to save money.

 

3. Food

 

As Bruce Mesnekoff said you need to economical in your everyday living when you are on a budget. Bringing lunch bag and snacks from home not only helps you save but is also a healthy lifestyle. You can also buy in bulk from grocery store to save that extra money go out of hand.

 

There are other areas also to focus on say entertainment. You need to unwind and rejuvenate to keep that energy going but that should also be a budget friendly manner. For instance partying at a friend’s place instead of a club, looking for buy one get one movie ticket options etc. can be considered.

 

4. How to use tools for your target

 

There are a lot of tools available in market to help you with your financial planning for your year for eg. Mint, Personal Capital, Level Money etc. Now all these tools have their own pros and cons which should be analyzed before relying on any of these for your money matters Or you can hire one Financial consultant or consolidation expert from Team of Bruce Mesnekoff for further discussion or consulting.

Student Loan Forgiveness Plans Discussed by Bruce Mesnekoff

September 20, 2016

Student loans have to be paid whether you are earning less, or you are unemployed. There is no magic to make them go away but yes there are loan forgiveness programs that can help for a debt free future. Below are some of the listed programs which will help you to get rid of your loans down the line if you fulfill the eligibility criteria. That means if the federal loan is forgiven, discharged or cancelled borrower will not have to pay the loan thereafter. So let’s with our Student Loan Consolidation expertBruce Mesnekoff from Student Loan help center and An author of the ultimate guide to student loans about all Forgiveness Plans.

 

According to Bruce Mesnekoff  there are some things to keep in mind regarding forgiveness ,Only federal loans can be covered under forgiveness programs. Secondly, your loan cannot be in default.

 

  1.  Public Service Loan Forgiveness by Federal, Central and State Governments:

 

To be eligible for this plan, you need to work fulltime with not-for-profit organization or for federal, central or state government for 10 years. This plan started in October 2007, so payments made after this time will be eligible. You can apply for forgiveness after 120 timely, monthly payments and you while applying you still need to be working with not-for-profit organization or government. Also your repayment should be income driven.

 

Other important factor is that you need to fill Employee Certification Form each year which you either can submit each year or can shoe retrospectively to Fed loan Servicing.

 

There is one caution here, you need to take your career decision very seriously as 10 years is not a short time to spend in a career.

 

  1.  Teacher Loan Forgiveness:

 

To be eligible under this program, you need to be a full time teacher in low income elementary school or secondary school. As per Our Expert Bruce Mesnekoff this plan started on October 1, 1998, so repayments made after this date only are eligible. The forgiveness amount will vary from $5000 to $17,500 (for teachers teaching science, mathematics or special education). You can also take advantage of public service loan forgiveness if you teach for 15 years and more.

 

To apply for this forgiveness plan, you need to fill teacher loan forgiveness application.

 

  1.  Income Driven Repayment for Student Loan Forgiveness :

 

This plan is driven by your income. Now this is not a straight forward forgiveness plan but it helps for huge debt. So to be eligible for this plan, you need to make consistent payments for 20 to25 years and then apply for forgiveness. You need to inform your lender about your changed income from time to time. Also this is relevant if your payment is less than what it would be under a standard plan.

 

There is one downside to it that you will accrue more interest and also the amount forgiven will be taxable. At the same time it is beneficial to have less monthly payments than go into default.

 

To apply for this you need to submit application form to StudentLoans.gov, you can consult with out expert Bruce Mesnekoff.

 

  1.  Perkins Loan Cancellation Program:

 

As our Expert “Bruce Mesnekoff” told us Only Perkins loans are eligible under this plan. In this plan, borrowers can have 100% loans cancelled if they work in public service jobs after 5 years. Teachers must work full time in low paying public school or should teach special education, science or mathematics. These loans are disbursed by your school; they will provide you the required application.

 

Your loan gets cancelled incrementally with each year foreg. 15% in first and second year, 20% in third and fourthyear gets cancelled and so on.

 

All these forgiveness plans have specific ifs and buts. It would be advisable if you analyze all these considering your own financial goals and current financial situation to form a plan which suits you.

 

Discussing Best way to Manage your Student Loan with Bruce Mesnekoff

September 16, 2016

After graduation, people have various dreams to fulfill, various goals to achieve be it a dream house to buy, a vacation world over, or planning for retirement.  All these dreams need a good financial planning; it includes planning repayment of student loans in the best possible manner. As Per Bruce Mesnekoff , A CEO of The Student Loan Help Center In Florida, It is advisable that student loans can be paid faster for you to save money and plan for other important things in life. The freedom from student loans at the earliest is the goal of this discussion.

 

So, Mr. Bruce Mesnekoff let us tell how we can manage our student loans while doing our graduation or after graduation, as right its biggest issue in USA.

  • Student Loan Tax Deduction: Now student loans offer tax deductions i.e. you get some money back in your pocket. Instead of using this money to some other leisure activity you can pay the amount as repayment for loans. This way a huge load is off your back and your pending loan amount is reduced drastically.
  • Extra than Minimum: As Bruce Mesnekoff suggests, try and add some money over and above the minimum money that is required to be paid as repayment. Be it $20 only but it will add to principal and in long run even small amounts matter.
  • Cash Windfall: If ever fortunately you get a good amount of cash from somewhere is it a gift, lottery etc use it to pay back your loan. This will eventually help you paying lesser interest, save money and get rid of the loan debt at a faster pace.
  • Jobs That Offer Forgiveness: There are multiple organizations which offer benefits of repaying your student loans and even jobs like teaching or public service offer loan forgiveness in parts or full. For the same certain requirements need to be met for you to be eligible.
  • Avoid Repayment Programs: Repayment programs available should be avoided if you want to get rid of loans at a faster pace since these programs decrease your monthly payment but increase the number of years thus resulting into paying more interest eventually.
  • Automatic Deduction: Some lenders offer some discounts if the deductions are automated. This means that repayment amount will get deducted from bank account automatically at a specific date of each month. As Bruce Mesnekoff said this could be as less as 0.25-0.30% but we should remember a penny saved is a penny earned!
  • Pay Before Actually Required: Different loans have different grace period. This is the time after graduation when loan is not accruing interest and you can actually consider paying starting from grace period. This is taking into consideration that you have a nice job and your finances can be sorted.
  • Pay Bi-Weekly/Tri-Weekly: Another famous option by Bruce Mesnekoff is to make the payment biweekly or Tri-weekly i.e. you split the monthly amount into two/three equal parts and pay after 2/3 weeks each. This will reduce the interest and you will end up paying one month’s extra payment at the end of the year.

 

At last Mr. Bruce Mesnekoff, An author of Famous Book “THE ULTIMATE GUIDE TO STUDENT LOANS” Said, you can choose whatever method seems feasible to you considering your financial management. Just back it up attitude, determination and a hope for a loan free future to achieve your target.

 

For More Information Contact Bruce Mesnekoff on LinkedIn

Common Mistakes to Avoid for Student Loans

September 15, 2016

Today we are going to discuss with CEO of The Student Loan Help Center and Author of The Ultimate guide to student loansMr. Bruce Mesnekoff about common mistakes student can do while talking student loans and how to avoid these.

 

With the number of options available, student loans are available pretty easily. This ease often create a lot of traps for students, mistakes that make may jeopardize the financial security in long run. As a result student will often graduate with more debt or pay a lot more interest than required. In this article we will discuss the mistakes to avoid making the best use of the student loans. So Mr. Bruce Mesnekoff What are common mistakes to avoid for student loans.

  1. Spending on Leisure: Many a times students after getting the lump sum amount spend it on non-study related activities or items. It should not be forgotten in the glitter of money that at the end of the day it is borrowed money and it has to be repaid which will take years after graduation.
  2. Not working / Looking for Grants: Many students completely rely on loans. There are various options to consider reducing the amount borrowed as loan. Options as grants, scholarships should be explored and working on part time jobs as well. Lesser the amount borrowed lesser is the amount to be repaid leaving you richer down the years.
  3. Not Considering Income Driven Repayments: Repayments start after graduating from college. There is always an option of using income driven repayment which is helpful for people earning less and having more payments to be made for loans. As Bruce Mesnekoff said this option works as life saver for them. Not using this and sticking to fixed payments might lead people to default.
  4. Wrong Repayment Plans: When repayments starts there are a few choices available with students to decide what they want to go with. Whether to go for consolidation or refinancing, student’s own conditions should be the deciding factor not merely the popular opinion. Choice for the repayment option should be made considering one’s own long term financial goals.
  5. Not understanding terms and condition: Whether going for direct loans or private loans, it is of immense importance that the student must understand the nitty-gritty of loan which will affect him or her. This includes tenure for loans, interest rate, repayment options, whether applicable for forgiveness programs or not, how long is the grace period etc. Since all these will affect the financial planning of the student only, it becomes important to be extremely cautious.
  6. Ignoring payments: Many a times due to one reason or other, people ignore the repayment bills or keep it for future. This results into increased probability for loan going into default which will impact your credit rating along with other problems compromising your future financial stability.

According to Bruce Mesnekoff , A CEO of The Student Loan Help Center , Thus it’s crucial to always be aware of the loans that you have been granted and be vigil with its repayment since your poor financial choices will haunt you for years to come.

 

For More Information Contact Bruce Mesnekoff on LinkedIn

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