Advantages consolidating students loans
Teachers often qualify for multiple loan-forgiveness programs.
The best known are the federal government’s 10-year Public Service Loan Forgiveness (PSLF) program, designed for any public sector employee, and the federal Teacher Loan Forgiveness program, which forgives up to ,500 after five consecutive years of teaching in schools that serve low-income students.
That’s because her spouse’s income won’t affect her loan payments under PAYE as long as the two of them file separate tax forms.
If she doesn’t qualify for the Pay As You Earn plan, Talbert should enroll in the newer Revised Pay As Your Earn (REPAYE).
only to find out that you don’t qualify” Next, Talbert has to figure out which of the five income-driven plans she qualifies for and should enroll in.
Amrein says Talbert may qualify for the Pay As You Earn plan, which is open only to borrowers who took out loans after Sept. There are a couple of advantages to that plan, but for Talbert, the main one comes into effect if she gets married in the next 10 years, Amrein says.
In most cases, including Talbert’s, Public Service Loan Forgiveness will be a better financial deal than the Teacher Loan Forgiveness.
“The sooner you start payments, the sooner you get forgiveness,” notes Fred Amrein, a financial planner in Wynnewood, Pa.It doesn’t help that student loans carry unfamiliar terms, that there are different rules for different types, or that an array of repayment options can drastically affect your monthly payment, the total amount you pay, and your tax bill. We found three borrowers who needed guidance on repaying their loans and matched them with experts: a financial planner, a student debt counselor, and a lawyer who specializes in student loan laws.(See more about the experts at the end of the story.) The borrowers are at different stages of the repayment process and have distinct questions about their loans.That, along with a one-year master’s degree program, also at USC, left her with a debt load of 2,348 in federal loans, plus about ,000 in private loans.Now, despite her efforts to learn about her options, she’s confused about the best way to pay those debts down.