I just read this article from rollingout.com. “The Department of Education abruptly suspended applications for student loan forgiveness through income-driven repayment plans on February 21, following an injunction from the 8th Circuit Court of Appeals. This sudden halt affects the Saving on a Valuable Education (SAVE) plan and several other repayment options, forcing borrowers to reconsider their financial strategies amid growing concerns about affordability. The Education Department has removed online applications for multiple income-driven repayment (IDR) plans, including Income-Contingent Repayment, Income-Based Repayment, Pay As You Earn, and the recently launched SAVE plan. This sweeping change comes in direct response to a federal court decision blocking implementation of these programs, creating widespread confusion among the millions of Americans managing student debt.”
I’ll address each of these types of repayment plans in this and the next several articles. Let’s start with the Public Service Loan Forgiveness (PSLF) program.
“The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer…. To benefit from PSLF, you should complete and submit the PSLF form every year while you’re making progress toward PSLF. We will use the information you provide on the form to inform you if your employment qualifies and to confirm if you’re making qualifying PSLF payments. Submitting the form annually will let us track and verify how many qualifying payments you make while working full-time for a qualifying employer, among other PSLF eligibility requirements.” ~Federal Student Aid
This sounds like a good program, in theory. However, you must show that you are employed by a qualifying employer and remain employed by such an employer for the duration of the 10 years. Since 1996, of all the people who have applied for PSLF, only 2.6% of these people have actually had their loan forgiven! We have a better solution!
With our Financial GPS, we can help you pay off your student loan more quickly and save money in the process. Our Financial GPS will teach you how to pay down your debt quickly and efficiently and show you how to build wealth after you pay off your debt.
To find out if our program can help you, fill out this contact form and submit. We will be in touch with you shortly to set up a free, initial consultation. You may also call us at Luminous Vitality Wealth Partners 530-830-2453 to make an appointment
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