Like any uncertain investment, patience is key to reaping the rewards of an education. The fruits of your labor may not be what you set out to find, nor what you thought you needed, but, whatever you reap, you’ll need patience while it grows.
Borrowers first got this news back in January when the Department of Education announced that it would be revising the REPAYE plan, but Ed. has decided—instead of revising it—to replace it altogether. The new plan, SAVE (Saving on a Valuable Education), will be phased in over the next year and promises to be the most affordable plan yet.
Last fall, the Department of Education announced new regulations surrounding student loan repayment for those pursuing Public Service Loan Forgiveness (PSLF). This comes after it completed a negotiated rulemaking process that included input from industry professionals like Navigate and our partners in the PSLF Coalition.
If you haven’t touched your student loans since March, 2020, don’t worry: you’re in the same boat as—quite literally—millions of other borrowers. To get yourself ready for repayment, here are some ways you can get ahead of the curve.
As part of the recent bipartisan agreement to raise the debt ceiling, the current student loan payment pause will expire at the end of September. After more than three years of forbearance, borrowers will resume making their monthly federal loan payments, albeit in a very different economic climate than before.
As part of the recent bipartisan agreement to raise the debt ceiling, the current student loan payment pause will expire at the end of September. After more than three years of forbearance, borrowers will resume making their monthly federal loan payments, albeit in a very different economic climate than before.
Navigate isn’t a news organization, we’re student loan advisors and we make helping you our business. When we post tips, we do it to help our clients. We’re not here to catch attention, we do it to keep people informed and to help them save money. Student loans are expensive enough, so look to the experts when you need the best information.
To make things easy, think of it like this: use the US Department of Education (also known as FSA) via studentaid.gov for news about student loans and to review your loan data. If you have questions about repayment or loan forgiveness, talk to your servicer—which, if you’re a PSLF candidate, is FedLoan Servicing!
Under the LWO, those in full-time non-profit work can qualify for PSLF regardless of the payment plan they have been on, and most types of federal loans now qualify. Physician borrowers just need to take steps to convert their old loans into a Direct Consolidation Loan and submit a PSLF form to their employer before the period ends in October. Physicians with fewer than 120 payments have an extra step. You will need to get on an income-driven repayment (IDR) plan for your remaining payments to qualify.
If you’re recently married, there’s a good chance that your previous tax strategy will need to be adjusted now that you’re married.