Although many recent student loan policies come about through presidential actions and bureaucratic rule-making procedures, the student loan system is rooted in congressionally-mandated law. PSLF, for example, was passed by Congress with bipartisan support during the George W. Bush Administration, which is why—despite much political grumbling—it would likely take an act of Congress to undo it.
Borrowers who enrolled in SAVE will need to change their IDR plan to resume repayment and continue advancing toward loan forgiveness. While still enrolled in SAVE, borrowers do not have to make payments, aren’t accruing interest, and don’t have to recertify their income until 2026.
Income recertifications are resuming for borrowers on Income-Driven Repayment (IDR) plans after a long deferral due to the Covid-19 pandemic. Just like monthly student loan payments and interest, borrowers’ annual income recertifications were frozen in 2020.
If student loan repayment is a road trip, the destination is always the same: getting your balance to $0. On an IDR plan, how much you pay for the journey can change, but it always ends at that zero balance. For many, it takes 25 years and ends with IDR Forgiveness, which is a long time to commit to any trip! Fortunately, there’s an alternate route for many borrowers that can cut it down by more than half!
Navigate is not a tax agency, and we are not certified to give tax advice. We are, however, experts in student loan management; we know that one of the easiest ways to minimize your student payments is to make the most of your tax savings.
If you’re worried about what’s coming down the pike for PSLF, give us a call. We can give you the most up-to-date information and help you be prepared for any potential changes. For now, take a deep breath and let your student loan professionals take the wheel.
Income-Driven Repayment (IDR) plans are a category of student loan repayment plans available to borrowers once they enter repayment. They differ from Fixed Payment plans—Standard, Graduated, and Extended—which have predetermined payment amounts that the borrower cannot change.
Income-Driven Repayment (IDR) plans are a category of student loan repayment plans available to borrowers once they enter repayment. They differ from Fixed Payment plans—Standard, Graduated, and Extended—which have predetermined payment amounts that the borrower cannot change.
If you get emails or calls with such offers, the best advice is to probably just ignore them. Otherwise, give us a call before you respond, and we can help you verify if the offer is real or bogus. Remember, “if something is free, you are the product.”
There are several different payment plans that student loan borrowers can choose from. Many of them, especially the Income-Driven Repayment (IDR) plans, have acronyms, which can make it confusing to keep them all straight. They fall into two broad, easily understood categories. The first is Fixed Payment; these plans are based on your total balance and how long you want to keep paying. They include the Standard, Graduated, and Extended plans.