If you’re one of millions of borrowers with student loans owned by Navient, you’ll soon be getting a new servicer: MOHELA. Navient—which used to be one of the very largest loan servicers—continues to disinvest from its student loan business after transferring out all of its federal student loans just a couple of years ago.
This newest plan touts a lot of benefits, and should be a serious boon to most borrowers, who can look forward to things like waived interest over and above the monthly payment and a lower disposable income formula. High-income borrowers should continue to be wary, however, because SAVE has no cap just as its predecessor.
This newest plan touts a lot of benefits, and should be a serious boon to most borrowers, who can look forward to things like waived interest over and above the monthly payment and a lower disposable income formula. High-income borrowers should continue to be wary, however, because SAVE has no cap just as its predecessor.
Thus far, student loan reforms have generally dealt with particular groups of borrowers: those in the non-profit sector, those who have been in repayment for 10+ years, those defrauded by for-profit colleges, etc. It has not, largely, addressed the issue of the higher education affordability crisis.
If you’re struggling to make your student loan payment, don’t wait for your due date to come and go. Your student loan professional can look at your specific situation and tell you what options you should have before you miss your payment. While the On-Ramp can benefit some borrowers, it should be considered a last resort; make sure you have all the facts before you take it.
Your student loan professional can show you how much your current plan and the SAVE plan stand to cost over the whole life of your loan.
The end of the year is a busy time, but don’t let it slip away before you take care of your student loan to-dos!
The IDR Account Adjustment looks at your oldest federal loan with qualifying payments and updates the payment count of all of your Direct Loans to match. For one client, that’s his Perkins Loan, which he started paying off in residency. FFELs and Perkins Loans, however, are ineligible for both PSLF and IDR forgiveness, normally. Suppose you consolidate them into a new Direct Consolidation Loan by the end of 2023. In that case, they become eligible and retain the highest existing payment count meaning not only got PSLF a year early on the loans he thought would be forgiven, he got ALL his loans forgiven!
If you have a need for quick changes, immediate response, or more complex information, you may need to give your student loan servicer a call. None of them, however, have a great track record of customer service. That said, if you can endure the endless phone trees and wait times, you could be rewarded with same-day results. Sadly, it can take a bit of maneuvering to get to someone who can truly be helpful.
If the thought of paying your student loans is still making you cringe, give your student loan professional a call. We’re here to help you find your way out of the dark and toward a bright new path, free from your repayment woes!