Escape Student Loan Debt: How to Minimize Your Re-payments

Know What You Owe

• Review federal loans at National Student Loan System (NSLDS)

• Dispute any inaccuracies with servicer(s). NSLDS is official record for your loans.

• Contact Federal Student Aid Ombudsman ID with complaints regarding servicers handling

of disputes.

Evaluate Payback Options

• Loan Servicer’s have no obligation to act in your best interest

so you need to independently determine best course of action.

• Variety of repayment options available for federal student

loans

• Recent enhancements to income based repayment programs

have made them more attractive options.

.TIP:If your loans don’t qualify for a program you are interested in

look into consolidation. Consolidating your loans may lead to expanded eligibility

for certain student loan repayment options.

Income Based Repayment

Options

• Three income based repayment programs

– Pay As You Earn

– Income Based Repayment Plan

– Income Contingent Repayment Plan

• You can switch into an income based repayment program even if you’ve

already started paying back your loans. Use Department of Education

calculator to determine if you qualify.

• Payments determined using outstanding loan amount and discretionary

income

TIP:If you have a job that makes you eligible for public service loan forgiveness make sure

to enroll in one these programs to minimize your repayment amount.

Because payments are back loaded for these programs.

options.

Obtaining Forgiveness : Income

Based Repayment Programs

• Qualifying for Forgiveness

– Must make 240 to 300 qualifying payment

– Periods in forbearance or deferment do not qualify

– To count payment must be on time

• Qualified payment in one program counts towards forgiveness

in all programs if you decide to change your repayment

program.

• To maximize forgiveness enroll in Pay As Your Earn if you

qualify.

FACT:

You will need to demonstrate a financial hardship to be accepted into the Pay As You Earn

and Income Based Repayment Programs.

Perkins Loan Cancellation

Programs

• Education Component of Head Start Program Staff Member

• Fire Fighter

• Law Enforcement or Corrections Office

• Librarian

• Military Service

• Professional Provider of Early Intervention Services for the Disabled

• Public Defender

• Public or Non-Profit Child or Family Services Agency Employee

• Speech-Language Pathologist

• Teacher

• Tribal College or University Faculty

• Vista or Peace Corp Volunteer

Public Service Loan

Forgiveness

• Forgiveness after 120 qualifying monthly

payments for eligible loans.

• Contact lender to determine if your loans are

eligible

• Confirm employment qualifies with

Department of Education

TIP:

Make sure you document everything. You are considered responsible for

making your case for forgiveness not your servicer.

Occupation Specific Programs

• Nurse Corp Loan Repayment

• National Health Services Loan Repayment

• Military Loan Repayment

• Teacher Loan Forgiveness

• Federal Employee Loan Repayment

• Public Defender Loan Repayment (John R. Justice)

FACT:

The benefits and responsibilities vary by branch for the military loan

repayment programs.

Getting Loans Discharged

• Reasons for discharge

– Permanent Disability

– False Certification

– Closed School

– Unpaid Refunds

FACT:

False Certification and closed school discharges are most common for

attendees of private for profit schools.

Loan Rehabilitation

• One time chance to clear default status

• Program requires enrollment through the

guarantor for your loans

• Must demonstrate financial hardship to

qualify

FACT:

Financial hardship is generally defined as 1% of outstanding loan balance is

unaffordable on a monthly basis.

Quick Reference Student

Loan Forgiveness Programs

Perkins Loan

Forgiveness

Public Service

Loan Forgiveness

Loan Repayment

Program

Loan Forgiveness

Program

Americorps X

Child Service Provider X X

Dentists X X

Disabled Service Provider X X

Fire Fighter X X

Head Start X X

Law Enforcement X X

Librarian X X

Military Service X X X

Nursing X X

Peace Corp X X

Physcians X X

Public Defender X X X

Speech Pathologist X

Teacher X X X

Tribal Faculty X X

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FACT:

You need to take control of the loan repayment process because no

one is obligated to look out for your interests!

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