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August 10, 2014

Only Direct Loans Are Eligible for Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is available for Direct Loans ONLY.  If you have older federal loans from the FFEL Program, Perkins loans, or Health Professions Student Loans, you may consolidate those into a Direct Consolidation Loan (which is eligible for PSLF) and then start making payments towards forgiveness.  Any payments you may have made on the ineligible loans before they were consolidated into Direct do not, cannot and will never count toward the required 120 qualifying payments. Sorry.  I don’t make the rules,…

By Heather  |  Category:  Public Service Loan Forgiveness  

March 13, 2014

Congress Seeks to Increase Taxes on Student Loan Borrowers

Sigh.  According to the Joint Committee on Taxation, the feds can increase revenues by $13.0 billion over 2014-2023 by repealing the student loan interest deduction and shifting the full burden of student loan interest back to student loan borrowers.  And if Congress also required student loan borrowers who have committed their careers to public service to pay tax on loan forgiveness they earned, the Joint Committee on Taxation estimates they could increase tax revenue by an additional $1.1 billion. The “Tax Reform Act of 2014”…

March 6, 2014

Will Proposed Cuts to Public Service Loan Forgiveness Impact Existing Borrowers?

Us student loan borrowers are understandably concerned about parts of President Obama's proposed budget, but we would do well to remember that the budget proposal itself cannot, does not, and never will determine whether any future cuts to student loan forgiveness would apply to existing borrowers.  The offending document, the Budget of the United States Government, Fiscal Year 2015, is a political document.  It consists of 212 pages of budget overviews organized by agency and summary tables of the dollar amounts in question.…

March 4, 2014

President’s FY 2015 Budget Recommends Tax Breaks For Students

On Monday, White House officials outlined in broad terms several of the President's tax priorities from his proposed fiscal year 2015 federal budget.  Among the key provisions, his FY 2015 budget asks Congress to make permanent the American Opportunity Tax Credit, currently set to expire in December 2017.  The administration says the credit will provide an average benefit of $1,110 to 11.5 million families. The benefit provides up to $2,500 in partially refundable tax credits for tuition. President Obama is also proposing a simplification…

February 14, 2014

5 Tips for Managing Student Debt

Heather loves National Public Radio and offering free advice to student loan borrowers and their families. She got to enjoy both last week as she sat down with Public Radio International's nationally-syndicated talkshow host Tavis Smiley to discuss how to avoid student loan debt or what to do once you’re in student loan debt.  Listen to the interview here.   Heather's Five Tips for Managing Student Loan Debt: 1.  Everyone should fill out the Free Application for Federal Student Aid (FAFSA). 2.  Students should choose…

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