Public Service Loan Forgiveness is Secure(ish)
The folks in Washington, DC are looking to save money wherever they can. I've been hearing from a lot of worried borrowers wondering, "Can I count on Public Service Loan Forgiveness to last?" My answer? Um, maybe. Probably. I think so. Public Service Loan Forgiveness doesn't exactly cost money Because only Federal Direct Loans are eligible for Public Service Loan Forgiveness, the United States Department of Treasury never writes a check to anyone. Instead, when a borrower qualifies, the…
5 Traps for Unwary Student Loan Borrowers
On the one hand, Public Service Loan Forgiveness is easy. Just 1) make the right kind of payment, 2) on the right kind of loan, 3) while you are in the right kind of job. 4) Repeat 120 times, and 5) prove it. But the devil is in the details. Payments made under many “standard” repayment plans don’t count towards forgiveness. Payments that are more than 15 days late don’t count toward forgiveness. Many borrowers must consolidate or reconsolidate into Federal Direct Loans in order to have the “right kind of loan.”…
Budget Control Act Makes Student Loans More Expensive
Last night, the House of Representatives passed the Budget Control Act of 2011 and the Senate is expected pass the Act today. The Act provides for: Elimination of the in-school loan interest subsidy for graduate and professional students beginning July 1, 2012. Elimination of Direct Loan “repayment incentives” (reduction in interest rates for on-time payments) for new loans disbursed on or after July 1, 2012. Additional funding for the Pell Grant program for the next two fiscal years. The elimination of the graduate and professional…
What Every College Student and Grad Should Know About the Debt Ceiling Agreement
At long last, the folks in Washington have made a deal and student financial aid is hanging in there. The agreement reached yesterday between the White House and Congress avoids some of the cuts that would have hurt students the most. Yesterday’s agreement shores up the Pell Grant program by providing $17-billion in funding, and the White House indicates there will be sufficient funding to keep Pell Grants at their current level of $5,500. If Pell Grants had been cut, students may well have had to increase their reliance…
10 Ways Student Loan Lenders and Collections Agencies Violate the Law by Adam Minsky
Adam S. Minsky, Esq. is a Boston lawyer who concentrates his practice in student loan law. Thanks for this Guest Post, Adam! When student borrowers fail to pay their student loan bills for any reason, lenders will try to get them to pay. The longer the borrower doesn’t pay, the harder the lender will try. Sometimes, the lender will hire a collections agency to pursue a student borrower who is in delinquency or default, and often these agencies will use aggressive, intimidating, deceptive, or irritating tactics. The federal Fair Debt…
