August 9, 2017
I need help with determining if this new program is really “Forgiving ” anything?? I am having difficulty weeding through the information. I know my loans qualify, however, I am already in a graduated pymt type and pay $400/mth currently (started out approx $200) My balance is approximately 64K. I plan on going part time soon and retiring in 2 yrs at age 65. In reading here in the forum it sounds like my pymts could balloon from $400 to approximately $2,000/month!! using the discretionary salary guideline given. So my question is this…..what part of the loan is ever/& how much….is truly Forgiven? Where is the savings on my part?
I am very hesitant to give up a $400/mth pymt in the wake of a fixed income in the near future, to have a $2,000 pymt I would never be able to afford on SS??? Any advice or help would be greatly appreciated.
May 3, 2014
Where is this $2,000 per month payment coming from? That seems extremely high for someone on social security. Unless your monthly income during retirement is over $10,000 per month, you shouldn’t have to spend anywhere near that much money.
The best way to figure out what your payments will be and how much will truly be forgiven is to use the federal student loan repayment estimator. This tool is provided by the Department of education and using your actual loan information you can calculate how much your payments would be on various repayment plans. The repayment estimator can be found here: https://studentloans.gov/myDirectLoan/repaymentEstimator.action
I would encourage you to look into income driven repayment plans such as Income-based repayment and Revised Pay As You Earn. On these plans your monthly payment can be as little as $0 per month (depending upon your income). The best part is that the balance of the loan is forgiven after 20 to 25 years. Once you have looked at the different plans available on the repayment estimator, you should give your loan servicer a call to talk about the plans that you like the best. Your loan servicer should be able to explain how the plans work and help you get signed up.
Finally, in your subject, you called it the “Trump Forgiveness Program”. There is not currently such a program. The student loan forgiveness programs that i have previously described were put into law during the Bush and Obama administrations. President Trump has proposed a similar program, but nothing has been created yet.
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