Secret Ways To Get Student Loan Forgiveness


(light music) – [Man] It’s estimated that
roughly 50% of student loan borrowers qualify for some type of student loan forgiveness program. While most borrowers don’t know this, the secret to qualifying for loan forgiveness is simple. Just sign up for a qualifying
student loan repayment plan. And your loan will be forgiven
at the end of the plan. Your income might even be low enough to qualify for zero or minimal repayment. At which your loan will
be forgiven at the end. You can sign up for
these programs for free at studentloans.gov or hire a company to do it for you. And whether you do it yourself,
or hire someone to help, here are the student loan repayment plans that qualify for student loan forgiveness. Income-based repayment plan. IBR. The IBR plan is simple. If you have loans from
before July 1, 2014, your payment will not be higher than 15% of your discretionary income. You will make payments for 25 years and at that point, your
loans will be forgiven. For borrowers with loans
after July 1, 2014, your loan will not exceed 10%
of your discretionary income. And the loan will be
forgiven after just 20 years. Discretionary income is
determined by a formula based on your family
size and taxable income. Studentloans.gov has a great calculator that can help determine your amount. With IBR, your loan
repayment will never exceed the payment of the 10 year
standard repayment plan. And your loan will be forgiven
at the end of the term. Pay as you earn repayment plan. PAYE. The pay as you earn repayment plan, PAYE, is very similar to the IBR plan. With PAYE, you will not pay more than 10% of your discretionary income. And your loan will also be
forgiven after 20 years. The key difference is
that only certain loans going back to 2007 qualify for this plan. With PAYE, your loan
repayment will never exceed the payment of the 10 year
standard repayment plan. And your loan will also be
forgiven at the end of the term. Revise pay as you earn
repayment plan, REPAYE. Unlike PAYE, which was
available for loans taken out after 2007, REPAYE is open
to all direct loan borrowers. Regardless of when the loan was taken out. The repayment plan still caps your payment at 10% of your discretionary income. And the loan will be
forgiven after 20 years. The REPAYE plan, also
includes an interest subsidy, that would help cover 50% of the interest, in cases where the new payments cannot keep up with the accruing interest. Income contingent repayment plan. ICR. The income contingent repayment plan, ICR, is a little different than IBR or PAYE. There are no initial income
requirements for ICR, and any eligible buyer may
make payments under this plan. Under this plan your payments will be the lesser of the following. 20% of your discretionary income. What you would pay on a repayment plan with a fixed payment over
the course of 12 years, adjusted according to your income. With the ICR plan, your
loans will be forgiven at the end of 25 years. With ICR, your payment might be higher than the standard 10 year repayment plan, since you have to submit
your income every year, if your income rises high enough, your payment will adjust accordingly. Public service loan forgiveness. PSLF. This isn’t a secret. The PSLF program will
forgive any loan balance after you’ve made 120
qualifying monthly payments and work for a qualifying employer. Non profits, public
education, and public health occupations, among others
qualify under this plan. If you are smart, you’ll
combine IBR or PAYE with PSLF to get the maximum benefit. You can enroll in our 15
minute program to show you how to apply for the PSLF program at TheCollegeInvestor.com Remember, while these secret
student loan forgiveness options could be helpful
to some borrowers, for others they may result
in tax consequences. Under current IRS rules, the
forgiven amount of the student loan is added to the borrowers
taxable income for the year. For example, if you have
$50,000 worth of forgiven loans and made $35,000 working, your total income for the
year would now be $85,000. The result, a higher tax bill. Private loans. If you have private student loans, unfortunately, you won’t
qualify for any type of forgiveness program, even secret ones. If you’re struggling with
your private student loans, consider refinancing
them to take advantage of a lower interest rate
or payment structure. We recommend services like Credible, which allows you to see
what you qualify for, in less than two minutes. And compares student loans
at dozens of lenders. As a bonus, CollegeInvestor
readers will get a $200 credit when they refinance with Credible. Finding a qualifying student
loan forgiveness plan can be confusing. Remember, you can always sign up for free at studentloans.gov. But if you want to pay
for a reputable company, I highly recommend Ameritech Financial. They can find the right program for you. And potentially restructure your loans so that you can qualify for programs you would not otherwise qualify for. They are licensed and
bonded in most states, and can answer your
questions 24 hours a day. Want to learn more? Visit us at TheCollegeInvestor.com or call 1-866-863-3870 today.

Paul Whisler

30 Comments

  1. Love the income-based repayment plans. Make it so much easier to manage your payments. Great video!

  2. Wow. I had no idea. Good resource to share with my friends who have student loans.

  3. The people who have my loan cornerstoneloan.gov said that icr and ibr are the same now or something. And I think they said it was 20 years not 25 like it changed or something. anybody clarify this? There is no way where I can look this up. It seems like they just want you to pay and not to try to avoid it.

    I am pushing 20 years, but not sure exactly.

  4. Does this apply to borrowers who haven't made consistent on time payments?

  5. Let’s all do our part for the next generation and heavily advise NOT going to college unless you really have a mapped out plan. Don’t just listen to adults who tell you you should go to college. Maybe biggest financial disaster of your life

  6. This is Joseph give me your contact numbers and Ill help you enroll in the program

  7. But taxed by irs on ballooned amount forgiven. This video is misleading and another trick. Horrible. You can end up owing $40k and up in taxes after you thought you were “forgiven”.

  8. Not really any forgivness here, 20+ years is assuring they will get their interest money still. Pay off asap!!

  9. If you graduated and are in debt, please take this survey in regards to student debt! Many thanks https://www.surveymonkey.com/r/YGMYQCV

  10. So you go to college, earn your degree but borrow the money to pay for it. Then when you qualify you try and squirm your way out of repaying what you borrowed. No wonder America is bankrupt.

  11. I know how to fix and prevent. So many people are always shocked when I share the secret . Just ask me. Free…

  12. I guess Defense Against Repayment isn't really a loan forgiveness program. 😛 Great Video.
    Got to love this one though. https://www.consumer.ftc.gov/blog/2019/07/ftc-shuts-down-student-loan-debt-relief-scheme
    And I assure you there is a lot more.
    Sigh*
    We hide so much from the public, everything things the system works one way when it works in a completely different manner that is way more efficient and well oriented.
    Does anyone recognize that there is a Bill that allows people to study on their own accord and make a presentation to the Department of Education within a committee of the specific field of education they are wanting to get a Degree at in order to obtain their bachelors/ masters/ doctorates degree and more?
    There is SO much being lied to about to citizens and more on the topic.

  13. Its better to have private student loans than federal loans that what they don't tell you

  14. Over 95 people have had their student loans forgiven by the government in their forgiveness programs! It's almost as good of odds as a lottery! So many student loan lies by the government. I once consolidated my loans to lock in a 5.1% interest rate…cost me thousands to refinance them…government then arbitrarily jacked up those rates a few years later to 5.85% and 6.8%. Governments are just thieves for the banks.

  15. One important fax that this clowns are missing, you missed a payment, you no longer qualify and so this video blows. If you perhaps been caught in a hardship temporary and apply for different, also you no longer qualify. Now, yes, someone would be smart enough to say , then don't apply. Sure,, 5 year car loan, perhaps. But student loans spanning for 25 to 30 years.. not so much. I also hate the fact that only government people qualify? Really , the same wasteful people we've seen over and over again, they are getting another quite expensive brake.

  16. So what about loans takin out in 93 and 94…for a school that shut down due to the Northridge earthquake?

  17. I didn't even borrow a student loan my so called teachers was the dirty teachers from Everest so now im in a 10000 dollar debt for something they did now i tried to go to school right now i want even get grants cause of them😠😠😠

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