Practice English Speaking&Listening with: More Options for Your Federal Student Loan Repayment Strategy

Normal
(0)
Difficulty: 0

More Options for Your Repayment Strategy.

This video will introduce: Federal loan forgiveness programs

Developing and adhering to your repayment strategy.

Weve talked a lot about repayment options. The final thing to consider

when setting your repayment strategy is student loan forgiveness.

Under certain federal repayment plans, your remaining balance is forgiven

at the end of your term. Well briefly touch on two other types of

loan forgiveness programs: Public Service Loan Forgiveness,

and Teacher Loan Forgiveness. With Public Service Loan Forgiveness, full-time employees

in government organizations and nonprofits who make 120 payments

on their Direct Loans could have their remaining balance forgiven.

If you believe that your future could entail work in these types of organizations,

be sure to speak with your federal loan servicer.

Borrowers who have been teaching full-time in low-income schools

or for educational service agencies for five consecutive years may have

their subsidized or unsubsidized loans forgiven up to $17,500.

If teaching is your future, talk to your loan servicer to see if youre eligible.

When its time to develop your repayment strategy, perhaps

loan forgiveness will be an attractive feature for you.

Okay. Youve learned ways to organize your loans, youve been introduced

to student loan repayment options, and we briefly touched on student loan forgiveness.

This knowledge is important. Why is it so important?

Because failing to make your monthly payment could impact your credit rating

and put your eligibility for certain repayment plans at risk. Thats why

its great to know how you can benefit from federal loan repayment options.

To finalize your repayment plan grab: 1. Your budget.

2. Your actual or projected income when repayment begins.

3. Your estimated monthly payment using the Repayment Estimator at studentloans.gov.

4. With this information in hand, calculate how much of your gross

monthly income will be dedicated to loan repayment. Payments less than

10% of your gross monthly income are considered manageable.

If it looks like payment will be more complex:

See if you qualify for a federal income-driven repayment plan

Determine if Graduated repayment could be an option for your federal loans

Analyze your budget to see what could be cut in order to make repayment less stressful

Talk to your servicer to see if you qualify for a deferment or forbearance

Its important to remember that your repayment strategy can change

and the great thing is that your federal student loan servicer is always available

to discuss the best ways to stay on top of your monthly payments.

If you get sick, lose your job, or your plan has to change, options are

available that could drop your monthly payment to a comfortable amount.

Best of luck in repayment!

The Description of More Options for Your Federal Student Loan Repayment Strategy