Home |Student Loan | What options are available to me for my $6,000 federal loan from a technical school program I couldn't complete due to the pandemic? I've applied for an IDR through Nelnet, but I make $0, am dependent on my parents, and cannot currently make payments. What should I do in this situation?

What options are available to me for my $6,000 federal loan from a technical school program I couldn't complete due to the pandemic? I've applied for an IDR through Nelnet, but I make $0, am dependent on my parents, and cannot currently make payments. What should I do in this situation?

Answer Notify Me - 1 Notifying - 2
Abbey Johnson, Helping with Student Loan Documentation
Answered on September 25,2023

Income-driven repayment means instead of paying a fixed payment that pays your loan off over a set period of time, your payment is a portion of your discretionary income. This means that what you pay is not calculated to pay your loan off (although it can) and is usually a plan chosen if someone is going for one of the forgiveness programs (although you don't have to).

If you make no money, going on an IDR plan can give you a $0 payment. That means your loans are current, they are not in default/not bringing down your credit, and, depending on the plan, interest accruing can be waived so your balance doesn't grow. That $0 payment is generally good for 12 months, at which point they will ask you to recertify (share your income). So if you file your taxes next year, you can submit that to them and they will calculate your new payment based on that. Or, if you make less than what those taxes suggest, you can submit proof of that.

In short--do the paperwork for IDR (SAVE is likely your best option for a plan), check in every now and again to make sure you are aware of when they want to you recertify/any notifications they send, and focus on your life.

Clap Clap 0
Share Share Answer Share Share
Views 1 views
tesz.in
Hey , can you help?
Answer this question
Guide

Ultimate Guide on SAVE Plan - Payment Calculation, Interest, Forgiveness

Under the Saving on a Valuable Education (SAVE) plan, a single borrower who makes less than $15 an hour will not have to make any payments. Borrowers earning above that amount would save mor..
  Click here to get a detailed guide

Related Questions