Home |Abbey Johnson Abbey Johnson Helping with Student Loan Documentation 82 Answers, 0 Claps, 359 Views Share × Feeds Questions Answers Guides How can I make sure my student loan repayment years count towards forgiveness with an undergrad FFELP consolidation loan and multiple grad school loans? I'm close to the 25-year requirement, but my income may be too high for IDR plans. Should I consider the SAVE plan for higher payments? Take the federal poverty level for your family size and multiply it by 2.25. Take whatever number you get and subtract that from your AGI (AGI-225%FPL) and that is your discretionary income. SAVE… 1 0 6 Do I still need to “make a payment” if my payment is $0 thanks to SAVE student loan plan? No, you don’t need to do anything.Set autopay to 0. 1 0 3 Why does it say my student loans will be paid off in 2043 when I graduated in 2009? Shouldn't I be eligible for forgiveness sooner? Old IBR (not a new borrower after July 1, 2014) requires 300 payments. (New IBR is 240). ICR requires 300 payments PAYE requires 240 payments SAVE requires 240 is only undergraduate loans, otherwise it… 1 0 2 Why is it so difficult to reach someone at Nelnet? If you speak Spanish or another supported language, try calling in that language. Many people reportedly got through after being disconnected on hold. You can spent the hold time learning key… 1 0 2 Why am I still accruing interest on my loans while on the SAVE plan through AidVantage, even though I'm currently paying $0? Will my payments increase significantly after the next tax year due to my changed income? Log into your aidvantage account and click on the loan (not the + sign next to it). It will tell you which repayment plan you are on. It will also tell you when you are due next year to recertify your… 1 0 19 Can I still qualify for $0 monthly payments on the SAVE Plan as a married stay-at-home mom if we filed taxes jointly? When you apply for an IDR plan they need your discretionary income. Discretionary income is defined in this case as a AGI minus a certain percentage of the federal poverty level for your family size.… 1 0 1 Will making a $10,000 lump sum payment on my $50,000 Parent PLUS Student Loan lower my monthly payments? Need advice on contacting Mohela. It depends on what payment plan you are on and how you allocate the payment. If you are on a standard plan the payment is fixed so that each loan has a minimum payment. If there is one 50k loan,… 1 0 4 How to contact Federal Student Aid (FSA) regarding administrative forbearance of Nelnet student loan? On your Federal Student Aid account, go to the bottom of the home page and click "contact us." On the next page it'll ask you what contact center you're looking for and you'll click "In Repayment." On… 1 0 2 How to contact Federal Student Aid (FSA) regarding administrative forbearance of Mohela student loan? On your Federal Student Aid account, go to the bottom of the home page and click "contact us." On the next page it'll ask you what contact center you're looking for and you'll click "In Repayment." On… 1 0 26 Does it ever make sense to take a lower paying job so that I pay less in SAVE Plan of Student loan? No, since you only pay 10% of each additional dollar your earn, you'd receive an additional 90% of each dollar you earn minus taxes, so at least 40% even if you live in California and are in the 37% tax… 1 0 0 Are there any tricks with the SAVE plan to optimize repayment of Student loan? There’s a trick utilizing money market accounts and high yield savings accounts when you’re receiving an interest to optimize repayment if you’re planning on paying your loans off in… 1 0 2 How can I get on the SAVE plan when I’m in the grace period after graduation? You can consolidate your student loans to be able to enter repayment faster. This cannot be reversed so you should look into the downsides of this. 1 0 1 Are my private student loans eligible for the SAVE plan? No, only federal loans. 1 0 0 Is student loan forgiveness taxable? If you’re not on PSLF, current law indicates that student loan forgiveness is taxable at the federal level. There is an exception that student loan forgiveness won’t be taxable prior to January… 1 0 1 Can I switch back to another plan while in Save plan of Student loan? Yes, you can switch to the standard 10-year plan or other plans available at that time. However, the PAYE plan is being phased out in 2024 so you cannot switch back to that plan. 1 0 6 Why is my payback amount so much more in SAVE Plan than the IBR or PAYE plan on the studentaid.gov calculator? The repayment period is longer for grad loans (10 v 20 v 25 years). Most people only consider nominal interest, but you should also look into how future payments are discounted in general finance, due… 1 0 1 What if my income increases, do I need to report that in SAVE Plan of Student loan? No. You don’t have to report any changes in your income. Income recertification occurs once per year, and you have no obligation to report until then. 1 0 0 What if I lose my job or my pay decreases while in SAVE Plan of Student loan? You can let your servicer or studentaid.gov know of such a decrease and your payment will be recalculated. 1 0 4 Why doesn’t the government take into account my high cost of living area or other debts in my monthly SAVE payment of Student loan? You chose to live in a high cost of living area and the government isn’t in the business of subsidizing such choices. The 225% of the federal poverty line calculation is meant to take into account… 1 0 21 How can I reduce my AGI without reducing my gross income for SAVE Plan of Student loan? You can obtain more “above the line” deductions by contributing more to your 401k, tax deductible IRA, and health savings account. Additionally, if you have the option to pay your healthcare… 1 0 0 Do I get any benefit on the SAVE Plan of Student loan if my income will increase next year such that I won’t receive an interest subsidy? Yes, you still may get an interest subsidy this year which will lower the repayment amount this year, your effective interest rate will decrease, and credit towards forgiveness. 1 0 0 Who typically benefits most from the SAVE plan of Student loan? People with low incomes compared to their student loan balance. Also, people whose income is close to the 225% of the federal poverty line, also can benefit from the SAVE plan. If someone has a family… 1 0 0 Why would someone get on the SAVE plan if you pay more interest over time than the standard plan/PAYE/IBR plan? Here are a few reasons. Interest isn’t added to your loan balance after you make your payment, which may reduce the effective interest rate each year. Any loan that has a longer repayment period… 1 0 0 What is effective interest rate and how do I calculate it for SAVE Plan? Your loan interest rate doesn't change. However, if some interest is waived, you may have a lower effective interest rate on your repayment plan. For example, if your loan balance is $250,000, your interest… 1 0 0 Do I need to make the $0 SAVE payment for it to waive all of my interest? No. You don't have to do anything to "make" a $0 payment. 1 0 2 I have been on an IDR plan for 2 years, does my forgiveness clock restart the 25-year timeline for SAVE Plan? If you switch from ICR, the standard plan, PAYE, or IBR, your payment count will not restart the clock and will be counted toward your forgiveness period. 1 0 3 If my initial loan balance was above $27,000 and now it’s $12,000, will my forgiveness period be 10 years now for SAVE Plan of Student loan? No, your repayment period is only based on your initial balance. 1 0 1 How is my SAVE payment calculated if I have a mix of undergrad and grad loans after July 2024? Using g as percent of grad loans. Your monthly payment will be [(adjusted gross income-225% of the federal poverty line)/12]*[(g%}*10%+(1-g%)*5%]. 1 0 1 How is my SAVE payment calculated? Why is it more than my payment on the standard 10-year plan, ICR plan or extended graduated plan? In 2023, the SAVE plan is calculated on the formula (adjusted gross income-225% of the federal poverty line)*10%/12. If this calculation is above the amortized 10-year payment on the standard plan, 12-year… 1 0 0 How do I calculate my monthly accruing interest for SAVE Plan of Student loan? Principal Loan Balance * Interest Rate / 12. You can also refer to this for detailed SAVE Plan payment calculation. 1 0 0 In SAVE Plan, how many years before my student loans are forgiven? 20 years for solely undergrad loans with initial balances above $22,000. 25 years for grad only loans or grad undergrad mix with an initial balance above $27,000. 10 years plus 1 year for every $1000… 1 0 1 What if my spouse and I both have loans, would we pay 20% of our discretionary income instead of 10% for SAVE Plan of Student loan? No, the calculation should be the same (student loan servicer's may make errors here so check their math). However, the split of the payment will be based on loan balance. If my spouse's and my joint… 1 0 1 Why is my spouse’s income taken into consideration for SAVE Plan of Student loan? These are my loans, not hers. The government considers you one entity for tax purposes and you get the benefits of such from a tax perspective. If you want to waive such benefit, you can file separately and next year their income… 1 0 0 I’m confused how the SAVE plan of Student loan works. I thought there was no interest that accrues. Can anyone share their knowledge? Interest still accrues on the SAVE plan, but if the amount of interest that accrues is greater than your monthly payment, that excess interest is waived, forgiven or subsidized. If your payment… 1 0 2 Which Student loan plan is better SAVE Plan, PAYE Plan or IBR? SAVE is generally the best because your interest does not accumulate if you pay the minimum payment. In most other plans, the minimum payment may be low but it's not enough to even cover the interest… 1 0 2 Does excess interest above your monthly payment on the SAVE plan accrue, and will it be added to your principal if you come off SAVE? Also, if you make an extra payment after this interest is "forgiven" each month, does it go towards your principal or just next month's interest? Capitalization is when interest is added to principal. Interest then accrues on the new total. Interest only capitalizes under certain conditions so if you have interest accruing that is unpaid, it continues… 1 0 0 Should I enter forbearance with Aidvantage or simply avoid making payments until my employer plan starts in November, considering the new repayment rules and the claim that non-payment won't impact my credit for the next 12 months? Check here. This on-ramp period protects borrowers from having a delinquency reported to credit reporting agencies. This prevents the worst consequences of missed, late, or partial payments.… 1 0 2 Does SAVE Plan eliminate all interest or it simply prevents principal from increasing due to excess interest? If your principal balance is $8,000, your interest accrued is $50, and your payment is $30, under SAVE that $30 will go towards the $50 accrued interest, $20 of interest will be forgiven, and your principal… 1 0 13 Do I need to make 120 consecutive payments to be eligible for PSLF? Your 120 qualifying monthly payments don’t need to be consecutive. For example, if you have a period of employment with a nonqualifying employer, you will not lose the payment counts for prior qualifying… 1 0 0 Should I contact the DofEd Ombudsman, CFPB or TISLA to obtain an accurate and objective status for my husband's student loans during the disputed period, considering the discrepancies between Mohela and FSA records? The servicer is the one that feeds the data to the feds so it's very odd that the history doesn't match. Unless that period was with a different servicer. In the end..the account adjustment.. assuming… 1 0 1 I currently have 6 loans on nelnet and did not consolidate. Is there a way to only pay the overall amount on one loan or will I have to pay a certain amount on each one? The 6 loans are six separate instances of borrowing, even though they have the same lender. So you have to satisfy the minimum payment on each loan. Once you do that, you can pay extra money to any loan… 1 0 1 Why did my payments go up under the new SAVE program with Mohela? My income has not substantially changed, so it should have gone down, not up, right? The benefits of the SAVE Plan are particularly critical for low- and middle-income borrowers, community college students, and borrowers who work in public service. However, the SAVE Plan may not be the… 1 0 5 If my student loan repayment is $0 a month on the SAVE plan, am I still gonna get charged interest even if I’m following the “rules” of my plan and not paying anything? Interest resumed effective Sept. 1, 2023. Under the SAVE Plan, if you qualify for a $0 payment, interest is still being charged. However, there is a government interest subsidy to prevent your loan balance… 1 0 17 When the planned maintenance of FAFSA form will be completed and full access will resume on the website? The FAFSA form will be unavailable due to scheduled maintenance every Sunday from 3–11 a.m. Eastern time. 1 0 8 If my monthly payment is zero under SAVE plan, is there any accruing interest? Under the SAVE Plan, if you qualify for a $0 payment, interest is still being charged. However, there is a government interest subsidy to prevent your loan balance from growing due to unpaid interest.… 1 0 54 Why does SAVE plan raise my repayment amount $400 a month compared to an income based repayment plan? The SAVE Plan is one of four income-driven repayment plans we offer. We also have traditional repayment plans, such as the Standard Repayment Plan, which offers fixed payments. To compare all plans and… 1 0 1 You could pay $0/month with the old repayment plan (if your income was low enough). But you still got hit with growing interest.Is that the case with the SAVE plan? Does interest still acrue even if paying $0? Under the SAVE Plan, if you qualify for a $0 payment, interest is still being charged. However, there is a government interest subsidy to prevent your loan balance from growing due to unpaid interest.… 1 0 2 Why did my payments go up in SAVE plan? The benefits of the SAVE Plan are particularly critical for low- and middle-income borrowers, community college students, and borrowers who work in public service. However, the SAVE Plan may not be the… 1 0 5 Can I consolidate my mother's Parent PLUS loans, which were used for my education into my own direct loans that are eligible for the PSLF program? Nope. You cannot use federal loan consolidation to transfer loans to another borrower, and your mother is the borrower for the Parent PLUS loans. She would have to have PSLF-qualifying employment herself… 1 0 11 Why does the loan consolidation for my $98,000 in graduate loans under SAVE result in a total payment of $198,000 over 25 years, doubling the loan amount, despite my understanding that interest would be waived? Is there something I'm overlooking compared to PAYE and IBR plans, which calculate a total payment of $167,000? 98000 at an example 6% interest, accrues approximately $490 a month in interest. If you pay $436, they waive $54 and your balance stays at 98000. Assuming your payment never increases (and it will increase… 1 0 5 No questions added by Abbey Johnson. My servicer calculated my IDR amount incorrectly. What should I do? First, be sure it IS incorrect by using the loan simulator tool at Federal Student Aid website. If it's close, it's likely correct. If it's off, call your servicer and ask for a recalculation. Here… 1 0 0 I was approved for a $0 IDR repayment plan for 12 months plan. Will interest continue to accrue as usual under this plan while my monthly payment is $0? Yes. Interest accumulates as usual. Interest accrues on student loans from the day they are disbursed to you. Subsidies mean someone else is paying that interest. A lack of a subsidy (e.g. unsubsidized… 1 0 3 I applied for SAVE and MOHELA put me in something called IBR-PFH. Anyone have any idea about this plan and what it means for the payment count adjustment coming in the next year or so? There are 4 IDR (income driven repayment) plans. ICR, PAYE, SAVE, and IBR. Income-Driven Repayment Plans IBR and PAYE require a partial financial hardship (PFH) to get on to them while ICR and SAVE do… 1 0 27 Why my credit score went down when I pay off my education loan? It’s temporary and it happens with everything because of the whole age of accounts and the way they calculate the scores. If you are checking a site like credit karma be aware those are Vantage… 1 0 5 Do the 3 years of the COVID student loan pause count towards the loan forgiveness for the standard loan payments plan? There are 2 kinds of repayment plans—the kind that are designed to pay your loans off after x number of payments and the kind that base your payments on income which may or may not pay your loans… 1 0 7 No Guides added by Abbey Johnson.
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