Having student loan debt can feel like an overwhelming burden on its own, but also having to spend the time to educate yourself about all the potential ways you could manage that debt can add on another layer of stress. Given the complexity of federal programs – such as Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) – and their frequently changing requirements, it’s especially tough for borrowers to stay up-to-date on what their options are and determine which path is right for them.
Fortunately, there are opportunities for help that can help you de-stress about student loan management and save you time. Laurel Road Student Loan FreedomSM, our comprehensive suite of student loan management solutions, offers borrowers:
- A free 30-minute consultation with a student loan specialist who can analyze your student loans, help you understand your eligibility for federal forgiveness programs, and create a personalized plan based for you based on your financial goals.
- Student loan forgiveness counseling memberships that provide those pursuing forgiveness through PSLF or IDR with ongoing one-on-one access to student loan expertise and help navigating program requirements year after year. And, with a Laurel Road Freedom Plus CheckingSM account, you can easily manage your student loan payments and track your forgiveness progress.
- Competitive student loan refinancing options that could help you save.
Read on to learn more about the student loan landscape, your potential options, and to how to stress less about your student loan debt.
Student loan forgiveness in the news
Student loan forgiveness is constantly evolving. Recent changes, including the launch of the Saving on A Valuable Education (SAVE) plan – a new plan in the IDR program – have brought significant benefits to borrowers. The new plan reduces monthly payments and helps save on interest thanks to new borrower-friendly restrictions around interest payments, and, depending on the loan balance, may offer loan forgiveness several years sooner compared to other IDR plans. For these reasons and more, it’s worthwhile to have a reliable guide who is familiar not only with federal student loan policies in general – but with your specific loan and financial circumstances.
Freedom from student loan stress
Laurel Road’s student loan experts can help you understand the complexities and requirements of PSLF and IDR and determine your eligibility. Here’s a brief overview of both programs.
Public Service Loan Forgiveness (PSLF)
For eligible borrowers working full-time for a qualifying nonprofit or government employer, PSLF forgives the remaining balance on your Direct Loans after 120 qualifying monthly payments under a qualifying repayment plan. Learn more about PSLF here and about forgiveness for nonprofit workers. Your eligibility is primarily based on your employment, and more jobs qualify for PSLF than you may think. But it’s imperative to re-certify each year, and ensure your paperwork, records, and enrollment remains up to date.
Income-Driven Repayment (IDR)
IDR plans cap your monthly federal student loan payments at a percentage of your discretionary income. Applying for the right plan can be crucial for borrowers as they manage their repayment strategy and plan for their financial future. Explore the different IDR plans here and let a Laurel Road student loan counselor help you choose which one is best for your situation.
IDR Comparison Chart
|
Applications for SAVE, other IDR plans, and loan consolidation are all temporarily unavailable on studentaid.gov. However, you can still submit a PDF application to your loan servicer by uploading it to your servicer’s website, or mailing it to them. If you apply to SAVE, expect a delay in processing. The Education Department recommends checking its website for updates – there is no processing time estimate available. |
|
Plan |
Monthly Payments |
Repayment Period |
Status |
|
SAVE (formerly REPAYE) |
- 5% of discretionary income for Undergraduate Loans
- 10% of discretionary income for Graduate Loans
- Weighted average for borrowers who have both
|
- 10 years for low-balance borrowers (less than $12,000)
- 20 years for only undergraduate loans
- 25 years for any Graduate Loans
|
Replaced REPAYE |
|
Income-Based Repayment (IBR) |
- 10-15% of your discretionary income (and your spouse’s if filing jointly)
- Never more than federal 10-year Standard Repayment Plan amount
|
20-25 years, depending on when you become a new borrower |
Remains available but borrowers cannot select plan after 60 payments on REPAYE that occur on/after July 1, 2024 |
|
Income-Contingent Repayment (ICR) |
The lesser of the following: - 20% of your discretionary income or
- What you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income
|
25 years |
Not accepting enrollments for current students; only available to future borrowers with consolidated Parent PLUS loans |
|
Pay as You Earn (PAYE) |
- 10% of your discretionary income (and your spouse’s if filing jointly)
- Never more than federal 10-year Standard Repayment Plan amount
|
20 years |
Not accepting new enrollments |
Qualifying for student loan forgiveness
Eligibility for student loan forgiveness depends on several factors, including income, family size, employment type, and loan type. Laurel Road’s experts can help you understand these factors and determine your eligibility. Learn more about who qualifies for student loan forgiveness here.
The application process can be daunting, but Laurel Road can help simplify it for you. If you’re already in the right repayment plan, their membership can help you stay on track to forgiveness year after year. This includes keeping up with income or family size changes to ensure your IDR payments remain manageable and eligible.
If your ultimate goal is student loan forgiveness, then Laurel Road can help you achieve it with less stress. Visit these resources for more help understanding how to apply and qualify for student loan forgiveness programs:
Peace of mind with the help of student loan experts
Laurel Road’s experts can tailor solutions to your unique circumstances, helping you save money and make progress toward student loan freedom. Our student loan specialists can help you put the puzzle pieces together and provide you with the tools to understand and leverage the available programs. Focus on your life and career, not your student loan debt.
Tools to help you manage your path to forgiveness
Through ongoing PSLF/IDR counseling, Laurel Road Student Loan Freedom can help borrowers track their path to forgiveness with ease. The new Laurel Road Freedom Plus CheckingSM account is specifically designed for student loan borrowers pursuing forgiveness, with a dashboard that keeps you organized by displaying your estimated forgiveness amount and date, and tracking your qualifying student loan payments each month. The Forgiveness Payment Tracker lets you see your forgiveness progress online or in your mobile banking app. And when you add an account during enrollment and make qualifying checking activities, you’ll receive an additional discount on your annual forgiveness counseling membership.
