it is likely a private loan. On the other hand, if the loan was disbursed by the U.S. Department of Education or a federal student loan servicer, it is most likely a federal loan.
We spoke with Jay Fleischman, a student loan and bankruptcy attorney, about what people can do. First, he said that by federal law, people who have student loans in default get a notice in advance warning that they are at risk of having any potential tax refund seized for student loan re...
If you have a federal student loan that defaults, you may still have the option to rehabilitate the loan. In order to qualify for FFEL or Direct Loan rehabilitation, you will need to make 9 monthly payments within 20 days of the due date during a period of 10 con...
and you have not consolidated it with any type of federal loan, you may want to consider talking with a bankruptcy attorney. The courts are now slightly more open to considering these loans very much like credit card debt, which my be relieved in bankruptcy. Every state has...
Loss of tax benefits: With your student loan debt eliminated, you’ll no longer be able to claim a tax deduction for the interest paid on your loan. The deduction, which is up to $2,500 annually, applies to both federal and private loans. While the tax benefits aren’t valuable enough...
And I learned that on my federal student loans, I currently owe $500 MORE than the day I graduated from law school. How IBR Works Income Based Repayment is a program available for federal debt. It applies a formula to cap your monthly payment at something that the federal government thinks...
How I paid off $130,000 in student loan debtWhat I wish I had known before taking it on.Olivia Armstrong Key takeaways Before taking out student loans, make sure you understand the financial consequences. If you have federal loans, you might qualify for income-based repayment programs that ...
Not sure if you should pay off your student loans or invest your money? Here’s how to make the right choice for your situation. (iStock) Student loan debt is a burden for many Americans. In 2020, 30% of all adults reported that they had student debt, according to Federal Reserve ...
Can I change who has my student loan? It’s possible to switch loan servicers or lenders. However, you should be aware of the potential downsides before deciding. Here’s how to change your student loan servicer or lender. From one federal loan servicer to another ...
But COA also affects the amount of student loans you can borrow. Federal law states that you are only allowed to borrow federal student loans up to the cost of attendance minus other aid. Private student loans typically have similar restrictions. Read: Student ...