Welcome back to our blog here at True Solution! If you read our last blog, you know that we covered some of the key benefits of working with True Solution if you’re overwhelmed by student debt. We talked about our simple and refined approach to student loan forgiveness, as well as our focus on creating a plan that’s individualized with your goals and your future in mind. In this blog, we’re going to take a look at some of the more specific benefits of working with True Solution and how we use programs like IDR or PSLF to help you lower monthly payments and attain forgiveness faster.
What Is An Income-Driven Repayment Plan?
When you enroll in an IDR program, your monthly student loan payment is set to an amount that is affordable for both your income and your family size. If your federal student loan payments are high in relation to your income and/or you have a large family, income-driven repayment will likely be beneficial for you.
What Is Public Service Loan Forgiveness?
Public Service Loan Forgiveness (PSLF) is a program designed to keep borrowers in full-time service employment. Essentially, what it does is it allows you to receive forgiveness for your remaining student loans as long as you have made 120 qualifying monthly payments and you were working full-time for a qualifying employer. You will have the option to enroll in the PSLF program after having entered into a public service job.
Problems With Student Loan Servicers
Most people are well aware of the problems of working with a student loan servicer. According to a 148-page report released by the Consumer Financial Protection Bureau (CFPB), reports of servicing failures by both federal and private student loan companies are widespread. These failures resulted in higher costs, unnecessary obstacles, and driving many borrowers to default on their loans.
The truth is, even if they didn’t create these hurdles for you, they almost certainly didn’t notify you about government programs that could save you money and enable you to achieve forgiveness on part of your loans.
Manageable Monthly Payments
By enrolling in an IDR program, your monthly payments will be more manageable for you and your family regardless of how much you owe. If your income were to drop due to unforeseen circumstances, your monthly payments will drop along with it. Your enrollment term can be shortened, allowing you to attain forgiveness much faster.
In order to attain loan forgiveness, you need to remain in the program by recertifying each year. It’s important that this documentation is submitted on time and correctly in order to ensure you enjoy the full money-saving benefits. You’ll also need to recertify if there your income or employment status changes, or if you start working for non-profit or the government. Doing so could lower your monthly payments even more!
True Solution enables you to receive Direct Consolidation Loans, meaning all your federal education loans can be made into one loan and one monthly payment. This can be a helpful tool for lowering monthly payments and overall, making the process more manageable.
Improved Credit Score
By successfully completing the application process, your new, lower monthly student loan payment will reflect one open trade line instead of multiple. As a result, you will see a boost to your income-to-debt ratio on your credit score.
Still not convinced that we can reduce your monthly student loan payments and help you achieve forgiveness faster? Speak with a financial expert at True Solution today for a free consultation.