Here at True Solution, it’s important to us that you not only get the help you need to reduce student loan monthly payments and attain loan forgiveness faster, but that you understand the process and why what we do is important for securing your financial future. This all starts with knowing the terms we’ll be using throughout the process. If you have any questions about what we discuss in this blog post, contact a financial expert at True Solution. As a means of bringing student loan forgiveness to more people, we provide the whole consultation part of our process for no extra cost.

Income-Driven Repayment Plan

After enrolling in an IDR program, your monthly loan payments will be set to an amount that is realistic for both your family size and income. Let’s take a look at the two different types of income-driven repayment plans: IBR and PAYE.

Income-Based Repayment (IBR)

This plan adjusts monthly payments based on your income. Your monthly loan payments will be 10 percent of your income if you borrowed after July 1, 2014, and 15 percent if you borrowed before. Many federal loans are eligible for IBR.

Pay As You Earn (PAYE)

PAYE will lower your monthly payments like IBR, however, it will extend your repayment period to 20 years and repay anything after that. It’s much more difficult to qualify for PAYE and requires all federal loans to be consolidated beforehand.


Qualification refers to the process of getting approved for any number of government programs designed to make paying off student loans more manageable and allowing for student loan forgiveness in certain cases. There are a number of things that need to be considered before determining if you qualify for any of these programs, so speak with a financial expert at True Solution for a free consultation.

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is a program designed to keep borrowers in full-time service employment. Basically, what it does is it allows you to receive forgiveness for the remainder of your 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.



Loan Consolidation

Direct consolidation loan is a government program that brings all your federal education loans into one loan and one monthly payment. Your new interest rate will be the average of each separate loan and your monthly payments will be reduced, usually resulting in more interest due over a longer period of time. In and of itself, loan consolidation won’t save you money, however, it can be used to reduce monthly payments through an income-driven repayment program and can help to improve your credit score.

Loan Refinancing

A student loan refinancing company is a private lender designed to help students pay off either a federal student loan or a private student loan. Once you refinance a student loan with a private lender, you forfeit all protections associated with it.


The U.S. Department of Education requires you to recertify each year while you’re enrolled in a forgiveness program in order to maintain the benefits. If documentation is not submitted on time, you may be faced with the following consequences:

  • Monthly payment increases
  • Reverting your loan to a Standard Repayment Program
  • Losing all accrued benefits of being in the IDR program

Another time you should recertify is if there are sudden changes to your income, or your employment status. For example, if you lose your job, or become disable, or if you start working for a non-profit organization or for the government, or for any other public-sector entity, you must recertify immediately as all of these scenarios can lower your monthly payments.

Contact True Solution Today

These are just a few of the terms you should know to get started. Deciding what steps to take in order to reduce monthly student loan payments is no simple task. It’s important that you fully understand all the government benefits that are available to you and that you speak with one of our financial experts beforehand.

Our goal is to make monthly student loan payments as manageable and affordable for anyone who needs it, allowing them to focus more on their career and less on their financial well-being. Give us a call today for a free consultation.