You Have Options If You Were Denied Pslf
If your application for PSLF was denied, you may be able to receive loan forgiveness under the Temporary Expanded Public Service Loan Forgiveness opportunity.
Visit StudentAid.gov for detailed information on how to be reconsidered for loan forgiveness.
Limited PSLF Waiver Opportunity: The U.S. Department of Education in October 2021 announced a temporary period through October 31, 2022, during which borrowers may receive credit for payments that previously did not qualify for PSLF or TEPSLF.
Get additional information on Studentaid.gov >
What Jobs Qualify For Pslf
Public service positions include any Government work, meaning being employed by the Federal Government , a State Government, or a local Government position, or working at a Non-Profit.
Keep in mind that jobs with the Police, Park Rangers, Firefighters and other similar civil agencies are all technically Government positions, and that since so many ex-military personnel move into these fields, theres a pretty good chance you may end up qualifying for PSLF even if you do leave the military.
One final eligibility condition for PSLF is that your 120 payments must be made while youre enrolled in one of the Income Based Student Loan Repayment Plans, which as of this year, means you have to be enrolled in the Pay As You Earn Repayment Plan , the REPAYE Student Loan Repayment Plan , the Income-Based Repayment Plan , or the Income-Contingent Repayment Plan .
Youll have to do some research to find out if this program will actually benefit you, because some federal student loans end up being totally repaid by the time theyve been in active repayment for 10 years, but PSLF is literally the best forgiveness program for the vast majority of Federal student loan borrowers, and especially those who dont make much money, and who have huge amounts of debt.
The Army College Loan Repayment Program
Out of all the service branches, the Armys CLRP benefits package is typically regarded as the best, since it provides up to $65,000 in lifetime student loan forgiveness.
The benefit is doled out on an annual basis, beginning as soon as a Soldier completes his first year of qualifying service, and provided at a rate of either 33.33% of his or her loans outstanding principle balance, or $1,500, whichever amount is greater.
For full details of how Army CLRP works, please visit my Guide to the Army Student Loan Repayment Program.
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Who Can Apply For A Usaa Career Starter Loan
The USAA Career Starter Loan is offered to cadets, midshipmen, and officer candidates. ROTC cadets can take it out a year before or after they are scheduled to graduate. Academy cadets can usually access it in their junior year. Officer candidates usually have to be within a few months of their commissioning date to access the loan.
Army College Loan Repayment Program
This repayment program is available for those who are actively serving in the Army. Active military are eligible to receive loan repayments after one year of active duty. How much are we talking about here? You can earn up to $1,500 or one-third of the remaining balance each year for a total of three years, whichever is greater.
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The National Guard Student Loan Repayment Program
To qualify for the National Guard Student Loan Repayment Program, you must score 50 or higher on the Armed Services Vocational Aptitude Battery, enroll with eligible jobs through the Guard, and enlist for at least six years of service. The max amount you could receive in federal principal student loan repayments is $50,000, and you could earn up to $7,500 annually.
More Than 178000 Troops May Be Eligible For This Student Loan Debt Forgiveness Benefit Watchdog Says
Although many military members and Defense Department civilian employees could benefit financially from a 14-year-old federal student loan debt forgiveness program, the benefit is underused and misunderstood, according to a new report from government auditor.
Few have applied so far for the Public Service Loan Forgiveness program, and of those who have, about 94 percent have been denied, according to the report from Government Accountability Office, showing a need for more information about eligibility requirements.
GAO found that many borrowers were confused by the PSLF program requirements. Defense and Education department officials need to work together, and push to get the word out about the program, its benefits, and its eligibility requirements, auditors stated, in order to increase the number who use the benefit successfully.
Its fundamental purpose is a recruiting and retention tool. The PSLF was established in 2007 by Congress to encourage individuals to pursue careers in public service, to include military or civilian careers with DoD. Those with qualifying federal student loans may be eligible for the remaining balance of their loans to be forgiven, if they remain in public service employment for 10 years while making 120 qualifying loan payments, among other requirements. PSLF is administered by the Department of Education.
One benefit for troops and civilians: loan forgiveness benefits under PSLF are not taxed, but DoDs student loan repayments are taxed.
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Private Student Loan Relief Programs
The hardest form of student debt to get rid of is certainly private debt, because there are far fewer avenues available to eliminate it.
Why? Because it isnt subsidized by the Federal Government, and because Federal regulators have mostly left the industry alone, choosing to let lenders and servicing companies basically run wild with the way that they handle collecting on their outstanding loans.
And thats created a terrible situation for many borrowers who desperately need Help with Private Student Loans, but on the bright side, there are a few ways to get assistance with private debt, including:
Pay Off Any High Interest Consumer Debt
If you have any consumer debt with a higher interest rate than 2.99%, take as much of the loan as you need to pay down that debt. Besides getting you a lower interest rate, it may get you a lower minimum monthly payment as well, because it will be spread over 5 years. This goes especially for ROTC students or officer candidates who have student loan debt. Get Sallie Mae or Direct Ed off your back and lock in a low rate with USAA. Student loans are usually paid back in 10 years, so by taking the USAA loan youll force yourself to pay them back in just 5 years, getting you debt free faster.
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How Military Service Affects Loan Repayment
In our survey, 10 of our respondents said they had their loans covered by the US military. This works through the Health Professions Scholarship Program, or HPSP. Medical students who apply and qualify for this program will receive 4 years of full tuition, books and fees, a monthly $2,400 stipend throughout school, a $20,000 sign on bonus, monthly allowances for food and housing, officer status and more. In exchange, you have to commit to future service as a military physician.
Lifelong Opportunities For Lifelong Enrichment
As a JAG, youll have every opportunity to continue educating and challenging yourself, taking your career to new and rewarding places.Continuing Legal Education courses are an excellent way to sharpen your skills throughout your career.You may also apply for tuition-free Master of Laws programs in specialties such as government contract law, environmental law, labor law, cyber law, air and space law and international law. This is a competitive program that typically selects more experienced captains and majors. Those selected receive full tuition, fees and a book allowance from the Air Force while continuing to serve on active duty, thus receiving full pay, allowances and other benefits while obtaining their advanced degree. After completing the program, you will receive an assignment that utilizes your advanced legal education.Military developmental education is also available. Opportunities include Squadron Officers College, Air Command and Staff College and Air War College.
STUDENT LOAN REPAYMENT AND TUITION SUPPORT
For continuing education costs, you may also be able to receive benefits under the Post-9/11 GI Bill. Its even possible to transfer your benefits to your spouse or dependent children.
View details on loan repayment and financial incentives offered.
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The Army Reserves College Loan Repayment Program
Members of the Army Reserves are eligible to receive some loan forgiveness benefits as well, though its not quite as valuable as what the regular Army Soldiers get .
After their first year of service, Army Reserves personnel will receive annual forgiveness of up to 15% of their outstanding principal balance, or $1,500 .
I cover the Army Reserve CLRP benefits in detail at the same link above, so please click it for additional information.
Student Loan Refinancing Options With Lantern
how student loan refinancing worksdisadvantages of refinancing student loansrefinancing federal student loansfind and compare student loan refinance optionsThe tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Army Active Duty Health Professions Student Loan Repayment Program
If youre a health care professional serving for the U.S. Army, you might be eligible for a sizable loan repayment. For those serving in the Dental Corps, you can get up to $40,000 each year for three years, up to $120,000.
In the Medical Corps? You can get up to $120,000 over the course of three years, and up to $75,000 if youre in the Medical Corps Reserve. You can also receive student loan repayment if youre a member of the Allied Health Corps, Nurse Corps, or Veterinary Corps.
Have questions about student loan repayment programs for different branches of the military? Reach out to the human resources departments of each repayment program. Youll want to make sure you meet all the eligibility requirements before applying.
Need a little extra help? You can receive one-on-one guidance on how to manage your student loans by reaching out to MMI. We also have a handful of articles on handling your student loans, so be sure to check those out.
Total And Permanent Disability Discharge
If you are totally and permanently disabled, you may qualify for a total and permanent disability discharge of your federal student loans or TEACH Grant service obligation. If you receive a TPD discharge, you will no longer be required to repay your loans or complete your TEACH Grant service obligation.
If you are a veteran, you will be considered totally and permanently disabled for the purposes of this discharge if you provide documentation from the Veterans Administration showing that the VA has determined:
- You have a service-connected disability, or service-connected disabilities, that are 100% disabling or
- You are totally disabled based on an individual un-employability determination.
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Dont Worry This Is A Good Thing
Why? Because we all know how hard it is to come up with a huge lump sum of taxes at the end of the year, and since the Government holds back the 28% of their payments for you, your tax liability will already have been covered.
Which means that even though youre being taxed on the benefit, you dont actually have to come up with any of the cash out of pocket, so you dont have to pay anyone anything!
However, the downside to this detail is that it means you wont actually get $65,000 in forgiveness benefits, since 28% of that $65,000 is going to be put toward taxes, and paid to the IRS instead of your lender.
That means that if you maximize your benefit and get the full $65,000 in repayment value, youll actually only get $46,800 of your student loans paid off .
Still, its a lot of money, and it will certainly help you reduce your out of pocket student loan costs.
How Much Money Does Clrp Provide
The amount of money you are entitled to varies depending on which branch of the military you join, but the maximum amount of military student loan forgiveness you can receive in your life is capped at $65,000.
The amount of money youll receive from CLRP is also partially determined by your duty-status, with active duty members eligible to receive up to twice as much as those personnel who join the reserves.
Heres the breakdown by status:
- Active duty enlistees are entitled to receive up to 33.33% of their loans outstanding principle balance paid for each year of service that they complete.
- Enlistees in the reserves are entitled to receive up to 15% of their loans outstanding principle balance paid for each year of service that they complete.
So heres the crazy thing about CLRP benefits you dont get it all at once, but you can get a third of your outstanding debt paid each year.
Keep in mind that its not 1/3 on Year 1, 1/3 of the original amount on Year 2, etc. The amount of money you get in forgiveness declines each year, because its 1/3 of the outstanding balance due.
Got that? This is important to remember, and its another one of those little details that many service personnel dont pay close enough attention to. Bottom line, dont think that your loans will disappear after 3 years!
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Loan Repayment In More Than 5 Years
Of course, not everyone wants to, or can pay off their loan in under five years. Of our respondents, 14.7% paid off their loans in 5-10 years, 5.4% in 15 years, and 19.5% in a full 30 years!
As one doctor told me, Half of my loans were at 6.125% so I paid those as quickly as possible. The other half are at 1.875% and will be paid over 30 years, so another 20 to go!
Why would he wait to pay off the lower interest rate loans? Because of stock market returns.
This is where things involve a little bit of math, so please bear with me. Lets start with the easier one. Historical SP500 returns from 1957 to 2018 are around 8%. That means for every $100 you have invested in the stock market, youll make $8. Compare that to $100 of loans at 1.875%. Every year, you would owe $1.88, or you could save that $1.88 by paying off $100 of loans.
Would you rather make $8 and lose $1.88 or save $1.88 and not make $8? That simple math is a big reason why people hold on to low interest debt.
But theres more. Are you familiar with compound interest vs simple interest? This is where the math dials up a bit.
Student loans follow simple interest, with some exceptions. $100 at 10% interest per year will grow to $110 by the end of the year. After two years, add another $10. Another year, another $10. and so on. After 10 years, the balance grows to $100 of principle and $100 of interest. Or $200.
The Air Force College Loan Repayment Program
Repayments for the Air Force College Loan Repayment Program are issued for up to 33.33% of the current principal balance of the soldiers federal student loans annually, or $1,500, whichever is greater, after their first year of service has been completed. Similar to the Navys program, benefits cap out at $10,000 in total loan forgiveness.
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Defer Your Student Loans While Youre On Active Duty
If youre currently serving, your monthly payment doesnt have to be a burden. The Department of Education allows you to defer your student loan payments during active duty service and 13 months after your return .
During this time, the government will pay the interest on your Direct Subsidized and Subsidized Federal Stafford Loans while the principal is delayed. While you wont pay your loans off any faster, you also wont have to worry about accruing interest while your payments are paused.
This is not the case for unsubsidized loans, however. If you have an unsubsidized loan, you might benefit from using a student loan deferment calculator to estimate the amount of interest you will accrue while in deferment.
Will The Military Pay Off Student Loans
My wife is thinking about joining the military. We both have a lot of school debt. Will the military pay off student loans for me and my wife?
Wouldn’t it be nice if all we had to do was join the military or marry someone who is joining or has joined and — poof! — all of our student loans would be gone? Sadly, that’s not how it works.
Will the military pay off student loans? Yes, but not for spouses. Unfortunately, there is no military student loan forgiveness for the spouses of service members. Your best bet is to utilize the military’s spouse employment help to get a job and start paying off the debt the old-fashioned way.
But military members themselves do have some student loan forgiveness options. The best-known is the military college loan repayment program . That student loan repayment program is used as an enlistment incentive for those joining the military and is not available for commissioning officers. It has some pretty stringent requirements, and whether you qualify also depends on the type of loans you have.
Eligibility for another pair of programs depends on how long you have served and if you have deployed. Those military student loan forgiveness and discharge programs also have very specific qualification requirements.
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