There’s no such thing as private student loan forgiveness.
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The new government resource also would pester borrowers when they are falling behind on payments.
The U.S. Digital Service, along with the U.S. Department of Education’s Office of Federal Student Aid, developed the studentloans.gov/repay website primarily for borrowers who know they want to lower their payments but don’t know how to get started.
The Obama administration announced Wednesday that it wants to enroll an additional 2 million federal student loan borrowers in income-based repayment programs in the next year.
Federal student loan borrowers can choose from a variety of repayment programs, some tied to income, that can help borrowers avoid default by ensuring their payments are manageable.
It costs nothing for your union or employer to participate in the challenge, but it can help borrowers get or stay out of default, lower their monthly payments and possibly even lead to student loan forgiveness. You never have to pay for help with your student loans.
Education Secretary John King told reporters during a conference call that he’s still paying off loans he took out as a graduate student. Depending on your goals, you’ll get detailed instructions on how to sign up for income-driven repayment, certify for student loan forgiveness or consolidate your loans.
“Millions of consumers needlessly fall behind on their student loan debt, despite their right under federal law to a payment they can afford”, said CFPB Director Richard Cordray in a prepared statement. Contrary to popular belief, your student loan payments don’t have to stop you from living your life. “So it’s really individual-specific”.
The CFPB is accepting comments on its prototype through June 12.
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You can use the Department of Education’s repayment estimator to figure out your personal situation. The department announced the plan earlier this month and is accepting proposals from potential partners for the portal until May 9. “What’s clear, based on our analysis, is that there are student borrowers out there today who could benefit from income-based repayment and haven’t yet taken advantage”, he said. In the long run, the department is moving toward a future one-stop shop where borrowers can more easily manage and repay their loans.
