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frequently asked questions

FAQs

frequently asked questions

Our easy, three-step process means just that – it’s easy. When you’re ready to take things to the next level, a dedicated Student Loan Advisor will evaluate your situation during a one-on-one consultation and financial analysis. Then, we’ll match you to options in your best interest like lower payment plans, student loan forgiveness, or refinancing. We take care of the hard stuff, then help you solve it.

We are passionate about helping anyone affected by student loan debt. This could be student borrowers like current undergrad students, graduate students, and anyone who left college with education loans dragging them down. It also includes parents of students who cosigned on a student loan or took out Parent PLUS Loans to help their kids pay for college. If a higher education bill is plaguing you, we’re here to help you figure out how to breathe a little easier.

During both forbearance and deferment, you temporarily stop making payments on your student loan. The difference between these temporary relief options is that you are not responsible for any interest that accrues on subsidized and Perkins loans during deferment. However, you’ll still be responsible for interest that accrues on any student loans during forbearance.

Because of this difference, it may be more difficult for you to receive approval for deferment compared to forbearance. However, if your student loans are not subsidized or Perkins loans, deferment and forbearance will offer you the same benefits.

To learn more, read our blog post on student loan forbearance vs. deferment.

Here’s the big question for you: Are you ready to make that first student loan payment? If so, that’s great. Ensure you’re in the right payment plan for you, whether that be income-driven or standard or graduated. Then make those payments every month in a timely manner.

If you’re not ready to make your payments, don’t worry. We know that leaving school doesn’t automatically ensure you have a full-time job with a full-time salary. Our team of student loan professionals will review all the options you might be eligible for, including forbearance and deferment, and walk you through every potential path. We’ll help you find a student loan solution that works for your current situation, even if you’re not ready to enter repayment yet.

Before you can come up with a plan of attack for your student loan debt, you’ll need to know what types of loans you have. To see what federal loans you have, you can use the National Student Loan Data System (NSLDS). You’ll need to use your FSA ID to get this information.

Unfortunately, there is no NSLDS equivalent for private student loans. You have a few options that could help you figure out what private student loans you might have. You could contact your lenders or loan holders to see what information they can give you about your private loans. You may also be able to find details about your private student loans by checking your credit report.

The federal government issues federal student loans through the Department of Education. Lenders like banks and credit unions offer private student loans. Because federal student loans are offered through the government, they tend to offer more benefits – like not requiring a credit check and forgiveness options – to borrowers than private student loans do. And you’ll need to ensure any private student loan lenders work with your school’s financial aid office.

We also have an entire blog post that covers the difference between federal and private student loans if you want more information.

Direct subsidized student loans have a perk that direct unsubsidized student loans do not – the Department of Education pays any interest that accrues on subsidized loans while you’re in school at least half-time, during your grace period, and during periods of deferment. Any interest that accrues on unsubsidized loans during those time periods is your responsibility. If you don’t pay the interest during those time periods, it will capitalize on your overall student loan amount.

If you’re still scratching your head, check out our blog post on subsidized and unsubsidized student loans to learn more.

If you already know what you want to do, that’s great! We can review your financial situation to help you reach your goal.

The simple answer: Pay more than the minimum monthly payment amount. Repay the loan debt as quickly as possible to reduce the amount of interest you’ll have to pay over the lifetime of the loan. However, you may want to think about refinancing to get a lower interest rate, if you’re able to pay over time or can’t afford the current rate.

Student loan delinquency is when you have fallen behind on repaying your student loans. You can enter delinquency from the first day after you’ve missed a payment.

Student loan default happens when you have been delinquent for a certain period of time (which is typically 270 days). Once your lender declares your student loans to be in default, the entire loan balance will become due.

Even if you have defaulted on your student loan, there are still repayment options available to help get things back on track. The last thing you want to do is fall deeper and deeper into the student loan default pit. That path could lead to garnished wages, annoying debt collectors, withheld tax returns, and damage to your credit.

Remember: Your loan provider doesn’t want you sitting in default either. We’ll help find you a better way to pay off student loan debt or apply for forgiveness programs.

Unfortunately, this isn’t a question we can answer without knowing your unique student loan situation. Qualifying for student loan forgiveness is more difficult than it may sound, and there are different types of forgiveness for different people.

For instance, qualifying for Public Service Loan Forgiveness (PSLF) may be a better option for people in qualifying jobs. However, there are many hoops to jump through in order to get PSLF approval. And income-based repayment plan forgiveness can be an option for eligible borrowers, but it does require a commitment of time (20-25 years) before any loan amount is forgiven.

If you’re interested in having your loans forgiven, we can look through every option to determine if any could offer you the student loan relief you need.

While there isn’t a specific student loan discharge for members of the military and veterans, there are two options for forgiveness and discharge that could those who have served and are currently serving our country:

  1. Total and Permanent Disability (TPD) Discharge – If you’re a veteran who received a VA disability determination, you can qualify for a TPD discharge. This will relieve you from having to repay Direct, FFEL, and Perkins student loans.
  2. Public Service Loan Forgiveness (PSLF) – Military service can help qualify you for PSLF. This option could forgive all your federal student loan debt after you make 120 qualifying payments while working full-time with the military or another qualifying non-profit.

 There also may be assistance available through other military and military-associated programs.

It’s possible to have your student loan debt discharged in bankruptcy but it is very difficult. The process involves proving that paying the debt would cause “undue hardship” on you and your dependents. Successfully passing the tests to prove undue hardship is far from easy. However, if you do pass the tests, your student loans will be canceled.

If you die with student loan debt, any federal loans you have will be automatically canceled, including any Parent PLUS loans your parents may have taken out for your education. The government discharges that student debt.

However, the same cannot be said for private student loans. In the event of your death, some private lenders will attempt to collect from your estate or from any cosigners on the loans. You’ll need to check with your private lender to see what their policies are and if they include any death discharge protections.

Refinancing and student loan consolidation are great options for lowering interest rates and/or creating lower payments. If you switch to a private loan provider (e.g. bank or credit union), you will lose many benefits of the federal student loan program. Our student loan team will look at all possibilities with you, helping you weigh the pros and cons of each.

We don’t believe in one-size-fits-all solutions, which is why we begin at your pain points. We address the areas of student loan debt you’re most concerned about (like garnishments or student loan forgiveness), but also investigate all aspects of your loan for no additional charge.

Absolutely – and we’re not stopping you. But just a heads up: The number-one complaint from borrowers like you is dealing with student loan servicers. Our team knows who to call, what to ask for, and if what they’re saying is true for your situation.

Most student loan companies are only interested in refinancing your loan. And let’s face it, refinancing doesn’t help if you still can’t afford your payments. MoneySolver’s student loan team helps find a customized, affordable solution to your issue with an easy, three-step process.

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