Student loan forgiveness can have a life-changing effect on borrowers. For example, there are a handful of Income-Driven Repayment (IDR) plans available that ultimately provide forgiveness after following the plan’s requirements. However, some IDR rules are in the process of changing and it’s worth it for borrowers to ensure they understand what the changes mean. Those who may not have signed up for an IDR plan before, might want to sign up now. And those currently in an IDR plan will want to be aware of forthcoming changes. Ensuring borrowers have accurate and timely knowledge about student loans empowers them to take action and reduce financial burden and stress.
How Borrowers Qualify for Forgiveness Under IDR
IDR plans are designed to make student loan debt more manageable by providing a lower monthly payment based on income and family size (Source: studentaid.gov). Borrowers can qualify for forgiveness of any remaining loan balance on their student loans after making payments over 20 or 25 years.
Loan servicers track IDR borrowers’ progress toward forgiveness and notify them when it’s time for their loans to be forgiven. While IDR borrowers do not need to take specific action in order for their loans to be forgiven, it’s important for them to also track their progress along the way to make sure they’re making qualified payments. Borrowers can view a record of their payments on the Federal Student Aid website (Source: studentaid.gov).
The Importance of Student Loan Education
Many student loan borrowers are not aware of the repayment and possible forgiveness options available to them. This can lead to borrowers paying more for their loans than they need to. It's important for borrowers to have access to expert information about student loans so they can make the best decisions for their financial future.
For questions about IDR and student loan forgiveness, borrowers should contact their loan servicer. For a more personalized touch, borrowers can also get help from a student loan counselor.
Attigo Can Help
Attigo offers student loan counseling, online financial education, and other benefits to help borrowers manage their debt. Our suite of solutions can be used individually or in tandem to tackle every aspect of student loan distress. Together, we can turn overwhelmed borrowers into empowered leaders.
The U.S. Department of Education recently announced a new IDR plan that will replace the existing Revised Pay As You Earn (REPAYE) plan (Source: studentaid.gov).
Learn more about the New IDR Plan to Help Student Loan Borrowers Save