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    Student Loan Forgiveness

    My husband came into our marriage with 46K in student loan debt. However, they are all consolidated and federal loans, so the payments are manageable, but we are going to be paying them FOREVER!! (like until after our one year old goes to college!!) So I'm trying to make that our next huge debt reduction goal, since we've gotten rid of all other debt. My husband is a teacher, so we've been looking into loan forgiveness programs for teachers. Have any of you ever completed one of those programs successfully? Because he teaches an elective (art) he only qualifies for about 5K of loan forgiveness (but every little bit helps!) and we've applied two different times and been denied twice without any reasoning! Does anyone have any insight or advice about this process? I'm trying any angle to get our debt GONE.

    #2
    In order to qualify for Teacher Student Loan Forgiveness, you have to meet MANY qualifications.

    First of all, the school that he works for must receive Title 1 funding and they must be listed in the Department of Education's Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

    Has he worked in his position for 5 consecutive academic years full-time? That is another qualification that must be satisfied.

    Is he in default on his loans? If you are in default, you will NOT qualify.

    How long ago did he take out these loans? If he has loan balances from prior to October 1, 1998, he will not qualify.

    Only Direct Loan and FFEL loans are eligible for Teacher Student Loan Forgiveness. I have not seen any evidence that consolidation loans are even eligible. Is it a Direct Consolidation loan? Is it consolidated private student loans? If it is private, you are out of luck. If it is a Direct Consolidation for federal student loans, there may be some way of qualifying. I will need to research this more. I could add a new lecture to my Student Loan Repayment Options online course!

    I personally have not experienced this program, but like any other government program, there is a lot of red-tape!

    In regards to paying off your husband's student loans, you may have to go about it at a different angle. You probably will not qualify for income-based repayment. Anyhow, that would not really help you as you said your payments are manageable. Besides, who wants to be paying on loans for 20 years?! Assuming that your income as a household is decent, you should be able to pay off $45k in pretty short order. I know it doesn't sound appealing to do it "the old-fashioned way," but that may be what you need to do. Roll up the sleeves and attack them with everything you've got!

    If you want additional assistance with how you could do this, list your take-home pay as well as household expenses (monthly). We could take a look and make some recommendations!
    Check out my new website at www.payczech.com !

    Comment


      #3
      Originally posted by ladonnarosso View Post
      My husband came into our marriage with 46K in student loan debt. However, they are all consolidated and federal loans, so the payments are manageable, but we are going to be paying them FOREVER!! (like until after our one year old goes to college!!) So I'm trying to make that our next huge debt reduction goal, since we've gotten rid of all other debt. My husband is a teacher, so we've been looking into loan forgiveness programs for teachers. Have any of you ever completed one of those programs successfully? Because he teaches an elective (art) he only qualifies for about 5K of loan forgiveness (but every little bit helps!) and we've applied two different times and been denied twice without any reasoning! Does anyone have any insight or advice about this process? I'm trying any angle to get our debt GONE.
      Nobody in the US has completed PSLF yet because you need to wait 10 years to do so and the program is less than 10 years old.

      There are various opinions all over the student debtosphere as to whether or not the program will even survive. Uncle Sam is broke, after all.

      Comment


        #4
        Originally posted by Weird Tolkienish Figure View Post
        Nobody in the US has completed PSLF yet because you need to wait 10 years to do so and the program is less than 10 years old.

        There are various opinions all over the student debtosphere as to whether or not the program will even survive. Uncle Sam is broke, after all.
        Teacher Student Loan Forgiveness is a separate program entirely. Public Service Loan Forgiveness is only a few years old and no one has yet to see the end of it, which is correct. However it is important to know that these are two different programs.

        With that said, I could not agree more. Uncle Sam is broke and depending on a forgiveness program to solve your student loan debt problem sounds like a bad proposition! The red-tape is crazy; you have to have all your T's crossed and I's dotted! Even then, the government could deny forgiveness for whatever reason.
        Check out my new website at www.payczech.com !

        Comment


          #5
          Originally posted by dczech09 View Post
          In order to qualify for Teacher Student Loan Forgiveness, you have to meet MANY qualifications.

          First of all, the school that he works for must receive Title 1 funding and they must be listed in the Department of Education's Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

          Has he worked in his position for 5 consecutive academic years full-time? That is another qualification that must be satisfied.

          Is he in default on his loans? If you are in default, you will NOT qualify.

          How long ago did he take out these loans? If he has loan balances from prior to October 1, 1998, he will not qualify.

          Only Direct Loan and FFEL loans are eligible for Teacher Student Loan Forgiveness. I have not seen any evidence that consolidation loans are even eligible. Is it a Direct Consolidation loan? Is it consolidated private student loans? If it is private, you are out of luck. If it is a Direct Consolidation for federal student loans, there may be some way of qualifying. I will need to research this more. I could add a new lecture to my Student Loan Repayment Options online course!

          I personally have not experienced this program, but like any other government program, there is a lot of red-tape!

          In regards to paying off your husband's student loans, you may have to go about it at a different angle. You probably will not qualify for income-based repayment. Anyhow, that would not really help you as you said your payments are manageable. Besides, who wants to be paying on loans for 20 years?! Assuming that your income as a household is decent, you should be able to pay off $45k in pretty short order. I know it doesn't sound appealing to do it "the old-fashioned way," but that may be what you need to do. Roll up the sleeves and attack them with everything you've got!

          If you want additional assistance with how you could do this, list your take-home pay as well as household expenses (monthly). We could take a look and make some recommendations!
          He has been in his position for 5 years. The school that he works in is not currently a Title 1 school, but it was when he originally started working there, and we were told that still qualifies. I don't know exactly what a Direct consolidation loan is, but his loans are definitely federal and not private and we are not in default. We just bought a house and so we were focused on that, but now that the process is complete, this loan is next on my to-do list. I'm definitely planning on focusing most of our resources towards paying this off since we completed our prior goals (paying off cars and purchasing a new home).

          Comment


            #6
            Originally posted by ladonnarosso View Post
            He has been in his position for 5 years. The school that he works in is not currently a Title 1 school, but it was when he originally started working there, and we were told that still qualifies. I don't know exactly what a Direct consolidation loan is, but his loans are definitely federal and not private and we are not in default. We just bought a house and so we were focused on that, but now that the process is complete, this loan is next on my to-do list. I'm definitely planning on focusing most of our resources towards paying this off since we completed our prior goals (paying off cars and purchasing a new home).
            So based on this, it could be a complication with the Title 1 issue. It could also be a matter of the loans being consolidated that is causing problems.

            A Direct Consolidation Loan is what is used to consoldiate several federal student loans into one. Student loans under the Direct Loan and FFEL programs can be consolidated (or combined into one larger loan).

            This very well could be what is causing problems. Consolidation loans are not stated to be eligible for Teacher Student Loan Forgiveness except in certain situations. Unfortunately, I cannot find any information on what allows them to be eligible.

            At this point, I think it is necessary to ask why you were denied. Surely they have a reason as to why you were denied. I have a suspicion it has to do with the consolidation loan, but I am not certain.
            Check out my new website at www.payczech.com !

            Comment


              #7
              The program encourages one to enter and continue in the teaching profession. If you teach full time for complete 5 years in certain school that serve low income agencies than you can be eligible for forgiveness of about $17,500.

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