Stop Student Loan Garnishment
This new improved income based repayment plan is only for borrowers who have no loans from before 2008. Further those with loans in default will not qualify for income based repayment unless they first rehabilitate those loans. If you are interested in seeing if your loans qualify for income based repayment or income contingent repayment please visit student aid dot gov. Unfortunately none of these programs do anything to deal with private loans a growing problem currently at around $200000000000.00 (Two Hundred Billion) or around 16% of the total student loan debt. One of the options that students can take advantage of to pay for their tuition fees are student loans without co-signer. Sadly there are so many students out there without the relevant information on the best way to apply for these loans.
For borrowers who are on the governments income-based repayment plan any outstanding federal college loans can be discharged prior to full repayment if the borrower has made her or his monthly loan payments for 25 years. Borrowers who go to work for the government or the public sector can have their federal college loans forgiven after 10 years. Federal college loans can also be forgiven in the event the borrower dies or becomes permanently disabled. Non-federal private student loans on the other hand arent required to offer any of these payment-deferment or discharge provisions. It is at the lenders discretion whether to offer a struggling borrower deferred or lower monthly loan payments and even whether to discharge the private student loan upon the borrowers death or permanent disability.
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Other college loans are ineligible: Private student loans. The income-based repayment program applies only to federal student loans. If youre having problems meeting the monthly payments on your private student loans you should contact the lenders to see if theyre willing to work out more affordable repayment plans for you. Keep in mind though that private student loans typically have less flexible repayment options than federal student loans. Federal PLUS loans. If your parents took out PLUS parent loans to help you pay for college they wont be able to take advantage of income-based repayment on their PLUS loans. Consolidation loans that included PLUS parent loans are also excluded from income-based repayment. Any Grad PLUS loans you took out as a graduate student however as well as consolidations of Grad PLUS loans are eligible.
Without any special dispensations from the lender private student loans will generally remain in repayment until the note is satisfied or charged off as a default no matter how long the repayment process takes. The Legal Implications of Co-Signing on Student Loans A loan co-signer has all the same legal responsibilities as the primary loan borrower and has a legal obligation to repay the loan debt under the same terms as the primary borrower. The co-signer is really a co-borrower and is equally responsible for repaying the co-signed loans. Unfortunately too many co-borrowers realize this truth very late in the game. If youve co-signed on someones loans and your primary borrower makes all of her or his payments on the loan on time and as planned you may never hear from the lender.