Student Loan Planner Review 2022: It's the real deal (2023)

FAQs

Is the student loan forgiveness program real? ›

There are real federal loan forgiveness programs out there, including Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness. But many companies will try to take advantage of borrowers by guaranteeing immediate results or requesting money up front for services they cannot provide.

Yes it is very legitimate! We won't argue that there are indeed several companies offering services that are in fact ” too good to be true” and fail to live up to their promises, Student Advisors isn't one of them. We adhere to the highest ethical and moral business standards and practices.

In April 2022, the U.S. Department of Education announced several updates that will bring borrowers closer to forgiveness under income-driven repayment (IDR) plans. Borrowers who have reached the required number of payments for IDR forgiveness will begin to see their loans forgiven in spring 2023.

The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

Potentially the most significant drawback of student loan forgiveness is the taxes. With a few exceptions, including PSLF, the IRS considers the amount of your forgiven balance to be taxable income. Depending on how much is forgiven, that could amount to tens of thousands of dollars you owe in taxes.

If you work full-time for a government or not-for-profit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—that is, 10 years of payments.

You should talk to your school's financial aid office – they will have information about your federal student loan options. Additionally, you can speak with the U.S. Department of Education's Federal Student Aid Information Center at 1-800-4FED-AID (1-800-433-3243) for information on student loans.

On October 7, 2022, the U.S. Department of Justice filed a brief in response to this lawsuit offering new evidence that MOHELA's lawsuit is rife with false statements and fundamentally misstates the law and policy it seeks to challenge.

Is MOHELA private or federal? ›

Federally-Owned Loans Serviced by MOHELA

With over 40 years in the student loan servicing industry, we have the expertise to help manage your loans – answer any account questions, help you explore your benefits and repayment options and process your payments.

Pennsylvania's Attorney General Josh Shapiro announced in mid-January that Navient will cancel $1.7 billion in private student loan debt to resolve allegations of deceptive servicing practices. In September 2021, Navient announced plans to leave the federal student loan servicing industry.

The student loans must have been delinquent (behind on payments) for at least seven monthly billing cycles prior to June 30, 2021. In most cases, only loans that are still collectible under the applicable statute of limitations, or are still being reported to credit bureaus, as of June 30, 2021, are eligible.

Navient reached an agreement with 39 state attorneys general earlier this year to cancel $1.7 billion in subprime private student loan debt for borrowers who attended certain for-profit schools between 2002 and 2014, lived in certain states, and were more than seven months behind on their loan payments by July 31, 2021 ...

Revised Pay As You Earn (REPAYE) works much the same way as Pay As You Earn. Under this plan, your payments will be capped at 10% of your discretionary income. Undergraduate loans are forgiven after 20 years, while graduate school loans are forgiven after 25 years.

The refunded amount will reappear in your account as a loan balance. According to the Department of Education, all you need to do is contact your loan servicer to request the refund. Applications for loan forgiveness are expected to be available by mid-October.

More than a third of Americans surveyed said they regretted their college choices, compared to a quarter who reported having no regrets. Some 31 percent of respondents said their choice of major was their biggest regret from college, with 28 percent regretting taking on student debt to fund their education.

Do student loans go away after 7 years? While negative information about your student loans may disappear from your credit reports after seven years, the student loans themselves will remain on your credit reports — and in your life — until you pay them off.

Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).

What is the best student loan forgiveness program? ›

Public Service Loan Forgiveness (PSLF) Public Service Loan Forgiveness Program will grant student loan forgiveness on qualifying loans after 120 payments (10 years). This is the number one best way to get student loan forgiveness if you're eligible.

“If we believe student loans are so horrible and evil, which I do, then we should stop making them," Ramsey told Insider.

To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.

Millions of borrowers received erroneous emails notifying them that the Education Department had approved them for student loan forgiveness. While some of these emails were legitimate, others were sent by mistake.

Luckily, it'll only affect your score for a short time. And what's more, you'll only see the drop in your score when your loan accounts close — which means you won't be affected if you owe more than what's forgiven.

So what's the scoop on MOHELA? It's a legit loan servicer, and, if you've heard of them, they may be responsible for your federal loans.

Borrowers who previously had a non-qualifying loan, such as the Federal Family Education Loan, must consolidate their debt into a federal Direct Loan and then submit a PSLF form to show qualifying employment by the October deadline. After the consolidation is complete, the new loan will be transferred to MOHELA.

MOHELA is one of several companies servicing federal student loans by collecting and tracking payments. Also called the Missouri Higher Education Loan Authority, it's a nonprofit company that manages both federal and private student loans.

MOHELA has an A+ rating with the Better Business Bureau, but only one out of five stars from customers. Some of the complaints include difficulty getting in touch with customer service representatives and a confusing process for paying off loans early.

Are MOHELA student loans suspended? ›

On November 22, 2022, the student loan payment pause was extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. Payments will restart 60 days later.

Applying and being approved by MOHELA for scheduled automatic payments to be electronically debited from your banking institution may qualify you for a 0.25% interest rate reduction.

MOHELA is one of the largest student loan secondary markets in the country, and a leading national holder and servicer of student loans.

Six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — jointly claimed Biden's debt relief would harm tax revenue in their states and the finances of state-based loan agencies.

If your debts are to be canceled, you should receive a notification by the first week of May. Eligible borrowers will receive a letter substantially similar to this one. Until then, you can check your eligibility by looking at your student loan servicer.

Only loans held by the Department of Education are eligible for the loan cancellation program. As of September 29, 2022, ED issued a FAQ announcing that borrowers with federal student loans not held by ED cannot obtain one-time debt relief by consolidating those loans into Direct Loans.

The private loan debt relief will primarily go to borrowers who took out private subprime student loans (made to borrowers with low credit scores) through Navient's predecessor, Sallie Mae, between 2002 and 2014, and then had more than seven consecutive months of delinquent payments prior to June 30, 2021.

Only about 66,000 borrowers are actually going to reap the benefits of the Navient settlement—specifically, those who took out private student loans through Sallie Mae from 2002 to 2010 to attend certain for-profit schools.

Navient reached a $1.85 billion settlement deal over allegations that the company engaged in unfair and deceptive loan practices. The settlement, announced in January, will cancel the debt of some delinquent private student loans and offer restitution to some federal student loan borrowers.

Why is Navient stopping student loans? ›

One primary reason for Navient exiting federal student loan servicing is to avoid the spotlight of regulatory oversight. Navient will continue to service private student loans, which still makes Navient susceptible to regulatory oversight in the normal course from federal and state governments.

Under the federal program, eligible borrowers can have their loans discharged after 10 years if they meet eligibility requirements.

Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).