If the loan(s) is not repaid in full after making the equivalent of 20 years of qualifying monthly payments and at least 20 years have elapsed, any remaining debt will be eligible for forgiveness. Return the completed form and any required documentation to the address shown in Section 10. Our offices will be closed for the holidays as follows: Please note this may result in a higher than average call volume following the holidays. If you are approved for IBR, you are required to reapply each year by submitting a new Income-Driven Repayment Plan Request form that will provide us with your updated income and family size information. On an extended plan, your monthly payment will generally be lower than payments made under the Standard and Graduated Repayment Plans. You may have different repayment plans and deferment or forbearance options available to help you manage your student loan debt. All rights reserved. If you can't make the monthly payments, EdFinancial offers several repayment and postponement options. One reason, the CBO said, is the disproportionate share of graduate student borrowers who enroll in those plans. You have a network of support to help you succeed with your federal student loan repayment. If monitoring reveals possible evidence of criminal activity, such evidence may be provided to law enforcement personnel. If your loan(s) is not repaid in full after you have made the equivalent of 25 years* of qualifying monthly payments and at least 25 years have elapsed, any remaining debt will be eligible for forgiveness. Your monthly payment is based on annual income. Income-driven repayment plans are designed to make repaying your student loan debt more manageable by reducing your monthly payment amount. This is the quickest way to repay with the least amount of interest. how Federal Student Aid partners with loan servicers, list of our trusted federal student loan servicers, Income-Driven Repayment Information Center, "Income-Driven Repayment Plan Request" form, Thursday, December 31st (closing early at 6:00 p.m. Eastern Time). If you do not repay your loan after making the equivalent of 25 years of qualifying monthly payments, the unpaid portion will be forgiven. Visit StudentAid.gov/coronavirus for updates. We did all the heavy lifting for you... Payments are a fixed amount of at least $50 per month. There are additional benefits such as restricted interest capitalization and interest subsidies that may also be available while on this repayment plan. Unauthorized access, use, misuse, or modification of this computer system or of the data contained herein or in transit to/from this system constitutes a violation of Title 18, United States Code, Section 1030, and may subject the individual to civil and criminal penalties. Graduated Payments: Our Graduated Repayment Plan and Extended-Graduated Plan offer payments that start out low and gradually increase every two years. You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. Published 08/19/2015 01:09 PM | Updated 07/23/2018 10:54 AM . Subsidized, Unsubsidized, and GradPLUS loans, Direct Consolidation Loans that do not include Parent PLUS loans. However, Parent PLUS loans and loans that are in default are not eligible. Your monthly payments will be 10 percent of your and your spouse’s (if applicable) discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). These repayment plans may be available to you on your federal loans. You can visit StudentAid.gov to see a list of our trusted federal student loan servicers, all of which are fully vetted. Federal Loans; Alternative (Private) Loans; Federal Loans. Planning for the repayment of your student loans takes some thought and an evaluation of your situation and options. If you don’t sign up for the Income-Based Repayment Plan or one of the other income-driven plans that include the Pay As You Earn (PAYE), Repay As You Earn (REPAYE) and Income-Contingent Plan (ICP), you automatically are defaulted into the Standard .Repayment Plan.The difference between the Standard Repayment Plan and the Income-Based Repayment plan is substantial. Find out how Federal Student Aid partners with loan servicers to be here when you need help. All GradPLUS loans. If your federal student loan is processed through EdFinancial, then you have access to the standard federal repayment programs. Family Size includes you, your spouse, and your children (including unborn children who will be born during the year for which you certify your family size), if the children will receive more than half their support from you. Your monthly payments would be lower than the 10-year standard plan. It includes other people only if they live with you now, they receive more than half their support from you now, and they will continue to receive this support from you for the year that you certify your family size. During IBR, your monthly payments are based on your eligible federal student loan debt, income, family size, and state of residence and it is designed to help borrowers experiencing "partial financial hardship". To make your payments more affordable, repayment plans can give you more time to repay your loans or can be based on your income. Sometimes the best way to decide is to do a side-by-side comparison of all of your options. Under the IBR plan, you are responsible for all the interest that accrues on your unsubsidized loans, as well as all of the interest that accrues on your subsidized loans after the end of the three-year interest subsidy period. Payments are lower at first and then increase, usually every two years. Income Based Repayment (IBR) is available for Direct Loans and FFELP Loans. They are based on your income, family size, and federal student loan debt. Support includes money, gifts, loans, housing, food, clothes, car, medical and dental care, and payment of college costs. This is the borrower's adjusted gross income as reported to the Internal Revenue Service (IRS). If you need to make lower monthly payments, we recommend that you repay your loan(s) under one of the following income-driven plans. All PLUS loans. If you are married and file your taxes jointly, and your spouse has eligible student loans, his or her loan debt may also be included as part of your eligible loan debt. Edfinancial Services is a Servicer to Federal Student Aid. But if you have one or more FFEL loans, the Department of Education will allow you to consolidate your loan or loans into a federal direct consolidation loan (1-800-557-7392 or TDD 1-800-557-7395) so that you can elect income-contingent repayment. If you believe that your AGI, as reported on your most recently filed federal income tax return, does not reasonably reflect your current income (and/or your spouse's current income), you may complete the Alternative Documentation of Income form and provide proof of your current income. We appreciate your patience. Your monthly payments would be lower than the 10-year standard plan. Like the rest of the plans, it sets your monthly payments based on your income, family size, and other financial factors. (NMLS Company ID: 1509247, NMLS Branch ID: 1911329). Payments may be fixed or graduated. Here are the different types of repayment plans available: Lump-sum payment A lump-sum payment means that you would pay back the entire amount you owe in one lump sum. Use our tool to view a sample statement with tips explaining each section. We apologize for any inconvenience, and we hope you have a safe and happy holiday season. This paper explores some questions about the use of income for determining repayment of educational loans. Additional interest subsidy (when applicable). How to Repay Your Loans - Understanding Repayment - Repayment Plans. (Up to 30 years for consolidation loans). Under current IRS rules, any loan amount that is forgiven under REPAYE or any income driven repayment plan is considered taxable income. Your maximum monthly payments will be 10 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). If you have subsidized loans and your monthly payment amount under IBR is not sufficient to pay the amount of interest that accrues on a monthly basis, the federal government will subsidize 100% of the remaining interest that is due for the first three consecutive years. The average loan balance of graduate borrowers in income-driven repayment was $92,000 in 2017, according to the CBO report. (FFEL lenders offer Income Sensitive Repayment as an alternative.) Visit StudentAid.gov/coronavirus for updates. Income-driven repayment (IDR) plans can lower your monthly payment based on your household income. Some repayment programs — those involved in income-driven repayment — even qualify you to have your loans forgiven after 20 to 25 years of making income-based payments. Payments will be based on either a fixed, or a graduated amount. But these borrowers also may be more aware of their financial options, said the report. Federal Direct loans offer a variety of repayment options, each of which varies by length, eligibility criteria, and the amount you’re required to repay. Avoid making mistakes that can haunt you for years by repaying your loan on time. Income-Based Repayment Plan (IBR) Direct Loans. Includes info on loan consolidation, repayment plans, auto debit, and loan servicers. As a condition of the program, a health professional must make a two year service commitment to practice full-time in a designated medical shortage area in New Mexico. GOP Higher Ed Plan Would End Student Loan Forgiveness in Repayment Program, Overhaul Federal Financial Aid "House Republicans on Friday proposed a sweeping overhaul of a federal law that governs almost every aspect of higher education, a plan that would eliminate some popular student aid programs and impose restrictions on others," The Washington Post reports. Anyone who has a relatively high student loan payment compared to their income should know about the various income-driven repayment plans available for federal student loans. Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans. With all of the repayment options that are out there it can become a confusing mess trying to figure out which plan is the best for you. If monitoring reveals possible evidence of criminal activity, such evidence may be provided to law enforcement personnel. Find out how Federal Student Aid partners with loan servicers to be here when you need help. Your monthly payments will be at least $50, and you’ll have up to 10 years to repay your loans. This booklet is intended to help individuals who received William D. Ford Federal Direct Loans as students manage the repayment process. If your annual income and family size information is not received by your annual renewal date, your payment will increase to what you would be required to pay under a Standard 10-year repayment plan. Your payments change as your income changes. Borrowers can then decide to remain in the Standard Repayment Plan or choose a different plan. For more detailed repayment plan information and to calculate your estimated repayment amount under each of the different plans, use the Repayment Estimator at studentaid.gov Note: Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can generally change repayment plans at any time. © 2019 Edfinancial Services, LLC. Understanding Your Statement. This system may contain government information, which is restricted to authorized users ONLY. Your monthly payments may be lower than payments under the 10-year standard plan. After 25 years, any remaining balance on the loan will be forgiven, but the borrower … Know Your Repayment Terms and What Payment Plans Are Available. Hardship is a circumstance in which the annual aggregate amount due on all of a borrower's eligible FFEL and Direct loans, as calculated under a standard repayment plan based on a 10-year repayment period at the time the borrower initially entered repayment, or the amount owed when the borrower selects the IBR plan, whichever is greater, exceeds 15% of the difference between the borrower's adjusted gross income and 150% of the poverty line for the borrower's family size. If you cannot pay the loan for some reason talk to your lender. Choose the federal student loan repayment plan that’s best for you. You must have a partial financial hardship. You'll pay less interest for your loan over time under this plan than you would under other plans. You can also access your online account 24 hours a day by logging into Manage My Account. Unauthorized access, use, misuse, or modification of this computer system or of the data contained herein or in transit to/from this system constitutes a violation of Title 18, United States Code, Section 1030, and may subject the individual to civil and criminal penalties. Federal student loan flexibilities for the COVID-19 emergency have been extended through Jan. 31, 2021. We suggest that each borrower review the options and decide which plan is right for him or her. Additional information can also be found at Edfinancial.com/COVID-19. As their income rises or falls, so does their payments. There are several federal student loan repayment plans available to borrowers. If you have Edfinancial student loans, here’s how to use the servicer’s online platform and find out about alternative repayment plans. Our offices will be closed for the holidays as follows: Please note this may result in a higher than average call volume following the holidays. You may also log into Manage My Account and select "Payments" in the top menu to explore various repayment options and to see if you qualify for a reduced payment. If you have not repaid your loan in full after you made the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven. Borrowers can find more detailed information about all of the Repayment Plans listed below on the federal studentaid.ed.gov website. The purpose of the New Mexico Health Professional Loan Repayment Program (HPLRP) is to provide repayment for outstanding student loans of practicing health professionals. You have a network of support to help you succeed with your federal student loan repayment. You can also access your online account 24 hours a day by logging into Manage My Account. (NMLS Company ID: 1509247, NMLS Branch ID: 1911329). A solid understanding of repayment plans, the hazards of default and how to resolve federal student loan disputes is critical to your future financial health. Repayment Plans. In order to qualify for an Extended Repayment Plan, you must have a balance of at least $30,000.00. Our customer service representatives will help you determine if that is the best plan for you and apply for your new repayment plan. Following an introduction, explanations are offered for how the principal balance of the loan is determined and how interest rates are applied. Such monitoring may result in the acquisition, recording, and analysis of all data being communicated, transmitted, processed, or stored in this system by a user. Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL Parent PLUS loans. Income-based repayment caps monthly payments at 15% of your monthly discretionary income, where discretionary income is the difference between adjusted gross income (AGI) and 150% of the federal poverty line that corresponds to your family size and the state in which you reside. Edfinancial Services is a federal loan servicer that helps borrowers manage the repayment of their education debt. The U.S. Treasury Department and the U.S. Department of Education will continue working with tax preparers during the 2015 tax filing season to increase federal student loan borrowers' awareness of income-driven repayment plans. This system may contain government information, which is restricted to authorized users ONLY. Up to 25 years. Federal student loan flexibilities for the COVID-19 emergency have been extended through Jan. 31, 2021. For a married borrower filing separately, AGI includes only the borrower's income and for a married borrower filing jointly, AGI includes both the borrower's and spouse's income. How to Repay Your Loans -Understanding Repayment - Repayment Plans - Income-Driven Plans Published 12/15/2015 08:45 PM | Updated 12/20/2017 05:08 PM If your federal student loan payments are high compared to your income, you may want to repay your loans under an income-driven repayment plan. Pell grants help 7 million students a year afford college, but they have not kept up with the rising cost of college. You'll pay more for your loan over time than under the 10-year standard plan. how Federal Student Aid partners with loan servicers, list of our trusted federal student loan servicers, Income-Driven Repayment Information Center, Thursday, December 31st (closing early at 6:00 p.m. Eastern Time). You may have to pay income tax on the amount that is forgiven. Visit studentaid.ed.gov for full repayment plan details. We apologize for any inconvenience, and we hope you have a safe and happy holiday season. Such monitoring may result in the acquisition, recording, and analysis of all data being communicated, transmitted, processed, or stored in this system by a user. Repayment Plans. ANYONE USING THIS SYSTEM EXPRESSLY CONSENTS TO SUCH MONITORING. * Direct Loan borrowers who have no outstanding balance on a FFELP or Direct loan on July 1, 2014 OR no outstanding balance on the date they obtain a new Direct loan after July 1, 2014, will qualify for IBR if the annual amount due on all eligible loans exceeds 10% of the difference between their adjusted gross income (AGI), as shown on their federal income tax return, and 150% of the poverty line amount for their family size. The plans generally call for a level of repayment to cover the initial advances, plus interest for a college graduate with average income, but would require less than full repayment for the students with low income, and over full repayment for students with high income. Start out on the right financial foot by selecting a repayment plan that works for you. You can also choose from: Pay as You Earn; Revised Pay as You Earn; Income-Driven Repayment Plan; Income Sensitive Repayment; How to contact EdFinancial © 2019 Edfinancial Services, LLC. Your maximum monthly payments will be 15 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). You may be able to complete your request online by visiting https://studentaid.gov. WARNING Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time —at no cost to you. You can read more about Lower Payment Options, or if any of these look like they may work for you, give us a call at 855-337-6884. [19.9 MB] Resource Type: Video Graduated Repayment Plans: This plan is still a 10-year plan, but the payments start out low and get bigger. (You are considered to have a partial financial hardship if the annual amount due on all of your eligible loans exceeds 15%* of the difference between your adjusted gross income (AGI), as shown on your federal income tax return, and 150% of the poverty line amount for your family size.). This new option complements additional repayment plans the Department offers to help borrowers manage their debt, including Income-Based Repayment, which caps monthly loan payments at 15 percent of a borrower’s discretionary income. Edfinancial Services is a Servicer to Federal Student Aid. We are updating our websites and systems as quickly as possible to explain the types of relief now available for federal student loans held by the Department of Education. Check out this calculator to see how it works. Edfinancial Services: the basics; Edfinancial Services online platform After 20 or 25 years of payments, your remaining balance is forgiven . The Standard Repayment Plan evenly divides payments over 10 years. Target additional financial support to low-income and middle-class individuals by doubling the maximum value of Pell grants, significantly increasing the number of middle-class Americans who can participate in the program. * Some loans that first entered repayment prior to July 1, 2006 may be eligible for an extended term. Talking points: Some repayment plans offer student loan repayment based on income. Other repayment plans may be more affordable. The Repayment Plans range from 10 to 25 years for repayment. Of the 4 available income-driven repayment plans available, Income-Based Repayment is the most widely used. This system and equipment are subject to monitoring to ensure proper performance of applicable security features or procedures. If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven. ANYONE USING THIS SYSTEM EXPRESSLY CONSENTS TO SUCH MONITORING. Standard Repayment – Under the standard plan, you’ll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be lower than payments under the 10-year standard plan. You'll pay more for your loan over time than you would under the 10-year standard plan. Takes some thought and an evaluation of your situation and options is for! Aid partners with loan servicers to be here when you need help plan, you ’ have. 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