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Author
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Topic: Anyone Know Info on Student Loans?
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Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted February 16, 2014 01:29 PM
  
This is for one of my clients whom I really love. Her interest on her loan for grad school is about 35,000. The interest keeps on piling up and so she never touches the principal. She does not make enough money to really make a dent in all this.
Is there every forgiveness of interest or stopping the clock on interest. If she just had the principal and that could be paid down, that would be, at least, some sense of hope but the interest is like a morass that never ends.
Does anyone have any ideas? Thanks so much.------------------
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Randall
Webmaster Posts: 38541
From: Saturn next to Charmainec
Registered: Apr 2009
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posted February 16, 2014 02:28 PM
What type of loan is it?IP: Logged |
Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted February 16, 2014 03:49 PM
Government, Randall. I guess, federal. The other thing I was thinking about was trying to set up some kind of thing for her where people could contribute like a fund. Also, are there foundations that may help with something like this that she could apply to. She is a black woman, which only matters because some foundations specify particular qualities for their funding, I think. I know that scholarships do this but I am not sure about foundations, per se. She is an amazing writer and a totally amazing person and I want to help. If you have any ideas, Randall, I would be very grateful! ------------------
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Ellynlvx
Moderator Posts: 6339
From: Mountain Gate
Registered: Aug 2013
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posted February 16, 2014 04:46 PM
I was going to say, I know people go broke trying to repay them...IP: Logged |
Randall
Webmaster Posts: 38541
From: Saturn next to Charmainec
Registered: Apr 2009
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posted February 16, 2014 05:58 PM
If it's a federal loan (not Parent Plus or a private loan), she can opt for the Income Based Repayment (IBR) plan. She would have to show financial hardship, but all that means is that the monthly amount she would be required to pay on her loan under a 10-year Standard Repayment Plan is higher than the monthly amount she would be required to repay under IBR. It almost always is, by the way. Once she first qualifies, she can stay in the program even though her "hardship" may no longer exist. And the debt is forgiven after 25 years. Once forgiven, it is taxable; however, there is a way out of that also. In the year in which the remainder of the loan is forgiven, if total debts exceed assets, themn it's just a simple form to submit to get the IRS to forgive the taxes on the debt. Her payment will be either 10 percent or 15 percent (depending on when she took out the loan) of her discretionary income (varies by state), and it could even be zero per month. Discretionary income is the difference between adjusted gross income on her 1040 for the prior year and 150% of the federal poverty line that corresponds to her family size and the state in which she resides. IP: Logged |
Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted February 16, 2014 06:06 PM
Thank you. Thank you, Randall and Bless you!! I will copy and paste this to her. ------------------
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Canadiangirl
Knowflake Posts: 657
From: Canada
Registered: Nov 2013
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posted February 16, 2014 09:20 PM
For any cdns out there, never use OSAP. They expect you to take 10 yrs to pay it back with high interest.IP: Logged |
Randall
Webmaster Posts: 38541
From: Saturn next to Charmainec
Registered: Apr 2009
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posted February 17, 2014 12:23 PM
It's tough dealing with the interest, especially when it gets capitalized.IP: Logged |
Ellynlvx
Moderator Posts: 6339
From: Mountain Gate
Registered: Aug 2013
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posted February 17, 2014 03:35 PM
Education should not be dependent on income.I am truly proud of my State for the UC system.
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Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted February 17, 2014 07:10 PM
I am happy my friend is talking to Randall!------------------
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Ellynlvx
Moderator Posts: 6339
From: Mountain Gate
Registered: Aug 2013
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posted February 17, 2014 07:15 PM
That's a Good Thing, Ami.
Bless You Both.
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Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted February 17, 2014 07:23 PM
I wish I could help people like this. If I ever could, it would be my greatest joy, just to be able to give it to her!------------------
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Ellynlvx
Moderator Posts: 6339
From: Mountain Gate
Registered: Aug 2013
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posted February 17, 2014 07:45 PM
You just did.IP: Logged |
Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted February 17, 2014 07:50 PM
quote:
Originally posted by Ellynlvx:
You just did.
No, I mean have a foundation or something where I could bless people.
------------------
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Randall
Webmaster Posts: 38541
From: Saturn next to Charmainec
Registered: Apr 2009
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posted February 19, 2014 12:46 PM
You help people every day here.IP: Logged |
Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted February 19, 2014 02:01 PM
Aww thanks Randall. That really warmed my heart so much that I can't tell you  ------------------
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Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted March 18, 2014 09:15 AM
I talked to my client last night and she was very appreciative of your help. Thank you!------------------
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YoursTrulyAlways
Knowflake Posts: 6830
From:
Registered: Oct 2011
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posted March 18, 2014 10:58 AM
Ami,Tell her to refinance into a private loan. If she has home equity, even a second mortgage loan is way better than the crooks at Sallie Mae. I think even 18% credit cards are cheaper. That's why I appreciate Harvard so much. They have a pledge that no student (well, college level) graduates with debt. Any college student with any debt upon graduation walks into the financial aid office and the university calls up the parents and tortures them, and failing that pays it off completely. About 35% of students attend Harvard totally free, and almost 75% are on some sort of financial aid. I wish I could impart financial planning wisdom on those here, but they won't listen. Ellen, I attended UCLA for three quarters in 1984/1985, coinciding with the Summer Olympic Games. I lived in the San Fernando Valley. Yes, the UC System is great. IP: Logged |
Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted March 18, 2014 11:45 AM
She does not have a home, Ian. She rents. Thank you! What do you think if she has no equity?------------------
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YoursTrulyAlways
Knowflake Posts: 6830
From:
Registered: Oct 2011
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posted March 18, 2014 06:55 PM
She can still walk into a bank and take out a loan. Even a credit card provides better credit terms. Get her to pledge all tax refunds to paying down principal. Take up a collection among extended family. Pledge to tutor college students/ high school students on the weekends. Instead of contributing to the 401K now, reduce student loan principal first. I can assure you that capital gains is a fraction of interest cost. Use all interest paid as an itemized deduction against taxable income. IP: Logged |
YoursTrulyAlways
Knowflake Posts: 6830
From:
Registered: Oct 2011
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posted March 18, 2014 06:57 PM
Strategies deployed by Duke students aren't effective because porn acting isn't sustainable income. Haha. Just joking, Ami.  IP: Logged |
Ami Anne
Moderator Posts: 53352
From: Pluto/house next to NickiG
Registered: Sep 2010
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posted March 18, 2014 07:41 PM
quote:
Originally posted by YoursTrulyAlways:
Strategies deployed by Duke students aren't effective because porn acting isn't sustainable income. Haha. Just joking, Ami.
I read about that, Ian lol
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