How to Pause Your Student Loan Payments | Student Loan Forbearance's & Deferment's | Jason Spencer Dallas
How to Pause Your Student Loan Payments | Student Loan Forbearance's & Deferment's | Jason Spencer DallasJason Spencer Student Loan CBS Local News BBB Better Business Bureau Dallas BBB DFW
[caption id="attachment_561" align="alignnone" width="300"] Jason-Spencer-Dallas-Texas-Student-Loan-Relief[/caption]According to Jason Spencer Dallas, Students are burdened with student loan debt like never before. Americans owe over $1.4 trillion in student loan debt and the average graduate walks away with $37,172 in debt. Keeping up with your payments can be difficult, especially if you’re facing hardships like unemployment or a medical emergency.
If you’re in a tough spot, you have options you can use so you don’t default on your loans. If you have federal student loans, you can use deferment or forbearance to get through a rough patch. While using either option is not ideal, they can be a tool to help you get back on your feet according to Jason Spencer Dallas.
Student loan defermentStudent loan deferment is a federal repayment option that allows you to pause your student loan payments for up to three years. Depending on the type of loan you have, you may not be responsible for interest charges that accrue on your loan.
ProsIf you defer your student loans, you can stop making payments without entering default or damage your credit. That can free up money in your budget to pay for other demands, such as medical bills or rent. Having that breathing room can allow you to focus on getting your finances back on track.
If you have subsidized student loans, the government will pay interest that accrues while your debt is in deferment.
ConsIf your loans are unsubsidized, the government won’t cover the interest that accrues on your debt. That means your loan balance can grow while you’re in deferment and you can end up paying back thousands more in interest once deferment is over.
How to apply for student loan defermentTo be eligible for student loan deferment, you must meet one of the following criteria:
If you don’t qualify for student loan deferment for whatever reason, you might still be able to pause monthly payments through student loan forbearance.
Student loan forbearanceLike student loan deferment, you can postpone student loan payments or lower monthly payments via forbearance. If you qualify for forbearance, you can stop making payments for up to 12 months.
There are two types of forbearance: mandatory and discretionary.
With mandatory forbearance, the government requires loan servicers to grant you a forbearance if you meet one of the following criteria:
ProsIf you’re facing a short-term emergency, such as a job loss, forbearance can give you much-needed relief while you get back on track. By getting your payments reduced or eliminated for a short time, you can get your finances in order without falling behind on your loans.
ConsForbearance can be a useful option if you’re facing money problems, but there are some consequences to consider. Interest continues to accrue on your loans when you’re in forbearance and you’re responsible for paying that back, regardless of your loan type. That can add to the cost of your loans and make it harder to become debt-free.
However, forbearance is still a smarter option than not making payments and risking student loan default.
How to apply for forbearanceIf you’re applying for a discretionary forbearance, you must complete the General Forbearance Request Form and submit it to your lender.
For mandatory forbearance applications, you need to complete the form that matches your situation, such as the Student Loan Debt Burden Forbearance Form, Medical/Dental Residency Form, or AmeriCorps Service Form. Send the form with documentation to back up your claim to your loan servicer.
Before applying for deferment or forbearanceWhen you apply for deferment or forbearance, remember that you must keep making student loan payments until your loan servicer notifies you that they’ve accepted your request. Otherwise, you could become delinquent on your loans.
Even though deferment or forbearance can extend your repayment term and cause interest charges to build up, either option is preferable to entering into default. These two programs can provide much-needed relief if you’re facing a financial emergency.
For more information about federal loan repayment options, learn how to lower your payments with income-driven repayment plans.
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Student Loan Debt Impacted by New Legislation on Interest Rates | Jason Spencer Dallas
In recent weeks, U.S. legislators have been engaged in a heated discussion over the topic of student loan interest rates, which were expected to rise dramatically from a modest 3.4 percent to a whopping 6.8 percent. But President Barack Obama has signed a new bill into law which will drop those student loan interest rates to a more reasonable level --- 3.86 percent for undergraduate students according to Jason Spencer Dallas Texas.
President Obama's decision to sign off on the bipartisan bill, which was approved in the Senate with a 81-to-18 vote, comes as a relief to millions of students who are faced with repaying tens of thousands of dollars on their student loans according to Jason Spencer Dallas Texas.
The new 3.86 percent interest rate on federal undergrad student loans does reflect an increase from the prior rate of 3.4 percent, but it's certainly preferable to the measure that would have doubled the rate to 6.8 percent, costing students hundreds --- even thousands --- more over the course of their student loan repayment period.
Notably, under the new law, student loans obtained by graduate students are subject to a higher interest rate of 5.41 percent according to Jason Spencer Dallas Texas.
Federal student loans and the degree to which the federal government subsidizes these loans has been the subject of tremendous debate in recent months. This particular piece of legislation applies to loans issued on or after July 1, 2013.
This new law also includes a measure that implements variable interest rates on undergraduate and graduate Stafford Loans, with an interest rate cap set at 8.25 percent for undergrads and 9.5 percent for graduate students.
The Stafford loan interest rate will now be revisited on an annual basis using a precise formula that entails considering the rate on ten-year treasury notes, plus 2.05 percent for undergrads.
The formula for determining the graduate Stafford loans entails taking the rate for high-yield ten-year treasury notes and adding 3.6 percent to that figure.
While this new legislation means that student loans aren't as high as they may have otherwise been, they are still rising which comes as unwelcome news to millions who are struggling and seeking student loan relief according to Jason Spencer Dallas Texas.
Approximately 37 million Americans owe more than $1 trillion dollars in student debt, with the government holding $864 billion of that $1 trillion dollar debt figure. Now, consider the fact that the class of 2012 owes, on average, $25,350 in student loans. But the average starting salary for 2012 college graduates was $44,482. That equation makes it extremely difficult for recent college graduates who are faced with paying hundreds on student loan payments each month. It's a situation that's led many to seek student loan relief help.
It's important to remember that student loans cannot be discharged in a bankruptcy. This dates back to a 1976 Congressional decision, as legislatures believed that the ability to discharge student loan debt would result in a situation where graduates pursued bankruptcy as an alternative to paying their student loan debt.
In 2012, the U.S. Department of Education announced its Public Service Loan Forgiveness Program, which enables those who work full-time in a public service field such as teaching, social work and nursing to seek student loan forgiveness. But this loan forgiveness is only available to those who have made 120 on-time payments --- a feat that's difficult for those who are struggling to make ends meet. The PSLF program is only applicable to William D. Ford Federal Direct Loans. These guidelines mean that this federal student loan forgiveness program is only useful to a very limited segment of students.
There are now an array of student loan assistance programs available via private employers, which offers some relief to students who are in debt. Others may opt to seek help via student loan consolidation programs and privately-run student loan assistance programs.
Jason Spencer Dallas Texas
Jason Spencer Student Loan Fedloan New Borrower FAQ
New Student Loan Relief Borrower FAQ
About FedLoan Servicing
Who is FedLoan Servicing?
FedLoan Servicing was established by the Pennsylvania Higher Education Assistance Agency (PHEAA) to support theU.S. Department of Education's ability to service student loans owned by the federal government. FedLoan Servicing is one of a limited number of organizations approved by the U.S. Department of Education to service these loans and is dedicated to supporting borrowers with easy and convenient ways to manage their student loans.
What types of loans does FedLoan Servicing service?
FedLoan Servicing services two main types of federal loans, including:
About Federal Loans
How do I know what type of federal loan I have?
There are a couple of ways to find out if you have a FFELP (Federal Family Education Loan Program) Loan or a Direct Loan:
Regardless of whether you have a FFELP (Federal Family Education Loan Program) Loan or a Direct Loan, your responsibilities are the same:
I have federal loans with multiple servicers. Is it possible to transfer them to just one servicer?
Yes. Consolidation allows you to combine one or more existing eligible student loans into a single new loan, meaning you'll make only one monthly payment to one servicer. If you are interested in learning more about consolidation or want to apply for a Direct Consolidation Loan, visit the Federal Direct Consolidation Loans Information Center or call 1-800-557-7392.
What if I need more loan money?
The process of applying for a federal loan has not changed. You must complete the FAFSA® (Free Application for Federal Student Aid) and update it annually. Schools use the information from your FAFSA to determine your financial aid award.
If you have already filed a FAFSA but have questions on how to apply for additional loans, contact the financial aid office at your school.
If You Have Transferred Loans
Does the loan transfer affect all of my current student loans?
Not necessarily. FedLoan Servicing will notify you of the loans we are now servicing. To get additional details about your loans with FedLoan Servicing, create an online account and sign in to Account Access.
Please continue to make all payments for loans that remain with your previous servicer. If you are no longer certain who services your loans, visit the National Student Loan Data System at NSLDS.ed.gov for a complete list of your FFELP (Federal Family Education Loan Program) Loans and Direct Loans and their servicers. You will need your federal ID to access this information.
I already have an online account with FedLoan Servicing. Do I need to create a new one?
No. Your transferred loans roll under the same account number.
However, if you do not have an account with FedLoan Servicing, you must create one through Account Access. Creating an online account takes only a few minutes and gives you access to a suite of online tools to easily manage your loan.
Will my account number remain the same?
No. If you have a Stafford Loan (subsidized or unsubsidized), you get a 6-month grace period that begins the day after you graduate, leave school, or drop below half-time status and ends the day before your repayment period begins.
Will my monthly payments change?
It's possible there could be a change in your monthly payment amount.
If your new payment amount is not affordable, FedLoan Servicing offers several payment plan options. Sign in to Account Access to see your monthly payment amount and explore the options available for lowering or postponing your payments.
Will my due date change?
Your due date may change. You can find your due date on your monthly billing statement or online. If the new due date is not convenient, or if it makes it difficult for you to make your payments, we can work with you to change it.
Learn more about changing your due date.
Can I make online payments, schedule payments in advance, and manage my loan as I did before?
Yes. FedLoan Servicing's Account Access allows you to make online payments from the bank account of your choice, schedule payments up to 60 days in advance, view details for your loan, plus much more.
You will need an online account to access these features. Sign up today.
I signed up for Paperless Billing with my previous servicer. Do I need to re-apply with FedLoan Servicing?
Yes. You need to enroll in Paperless Billing (eBilling) with FedLoan Servicing if you have not done so already.
To take advantage of this service, you must create an online account through Account Access. Then simply sign in to Account Access and indicate your paperless preferences under your Account Profile.
I applied for a deferment/forbearance with my previous servicer. Do I need to re-apply with FedLoan Servicing?
I just sent a payment to my previous servicer. What should I do?
Do nothing. Your previous servicer will forward any payments and/or correspondence to FedLoan Servicing for a brief period of time after the transfer of a loan.
Do I need to do anything if I was using a bill payer service with my previous servicer?
Yes. Make sure your bill payer service knows that FedLoan Servicing is now the recipient of all future payments.
Will my FedLoan Servicing 1098-E Student Loan Interest Statement include the interest for all of the payments I made this year?
No. The 1098-E Student Loan Interest Statement from FedLoan Servicing applies only to the time period after the transfer of your loan. In most cases, you should receive separate notification of your tax information for loans serviced by your previous servicer. If you have additional questions, please contact us at 1-800-699-2908.
I am still in school. How does the loan transfer affect me?
As long as you maintain at least half-time enrollment at an approved school, the status of your loan remains unchanged.
My co-maker/endorser had access to my account with my old servicer. Will he or she still have access to my loans?
Co-makers and endorsers continue to have access to the loans on which they are an endorser or co-maker. They are assigned a unique 10-digit account number for safety and security purposes.
If You Have Direct Loans
What kind of fees do Direct Loans have?
The U.S. Department of Education charges an origination fee when you borrow a Direct Loan. The U.S. Department of Education deducts this fee from your loan disbursement.
The origination fee is:
Please contact the financial aid office at your school for details. Your school must follow federal guidelines when determining the types of loans and loan amounts for which you are eligible.
Am I eligible to receive a refund if there is money remaining from my loan disbursement after my tuition has been paid?
Please contact the financial aid office at your school to discuss refund eligibility. FedLoan Servicing does not determine eligibility for loan disbursement refunds.
When will I receive my loan refund check?
Please contact the financial aid office at your school to discuss refund checks. FedLoan Servicing is not involved with the refund check process.
When will my school receive my next disbursement?
Please contact the financial aid office at your school to request your disbursement dates. Loan money is disbursed to schools in accordance with federal guidelines.
Do I need to pay interest on my loan while in school?
It depends on what type of loan you have:
The loss of subsidy would continue through periods of enrollment and any grace or deferment periods according to Jason Spencer Student Loan.
Do Direct Loans have different repayment options than FFELP Loans do?
Direct Loans have the same repayment options as FFELP (Federal Family Education Loan Program) Loans, with two exceptions:
What kind of incentives do Direct Loans offer?
If you borrow a Direct Loan, you receive an up-front interest rebate of:
In addition to this rebate, you are eligible for an interest discount of 0.25% for using Direct Debit, our automated payment service, to repay your Direct Loans according to Jason Spencer.
Whom do I contact if I have questions about my Direct Loan?
Contact FedLoan Servicing by U.S. Mail, email, fax, or phone.
Jason Spencer Student Loan
Student Loan Relief 1910 Pacific Avenue Suite 1100, Dallas, Texas 75201 855-693-3356