This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wipe Out Student Loan Debt With This Trick

3.) Any student loan won't do

The type of student loan will also determine whether or not it qualifies for loan forgiveness under the PSLF program. According to the Department of Education, only loans made under the Direct Loan Program - William D. Ford Federal Direct Loan - will qualify. Therefore loans made under the Federal Perkins Loan (FPL) and Federal Family Education Program (FFEL) will not qualify.

However, there is a work-around. Borrowers can consolidate these loans into the Direct Loan program to take advantage of the PSLF program. But keep mind, you should do your homework or speak with a financial advisor to determine whether consolidating will make sense for your unique financial situation.

4.) Do the math

Since the program allows for forgiveness after ten years, you should consider doing the math first. Selecting the best payment plan is essential. Obviously, if the borrower is repaying the loans subject to a ten-year standard repayment plan, subsequently there will be no remaining balances to be forgiven. However, other payment plans may extend payment terms. Although these plans allow for lower payments, they can also have higher accrued interest payments.

Again, take time to understand what payment plan works best for you. Also, get an understanding of the pros and cons of each payment plan. Most importantly, understand while this program may be a good fit for some it may not be the best fit for all.

For more information and to determine if you qualify, visit the Federal Student Aid website.

Remember: your choice, your future.

--Written for MainStreet by Kemberley Washington, a certified public accountant and professor. Follow her on Twitter or connect with her on Facebook.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%
YHOO $43.48 -0.44%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs