Public-service loan forgiveness for college loans: How it works and why some borrowers are missing out
Employees of a U.S. federal, state, local or tribal government or nonprofit organization can be eligible for public-service student loans. Shown, the campus of UCLA on Dec. 3. Photo: Image Of Sport/Zuma Press By Cheryl Winokur Munk Updated Jan. 9, 2021 9:00 am ET
Many student-loan borrowers are confused by the basic requirements of federal Public Service Loan Forgiveness, which could lead to missed opportunity.
The program, established by statute in 2007, has gotten a bad rap because of its complexities and because many student-loan borrowers thought they were on the path to forgiveness but weren’t. Instead, they learned, years later, that their payments didn’t qualify or that they were further away from forgiveness than they had thought.
Think Twice Before Refinancing a Student Loan
Federal student loans carry benefits that will disappear if the borrower refinances with a private lender More than 43 million Americans owe a collective $1.6 trillion in federal student loans. WSJ’s Josh Mitchell explains how President-elect Joe Biden plans to help borrowers tackle that debt. Photo illustration: Carlos Waters By Cheryl Winokur Munk Updated Jan. 9, 2021 9:00 am ET
Low rates are causing many people to consider refinancing mortgage and other debt. But one type of debt you shouldn’t touch right now is federal student loans.
Refinancing a student loan could help borrowers lower their monthly interest rate, decrease their monthly payment and pay off their loans faster. However, borrowers who refinance a federal student loan with a private lender lose out on consumer protection and repayment programs that federal loans offer, including income-driven repayment and loan forgi
That dream is slipping away.
Photo: John Shute III
Derek Wood, guitarist and vocalist for The Going Jessies, a band based near Little Rock, Arkansas, and Angela Paradis, bassist and vocalist.
In fact, chasing it triggered a long battle to collect jobless benefits, records show. Wood isn t any closer to securing the funds despite what appears to be a strong case in his favor, unemployment experts said, and after a rabbit hole of appeals.
Meanwhile, Paradis, who plays bass and sings backup vocals, is also unemployed. Years of savings is gone, diverted to everyday living costs.
If unemployment funds don t arrive to replenish savings, a music career will likely no longer be feasible.