Student Loans: How to Lose Your Debt Without Losing Your Mind

Student Loans: How to Lose Your Debt Without Losing Your Mind June, 2016 By: Lynn Richards, Assistant Director Students Legal Assistance Special thanks to Cora Moy and Kelley Cook, Law Clerks Funded by the NIU Student Association Goals of Presentation

2 Choose an Income Driven Repayment Plan studentaid.ed.gov/repay-loans/understand/plans

3 Pay As You Earn (PAYE) aspe.hhs.gov/poverty/index.cfm 4 REPAYE

Revised Pay As You Earn (New as of Dec. 17, 2015) 5 REPAYE: Repayment Undergraduate

Loans Graduate Loans 6 Income-Based Repayment

(IBR) 7 Income-Contingent Repayment (ICR) 8

Annual Recertification for IBR, ICR, PAYE, and REPAYE Borrowers must submit yearly Updated Income Documentation Certify Family Size 60 Days Prior to Anniversary Date Loans serviced by the Department of Education can

use electronic application to recertify 9 Public Service Loan Forgiveness Qualifications

Qualifications: Must be employed full time (30 hours/week) in public service Must make 120 qualified payments These payments do not have to be consecutive, but must be separate, on-time, and full monthly payments Payments must be made under Income-Driven Repayment Plans Income Based Repayment (IBR)

Income Contingent Repayment (ICR) Pay As You Earn (PAYE) Revised Pay As You Earn (REPAYE) Cannot be in default

10 Public Service Loan Forgiveness Qualifying Employment www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check www.usa.gov/Agencies.shtml 11

Public Service Loan Forgiveness What is a Qualifying Payment? 12 You Should Know

www.studentloanborrowerassistance.org/start-here/federal-loans/consolidation-loans/ 13 Trusted Resources NIU Student Financial Aid www.niu.edu/fa/ Consumer Protection Bureau

www.consumerfinance.gov Federal Student Aid on the Web studentaid.ed.gov or studentloans.gov or nslds.ed.gov Student Loan Borrower Assistance www.studentloanborrowerassistance.org 14