Student Loan Options
PSLF
About Public Service Loan Forgiveness
- The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
Qualifying for PSLF
-To qualify for PSLF, you must
be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization (federal service includes U.S. military service);
work full-time for that agency or organization;
have Direct Loans (or consolidate other federal student loans into a Direct Loan);
repay your loans under an income-driven repayment plan; and
make 120 qualifying payments.
Qualifying Employer
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Qualifying employment for the PSLF Program isn’t about the specific job that you do for your employer. Instead, it’s about who your employer is. Employment with the following types of organizations qualifies for PSLF:
Government organizations at any level (U.S. federal, state, local, or tribal) – this includes the U.S. military
Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the PSLF Program.
The following types of employers do not qualify for PSLF:
Labor unions
Partisan political organizations
For-profit organizations, including for-profit government contractors
Private Loan Refinancing
About Refinancing 2 Types of Student Loans
- Student loan refinancing means swapping your current student loans for a new loan with a lower interest rate. That could save you big money over time.
Whether you should refinance student loans depends on your situation. You should refinance your student loans if:
Your finances are rock solid. If you refinance federal loans, they won’t be eligible for benefits like loan forgiveness and student loan relief related to the coronavirus pandemic. Think twice if it's possible you won't be able to make payments consistently.
You would save money. There is no reason to refinance your loans unless you end up paying less in interest. Use the student loan refinancing calculator below to find out how much you could save.
You can qualify. You generally need a credit score at least in the high 600s and enough income to consistently pay your debts and other expenses. If you don't mind those criteria, you could refinance with a co-signer who does.
How much will refinancing save?
- You can potentially save tens of thousands of dollars throughout the life of your loan by refinancing. There are three main benefits to refinancing student loans:
1.You can get a lower monthly payment, freeing up cash for other expenses.
2.You can pay off your loan faster, saving you money in interest.
- A lower monthly payment decreases your debt-to-income ratio, which can make it easier to qualify for a mortgage.
Unlike refinancing a mortgage, refinancing student loans doesn’t cost money. There are generally no origination, application or prepayment fees. But read your loan agreement carefully to make sure you understand costs you could incur in the future, like late fees.
- If you decide to refinance student loans, compare multiple lenders to see which offers you the best rate. If you have similar offers, give greater weight to lenders that offer the most flexibility with payments and the longest possible forbearance options. Consider which offers the best student loan refinance bonus as well.