Student Loan Debt

asmullinax

LoanSafe Member
Jan 31, 2009
20
0
1
talking with Conserve about getting into a repayment plan to stop wage garnishment. They say I can get into a plan to stop it AND apply for hearing based on hardship...Can I do this?

Also, how about he ads for studentloanrelief.us. Are these and others for real? Or are they just "scams" doing something for you that you can do yourself....like the loan mod process. I am there and doing it!!
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
talking with Conserve about getting into a repayment plan to stop wage garnishment. They say I can get into a plan to stop it AND apply for hearing based on hardship...Can I do this?

Also, how about he ads for studentloanrelief.us. Are these and others for real? Or are they just "scams" doing something for you that you can do yourself....like the loan mod process. I am there and doing it!!
I would definitely consider entering a repayment plan on your student loan if you can't afford the monthly payments. Depending on what type of student loan you've acquired, you may be able to explore other options such as extending the term of the loan to lower the payments or if you have multiple loans, consolidation is always another viable solution. I would recommend attempting to negotiate on your own before considering hiring a company for their service. If you have a Federal student loan, there's also the Income-Based Repayment Program that may reduce your payments to 15 percent of your "discretionary" income. Using the income-based program, your monthly payments are



  • based on your income and family size;
  • adjusted each year, based on changes to your annual income and family size;
  • usually lower than they are under other plans;
  • never more than the 10-year standard repayment amount; and
  • made over a period of 25 years.
 

asmullinax

LoanSafe Member
Jan 31, 2009
20
0
1
I have been reading about Obama's plan. It states that they can take as little as 10% of discretionary income. I am married and file jointly.

Speaking of "discretionary" income. How is this calculated? Conserve is having me send the 1040 with adjusted gross to arrive at a payment. Not having me send in any expenses. They don't and won't know that our house payment is over half of my gross salary, under our current repayment plan (just made 3rd trial pmt and who knows when I will actually get the mod docs as BoA is "running behind" to see what our actual payment will be).

So are they looking at the IBR? Or something else?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Speaking of "discretionary" income. How is this calculated? Conserve is having me send the 1040 with adjusted gross to arrive at a payment. Not having me send in any expenses. They don't and won't know that our house payment is over half of my gross salary, under our current repayment plan (just made 3rd trial pmt and who knows when I will actually get the mod docs as BoA is "running behind" to see what our actual payment will be).
Discretionary income is calculated as the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence. You can apply for assistance directly through the Department of Education's website.

There's also the "Pay As you Earn Repayment Plan" in which your maximum monthly payments will be 10 percent of discretionary income. However, you must be a new borrower on or after October 2007, and must have received a disbursement of a Direct Loan on or after October 2011 - as well as show a partial financial hardship.

From the White House:

Will my eligibility change if I'm married? What if my spouse also has loans?

If you are married and file a joint federal tax return with your spouse, both your income and your spouse’s income are used to calculate your IBR monthly payment amount.


If you are married and you and your spouse file a joint federal tax return, and if your spouse also has IBR-eligible loans, your spouse’s eligible loan debt is combined with yours when determining whether you are eligible for IBR. If the combined monthly amount you and your spouse would pay under IBR is lower than the combined monthly amount you and your spouse are paying under a 10-year standard repayment plan, you and your spouse are eligible for IBR.