While student loan borrowers have reaped the benefits of a federal student loan payment pause for the past three-and-a-half years, that forbearance period is coming to an end this October. That means borrowers are on the hook to once again make loan payments.
Indeed, if you think you’ll have trouble affording monthly student loan payments, LendingTree student loan repayment expert Michael Kitchen says: “Definitely consider joining an income-driven repayment plan if you’re not already on one. An IDR caps the amount you owe each month at a set percentage of your disposable income. And while these plans usually lengthen the term of your loan, whatever you still owe after that term is up will be forgiven,” says Kitchen.
Similarly, Teacher Loan Forgiveness plans offer up to $17,500 off for full-time teachers who complete five consecutive years of teaching in certain schools. To learn more about PSLF opportunities, visit StudentAid.gov’s PSLF page. Unfortunately, consolidating loans can also mean a lengthier loan term and paying more interest if you have any outstanding interest on the loans you consolidate. Some borrowers also lose certain benefits when consolidating, like rate discounts, principal rebates and loan cancellation benefits that may be associated with their current loan.
Tax-free benefits under an educational assistance program are limited to $5,250 per employee annually. Some employers that offer this perk include Google, Hulu, Live Nation, Penguin Random House, SoFi and Staples.