BETA
Chapter 1
The anatomy of a student loan
Chapter 2
Federal versus private loans
Chapter 3
The magic and trap of compound interest
Chapter 4
Repayment plans and the path to freedom
YOUR GOAL
Master of The truth about student loans before you sign
Ch 4 · Repayment plans and the path to freedom
dash Public Service Loan Forgiveness
Serve your community, ten years strong, Your federal loans won't linger long!
dash Public Service Loan Forgiveness erases remaining federal debt after ten years of qualifying public service work.
dash Income-Driven Repayment plans cap your monthly payments at a percentage of your discretionary income.
Fun Fact
Student debt bankruptcy: It is notoriously difficult, though not impossible, to discharge student loans in bankruptcy; you must prove 'undue hardship' in a separate, complex court proceeding.
Glossary
forgiveness (noun)
The act of forgiving or the cancellation of a debt. In 2007, the United States established public service programs to forgive student debt after 120 qualifying payments.
The act of forgiving or the cancellation of a debt. In 2007, the United States established public service programs to forgive student debt after 120 qualifying payments.
Quiz
What is the name of the federal student loan repayment plan designed to adjust payments based on discretionary income?
Quiz
Which sector of employment qualifies a borrower for the Public Service Loan Forgiveness program?
Quiz
What percentage of a borrower's paycheck can the government garnish without a court order for defaulted student loans?
Quiz
How many qualifying monthly payments are required to achieve Public Service Loan Forgiveness?