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Pslf

All articles tagged with #pslf

politics19 days ago•50 min saved

July's Federal Student-Loan Overhaul: RAP Debuts, Caps Tighten, PSLF Rules Shift

Starting July 1, the federal student-loan system undergoes a sweeping overhaul: a new Repayment Assistance Plan (RAP) will consolidate income-driven options with payments roughly 1%–10% of income and forgiveness after 30 years; the Biden-era SAVE plan ends, with about 7 million borrowers transitioning to new plans and many seeing higher monthly payments; legacy plans like PAYE and ICR will be phased out by 2028; new borrowing caps tighten Parent PLUS and Grad loans, Grad PLUS for new borrowers ends, and PSLF criteria are updated; there’s also a 1% auto-pay interest-rate reduction through 2028. Borrowers will receive 90-day notices and must act to choose a plan or risk automatic placement into a standard plan with fewer benefits.

via Yahoo|

#federal-student-loans #politics #pslf

education23 days ago•4 min saved

Auto-Pay Interest Cut Extends to 2028 as New Loan Plans Debut

The Education Department announced a 1% auto-pay interest reduction on federal Direct Loans starting July 1 and lasting through June 30, 2028, for borrowers who enroll by Sept 30, 2026 or are already enrolled. Two new repayment options, RAP and Tiered Standard, will launch July 1, 2026 to simplify payments: RAP uses income-based calculations with an on-time payment match to prevent interest accrual and maintain progress toward forgiveness, and the Tiered Standard plan offers fixed terms of 10–25 years. Auto pay remains the easiest way to access these benefits, with default borrowers required to consolidate and select a plan before enrolling. Details and enrollment steps are provided by the Department.

via U.S. Department of Education (.gov)|

#auto-pay #education #interest-rate-reduction

money1 month ago•235 min saved

Education Department Unveils Key Guidance Ahead of July Student-Loan Overhaul

The Education Department issued updated guidance ahead of July 1, 2026 changes to federal student loans, clarifying how the new Repayment Assistance Plan (RAP) interacts with existing IDR plans and PSLF. RAP is a new income-driven option; RAP payments generally won’t count toward forgiveness under IBR/ICR/PAYE when switching plans (with a specific exception), but RAP will count toward PSLF. Existing PSLF‑qualifying plans remain eligible, while new borrowers after July 1 will face only RAP or the Tiered Standard plan. For borrowers with pre‑2026 loans, auto-recertification continues until the post‑July 1 loan enters repayment, at which point all loans must be repaid under RAP or Tiered Standard. Additional changes include new borrowing limits with an interim exception for current students. Those taking new federal loans after July 1 will be treated as “new borrowers” and lose access to legacy repayment options.

via Forbes|

#education-department #idr #money

business1 month ago•4 min saved

July 1 Overhaul Restricts Repayment Options for New Federal Student Loans

Starting July 1, anyone taking on new federal student loans will be labeled a 'new borrower' and face only two repayment paths (RAP and Tiered Standard), effectively eliminating access to IBR and other plans for new debt; existing borrowers keep some options, while Parent PLUS loans after July 1 lose PSLF eligibility; unemployment or economic hardship deferments are phased out for new loans; consolidating after July 1 is treated as a new loan; borrowers should reassess borrowing, consider who takes out loans, and weigh private loans carefully.

via CNBC|

#business #consolidation #ibr

education6 months ago•5 min saved

Hundreds of Borrowers Grapple with Higher Payments as SAVE Ends and PSLF Uncertainty Looms

Business Insider gathered responses from more than 400 student-loan borrowers about repayment and relief experiences amid sweeping changes to federal programs, including the elimination of the SAVE plan, new repayment rules, and PSLF uncertainty. Many fear higher monthly bills, potential wage garnishments for defaults, and difficulty getting help from servicers, even as a subset reported forgiveness or progress toward forgiveness.

via Business Insider|

#debt-relief #education #pslf

finance3 years ago•5 min saved

Exploring Alternatives to Biden's Student Loan Forgiveness Plan Amid Uncertainty.

The Supreme Court is expected to rule on President Biden's student loan forgiveness plan soon, but borrowers still have other potential paths to loan forgiveness. The IDR Account Adjustment, a new income-driven repayment plan, and updated regulations governing other federal student loan forgiveness programs are among the initiatives that could provide relief to borrowers. The Public Service Loan Forgiveness program will also get easier, with new regulations easing some of the longstanding restrictive rules that blocked many borrowers from relief in the past.

via Forbes|

#biden-administration #finance #idr-account-adjustment