Articles Posted in Student loans

We are hearing numerous reports of  surprise billing by student loan servicers especially now that SAVE is no longer an option.  Or the checking account is being hit with a standard repayment amount rather than an IBR payment based upon someone’s income.  If f you have permitted auto billing in the past, you may be surprised by a charge out of the blue for an unexpected amount.

A tip to help avoid this situation is to set up a separate checking account to obtain the .25% auto pay deduction.  This will avoid a surprise payment and a cascade of NSF fees that could result.

Folks are reporting that they are being asked to make a large student loan payment – but they in in a long queue waiting for their Income Driven Plan (IDR) application to be processed.   This is happening because if a payment isn’t being made, the loan defaults to the Standard payment plan (which is usually very high).

You need to request administrative forbearance while the IDR application is pending.  It’s supposed to happen automatically, but often doesn’t.  Don’t wait until your credit score is hit to do this please!

Those with federal student loans have had a five year reprieve for collections on federal student debt.  We are seeing more delinquencies as people do not not realize they were due to make a payment and for those borrowers who cannot afford to make a payment now.

There may be relief (talk to us about your specific circumstances) but settlement is likely not an option for most.  The Department of Education has very strict limits on settlement of federal student loans:

1. 100% of current principal and interest (better credit reporting)

The IDR payment tracker was removed from many if not all borrower’s studentaid.gov sites today.

You can still find your payment count however.  Write your servicer directly for it or use this direct  link after you’ve logged onto StudentAid.gov:  https://studentaid.gov/app/api/nslds/payment-counter/summary​.

This link shows in a computer code format called JSON which you can’t read.  But if you copy it into an AI tool such as ChatGPT, Claude or any of the others, it can be translated into regular English.

We’re hearing a lot of people are finding out their student loans are delinquent – another today that received a 90 day late and had no idea they were out of deferment.

The dings to your credit are not small — we had a client recently who had four student loan accounts (not unusual at all) and the hit to his credit was 200 points.

You can imagine what a 200 point hit will do especially when it’s unexpected!